Development of shopping centers in the context of reconception

The current stage of development of shopping centers in Kazakhstan is characterized by a number of trends that reflect the specific features of the evolution of the retail real estate market in the current, more mature phase of its development.

On the one hand, the change in the model of consumer behavior has launched a wave of malls reconception, which are forming a new profile of market demand-oriented attractiveness for visitors. The usual emphasis on shopping is gradually being replaced by more complex redevelopment concepts.

On the other hand, certain features of the formation of a tenant pool have been formed in the work of shopping centers, which should organically fit into the overall concept of the shopping center and ensure a high level of conversion.

Shopping malls are not immutable and static objects: they inevitably go through various stages of their development - growth, stabilization, decline. In this regard, shopping malls must constantly evolve and adapt to the changing needs and requirements of visitors. In order to maintain the attractiveness of shopping malls, owners apply various strategies and innovations, one of which is the reconception of the facility.

Reconception is the process of changing the concept and strategy of a shopping mall in order to improve its efficiency and profitability. It may include changing the composition of tenants, reconstructing the building, changing the design and marketing strategies, as well as using new technologies and innovations. The need for reform may be caused by a change in the market situation, increased competition, a change in the target audience, or it may be a proactive strategy to improve the competitiveness of a shopping mall.

Reconception decisions should be based on professional research into the changing impact of external conditions, as well as the effectiveness of internal indicators in the shopping center. As a result, a different concept of a shopping facility will be implemented, adapted to the changed realities of the market.

There is also the concept of "life cycle of a real estate object". On average, the cycle for any object is 7-8 years. These terms also apply to shopping centers. But if we take business centers or hotels, then after 7-8 years they require less profound intervention, for example, updating the structure and engineering systems. A shopping center after the same period should be changed not only according to these criteria, but also the concept needs to be changed. The retail market is changing at a more dynamic pace than other segments of the commercial real estate market.

There are several ways to redesign a shopping center, which can be effective depending on the specific situation and goals.

• Redevelopment

Redevelopment involves a radical transformation of the shopping center format or its demolition in order to build a new facility. Redevelopment can include changing the use of land, reconstructing buildings or structures, changing the design and architecture, as well as updating the infrastructure and public spaces around the facility.

• Refurbishment

This approach requires not only external changes (facade, logo, etc.), but also internal ones. Deciding on a new concept is not easy. It is important to carefully study consumer demand in the area, to form a new mix of tenants that is relevant to residents of this location.

• Facelifting

Facelifting involves changing the appearance of the facility. This method allows attracting new visitors and tenants, improving the image of the shopping center, and increasing interest in it. During the renovation process, work can be carried out to replace facades, windows, doors, update the design and architecture of the building, lighting solutions, install new landscaping and decor elements, as well as update entrances and signs. Tenants are not changed, but changes can be made to the marketing policy and name.

However, these changes may not be enough to solve more serious problems, such as outdated equipment, low traffic or inconvenient location.

The trend towards moving away from the classic shopping center towards a multifunctional space with the opportunity to make purchases is obvious. The absence of overproduction, of course, will save the market from massively empty shopping centers, but will not allow centers that soberly assess the situation to avoid reconceptualization. Reconceptualization is the engine of progress and a conditional broker of relationships between shopping centers, tenants and buyers. It is important to take it seriously and systematically, because it is done for the sake of those on whom the entire trading business rests – for the sake of the clients. And it is necessary to listen to the wishes of the client.