Large scale transformation. How malls and retailers will remember 2021

Quarantine has changed the minds of consumers. This, in turn, is changing the shopping center market in full swing. The process is already irreversible.

The current present turns into a funny past. Today, it would hardly occur to anyone to wake up early on Saturday morning to catch a promotional sale of a washing machine or lawn mower - nine out of ten buyers will use their mobile phone to order equipment, not their own car.

If until recently we were witnessing concentrated promotions and pre-holiday sales, very limited in time, today everything is different. Price cut periods are increasing. Thus, the hype around the goods is a thing of the past, giving way to a more relaxed shopping with the opportunity here and there to find good prices. In Europe, the situation is similar: in 2021, already during the pre-Christmas shopping, you can find New Year's goods at a promotional price. Clearly, discount periods will be spread over time more evenly, even for seasonal items. Of course, such promotional days will be duplicated in online sales, so that retailers have the opportunity to reduce the load on the physical space of the store.

While the sales periods will be extended, there will be less discounts outside of them. In general, over the past two years, retailers have been very selective about discounts, preferring to offer the consumer the most necessary product at full price, instead of offering everything at once at a discount. It is possible that this trend will continue. First, because consumer activity remains at a fairly low level. Today's customers place financial security as one of their top priorities, even as retailers are on a rampage to lure the consumer into the mall, attendance remains below pre-pandemic levels in most parts of the world. Second, looking at this consumer behavior, retailers understand that they must adapt.