When you manage or lease a retail shopping center it is important to understand the shopping patterns of customers from within the local area. By definition, the local area will be that the zone or precinct that produces 80% of the sales for your retailers; that area is likely to be local and within certain road boundaries or suburb precincts.
Within any period of 12 months there will be changes to seasonal shopping, customer demands, and shopper spending patterns. That is where the customer survey process is of high value. You can then match the property to the market and improve sales opportunities over all for the entire tenancy mix.
So the survey itself can help you make informed decisions when it comes to choice of retail tenant, solving vacancy problems, and improving customer interest within the property. Ideally you want the customer to come back to the property frequently for their purchasing needs; that’s how you build sales and strengthen the tenant market rental.
Surveys of this type should be undertaken at least once every six months within any moderate to large retail shopping center. The results of the survey can be merged into the business plan and tenant mix strategy for the property.
So here are some essential factors to understand when it comes to undertaking the survey and extracting valuable information from it:
- In most towns and cities there will be seasonal retail shopping patterns that are impacted by tourism, climate, local celebrations, and community demographics. If you undertake the customer survey at the wrong time and within the timing of these local issues, the results that you achieve from the survey are likely to be biased and corrupted. The best time to undertake a survey of retail customers and shopping center performance is during an ordinary business cycle. Choose your timing carefully. Any peaks in seasonal sales can then be regarded as a bonus to ordinary levels of customer interest and purchasing patterns.
- It is best practice with any retail shopper surveys to use a professional marketing firm that is experienced with retail properties of the type and location similar to yours. They can bring valuable experience to the retail survey process and improve the results that you achieve.
- What stores are your customers visiting? Some stores and retail categories will be more popular than others. When you understand the sales peaks and customer preferences within the tenancy mix, you can place tenants more successfully and improve the clustering process. That then has a direct impact on future sales and potentially market rental. It also helps protect the tenancy mix from the pressures of an unsuccessful business.