Shopping Centres Must Find Their Own Atmosphere

03.2024

Autor: OmnichannelNews.pl

News – Shopping Centres Are Reinventing Themselves “More and more shopping centres are shifting from the model of ‘shopping with a side of entertainment’ to ‘leisure time with shopping.’ In the age of the internet, new expectations from younger customers, and an uncertain future, many centres must reinvent themselves and find their unique identity,” says Iwona Gembiec, Managing Director at IMV Polska, in an interview with OmnichannelNews.pl.

It’s a bit ironic that there used to be no art in shopping centres. Iwona Gembiec: Not exactly. Until now, the main function of shopping centres was retail. Attractive tenant brands, promotions, and sales events formed the foundation of their operations. But customer needs are changing, and smaller retail formats are gaining ground by effectively meeting shopping demands. Moreover, Poland’s shopping centre market is saturated, and few new malls are being built. Existing ones must find a new role in this changing landscape.

In the case of Galeria Rumia, our chosen path is to offer not only shopping but also broad opportunities for leisure and collaboration with the local community. We want visitors to enjoy an attractive tenant mix, essential everyday services, entertainment, and even culture. That’s why we partnered with local authorities and the cultural centre, resulting in one of Poland’s first theatres located inside a shopping centre.

Shopping centres going beyond just shopping What’s the goal behind such an unusual collaboration?

This partnership serves many purposes and meets the needs of various groups. On one hand, it fits perfectly with our strategy of openness and cooperation with the local community. Galeria Rumia turned out to be the ideal place to open a professional theatre stage, which couldn’t be accommodated in the cultural centre’s previous space. On the other hand, a theatre in a shopping centre clearly adds a non-retail reason to visit Galeria Rumia.

Moreover, the theatre strengthens the mall’s unique identity, built on an attractive tenant mix, engaging events, and distinctive leisure experiences. We want both residents and city authorities to see the mall as “their place,” an integral part of the urban fabric. That’s exactly what large retail centres should be—something more than just a shopping destination.

But isn’t culture something you have to subsidise?

It’s important to understand that entertainment—including culture—and shopping are interconnected in any mall. Of course, due to varying profit margins, we can’t treat all business types equally or expect identical rental rates. But most importantly, it’s culture and entertainment that draw new visitors—people who might not otherwise come to shop, or would do so much less often. In this way, everyone benefits—not just the mall and its tenants, but also the local community.

So yes, culture justifies itself, even if not always in strictly economic terms. We also need to remember that offering high culture within a shopping centre can help build its uniqueness and set it apart from the competition.

Why is building a distinctive entertainment offer so important?

First of all, it’s the reality of the Polish retail market. Let’s face it: for half the year, it’s dark, cold, and wet in Poland. Shopping centres are places where people can spend time with friends and family in various ways. But that requires an appealing entertainment offer.

Demographics also play a key role. For teenagers and younger audiences, a shopping centre is primarily a place to meet—not necessarily to shop—because that generation often uses e-commerce platforms. That’s their natural environment. This shift marks a clear change in the shopping paradigm that we must adapt to. Meanwhile, for older generations, shopping centres are still places for “shopping with a side of entertainment.”

Demographics and digitalisation have already shaped the form of shopping centres—and will continue to do so. We need to adjust accordingly.

Building competitive advantage Does this approach limit flexibility in shaping the tenant mix?

Shopping centres always operate in a specific place and context, which have historically defined the level of flexibility and potential tenant mix. A great example is Warsaw’s CH Klif, which is located next to the massive Arkadia mall. Thanks to its boutique, exclusive nature and a more intimate shopping atmosphere, CH Klif is doing quite well. However, if tenants like Pepco or Biedronka were added, it would fail miserably—it couldn’t compete with Arkadia in that segment and would lose what makes it special.

When should a centre’s character be defined?

Ideally at the design stage—when planning construction or the modernisation of an existing building. In addition to defining the character, understanding the surrounding context and its needs is crucial. Not everyone takes this into account. In my career, I’ve encountered buildings developed with no regard for local conditions. These projects usually fail because they don’t reflect what people actually want.

I believe that, consciously or not, people expect to be part of shaping their urban environment. Shopping centres have some ground to make up in this area. In the late 1990s, they were often built without considering their surroundings. This sometimes harmed cities—nearby businesses failed, streets emptied, and life moved into the mall. Even the owners ultimately lost out, because without respecting local conditions, sustainable growth is impossible—and you hit a wall quickly.

How are shopping centres being developed now?

Today, the retail market is mostly saturated, and very few new malls are being built. Instead, existing ones are being repurposed, modernised, or even demolished to free up attractive plots for new projects.

That doesn’t mean retail space is disappearing. We’ve shifted toward retail parks, which don’t include shared spaces but meet basic shopping needs. Their popularity among investors comes from their simplified construction compared to traditional malls, resulting in lower costs and less investment risk.

What can existing shopping centres do to avoid being shut down or sold off?

They must reinvent themselves and redefine their identity. A good example is our managed property, Galeria Rumia—a 1990s development that has recently been transformed and is attracting growing interest from visitors. Another great example is Warsaw’s Promenada, which has undergone a beautiful transformation. It’s now very family-friendly, with playrooms and cafés that make it a pleasant destination for spending time together.

Clearly, shopping centres that focus on building a unique identity are thriving—even in tough times. Other centres should start following this path. It’s the only way to retain customers and avoid ending up on the chopping block.