Shopping malls in South Africa have remained one of the best consumers’ main shopping choices despite the boom in e-commerce during and after the Covid-19 pandemic.
This was made known by the CEO of Cash Connect, Steven Heilbron, who gave some key trends in play as South African retail emerges from the pandemic.
According to him, Mall owners report that consumers are now heading back to the malls, perhaps not surprising given that malls offer a safe, sheltered environment in a country with high crime levels.
He added that persistent load shedding gives consumers a reason to head to malls with generators, hot food, and working Wi-Fi. There is a surge in mall construction underway, with more than 300,000 square metres of new leasable retail space set to be completed across the country this year.
Heilbron noted that some of the important trends are high fuel prices which means that consumers are driving less or going to destinations that are closer to their homes which means it’s key to take advantage of each contact with the customer and grow basket size. Secondly, when customers head to malls, they want to make a day of it. Retailers should offer value-adds like dining, shopper-tainment, and experiences to entice customers to spend more time and money with them.
Many members of Generations Alpha and Z are influencing what their parents spend their money on and coming of age as shoppers in their rights as they are concerned about environmental and social justice, putting inclusivity, diversity, and sustainability at the top of their list of demands. They were also born into a world where smartphones and the Internet are taken for granted.
“Retailers should pay attention to what makes these shoppers of the future tick. Many of them reject consumerism in favour of experiences; at the same time, their tastes and preferences are creating exciting new markets.” He said.
According to him, there are new and exciting product categories opening in the next generation including cannabis oil, vegan meat substitutes, beauty products for diverse skin tones, and gender-neutral clothing.
After the pandemic, retailers face the expectation of flexible purchasing, fulfillment, and customer service experiences. Customers are looking for what Flux calls ‘physical’ experiences that bridge the gap between online and offline to deliver an integrated, unique experience. A simple example is entering an in-store competition by scanning a QR code from your smartphone.
Physical and e-commerce retailers alike can also incorporate live streaming to engage customers wherever they are. Short video formats and platforms such as Instastories and TikTok are also powerful tools. The goal should be to be present wherever consumers browse, transact, acquire and consume—from a range of delivery choices to buying online-pickup in-store, curbside pickup, and in-store shopping.
“In a rapidly changing world, where shopping channels, technology, and consumer preferences are constantly changing, the most agile retailers can carve out real differentiation and grow market share,” says Heilbron.