The secret potion to revitalise ghost malls into vibrant lifestyle destinations

India’s retail sector is undergoing a pivotal transformation as shopping malls face mounting challenges from changing consumer preferences, e-commerce dominance, and inadequate planning. According to Knight Frank’s India Retail Report, nearly 10% of malls in tier-2 and metropolitan cities are struggling with declining footfalls and rising vacancies—a trend that has given rise to the term, ‘ghost malls’ to describe these underperforming spaces. This phenomenon underscores the urgent need for malls to adapt to evolving shopper expectations and market dynamics.

Many malls falter due to poor location choices, a lack of diverse retail offerings, and a limited focus on creating engaging environments. However, a few mall managements have been opting for innovative retail marketing strategies to overcome these hurdles, enabling their malls to transform into thriving lifestyle destinations. They are embracing change to remain relevant in today’s changing retail landscape.

Redefining retail spaces

Modern consumers prioritise experience over transactions. In light of this, malls must evolve from being simple shopping venues to dynamic lifestyle hubs. Incorporating entertainment zones, live events, interactive exhibits, and hands-on workshops can create memorable experiences that encourage longer and repeat visits.

Global examples like Westfield London have successfully redefined retail by introducing art installations, entertainment events, and experiential spaces. Similarly, many Indian malls in Mumbai integrate multiplexes, gaming zones, and diverse dining options, positioning themselves as one-stop destinations for leisure and entertainment.

Harnessing customer data

In the digital era, data is a powerful tool for targeted marketing. Malls can analyse consumer behaviour, footfall patterns, and purchase histories to design personalised campaigns. Notifications about exclusive events or tailored discounts based on shopper preferences can foster loyalty and increase engagement.

Retail brands within malls can also leverage data to fine-tune their in-store promotions. Seasonal or demographic-specific offers can attract more visitors, making the shopping experience more relevant and personalised.

Embracing omnichannel strategies

Seamless integration of online and offline experiences is essential to meet consumer expectations. Malls can adopt click-and-collect services, allowing shoppers to make purchases online and pick them up in-store. This approach combines the convenience of e-commerce with the experiential value of physical retail.

Moreover, promoting in-store events and exclusive offers through online platforms can help boost foot traffic and enhance consumer engagement.

Hyper-local campaigns

To ensure consistent footfall, malls can implement hyper-local marketing strategies that resonate with nearby communities. Hosting region-specific events like farmers’ markets, art exhibitions, or fitness challenges can turn the mall into a community hub.

Globally, many malls successfully incorporate local cultures into their offerings by hosting regional festivals and cultural performances. Indian malls can replicate this by collaborating with local talent and businesses, fostering a sense of community.

Social and digital amplification

Social media can amplify marketing efforts, creating buzz around mall events and promotions. Encouraging shoppers to share their experiences through dedicated hashtags and collaborating with influencers can enhance visibility. Highlighting success stories and in-mall activities through targeted ads ensures greater reach and engagement.

The challenges faced by malls in India, including the looming spectre of the ghost mall phenomenon, underscore the need for retail spaces to adapt to changing consumer demands. By focusing on a few customer-centric retail marketing strategies malls can transform into vibrant lifestyle destinations.

Learning from global success stories while tailoring strategies to local preferences will ensure malls remain relevant, foster lasting connections with consumers, and reclaim their position as dynamic centres of activity and commerce.

- Santush Pandde, COO - real estate at Grauer & Weil (India).