West

Acres
Research
Project

Prepared by

Ben McWilliams.. Junior

Hank Van Liew. Junior
Dylan Higgins... Junior
Jake Berens Junior
Ian Jahnig Junior

Table of Contents


Applied Research

1-19

Research Problem

Methodology

Secondary Data Analysis

1-10

Key Trends in Shopping Malls

1-2

Customer Profiling

2-3

Customer Expectations per Segment

4-5

Best Practices

5-6

Local Demographics (ERSI Data)

7-8

Key Conclusions from Secondary Data Analysis

Ethnographic Research

8-10
10-19

Procedures

10

Key Results

11-16

Attendance Analysis

11-12

Customer Counts

12-15

Shopping Bag Counting

15

Traffic Flow

16-17

Interpretation, Analysis, and Key Implications

18-19

Strategic Recommendations for West Acres Mall

20-28

Target Market

20-21

Atmosphere: Add Natural Light

21-22

TV Implementation throughout West Acres Mall

22-23


Put a Coffee Stand in the Sears Court

24

H&M

25

Nordstroms Rack Store

26-28

References

29-33

Part 1: Applied research

1. Research problem

What are current social, behavioral, and economic trends that impact shopping mall
attendance?

2. Methodology

Each member of the team did the secondary research part of this project
individually. Articles and data prepared my marketing research groups and
industry reporters were examined and the key information is highlighted
throughout this paper. The information examined included key trends in shopping
malls across the United States and various countries around the world. Next,
dominant customer demographics were researched as well as customer
expectations per group. One of the most important aspects of our research was
examining what makes successful malls successful. These included the types of
stores and restaurants they provided as well as how each mall improved customer
satisfaction. Finally, data provided by the Environmental Systems Research
Institute (ESRI) was examined in order to gain an accurate understand of the
population demographics of the Fargo-Moorhead area.

3. Secondary data analysis

3.1 Key trends in shopping malls

Malls are no longer just about shopping, consumers are looking for an
experience beyond what the traditional shopping mall can provide. Data from the
Nielsen group suggests that malls are still the place to be when it comes to US
consumers. The biggest trend seen in todays malls is the transition into a social
center. Malls today are being designed to create an atmosphere for customer
interaction. As the Nielsen Company explains, malls today are more accurately
described as lifestyle centers,
As the U.S. population has diversified, the lines have blurred between
shopping, entertainment, and community. This blending of experiences has


created an opportunity for retail to strengthen social ties within communities
looking for communal experiences. Lifestyle centers, a newer entrant to the
shopping mix, have met this opportunity head on, as they blend traditional
retail tenants with upscale leisure uses that offer shoppers a place to buy as
well as an experience and a place to gather.
The main causes of these trends are an aging population and increased
urbanization, which means more people living in smaller spaces causing a greater
need for public spaces in which to socialize and congregate. Finally, the e-commerce
revolution and the rise of digital technologies are fundamentally reshaping
consumer expectations and shifting the function of stores toward useful and
entertaining consumer experiences (Fantoni, Hoefel, & Mazzarolo, 2014). As these
trends advance across the global stage, they are forcing mall operators to rethink
how they conceive and operate their properties. This identity crisis is most intense
in the US; the country that pioneered malls and has the most malls per inhabitant.
Thanks to an economic slowdown and a rapid advance of the digital revolution, the
mall industry in the US is retracting and facing high vacancy levels (Fantoni, Hoefel,
& Mazzarolo, 2014). The real estate research firm, Green Street Advisors, predicts
that 15 percent of malls in the US will close or be converted into non-retail space
within the next decade. Meanwhile, retail analyst Howard Davidowitz expects half
of Americas shopping malls to fail over the next 15 to 20 years (Abnett, 2015). For
malls not to fail, the transition into a lifestyle center must happen.

3.2 Customer profiling

An article by Hayes, Rigby, Serow, and Tager (2015) for Bain & Company
states that more than 90% of 18 to 24 year olds in America visit shopping centers at
least once a week. This is because malls offer a place for these teenagers and young
adults to go shopping while hanging out with friends. It can also be attributed to the
fact that big name brands usually appear in malls across the country. Younger
demographics are more likely to frequent stores with flashy brands, such as
Hollister, Victoria's Secret, and Forever 21. Shopping at these stores is as much a


