MeadowlarkFri28 - and draw customers in from more shops...

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Meadowlark shopping centre (cont’d) 1. Status quo Qualitative pros: - When we maintain the mall as is, we have more budget for marketing and promotions. - Mall could become more profitable under same strategy with better management Qualitative cons: - Not accounting for the importance of tailoring the mall to suit our customers’ needs, which would be a major competitive advantage - With the mall’s current state, how can we convince the retailers there are enough traffic flow? - Risk of % rent from k-mart “going dark” - We’re not going to be the most convenient store forever, need growth to push mall forward 2. Partial demolition Pros: - Reduce risk of % rent if k-mart goes dark - Reduce vacancy rate - Reduce sites’ operational costs - Possibly increase customer traffic if they don’t get the sense that the mall is vacant Cons: - Substantial loss of rental income - Should we demolish mall space when there could be opportunities open to add in retailers
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Unformatted text preview: and draw customers in from more shops available 3. Concept change Pros:-Change of mall concept to suit customer taste and preference gives it a major competitive advantage. Draws more customers, opens opportunities, and increases traffic flow or retailers Cons:-Many mall tenants have to relocate how will that affect the mall?-Could take years to complete-Tailor to the aging population are they a group that would spend liberally?-Difficult to attract medical clients-Doesn’t address the short term issue of k-mart going dark 4. Partial demolition and concept change Pros:-doable if the investment is worth it in augmenting the mall net income-complete reconstruction of mall could bring new customers’ interest Cons:-results makes inv. Unworthy?-Difficult to implement, too many risks in the factors to be guaranteed a profit-Who will buy land?-How would k-mart pay land prices? Do they want to break lease?...
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MeadowlarkFri28 - and draw customers in from more shops...

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