Shopping Centers: Post Covid-19 Opportunities

Designing or adapting properties to be of mixed use, offering more entertainment options and mixing in an adequate way the type of tenants to whom the premises will be rented, are strategies that could give a new boost to shopping centers.

Thursday, January 7, 2021

The pandemic drove consumers away from shopping centers, as government home quarantines in the region, the rise of e-commerce, and bans on people from visiting these facilities significantly affected mall operations.

You may be interested in "Shopping Centers: New Normal, New Strategies"

With the reopening of the economy, consumers have returned to shopping malls, however, the number of visitors is still not as desired and according to the managers of these establishments, it must be innovated so that in a post-pandemic future, they can take advantage of the opportunities.

In the case of Costa Rica, there was already an alert about the increase in the rate of unemployment of the premises since before the beginning of the pandemic. In mid 2019, CentralAmericaData reported that in the last year the unemployment rate of commercial premises in the Costa Rican market had increased, a behavior that was partly explained by the economic situation of the country and by changes in consumer preferences.

In order to face the new challenges that the post-pandemic era will bring, in which consumer preferences will vary and the new commercial reality will be consolidated, specialists in the subject divulge some strategies to boost the income of shopping centers.

Danny Quiros, director of Market Research of the Newmark firm, told that "... the mixed use of the projects seems to be successful: more closed consumption centers that combine offices, stores, lodging and housing, but in formats smaller than a mall."

According to the specialist, for years the concept of the mall has been migrating from a place exclusively for stores, to a space with more entertainment and socialization options.

Quiros added that "... there was a bad planning of the mix of tenants. It's an excellent opportunity to rethink and make a proper tenant mix', according to the type of mall."

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need to analyze the environment of a shopping center? Contact Us

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

Shopping Centers: Unemployment Rate Concerns

September 2020

As a result of the crisis, in Costa Rica in June of this year the rate of availability of premises in shopping centers climbed to 11.8%, a proportion of concern because a healthy level should not exceed 10%.

The phenomenon, which is not new in the country, has worsened in the context of the covid-19 outbreak, since in mid 2019 it was reported that in the last year the unemployment of commercial premises in Costa Rica was on the rise, a behavior that was explained in part by the country's economic situation and by changes in consumer preferences.

Shopping Centers: Low Optimism for Reactivation

August 2020

As of August 17, Panamanian shopping centers will reactivate their operations, but only through online sales and consumers will only be able to withdraw their products, a modality that does not generate enough income to cover the costs of the shops.

Due to the covid-19 outbreak, the Panamanian government has postponed on several occasions the reactivation of productive activities in the country, but after the Cabinet Council and the health advisory teams made an analysis of the current situation, the authorities decided to reopen the premises dedicated to retail trade.

Shopping Malls: Massive Closing of Stores

July 2020

It is estimated that in Costa Rica at least 40% of the premises located in shopping malls have been forced to close permanently due to the restrictions imposed by the covid-19 outbreak.

The phenomenon is not new, since in mid-2019 it was reported that in the last year the unemployment of commercial premises in Costa Rica was on the rise, a behavior that was partly explained by the economic situation of the country and by changes in consumer preferences.

Retail: Challenges of the On-Site Experience

July 2020

Given the gradual return to physical stores, customers will appreciate it if businesses disinfect stores several times a day, if other visitors are required to clean their hands before entering, and if employees use protective equipment at all times.

Although in this context of the spread of covid-19, digital channels have gained ground in Central American markets and this trend is expected to continue in the coming months and years, there are commercial establishments that will have to adjust their face-to-face sales strategy to the demands of the new normality, since there will always be customers who prefer to continue shopping in person.