You can always tell when a centre is about to go bust. Popular retailers that should be sure winners begin to close their doors, peak-hour footfall drops and clearance sales become the most attended events.
As productivity levels fall, the marketing manager feels pressured to take some form of action—a gift-with-purchase offer, sidewalk sale, customer loyalty scheme, or anything else that could turn things around.
The danger, though, is to burn through the centre’s budget, get into a promotional rhythm that isn’t sustainable and still not see any real benefit at the till. A better approach is to take a moment to step back and determine a centre’s current market position, the competitive forces that are at play and where the key promotional opportunities lie.
That is what three mature Sonae Sierra shopping centres in Portugal did when they realised that their already low footfall and sales could take a further blow once a new competitor, Spanish department store El Corte Inglés, opened its doors just outside of Lisbon. Facing even more pressure in a saturated market of under one million people, GaiaShopping, ArrábidaShopping and NorteShopping decided to join forces, creating three Solal Merit-winning sales promotions.
The partners opted for a promotional concept that could update each centre’s image according to its own brand positioning, without the properties going up against each other. GaiaShopping was to present itself as The Family Shopping Centre, ArrábidaShopping as The Young and Dynamic Shopping Centre, and NorteShopping as The Upscale Shopping Centre.
To coincide with the autumn opening of El Corte Inglés and to make a more significant media impact, the partnering centres ran their promotions in sequence—GaiaShopping in October, ArrábidaShopping in November and NorteShopping in December. Each one gave its clientele a chance to win a grand prize comprising of a new car and €1,000 (£680) in gift vouchers, as well as smaller rewards—GaiaShopping and ArrábidaShopping offered €15 (just over £10) rewards, while NorteShopping offered €25 (£17) perks.
Coordinating the three sales promotions, Sonae Sierra developed two dedicated software solutions: one registration application used to create a customer database and a slot machine interface to deliver instant rewards. Visiting shoppers were invited to register online on computer terminals or play on the electronic slot machine to win prizes.
A more defined market positioning, improved consumer communication thanks to a new database, and the prospect of winning prizes had the desired effect on shoppers as well as on the centres’ respective bottom line. GaiaShopping’s sales were expected to drop by nine percent when compared to the previous year, but instead rose 2.2 percent. ArrábidaShopping also expected a nine-percent drop, but limited it to 3.9 percent. As for NorteShopping, it anticipated a four-percent decline and enjoyed a sales boost of 5.3 percent.
Kahala Mall in Honolulu, Hawaii, produced even more dramatic results when it held a Viva La Diva—A Girl’s Guide to Glam promotion this past 24th March to 7th April to increase its footfall and sales.
Instead of developing a programme based on traditional flowers, bunnies and eggs, the centre focused on women, its primary demographic.
Kahala Mall launched its three-week promotion with C’est Magique, a series of fashion events.
First, the Art and Accessories Fashion Show presented ‘60s-style paper garments that community college fashion design students had created. Each outfit featured accessories from mall stores, and customers were asked to vote for their favourite garment. The winner of the people’s choice award received a trip for two to San Francisco, California.
The second event, Edge: Fashion and Hair Show, presented the new trends of the season from various mall boutiques, and it included a hair and makeup segment. The last show in the series, The Ohana Family Fashion Show, focused on children’s and family apparel.
Besides these high-energy fashion shows, Kahala Mall hosted free daily workshops, dubbed DivaSpeak, which featured prominent Honolulu women who were experts in their respective fields. From food to fashion to travel, several aspects of a diva’s lifestyle were covered.
"We encouraged the speakers to reinforce their presentations by using products they found at stores in the mall," noted Kelly Kauinana, marketing manager.
"Our goal was to create excitement around a style or look, and then direct shoppers to the stores where they could buy what they needed to support the trend."
The mall converted its centre court into a Mode Lounge, which Kauinana described as an intimate space created with expandable soft walls that could be used to increase or decrease the size of the area as needed. That’s where the fashion shows, trunk shows and DivaSpeak events took place.
The lounge caught the attention of shoppers from afar with large Viva la Diva logo banners interspersed with product icon banners, while posters hung throughout the mall directed footfall to centre court.
Kahala Mall supported its sales promotion further by distributing a newspaper tabloid insert in The Honolulu Advertiser and by negotiating broadcast partnerships for radio and TV.
The mall’s own publication, Zine, was direct-mailed to 62,000 homes, with an additional 3,000 copies handed out onsite as well as in surrounding hotels and resorts. It had a removable insert that acted as an event guide with a full schedule and Diva profiles.
Kahala Mall got retailers involved and excited about the promotion too, strengthening the team spirit by offering each tenant a free Viva la Diva T-shirt and the opportunity to buy additional shirts at cost.
The most popular workshop turned out to be Packing for Travel in a Carry-on Bag, which Paula Rath, one of Honolulu’s most sought out fashion and travel reporters, presented. The Fashion Feng Shui DivaSpeak also proved to be a hit, drawing an audience of more than 200 customers. Other presenters included a Fitness Diva, Personal Chef Diva, Bling Diva and Wedding Diva.
While the shows and workshops were entertaining and enhanced the customers’ overall experience, the Viva la Diva gift-with-purchase scheme was the real sales driver. It consisted of a key ring with interchangeable black and silver dresses studded with crystals. Then, on a subsequent weekend, the mall offered a 20-percent savings pass valid at participating stores. And throughout the promotion, Kahala Mall offered its signature complimentary gift-wrap service with any mall purchase as a way to thank customers for their patronage and push Easter gift sales.
Viva la Diva—A Girl’s Guide to Glam not only gave shoppers a reason to visit Kahala Mall, but it provided the right setting to encourage purchases, boosting sales by 16.4 percent for the month of March alone.