shopping trip as it is a way to show off status to their peers and fit in, a desired
outcome based on the love and belonging need in Maslows Hierarchy of Needs.
Another demographic that visits malls are families. For some families, a mall
provides a way of getting out without having to pay for admission. Specifically,
families with younger children enjoy the various attractions aimed at drawing in
children, such as play areas or fountains.
Malls in higher end places are typically doing well because these malls are
not reliant on a large and prosperous middle class, they can afford to stay open and
thrive. This suggests that malls with high-end appeals are drawing in an upper class
individual with significant amounts of disposable income. This could be the key to
developing longevity in the market. As the wage gap increases, so too will a
polarization in mall attendance. Middle class individuals are seeking either high-end
brands, or cheap discounts. As a result, the demographics of mall shoppers are
shifting in the same direction. There is no middle ground; shoppers will either seek
high-end brands, such as Coach and Michael Korrs, or discount brands and outlets
for surplus, priced-to-move items.
In an article posted on Business Insider, Haley Peterson suggests that a lot of
malls in middle class suburbs are failing because of their location in middle class
areas. This suggests that families and individuals within the middle class income
demographic are avoiding malls all together. The middle class is notorious for
finding ways to save money, and the rise of online shopping appears to be the
culprit. These middle class families are finding better deals online, and cannot afford
higher end merchandise, and the middle of the road department stores are being
replaced by online storefronts on Amazon and Ebay. The striking decline in the
middle class, a shift to online shopping, and the decline in the appeal of department
stores is driving sales from this middle class demographic into the ground, dragging
the department stores that traditionally relied on them and the malls that house the
department stores with them.


3.3 Customer expectations per segment

When deciding to visit shopping malls, customers expect a safe, relaxing, and
social environment. Visitors to shopping malls arent necessary looking for the most
convenient shopping experience, but theyre looking for an atmosphere that
promotes social interaction. Customers expect to fulfill multiple needs such as
purchasing a product and having a rewarding experience. A major reason a
customer visits a shopping mall is because of the retailers & brands the mall has.
Customers expect the mall to provide them with an assortment of name brands that
fit their demands. Customers expect to attain an enjoyable "physical shopping
experience" that allows them to be presented with shopping, dining, and
entertainment while still being in a safe environment (Norins 2014). Customers
expect the shopping facility as a whole to provide hedonic value to them without
having to purchase any products. These can include, "free samples, concerts, and
special offers"(Johanason 2012).

For the older-aged demographics that go to malls, they have their own

expectations. According to Valarie Zeithaml in her journal, The New Demographics

and Market Segmentation, The older the shopper, the more likely he/she would
plan and economize, leading to more time and money spent on a single trip, fewer
trips, (and) greater use of information(Zeithaml, V. 1984). Additionally, Randy
White explains that in relation to other age-cohorts, the older-aged demographic is
the most serious shopper than the other ages (White, R. 2008). From this, older-
aged demographics expect shopping malls to contain products of utilitarian value to
tend to a specific need. Also, these customers expect the mall to provide relevant
and useful information regarding their products so the need to acquire information
outside of the mall is less.

For families, their expectations extend to both the parents and the children.

Entertainment for children is not only an expectation, but also a necessity for
families that commit to going to the mall. According to Randy White, for malls with
Family Entertainment Centers (FEC), 75% of families that visited the mall also
visited the FEC (White, R. 2008). Randy continues explaining that; FECs are more


likely to draw shoppers who spend time at the mall stores rather than shoppers who
visit the department stores(White, R. 2008). From this information, we can figure
that families expect to have an entertainment option for their children to engage in
that satisfies their particular wants in the entertainment aspect. Families expect
these sources of entertainment to be an integral part of their overall shopping
experience at the mall that goes beyond the physical act of shopping in the retailers.

3.4 Best practices

Nomi is a marketing and retail store-consulting firm that assists in enhancing
retailer performance and success. According to Nomi the number one factor that
determines success of shopping malls is comfort and what they describe as
ambiance. This is because one of the major uses of malls is for social
interaction. Customers want a place to thats comfortable to hang out in for hours at
a time.
There are multiple examples of malls excelling at creating social hubs, which
promote interaction and customer experiences. In the US, The King of Prussia Mall,
located 30 km from Philadelphia, has a Mortons Steakhouse and Capital Grille. The
Crystal Cove shopping center in Newport Beach, CA has more than a dozen upscale
restaurants, including Tamarind of London and Mastros Ocean Club (Fantoni,
Hoefel, Mazzarolo, 2014). These malls are successful at driving customers in
because they are fulfilling customer needs. Needs such as a place for spending time
with family and friends.
It is not just in the United States, the Xanadu mall located just outside of
Madrid has transformed itself into the ultimate place for parents to spend time with
their kids. The mall features a ski slope, go-kart track, and bowling. These
attractions are attracting families from all over Europe (Fantoni, 2014).
Enclosed malls are trying to stay relevant to the socio-demographic that is in place
by putting in more attractions that provide customers with an experience that may
be difficult to find at other retail centers. This includes attractions like; movie
theaters, comprehensive eateries, and other cutting-edge attractions (Norins 2014).


