Victor Gruen and the Original Shopping Mall Design
This past weekend, I participated in the Marshall International Case Competition on the team representing the USC Marshall School of Business. The case we analyzed was about one particular firm but, instead, the industry of shopping mall management. Declining foot traffic in shopping malls in the past couple of decades due to an increased value on experience and convenience has led many consumers to turn to online alternatives to walk through the stages of the shopping experience. This case prompted me to assess my own shopping behaviors and reflect on my own priorities as a consumer.
The original designer of shopping malls, Victor Gruen, an Austrian-born architect, wanted shopping malls to be "the center of peoples lives" and fashioned his designs after a European town square that you may find in Vienna. Our team proposed a shift back to this original concept, as many shopping malls have moved away from this original model and towards one that represents the evil corporate world that turns many shoppers looking for a more personalized experience away. We also thought of ways to engage customers living in distinct parts of the United States by incorporating local preferences through partnerships with local businesses and a mix of stores that best represent local culture. We also looked to shift the use of the shopping mall by providing options for housing, events, and coworking spaces.
Of course we also believe that shopping mall management does not know nearly enough about its consumers, which we proposed be solved by the implementation of beacon technology, which tracks customer movement. This creates customer profiles that allows retailers to better tailor their in store experience to those who move through their space.
My question for you is: how much is your shopping experience shaped by the layout of a shopping mall and the incorporation of experiential spaces?
The original designer of shopping malls, Victor Gruen, an Austrian-born architect, wanted shopping malls to be "the center of peoples lives" and fashioned his designs after a European town square that you may find in Vienna. Our team proposed a shift back to this original concept, as many shopping malls have moved away from this original model and towards one that represents the evil corporate world that turns many shoppers looking for a more personalized experience away. We also thought of ways to engage customers living in distinct parts of the United States by incorporating local preferences through partnerships with local businesses and a mix of stores that best represent local culture. We also looked to shift the use of the shopping mall by providing options for housing, events, and coworking spaces.
Of course we also believe that shopping mall management does not know nearly enough about its consumers, which we proposed be solved by the implementation of beacon technology, which tracks customer movement. This creates customer profiles that allows retailers to better tailor their in store experience to those who move through their space.
My question for you is: how much is your shopping experience shaped by the layout of a shopping mall and the incorporation of experiential spaces?
Hi Sarah,
ReplyDeleteI think that on average I really look at the layout of a shop or a mall. Most of the times I enter shops because I like how they look and then I find myself buying something. I think that the layout os shopping malls is really important since sometimes I feel overwhelmed by the useless things that they sell and how annoying it is to just look for hours to find something. I'd rather shop in small local boutiques and deal with real people that are passionate about what they sell than that in a multinational shop were employers are just random people that really don't care about the shop but mostly about their paychecks
Hello Sarah,
ReplyDeleteInteresting topic about shopping malls! I strangely recall reading about Victor Gruen and his vision of the new shopping mall. I cannot seem to place my finger on where I read about him but I think it is interesting how he thought of the mall as a community hub. Interchangable anchors, experiential focus entertainment and experiences, and of course HappyReturns! Those are all of my ideas of ways to change the mall. Obviously we would have to calculate the finances of those with the PNL statements but that is for much later!
Hi Sarah, what an interesting post about the integration of technology into business models in malls nowadays. With the development of internet and online shopping industry, I definitely recognize the competition faced by the retail stores and malls. I think the business strategies you came up with in the case is innovative and I enjoyed reading it a lot!
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