Malls have something online shopping can’t provide

If South African shopping centres are to thrive, they will need to offer consumers more than just a place to shop.

Human connection and memorable experiences could be key to keeping shoppers coming back, according to speakers at the South African Council of Shopping Centres (SACSC) annual congress at Durban’s International Convention Centre this week.

Read:

SA retailers turn to new leaders in fight for shoppers
SA workers turn to gambling to pay debt, study finds

Jeremy Gardiner, director at Ninety One, outlined South Africa’s paradoxical position amid global geopolitical tensions, including the war in Iran.

He says many South Africans are feeling hard-pressed, with surveys indicating widespread financial distress.

The pressure on household finances is reflected in gambling habits.

According to the Old Mutual Savings and Investment Monitor 2026, 53% of employed South African adults (aged 18 to 65) who earn at least R8 000 a month engage in sports betting and online gambling.

Malls can offer something online can’t

Against this backdrop, business futurist Doug Stephens made a case for shopping malls to provide something consumers cannot easily get online: experiences that bring people together.

Business futurist Doug Stephens. Image: Supplied

Stephens, founder and chief executive of Retail Prophet, argues that convenience alone is no longer a compelling reason to visit a shopping centre.

ADVERTISEMENT

CONTINUE READING BELOW

“People don’t need malls. Anything you really want to purchase can be bought online. Convenience has been handed to a smartphone.”

In the US, long-term data shows that up 33% of malls became empty or derelict, with some demolished and others turned into ‘dark’ stores (acting as logistic hubs for retailers).

Read: South Africans are scrolling, streaming and swiping more than ever before

Stephens also pointed to China, where shopping centres performed incredibly well even with the advent of screens everywhere, before concerns grew about the effects of excessive screen time, including loneliness, anxiety and depression.

He believes South Africa still has an opportunity to strengthen its physical retail spaces.

E-commerce currently accounts for approximately 10% of total retail sales in the country, he said, meaning physical stores have not lost all their customers to online shopping. However, growth in physical retail spaces has flatlined.

Experiences and community

For Stephens, shopping centres should become destinations in their own right, with shopping just one of the reasons to visit.

He points out that while consumers can buy products online, they cannot purchase genuine social connection in the same way. Digital interactions can leave people feeling disconnected, he said, fuelling a desire for tactile experiences, craftsmanship, beauty, joy and wonder.

“A mall can be a place of discovery,” says Stephens.

Instead of depending on mediocre experiences offered for free, he suggests that centres consider investing in exceptional, ticketed experiences.

He also proposes membership models offering benefits such as special discounts, invitations to exclusive events and access to lounges with hospitality-style perks.

ADVERTISEMENT:

CONTINUE READING BELOW

Melissa Gonzalez, a retail strategist and founder of The Lionesque Group, echoed the importance of physical experiences, as consumers want to “meet their favourite brand” in person and have that touchy, feely experience.

Her observations reinforce Stephens’s argument that shopping centres can differentiate themselves by appealing to consumers’ desire to seek joy, beauty and even distraction.

Malls embrace lifestyle shift

SACSC president Muhammad Paruk says local shopping centres are already adapting to this changing role.

He cited Fourways Mall in Gauteng, where tenant turnover increased by 61%, from R226.3 million to R365.2 million, after a strategic reset.

Paruk attributes the improvement to a broader approach that goes beyond attracting retailers, including the introduction of lifestyle offerings and asset-management initiatives aimed at addressing the mall’s historical public perception.

Consumers need a sense of community more than they need things. Image: Moneyweb

The opening of The Pantry by Marble at Fourways Mall in October also contributed to changing perceptions of the centre.

“Landlords are evolving malls beyond places of commerce into vibrant lifestyle destinations, offering something that cannot be delivered in a box,” says Paruk.

“These are experiences, entertainment, human connection and a sense of community.”

Read:

Fourways Mall’s stunning turnaround all but complete
Fourways Mall secures tashas, Pantry to cement turnaround

In this model, shopping malls become places where people can gather, socialise and enjoy themselves, rather than simply complete errands.

ADVERTISEMENT:

CONTINUE READING BELOW

Muhammad Paruk, president of the South African Council of Shopping Centres, speaking at the 25th Annual Congress held in Durban. Image: Supplied

According to Paruk, insights shared by international thought leaders at the congress reinforce the view that South Africa is moving in the right direction.

However, he says South African malls should reflect the country’s unique character rather than copy large-scale attractions from other parts of the world.

“South African shopping centres are increasingly embracing the shift towards lifestyle destinations, but in a way that reflects our own unique character.

“Unlike the large-scale attractions seen in places such as Dubai or South Korea, our focus is more on family, community and outdoor experiences,” he says.

“Blessed with a wonderful climate, South African centres are making greater use of open-air dining, green spaces and inviting environments where people can relax, socialise and spend quality time together.

“It’s about creating places where people want to be, rather than simply places where they need to shop.”

Read: Small businesses could get easier access to township malls

Omeshnie Naidoo is a Moneyweb journalist.

#Malls #online #shopping #provide