In relation to Easton town Centres (Columbus, Ohio) success, the malls operators
have made a priority out of inviting local retailers, restaurants and business owners
to set up shop here. This means that there are certain products that consumers can
only find in this mall. They wont find them at the strip centre two miles away.
(Rafter, N/A). Malls need to have a unique selling point. Consumers wont visit your
mall when another mall has mostly similar retailers.
The Grove and malls like it offer a wide variety of amenities and
entertainment not just movies (though there is a theater there) but also live
shows. Theres a free trolley, a farmers market, and a park in addition to a variety of
retail and restaurant options (Howland, 2015). Growing popularity in the mixed-
use development retail industry. Many developers are finding success in Lifestyle
Centers where there is opportunity for residential living and retail to connect and
promote sales by placing them in high-density urban areas. They have found that
placing these retail centers in "highly-traffic areas with solid demographics". Also,
these developments provide consumers with a retail option after they may have
conducted business in a company close to the developments. Rick J. Caruso,
company founder and chief executive officer of a California Lifestyle center wants to
"not create a town center mall, but to create the center of town" (Myers 2013).

Enclosed Malls are finding success through technological innovation. Many

malls are integrating free [software] applications that customers can put on their
home computer or smartphone devices. These can let shoppers know whats on
sale, get coupons for discounts, and find out about new products as they walk
through the center or enter a particular store" (Myers 2013). The malls ownership
at Fayette Mall (largest mall in the state of Kentucky) runs an active web site, one
that promotes the merchants but also advertises special events and sales. The web
site even has a special section titled Buzz. This section runs videos focusing on
such key retail moments as back-to-school days and adult fashion trends. The
section also advertises upcoming films coming to the malls movie theater. (Rafter,
N/A). It is important to have different platforms to showcase your mall. If your mall
doesnt have an influence on the Internet or social media then it is falling behind.


3.5 Local demographics (ESRI data)

When looking at the demographic trends of the Fargo, Moorhead, West Fargo

Area, there are a few areas that stick out. This community is continually growing,
and data shows it will continue to grow into the future.

One of the categories that shows up frequently is the tendency for people in

the Fargo area to be younger. According to ESRI data, the median age for people
within 10 miles of the West Acres Mall is 30.1 years old. This is significantly lower
than the average age of the typical adult in the United States, which according to
census data is 37.2 years. This shows that the majority of citizens in the F-M area are
of a younger generation. Within a 10 minute driving time of West Acres Mall, 25% of
the population is between the ages of 20-29 years old.
An older demographic is similarly
formed. Seniors are typically grouped
above age 60. Individuals aged above age
60 make up approximately 19% of the
entire population.
This assumption is also backed up
by data from the Claritas-Prism
Geodemographic Report. Data from this
set included zip codes of 58102(North
Fargo), 58103 (South Fargo), 58104 (South Fargo), 56560 (Moorhead), and 58078
(West Fargo). In all of the breakdowns, the age group 21-34 had a higher amount of
households in it, sometimes significantly more than others. The data also showed
income levels for those households. North Fargo (58102) had a significantly higher
amount of households making less than $25k per year, where West Fargo (58078)
showed a significantly higher amount of household falling into income levels above
$50k per year.


Within a 10 minutes driving time radius of West Acres Mall, households
made an average of $69,623 per year. As the radius expands to twenty-minute drive
times, the average household income increases to almost $71k per year. This makes
the average household falling into an upper middle class income demographic.

Locals also have a few psychographics worth noting. There has been a push

to buy local and buy

American in the
minds of consumers.
This is true in the
Fargo area, as 43%
of the population
included in the data
responded, Buying
American is
important to me.
This was the most frequent importance response. The second highest frequency was
a response of Likely to buy a brand that supports a charity at 34%, followed by
price is more important than brand name at 28%.

The population is increasing rapidly, and according to ESRI data, that trend is

not expected to slow down through 2020. Likewise, the average household income
for the area is expected to increase as well. As many of the families in the area chase
the endless opportunities of the area, the existing citizens will grow older, more
than likely bringing the average age up with them, closer to the national average.

