High Street Retail: Why it’s better than a shop in a Mall
Unsurprisingly, high-street retail stores have become the new kings of town. A visible shift has occurred as shoppers are more inclined to shop at high-street retailers than traditional shopping malls.
This preference for dynamism can also be attributed to the coronavirus lockdown that strained relations between mall owners and retailers and their inability to pay fixed costs before their due dates.
This blog will help you to understand the reasons behind this shift in preference. These are why high-street retail outlets have become more popular than regular shopping centers.
1. Higher ROIs
Retailers look for a high return on their investments when they open a store after making a lump-sum investment. Independent retail stores offer better returns than those in malls.
2. Smoother Omni-Channel Retailing
Omnichannel retailing is a powerful marketing method, especially when attracting customers and creating a funnel customer strategy. Entrepreneurs must convince customers to buy products. Establishing a relationship with customers is an excellent way to master omnichannel retailing. This is common in high-street retailers. Contrary to this, convincing customers to come into your store and buy a product can be challenging.
3. Higher Average Sales
High average sales are what retailers seek when opening a store. High-street retail stores have higher average sales than malls. This is because consumers anticipate a purchase before entering the retail store. In contrast, malls entice a more shopping-cum-strolling incident, Where no accurate purchase on behalf of the customers can be guaranteed.
4. A safer option
People are now more afraid of crowds because of the coronavirus. Because malls are a joint venture, they naturally have large groups that aren’t favorable for corona. High-street retail stores have fewer people and are safer for protecting oneself against infection.
5. A profitable venture for single brands in small cities
It is important to remember that high street retail stores can only be opened in some places. These brands are more likely to lose money than make a profit in big cities due to high rents and low returns. These brands are located in major cities such as Delhi and Mumbai, where mall life is preferred. The monthly rent is higher than the cash inflow.
This is why single-brand restaurant owners are more successful than restaurants in smaller cities with comparatively low rents.
High-street retail stores are now the norm. Big brands are shifting from connecting with customers to building a loyal customer base. Biba stores now account for around 60% of high-street retail outlets. For more information, please get in touch with us.
