reinvention of the shopping centre. evolution or revolution?

Reinvention of the Shopping Centre.Evolution or Revolution?

There are so many factors that influence how we spend our time and money; the present climate has set in motion a series of factors that have created the perfect storm.

More retailers are closing than opening, the food and beverage industry has gorged itself on the traditional high street to the point of over-indulgence, established chains are starting to re-evaluate and rationalise their network, customers are becoming increasingly segmented and the need for a personalised ‘experience’ is now, higher than ever.

This has impacted landlords who are losing retailers with no replacement, and losing customers who are looking elsewhere for their shopping needs.

Shopping centers need to offer something physical that is interesting and compelling; otherwise we can do it all online.

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Every part of our lives has been transformed, the way we live, the way we work and the way we shop bear no resemblance to what our parents experienced just one generation ago.

Remember trying to force a two pence piece into the phone in the old red boxes? That was only 25 years ago. If you find the same old phone box today it will be crammed with new technology allowing direct interaction with president Trump. Alternatively it will be in your neighbor’s garden crammed full of geraniums. (probably preferable).

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Ask a teenager to call the lift and they will press the call button with their thumb. Kids going to school for the first time are seeing real books and trying to turn the pages from right to left. Every part of our daily lives has been influenced in some way by the emergence of new technologies and a massive increase in our spending power per capita across the developed World.

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The industry is in transition; the evolution in the way we live and work has arguably seen even bigger changes in the way we shop. Retail reflects society and we are a society in the midst of a technological revolution.

If an A rated mall starts to fail by implication they will lose their rating which will ultimately have a massive effect on the mall industry with C and D grade malls destined for closure.

The challenge is how to embrace e commerce whilst reimagining and re-purposing the shopping centres of the past to be relevant in today’s marketplace and beyond. Whether that is about convenience, utilising surrounding space to work harder, improving the quality of the space and tenants, expanding upwards to maximise potential, understanding the customer focus or by looking to provide an experience by introducing other uses over and above the typical. Is there an opportunity for community space, hotels, residential use, theatres, pop-ups or other innovations?

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As we enter the third decade of the 21st century, landlords need to listen to their audience, look at the data and predict shifts within the market and their underlying cause to effectively plan and survive.

Reinvention of the Shopping Centre. Evolution or Revolution? IDL© 2018

There is a need to look beyond the perceived capabilities of the Shopping Centre and to explore the true potential of the physical built environment. What is the true potential of the entire site?

Westfield have recently commissioned IDL to develop a 2000 seat theatre at their site, a former bus depot, as they strive to re-purpose and re-vitalise the shopping centre experience, what better way to increase footfall and gain greater reach than to build the best concert venue in London.


The future of malls could include walkways powered by AI, retina-recognition purchasing and restrooms that offer health diagnosis. When consumers visit retail spaces, they increasingly expect engaging, frictionless experiences. Last week, the Westfield global shopping centre showed off its vision for the future of retail, presenting its Destination 2028 concept. The proposal describes the future mall as a “hyper-connected micro-city” which will go way beyond shopping to incorporate wellness enhancement and community involvement.

Westfield 2028 offers interior features such as sensory gardens and waterways, as well as spaces for wellness workshops and even toilets that can diagnose hydration and vitamin levels. The concept was developed after internal research highlighted consumers’ growing interest in health and wellness.

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49% of millennia’s would be interested in stores that offer seminars on various topics, while more than half say a spa or gym would make them more likely to visit a retail destination.Innovation Group

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This is aligned with research from the Innovation Group’s 2017 “Transcendent Retail” report, which similarly identified an appetite for wellness-driven features—49% of millennia’s would be interested in stores that offer seminars on various topics, while more than half say a spa or gym would make them more likely to visit a retail destination.

Frictionless shopping experiences will also lead to a less stressful environment for future shoppers. Technological advances like eye scanners that can inform stores about shoppers’ previous purchases or their wish lists are underpinning the entire centre. The walkways throughout the complex will be powered by artificial intelligence, which will recommend personalised fast lanes tailored to individual customers. According to our research, around three-quarters of shoppers find it annoying waiting in line to pay, pointing to a strong appetite for more seamless store visits.

While Westfield 2028 is still at the conceptual stage, many retailers are already incorporating elements of wellness and community into their new high-tech stores. In May 2018, Saks opened a new beauty floor at its Fifth Avenue flagship complete with branded spas for Chanel and Dior, as well as an 850-square-foot event space for talks related to wellness and beauty, tapping into consumers’ desire to learn while they shop.

As headlines continue to announce the closure of more retail stores, recently including House of Fraser considered a longest-established department store; retailers need to get on top of physical store fatigue by building innovation and technology into the forefront of its future. The shopping experience projected for 10 years from now offers convenience, a sense of calm and a wholly engaging experience.