3.6 Key conclusions from the secondary data analysis

The current demographics shopping at shopping malls are teenagers and
young adults, retirees, and mothers between the ages of 30-50. Young adults expect
to attain an enjoyable "physical shopping experience" that allows them to be
presented with shopping, dining, and entertainment while still being in a safe


environment (Norins 2014). Also, Younger demographics are more likely to
frequent stores with flashy brands, such as Hollister, Victoria's Secret, and Forever
21. Shopping at these stores is as much a shopping trip as it is a way to show off to
their peers, a desired outcome based on a psychological esteem need. Older age-
cohorts expect shopping malls to contain products of utilitarian value to tend to a
specific need. Also, these customers expect the mall to provide relevant and useful
information regarding their products so the need to acquire information outside of
the mall is less. Families expect to have an entertainment option for their children to
engage in that satisfies their particular wants in the entertainment aspect. Families
expect these sources of entertainment to be an integral part of their overall
shopping experience at the mall that goes beyond the physical act of shopping in the
retailers.
Best Practices that exist in the United States are those that place comfort and
ambiance as a main priority for their mall. Ways to make these factors a reality is
through recreational facilities, fine dining options, and technological innovation and
integration. Customers want a place to thats comfortable to hang out in for hours at
a time. Additionally, with the consuming world relying on their phones and e-
commerce more than ever for shopping purposes, the use of technological software
for customers to access sales, promotions, coupons, and other incentives are an
essential tool to help create reoccurring customers. Many developers are finding
success in Lifestyle Centers where there is opportunity for residential living and
retail to connect and promote sales by placing them in high-density urban areas.
They have found that placing these retail centers in "highly-traffic areas with solid
demographics"
Overall, Shopping malls need to be built to appeal to shopper's social
instincts and of course be aesthetically appealing. The shopping mall should provide
a large assortment of name-brand retailers that are able to sufficiently satisfy the
utilitarian and hedonic values of the customers. The shopping facility as a whole
needs to provide that hedonic value to the customers without having to purchase
any products. While it is important to provide them with an appealing facility and
retailers, customer service is just as important. It is vital to place customer service


as a top priority in order to have employees possess the most knowledge possible in
order to make the customer experience relaxing and convenient.


4. Ethnographic research
4.1 Procedures

Conducting ethnographic research at West Acres Mall took just over two
weeks to complete. All five team members conducted three separate observations
resulting in fifteen total. Each observation was between an hour to an hour and a
half meaning we spent roughly twenty hours conducting research at the
mall. Observations were spread out so that at least one was taken on everyday of
the week. The majority of our research was done between the hours of 3pm and
7pm during the middle of the week. We strategically planned observations on the
same day, at the same time, for consecutive weeks in order to compare results from
a week-to-week basis. While observing, time was spent both walking around with
customers and sitting at various locations around the mall.

10


4.2 Key results

4.21 Attendance analysis


The table below shows the key notes that we took while observing the
shoppers at various days and times around the mall.

Attendance Analysis

Observations

Time of
Day

Dominant
Demographics

Morning
(10am
until
12pm)

-Almost all Caucasians

-Roughly 30% males &
70% females between
the ages of 50-70.

Afternoon
(12pm
until 5pm)

-Roughly 50/50
Caucasian males &
females between the
ages of 50-70.

Evening
(5pm until
9pm)

-Roughly 80%
Caucasian with a
50/50 split between
male/female. No
dominate age.

Morning
(10am
until
12pm)

-Leisurely walking.
-Main activity is
socializing.
-Very few shoppers.

Afternoon
(12pm
until 5pm)

-Leisurely walking.
-Main activity is
shopping.
-If people are
socializing, 80% are
eating as well.

Behavior and
General
Activities

Day of the Week

Monday-Thursday

Friday-Sunday

-Caucasian
females between
the ages of 30-60.
-Roughly 15% of
population
black/middle-
eastern.

-More people at
the mall to
socialize, hangout,
window shop as
opposed to
actually shopping.
-Kids aged 5-8 are

11


playing around
the fountain and
are drawn to the
fish tank.

Description:
shopping alone,
in groups, etc.

Evening
(5pm until
9pm)

-If people are alone

they are walking at a
fast pace. People
walking in pairs and in
groups are walking at
a leisurely pace.
-People who are
shopping arent
socializing as much as
people eating or sitting
in the various courts
around the mall.

Morning
(10am
until
12pm)

-Almost all people

shopping are alone.
-A few groups of
people socializing in
pairs.

Afternoon
(12pm
until 5pm)

- A mix of younger
people (below 25)
shopping in pairs or
groups and people
over 40 shopping
alone.

Evening
(5pm until
9pm)

-People mainly
shopping alone, a few
shopping in pairs.
-Only a few families.

-People mainly
shopping in pairs
or groups.
-Sunday: mostly
families (parents
with young
children)

12


4.22 Customer counts

As part of our research we examined how the various courts around the mall
are used at various times of the week and day. The table below shows the notes we
took during our observations.