While not every shopping centre is necessarily fashion-focused, Kahala Mall’s approach does provide a good sales promotion model. The programme ensured that target consumers were aware of the centre, understood its brand positioning and got the right call to action.
Garden City Shopping Centre (Garden City) in Winnipeg, Canada, follows a similar methodology for its marketing programmes.
"Our goal with everything we do, from the smallest promotion to the largest event, is meant to involve our community. We’re always searching for ways to create excitement within the centre [and] draw people into the mall," explained Tracey Lachaine, marketing manager.
"For all of our contests, customers can either enter online or drop a ballot off at the centre court. [This] means that they are either drawn into the centre, which can generate sales for our merchants, or they are exposed to the information on our Website, which educates them about the shops and services offered at Garden City."
For its Countdown to Christmas promotion, Garden City gave 25 customers a chance to win prizes by playing a punch-and-win game, encouraging participation by incorporating the scheme into the centre’s holiday image campaign, which comprised of billboards, print, radio, in-house signage, a brochure and the Web.
The centre picked the first 24 finalists by random draw, while the 25th was chosen from the crowd on the day of the event. All gathered in centre court to play on the giant punch board that featured 25 slots, with each participant getting an opportunity to punch one square. Inside each square was a slip of paper that determined whether the player won an instant prize from one of the participating retailers or qualified for one of the five grand prizes, which tenant department store Sears donated—a snow blower, stainless steel dishwasher, 27-inch flat screen TV, Kitchen Aid Mix Master and set of Lagostina cookware made up the top prizes.
The five grand prize contenders then moved on to a dice game. The participants rolled the dice and the number they got corresponded to one of the boxes set up in front of the stage. Once everyone had a chance to roll, the prizes were revealed one by one.
The programme was successful because it built anticipation over time, continually reinforcing the centre’s market positioning and making target customers feel like they would be missing out on something good if they didn’t visit during the holiday trading season.
This kind of promotion was certainly focused on winnings, but successful promotions can also be theme-based.
House of Fraser at thecentre:mk in Milton Keynes, UK, chose a Wild West theme to promote a new, free service that helps customers find the perfect fitting jeans.
The store partnered with centre management and the local newspaper, MK News, to develop the promotion.
MK News encouraged shoppers to visit to have a "Wanted" photograph taken for free in front of a Wild West set that featured the saddle that acting legend John Wayne used in True Grit. A carriage laden with brand-name denim and point-of-sale graphics completed the set and encouraged shoppers to try the new service. Visitors also got the chance to have their mug shot appear in MK News the following week—the best pics ran in the newspaper and the winners received a Levi’s outfit and tickets to see a Devil Horsemen show.
There were also other highlights, including Dallas-theme promotions, demonstrations and cheerleaders, as well as the appearance of Danté, the black horse from a well-known banking commercial.
All House of Fraser staff supported the promotion and the Retail Trust charity, raising money by paying a pound to wear denims to work. Many completed their look with a cowboy hat and waistcoat. According to centre:mk PR officer Yvonne Shuttleworth, a line dancing team provided added spectator value and crowd participation.
"This promotion was organised with virtually no budget," Shuttleworth noted. "In the week before the service was launched, a photograph was required for the newspaper so a House of Fraser staff organised a mini photo shoot in [the store’s] boiler room, using one of [the employees] as a model."
MK News also pitched in. It produced posters and leaflets, which thecentre:mk printed out, and the "Wanted" posters.
Despite the lack of funds, House of Fraser was able to introduce its new service effectively.
"We are pleased that a number of customers have now come back following the event to enquire about and use the free denim fitting service," said store manager, Phil Davies.
"The promotion met with positive feedback from staff and customers and off the back of the day’s promotion, we also finished as one of the best performing stores on that day."
Another way of developing a winning programme on a slim budget is to partner with celebrities, as East Kilbride Shopping Centre (East Kilbride) did this past Easter.
B1 and B2, the stars of TV’s Bananas in Pajamas show appeared at the centre to greet their young fans and pose for photographs. The popular children’s characters were among the highlights in a series of monkey-themed events and promotions that East Kilbride hosted —from exclusive discounts and banana surfing to skate promotions and Little Chimps tea party, not to mention a free competition to win a family holiday to Disney World in Florida.
To enter the competition, shoppers had to visit the centre and follow the trail of banana skins on the malls to find EK Monkey’s hiding place.
This programme not only provided a fun activity in which to participate during the Easter holiday, but it also encouraged shoppers to fully experience East Kilbride, increasing their awareness of the centre’s merchandise mix, floor layout and amenities—all vital elements in supporting future footfall and sales.
It’s the kind of strategic planning that will help a shopping centre increase its productivity, whether it is back from the brink or looking to improve an already choice position in the marketplace. It comes down to customer engagement with the right offer at the right time.
 

Net Works

Gone are the days when you could hang red "Sale!" signs and expect that shoppers would flock to your centre. Today, there is so much commercial solicitation that marketers are seeking more effective ways of getting through the promotional clutter. To many, the Web offers the most interesting possibilities.
Using the Web to either support or entirely manage a sales promotion works well because it allows a centre to engage consumers selectively and individually. With tools such as opt-in e-mail newsletters, blogs and SMS, shopping centres can implement a mass-market sales strategy, but tailor their communications to fit each target demographic.
A spring fashion sales event, for example, can be pitched to women, men, teenagers and office workers at once. Using a single creative concept, you can develop parallel advertisements that will be delivered through the Web to encourage shoppers to visit. Send e-mail teasers to build anticipation and invite shoppers to ‘text’ you back to qualify for exclusive perks.
While nothing can beat point-of-sale conversion of browsers into shoppers, the Web can motivate customers to commit to your sales event well before they step into the centre.