How millennials, aging boomers are changing the mall scene
'People [are] spending more money on experience and services'
As more shoppers flock online, malls are being forced to find new ways to appeal to consumers.
While some are worried about the death of retail, the International Council of Shopping Centers CEO Tom McGee explained how shopping centers are evolving to meet consumer needs.
“Ninety percent of all sales still happen in a physical store,” McGee said on FOX Business' "Mornings with Maria" and he added that malls are expanding beyond solely retail, by adding more dining and entertainment options.
“People [are] spending more money on experience and services, particularly millennials and aging baby boomers,” he said.
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McGee also responded to analysts who say we may see online retail overtake stores in the near future. McGee believes over the next decade, “you're going to see a tremendous amount of convergence between the physical and digital worlds.”
“I think this concept of ‘online versus physical,’ in some ways, is becoming dated.”
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He pointed to Target and Walmart as two major brands successfully repositioning themselves to be relevant in a digital world.
"Even Amazon, the world's largest digital retailer, is now investing in a store network, in building up physical stores,” he said.
“I do believe that the store will always be the center of the shopping experience because people are social beings.”
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Despite there being six fewer shopping days between Thanksgiving and Christmas this year, McGee still expects a strong holiday season. The International Council of Shopping Centers is forecasting a 4.9 percent increase in holiday spending compared to 2018.
“Shopping centers are a place that's part of the holiday tradition,” he said. “People go to obviously purchase goods. They also go to get in the holiday mood.”
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