Customer Counts

Mall Court

Food Court

Herbergers
Court

Days of the Week

Time of
Day

Monday-Thursday

Friday-Sunday

Morning
(10am
until
12pm)

- Very low attendance. 15-

30 people. People are
taking their time when
eating.

Afternoon
(12pm
until 5pm)

-Early afternoon (12-2pm)

mainly elderly couples
eating.
-People eating alone are
either reading or on their
cell phone.
-About 50-60 people.

-About 100 people in the

food court around
4pm. Very few with
shopping bags.
-No one is in a rush.
-People are eating at all
restaurants though
Leeann Chin received the
most visits.

Evening
(5pm until
9pm)

-Space is dominated by
groups of people. Either
families or groups of
people aged 16 to 24.

-People are gravitating

more towards the right
side (Qdoba) of food
court.

Morning
(10am
until
12pm)

-5 people sitting in chairs.

-All elderly people (60 and
older). Not particularly
doing anything.

Afternoon
(12pm
until 5pm)

-3:30pm- All of the seats

were filled. 12 people.
-A few groups or pairs of
people seen talking but
people mainly alone.

-Everyone in the court is

sitting alone.
-Either just resting or is
on their phones.
-Older demographic
dominates the court.

13


Evening
(5pm until
9pm)

Macys Court Morning

(10am
until
12pm)

JCPenney
Court

Sears Court

-Less traffic and people

sitting than JCPenney
court.

-No one lingering in the

court.
-5:25-5:30pm- 5 people
enter/exit into
Herbergers.

-Busiest court in the mall

besides the food court.
-10 people sitting in chairs.
-2 different groups talking
to one another.

Afternoon
(12pm
until 5pm)

-Older people use the

chairs to rest or talk.
-Most people just walk
through on their way to
somewhere else.

-Mainly older people (60

and older) sitting on
chairs.
-One group of 3 talking-
otherwise people alone
eating or on phone.
-People spend the most
time in this court.

Evening
(5pm until
9pm)

-5:40pm- no one sitting in

the court.
-People linger at Easter
attraction but no one
remains in the court for
long.

-Benches by pillars are

only utilized for brief rest.
-Easter Bunny garnered a
lot of attention from
patrons, specifically
families.

Morning
(10am
until
12pm)

Afternoon
(12pm
until 5pm)

-Court dominated by
parents with young
children.

-Almost everyone in the

area has orange Julius.

Evening
(5pm until
9pm)

-Mom with young son

enjoying the fountain for
over 5 minutes.
-From 8pm to 8:10pm 10
people left mall through
exit.

-Half the people in the

court have orange Julius.
-5:30-5:35pm- 10 people
enter/exit into JC Penney.

Morning

14


(10am
until
12pm)
Afternoon
(12pm
until 5pm)

-People mainly using the

court to wait for other
people.

-Kids enjoy the aquarium.

-Calm atmosphere.

Evening
(5pm until
9pm)

-Couple with 2 young kids

looking at fish tank for 5
minutes.

-Families with young

children seem to
rest/take a break
here. The fountain
fascinates kids.

4.23 Shopping bag counting

The table below shows the number of bags for the top five brands that we
observed. It also shows the dominant demographics for each brand. To be
considered a dominant demographic, the demographic had to represent over fifty
percent of all the shoppers carrying the selected brands bag.

Brand

Number
of Bags

Dominant Demographic

Victorias
Secret/Pink

36

Caucasian females between the ages of 18-30. Roughly

70% of the time they are shopping with one or more
friends. The rest of the time they are with
boyfriend/husband.

JCPenney

24

No dominant demographic. Spread out between Caucasian

males and females at varying ages.

Macys

11

Caucasian females between the ages of 40-60. Roughly

80% of the time they are shopping alone or in pairs.

Forever 21

16

Caucasian females between the ages of 15-24. Roughly

60% of the times they are shopping in pairs of groups.

Maurices

Caucasian females between the ages of 30-50. Roughly

60% of the time they are shopping alone.

15


4.24 Traffic flow

The most popular entrances to the mall that we observed are located at the

food court, the JCPenney court and JCPenney itself, and the South East entrance
located near the best buy.

JCPenney Court: When shoppers entered through these doors or through JCPenney,
they regularly bought something at JCPenney and then either left of continued to
explore the mall down towards Herbergers.

16


Food Court: This was the most popular entrance into the mall. Many shoppers did
not go directly into the food court but continued into the mall. The majority of
shoppers turned right towards Herbergers once they entered the Macys court. If
shoppers did turn left the primary destination was Victorias Secret or Forever 21.
Rarely did shoppers go past Victorias Secret and Forever 21 towards the Sears
court.