We think that there are opportunities and quick wins for landlords to seek better interaction with public transport operatives, create immediacy and fast changing experiences through pop ups, associations, plug- in services, interaction, convenience and experiential retail as well as using social media to keep connected with their audience who share their experiences. Using apps to offer interactive maps, guide customers to the latest deals, available car parking spaces or to target hyper personalised promotional offers are all part of customer expectation.


As headlines continue to announce the closure of more retail stores, recently including House of Fraser considered a longest-established department store; retailers need to get on top of physical store fatigue by building innovation and technology into the forefront of its future. The shopping experience projected for 10 years from now offers convenience, a sense of calm and a wholly engaging experience.


Tech companies envisage sending special offers to people real time as they walk past a retailer, produced by analysing the person’s social media activity and profile.

Online sales and direct delivery have reflected massive growth as consumers adopt shopping via mobile. Online retail sales have increased over the years from £33.24 bn 2012 to approximately £60.43 bn in 2016 and exceeded £67 bn in 2017 (statista.com).

Agile companies such as Amazon and H&M consistently respond to consumer trends and demand for their products and have flourished, leaving some traditional high street retailers struggling to keep up.

Changing consumer habits and the growth of online retailing has driven huge demand for warehouse space in urban areas in the last few years.


Interestingly these online retailers and third-party logistics companies are “vying for urban logistics space in an environment where industrial land is being lost to residential use. Land has become too expensive for many logistics schemes because of the demand for sites for new homes.

Urban logistics space is in such short supply that developers could turn retail parks into warehouses, as residential schemes gobble up other available sites.

A report from Deutsche Bank said such is the demand for land that traditional retail parks and shopping centre locations could re-purpose available space for warehouses for online giants such as Amazon and delivery companies such as DHL which take parcels to customers.

Demand for "last hour" logistics sites was likely to grow, especially in more regional centres, as people demand faster delivery times for their goods.

Turning retail parks and under used parts of shopping centres into warehouses could have the added benefit of taking space from high street brands such as furniture shops which are looking to reduce their store sizes.


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Brick-and-mortar stores will exist in the future but there will be fewer of them... A new model of delivering not only products, but also genuine brand experiences is emerging.

Under-utilised retail assets such as certain shopping centres, retail parks, business parks, supermarket premises, inner city office space and car parks could potentially be used for the storage and distribution of goods to proximate companies particularly as industrial space within city limits becomes increasingly constrained.

Some centres have been repurposed in other ways such as pure leisure destinations such as the Corn Exchange in Manchester, which has been transformed into a dining destination.

How can retailers adapt to changing consumer behaviors in today’s marketplace and what are the factors affecting this change?

Traditional store formats may be on the decline, but stores offering innovative shopping experiences will continue to emerge.

In order for retailers to thrive and have long lives it is important they offer consumer experiences to attract shoppers. As data shows, with an increasing number of consumers shopping online, retailers need to offer more seamless brand experiences across all touch points, whether online or offline.


Shopping Centres offer a variety of services to customers, they can be seen as a hybrid of hospitality, retail and exhibition design mixed with building logistics, operation issues and effectively moving people around spaces.

Approaching a design challenge from this perspective; it makes sense to work with a team such as The IDL Group that has extensive experience in retail strategy, planning and design combined with knowledge of regulations, construction, cost analysis and the ability to produce tenant lease plans and comprehensive design manuals.

We have the ability to manage construction in a challenging environment whilst using insight, research and analysis to form a robust design strategy to predict shifts within the market to help our clients effectively plan and survive. This all contributes to the efficient, comprehensive and successful delivery of a project.

IDL Group Understand Sector Challenges and Constraints.To shape change means any design team needs to be tailored to focus their diverse experience from creating a customer-centric experiential environment that redefines the shopping experience at one end of the scale, to re-purposing back of house areas for maximum return for our clients.


At IDL we can help to:

1. Look to re-purpose under utilised assets for maximum return

2. Make sites work harder to achieve greater gain for our clients

3. Align your brand with customer expectation through insight and analysis to enhance the shopping experience.

4. Redefine redundant space to increase the asset value

5. Consider the impact of the relaxation of planning guidelines

6. Think smart to add value

7. Predict shifts within the market place and advise on future proofing your assets


By building a team that has empathy for the customer, an understanding of their behaviour the nuances of their mind-set, key motivators and desires as well as experience with meeting the needs and objectives of the landlord, we have a proven track record in the delivery of compelling customer experiences for world renowned clients such as Westfield, Landsec, Benson Elliot, Palladium and Moor Garth.

If you would like to discuss your business needs, we would be pleased to meet with you. Contact Steve Carle at:

IDL Architecture 17 Black Friars Lane St Paul’s London EC4V 6ER

+44 (0) 20 7248 1234

reinvention of the shopping centre. evolution or revolution?

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