Impact of COVID-19 on Shopping Malls: New Restrictions In Pace
Picture of Westfield Direct Click & Collect Service
The new normal as malls reopen around the world does not look like normal at all. There are temperature checks, masks and in certain places fitting rooms are no longer available for use. This is all taking place with the highest levels of caution to ensure that as economies reopen the pandemic is at bay.
But the delicate balance between keeping everyone safe and restarting the economy has tipped in the direction of safety. This is the right way to go. But with that in mind we shouldn’t expect retail spending to bounce back in the short term. Shopping, especially in malls is a highly social activity. On a typical Saturday afternoon at a mall you will see groups of people congregating in the food courts or walking together along expansive corridors.
With so many new restrictions in place, shopping in a mall feels rather transactional now. Gone is the browsing, the laughter among friends, the fun part of why we still shop at malls. This social or fun element is one of the reasons why under normal circumstances retail overwhelmingly still takes place in brick and mortar stores.
All of the new restrictions are in place for the right reasons but they will give shoppers an eerie feeling that things aren’t quite right yet. If you are curious about what’s in store at a mall near you here are four examples of changes taking place in malls in different parts of the world to ensure shoppers are safe during the COVID-19 crisis.
1. Westfield - Australia
In an attempt to provide a safe shopping environment mall operator Westfield launched Westfield Direct on April 25, 2020. Westfield Direct is a contactless click and collect service. If you would like to make a purchase from a retailer located in one of Westfield’s Living Centres in Australia simply place an order online with one of several participating retailers. Then select what time you would like to pick up your order.
After your order is placed Westfield assembles all of your orders into a single transaction thereby allowing customers to receive orders from multiple retailers at one time. To receive your order, Westfield has set up a “drive-thru” in the mall parking lot where employees place your order inside of your car. This allows you to stay inside of your car, so that you don’t have to come in contact with other people. To get started with the service customers simply go to: direct.westfield.com.au. You can see a video demonstration of the service here.
2. Simon Properties – United States
Mall operator Simon Property Group, is also taking precautions to keep customers safe as it reopens its malls and outlet centres in the United States starting on May 1, 2020. The new normal within Simon Properties will include free temperature testing as well as providing hand sanitizing packs to all customers that ask for them.
For now crowded food courts are a thing of the past. Instead food courts will have limited seating and popular gathering areas like fountains and children’s play areas will remain closed. Tape will be placed over every other sink and urinal in washrooms to promote social distancing. Overall mall traffic will be reduced to one person per 50 square feet in an effort to reduce population density in the mall.
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3. NorthPark Centre – United States
NorthPark Centre is a mall in Dallas that started operating under a “Retail to Go” model on April 24, 2020. If you want to order from one of the retailers in the mall you have to either call the retailer or order online. Once your order is made it must be paid for before it can be picked up. Once payment has been made there are four specially designated areas from which customers pick up their purchases. Customers must remain in their vehicles at all times.
“The directive for Retail to Go came just a few days ago, so brands are working on processes to be able to operate within the new guidelines. We anticipate more stores will come on board soon” said Kristen Gibbins, Executive Director of Marketing and Strategy for NorthPark Centre. Initially when the service became available only 16 retailers were participating but now close to 40 retailers have signed on with retailers such as Anthropologie, Coach and Free People joining soon.
4. Dubai malls
In Dubai malls started to reopen earlier this week. Similar to malls in other parts of the world there are restrictions on density. The mall of itself, as well as restaurants and stores can only operate at a maximum capacity of 30%. And for those that make it inside, temperatures must be checked and hands sanitized. Masks must also be worn and if a shopper is non-compliant they are fined. Social distancing must be maintained and say goodbye to mall rats, shoppers are only allowed to stay inside of a mall in Dubai for a maximum of three hours.
As studies have shown the coronavirus can live on surfaces. To reduce the risk of transmitting the virus to others while inside of change rooms, change rooms in Dubai malls are closed, off limits to the public. If you are shopping in a mall in Dubai then make sure you are extra careful with what you ultimately buy since for now, no returns or exchanges of merchandise are allowed unless there is a defect. That will make shopping for items like clothing stressful if you can’t try anything on in advance or return the item at a later date. With an abundance of caution, children between the ages of 3 and 12 and people over the age of 60 cannot enter shopping malls in Dubai.
Dubai is known for its elaborate malls that feature entertainment venues like ski parks. Those venues such as Ski Dubai which is attached to the Mall of the Emirates are still closed. Dubai has also directed its citizens to only go to the mall if absolutely necessary.
Although great caution is being taken it will take some time before consumers feel comfortable retuning to malls. In an interview with CNBC, Simon Moore, CEO of behavioral science consultancy Innovation Bubble, said consumers will be looking for “social proof”, seeing that many people are out shopping to inform them if it is the right for them to be out also. Especially in times of uncertainty human beings rely on their instincts. The section of the brain that deals with rational data like numbers and facts is approximately 25% the size of the brain that deals with our emotions. "We're much more non-conscious, emotional creatures than what we give ourselves credit for," Moore said. We make 95% our decisions subconsciously.
A recent survey by First Insight confirms that consumers are hesitant to return to malls. The survey found that only 33% of consumers felt “safe” or “very safe” shopping in malls. 54% of consumers surveyed feel “safe or “very safe” shopping at grocery stores. Consumers may feel more comfortable shopping in grocery stores since many people continued to safely shop at grocery stores during the pandemic. Those routine shopping trips throughout the crisis have given some consumers a greater sense of security with grocery shopping.
Germany, which began to loosen its lockdown restrictions last week provides insight into what foot traffic levels might be like in other parts of the world as cities reopen. In Mannheim a city south west Germany, foot traffic is only at 56% of normal levels. But in Munich where there were many more coronavirus infections relative to other parts of Germany traffic is only at 13% of normal levels. This highlights another point of caution, the harder a city was hit by the coronavirus the longer it will take for people to feel comfortable conducting activities like shopping at the mall.