South East Entrance: Shoppers entering through here primarily went to the nail
salons located in the Sears court. With a bus stop located right by this entrance
other types of shoppers did use this entrance as well. Shoppers who entered
through these doors explored more of the mall than shoppers using any other
entrance.
The main road used by shoppers was the hallway running east to west. The
second highest number of shoppers walking the hallways was found in the hallway
running north south between Herbergers and JCPenney. The side of the mall west of
Macys was always busier than the east side. The area between the food court and
Macys was always had the highest number of shoppers.

17


4.3-4.4 Interpretation and analysis & Key implications of your findings

Key Behaviors:
Based on our observations, we determined that shoppers could be put into
two distinct categories: those at the mall shopping for a specific product or to visit a
specific store (acquisitional shoppers) and those at the mall for leisure, social
interaction, or to eat (Experiential shoppers). We arrived at this conclusion because
of these key observations:

People sitting at the food court and various other courts around the
mall rarely had shopping bags with them.

One of the biggest discrepancies between shoppers was their walking

pace. People were either walking at a fast pace or a leisurely one.

The table below describes the general characteristics of each group:

Acquisitional Shoppers

Characteristics -Usually alone

-Walk at a faster pace
-Avoid crowded areas of the
mall
-Rarely stop for food/coffee
-Above the age of 30
-Rarely have more than one bag

Experiential Shoppers
-In groups of 2 or more
-Walk at a leisurely pace
-Take advantage of various places to
eat/drink
-Within any given group there are at
least 2 or 3 different brands of
shopping bags
-Browse various stores and window
shop

This is not to say that social visitors are at the mall only to hangout or
eat. They may be at the mall because they want something specific, however, they
treat it as a social experience and take their time while shopping. The number of
experiential shoppers far outweighs the acquisitional shoppers at any given
time. This is probably due to the variety of stores the mall offers and the fact that it
would most likely be easier for people wanting a specific product to avoid the mall
and shop at stores such as Wal-Mart or Target.

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Key Behaviors by Age Group:

Age Group

Behaviors

Children (3-8)

-Enjoy spending time at the fountain in the JCPenney court and at

the aquarium in the Sears court.
-Just before Easter, this group visited the Easter bunny in the
Macys court with high frequency.

Teenagers & young

adults (13-26)

-75% of the time they are shopping in pairs of groups. If not with
friends they are with parents. Rarely are they shopping alone.
-Enjoy eating and spending time at the food court.
-This group predominantly uses the other courts as meeting places
and spends very little time in them.
-Rarely shop at the big department stores.

Adults (30-60)

-This group is either accompanied by children or shopping alone

or in pairs.
-The number of females in this group is always larger than males
at the mall at any given time.
-This group shops at the department stores unless they are with
children.
-When with children they rarely have more than one shopping bag.
-They spend very little time in any or the courts.

Elderly (60-80)

-This group uses the seating at the various courts around the mall
the most.
-At the food court they usually grab something small to eat and
take their time while reading the newspaper or talking amongst
one another.
-Aside from the food court, this group can mainly be found in the
Macys court.
-If not sitting and talking in pairs or groups they are sitting alone
resting or reading.

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Part 2: Strategic recommendations for West Acres Mall
Overview:
In this section of the report we will provide strategic recommendations for West
Acres Mall. These recommendations include

Target Market
Atmosphere
o Add Skylights to the mall
Implement the use of Televisions
Add Coffee stand to the Sears Court
Stores to Add
o H&M
o Nordstroms Rack

Target market

Home to over 120 stores, a wide selection of place to eat, and a movie theatre, West
Acres mall offers a variety of reasons as to why shoppers would visit. This is why
West Acres should have three key target markets. The following three target
markets are recommended based on secondary data analysis, local demographic
data provided by ESRI and our observations at West Acres.

Elderly: This group is 55 years old or older, Caucasian, and is both male and female.
They are retired and spend the majority of their time at the mall on weekdays
between the hours of 12:00pm and 5:00pm. Their primary reason for being at the
mall is to socialize and spend their time in a public setting. They can be found
sitting in the food court eating, drinking a coffee, talking to one another, and/or
reading the newspaper.
Caucasian Females: Between the ages of 30 and 50, this group is comprised mainly
of mothers. This group is made up of middle to upper class citizens. Some of this
group is stay at home mothers who spend their time at the mall in the afternoon.
This target market either comes to the mall alone, with a friend, or with children. If
they are alone they tend to spend less time in the mall and only visit a few stores

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during their trip. If they are with a friend then they will visit a variety of stores and
potentially sit down with a coffee to talk. Whether alone or with a friend, this
groups favorite stores are JCPenney, Macys, and Maurices. If they are with their
kids then they will visit a few stores but will also spend time at the fountain, fish
tank, and attractions in the Macys court such as the Easter bunny exhibit.
Teenagers & Young Adults: This group is composed primarily of Caucasian
females between the ages of 15 and 24. They tend to visit the mall between 3:00pm
and 6:00pm during the week and at various times on the weekend. They are rarely
shopping alone and are almost always with a friend or in a group. Their favorite
stores are Victorias Secret, Pink, and Forever 21.

