The purpose of the shopping mall business plan is to provide a roadmap for the operation of a shopping center along with an integrated set of strategies that contribute to achieve the vision in areas such as the center’s infrastructure distribution, business development, marketing and public relations tactics, along with community development, tenant relations and finances. If you are planning to build your own shopping mall, here’s the information you need to be successful.
Shopping Mall Business Plan
A shopping mall is a place with one or more buildings housing a wide variety of stores representing merchandisers with interconnecting walkways that enable customers to walk freely from unit to unit. It is a shopping center where companies sell their products directly to the public through their own stores or through authorized third-party vendors. In this section of the plan you will find the characteristics of the business and how it should make money.
Positioning is one of the most important strategic topics a shopping mall marketing department should tackle. In this section of the business plan you will not only find a tag line, jingle or campaign but a business strategy and the decisions to make to position the shopping mall in the minds of your potential visitors, by enhancing the competitive advantages of your facility.
The operations plan of the shopping mall business plan provides information about key suppliers, facility maintenance, personnel, equipment, visitor support and all of the regular aspects involved in running a successful shopping mall.
A shopping mall's marketing plan describes the strategies the mall management team will deploy to attract and retain tenants and to bring in more shoppers to their stores. The marketing plan is critical to success since competition between shopping malls is furious. In metropolitan areas, consumers have numerous choices of stores, ambiances and entertainment options. Implementing a sound plan enables a mall to build its competitive edge to guarantee its sustainability.
This section of the business plan will help you have a clear understanding of the target market the shopping mall wants to reach and attract. Demographic characteristics of the area, factors such as age and income level are described here to give you a good idea of what the potential customer base may be. Picking the right segment is essential to increase the effectiveness of your marketing campaign.
The strategies outlined here will make the shopping mall stand out from others. Advertising efforts should focus on unique stores, the excitement and fun available at the mall, the spectacular design and layout, and the variety of restaurants and entertainment alternatives. Creating a clear, succinct message for newspaper and magazine advertising along with strong social media exposure will help the mall connect with its customer base to attract shoppers.
The shopping mall finances can change depending on the general economic climate of the real estate industry. In times of economic recession, the shopping mall may have issues with its top line income and rental income may decrease. Nevertheless, the fixed nature of the shopping malls’ rental income ensures that the business will be able to maintain its profitability and positive cash flow most of the times. In this chapter of the plan there is a complete explanation of the financial setup and a list of the main sources of revenue along with the mall’s major expenses.
The primary revenue source of a shopping mall comes from developing properties with the intention of renting them to retail stores. The business will generate profits from both the ongoing rental income paid to the shopping mall while generating capital appreciation from the long term holding of these properties. The business could also obtain income from other sources such as in-house advertising space leasing contracts, temporary booths, parking lot lease agreements and others.
In this section, a list of the associated expenses that come with operating a shopping mall will be outlined. Some of these are maintenance expenses, interest charges on mortgages, labor expenses, advertising and marketing expenses and municipal taxes.