Atmosphere:

Add Natural Light:

Currently, only the food court and the JCPenney court effectively utilize
natural light. West Acres should add skylights to the Herbergers court, Macys
court, and Sears court. The relationship between natural light and consumer
behavior is positive to say the least. In a literary review of the effects of natural light
on consumers, researchers Edwards and Torcellini stated that natural light could
enhance store environment, create a more pleasant shopping experience, and
increase sales. This claim of increasing sales is
backed up by Gregg D. Ander, chief architect of
Southern California Edison, who applied day lighting
to one of the largest retailers in the country. In
2001, he studied 11 stores in the same district.
When compared to nondaylit stores, daylit stores
sold 28% more product (Ander, 2001).
The Heschong Mahone Group completed a
study in 1999 evaluating 108 stores of a retail chain,
of which two-thirds had natural lighting. Forty-two
consumers were interviewed and of those

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interviewed, 80% said the stores felt cleaner, while 65% said it felt more spacious
and open. The Heschong Mahone Group study demonstrated that the benefits from
daylighting could be extended to customer loyalty, more relaxed customers, better
product visibility, and improved employee morale (Edwards & Torcellini, 2002).
As well as these studies, our observations of the various West Acres courts
support our recommendation of adding skylights to the mall. The well-lit JCPenney
court was always inhabited with people enjoying themselves at the mall. Also, every
member of this team was happiest and the most relaxed when in the JCPenney
court.
The final reason to add skylights to the Sears, Macys, and Herbergers court
is the cost savings in terms of electricity. The initial cost of putting skylights in will
be expensive, however, the long-term savings on electricity should be considered.

TV Implementation throughout West Acres Mall:
West Acres should begin implementing Televisions in specific locations
throughout the facility. The Televisions could provide a variety of different benefits
to the West Acres shopping experience as a whole. Through observational studies
and other research, West Acres should implement these televisions around the
fireplace of the Food Court and all main hallway-intersections.
West Acres would see an increase in their customers overall shopping
experience through implementing TVs displays on the four panels of the fireplace.
West Acres already provides a vast amount of seating options in the food court
including couches, chairs, and wooden chairs at the food court tables. However,
aside from the eating experience in the food court, there are little to no attractions
that provide an enjoyable time-investment. According to the Toledo Blade, the Food
Court Entertainment Network Inc. (FCEN) filled food courts in malls with,
televisions broadcasting a mix of entertainment, news, and advertisements for mall
stores and products(Jones, D. 1996). It continues to explain that through
observational research studies conducted by the FCEN, shoppers who watched the
television displays in the court noticeably bought more products than ones who
didnt(Jones, D. 1996). From this, there is an obvious influence the television

22


displays have on consumers in the food court. When people are eating at the food
court, their eyes wander around the entire court naturally. So, placing them in the
court would draw customers to engage in watching the televisions. We recommend
placing TVs around the panels surrounding the fireplace. Through broadcasting
sporting events, news channels, and mall advertising, the TVs would provide a
positive experience for customers sitting in the chairs surrounding the fireplace as
well as promoting the products that the malls retailers provide.
The next locations where televisions should be placed is at all of the main
hallway intersections of the mall. At other shopping malls across the world, the use
of LED screens and television displays in specific locations has provided a
respectable return on investment in overall shopping experience, as well as in sales
generation. According to Adi.TV, LED screens for shopping centers are, attractive as
a promotional medium and the leisure-centered atmosphere...Whether it be
storefront product promotion or shopping centre big screen customer
entertainment(Adi.TV 2016). Also, these displays can create, increased value and a
more favorable split of advertising sales(Adi.Tv. 2016). From these LED screens
most likely being out of the West Acres price range, we recommend mounting flat-
screen TVs on the mall directories and on the walls of the hallway intersections in
each of the respective courts. For example, we recommend mounting a television on
both sides of the directory in hallway C (Food Court) where they would display the
current promotions of the retailers in those hallways. This would promote
unexpected purchases to those customers that are at the mall for one specific
retailer. Also, it has the ability to increase customer traffic in areas of the mall that
are generally lacking in attendance.

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Put a coffee stand in the Sears court:
If a coffee stand were placed in the Sears court, like the Moxie Java stand in
the JC Penney court, we believe it would increase traffic into the Sears court area
and into Sears itself. Not only would the stand increase traffic going into Sears, but
also bring business to the businesses surrounding the Sears court.
According to Eillie Anzilotti, stores putting coffee shops in their store space
have seen business increase because the coffee shop itself generates a micro culture
in the store associated with the coffee shop.

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H&M:
West Acres should add an H&M store to the mall. The H&M strategy is the
offering of high fashion at low prices, typically targeting working class, lower middle
class and students. Even though H&M offers clothing for all ages, their main target is
women. The most popular segment is women ages between 15 and 30 years.
Women purchase mostly
for themselves but also
buy their childrens
clothing and often their
husbands as well.
H&M is the second
largest clothing retailer in
the world, while being the
largest in Europe. Sales
growth in the U.S. has far
outpaced those reported by Gap, for example, while teen retailers such as
Abercrombie & Fitch have seen their businesses suffer a bruising decline as tastes
have changed in favor of H&M and rival Forever 21(Kell, 2015). In 2014 sales leapt
17% compared to the previous year, which showcases its popularity amongst
consumers. H&Ms growth target is to increase the number of stores by 10-15
percent per year.
Its main competitors are retailers such as Zara, Topshop (both are European
brands expanding in the US market) and Forever 21. The nearest Zara & Topshop is
located in Chicago, while the nearest H&M store to West Acres mall is located in St
Cloud, Minnesota, two hours and thirty minutes away. This makes West Acres an
ideal location for H&M to reach a larger audience in the US as they look forward to
continuing their US expansion. According to our research, the national median age is
37, and the average median age within ten minute driving to West Acres is 30.1
years, while the percentage of population between 20-29 years is 25%. This makes
for a perfect market for H&M and implementing H&M into West Acres will drive up
sales and bring more customers to the mall.

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Nordstrom Rack Store:

West Acres Mall should
replace a current department store
with a Nordstrom Rack Store. A
Nordstrom Rack store would fit
perfectly into the space currently
occupied by Sears. Nordstroms
popularity is soaring at the moment and they are one of the most desired places to
shop for consumers. In December 2015, Market Force surveyed 5700 consumers to
determine who delivers the best retail experience. Across seven specific areas,
Nordstrom had the highest average score with 58% (Colon, 2016). Nordstrom Rack
stores fall into the outlet or off-price category, which means that they deliver high-
end, name brands at a discounted price. According to Sharon Bailey and Market
Realist, consumers who shop at stores such as these belong to the middle and
middle to upper classes. Based on data provided by ESRI, within a ten-minute
driving radius of West Acres, households earn an average of $69,623. The total
population within this radius equals 121,070 as of 2010. Therefore, there would be
a large population for a Nordstroms Rack store to service.

The perfect place to add a Nordstroms Rack store into the mall would be at

the Sears location. Based on our time spent at West Acres and all of the
observations we took, Sears was the least popular department store at the mall.
This was based on the lack of Sears bags seen around the mall and the fact that the
end of the mall containing Sears was always the least busy.

In February 2016, Sears said that its same-store sales fell 7.1% in the fourth

quarter and revenue dropped 9.8%. Last year Sears reported a loss of $159 million,
which compared to a quarterly loss of $580 million this year seems meager
(Peterson, 2016). Industry analysts also forecast problems for Sears in the future.
Neil Saunders, CEO at retail consulting firm Conlumino, wrote in a note to clients
Thursday that "The underinvestment clearly shows and as such they are caught in a
vicious cycle of seeing lower and lower customer traffic, which further weakens the

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case for investment and reinvigoration (Peterson, 2016). With Sears trending
downward and Nordstroms trending upward, the time to replace Sears is fast
approaching. A Nordstrom Rack store would also benefit West Acres in the
following ways:
Target Market:
According to Sharon Bailey, Market Realist, and Nordstroms 2013 Fiscal report, the
company is attracting millennials between the ages of 16 and 34. These consumers
are brand conscious and try to find big-name brands at reasonable prices.

As you can see by the graph above, products designed for women account for 56%
of merchandise sales for 2013. That doesnt account for the 23% of shoe sales,
which we could assume is mainly womens shoes. Women between the ages of 16
and 34 is the key demographic for Nordstroms, which is the part of our
recommended target market for West Acres.

Customer Traffic: The area of the mall around Sears has the least amount of foot
traffic in the mall. Adding a Nordstroms Rack store would increase foot traffic at

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that end of the mall by providing a sought after destination. With the two salons
located at that end of the mall, the target market already visits that area frequently.

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