With Online Businesses Going Strong, Are Strip Malls A Dying Breed?
It is the era of technological advancement. Most of the people, especially the youngsters are extremely tech savvy. No doubt it is the reason why online or virtual is the new real. Consumers and potential customers lack time. They do not have the time to roam about in the markets. Hence, for their convenience, the virtual market or the online business options have come into being.
Now, the question is, whether the online market places or shopping sites will take over the traditional markets, or the traditional markets and the culture of malls will survive?
When investing in strip malls, don’t forget the location, location, location rule. It still applies for commercial real estate investing.
Importance of the malls:
The strip malls on the busy streets of a city, once were the icon of trend and fashion. People considered it to be a fashion trend to shop from the malls. They are home to a number of brands, designer outlets and in most cases, supermarkets. Hence, those, who wanted to be a little extravagant, always visited the malls.
Another important aspect of the strip malls is the food court. The air conditioned malls often, nowadays, is a place where only window shopper congregate to spend leisure time. They buy some food at the food court and sit with their friends in the air condition. Some just roam about in the mall from one floor to the other, window shopping. There is no need to pay money to enter the malls and one can spend a few hours there, hanging out with friends.
Benefits of the online business:
The online businesses or shopping sites on the other hand, have become extremely popular and sometimes even more popular than the strip malls. The reasons are –
- The online shopping sites are open 24x7x365 days. Hence, those, who work in odd hours and do not get time to go for shopping, can be benefited with the online businesses.
- One can get additional discounts from the sites that the malls hardly offer. In fact, you can get discounts on all brands and items at the same time. Hence, there is no need to find the one suitable for you.
- The online shops often sell a number of brands under the same virtual roof. So, just with a single click, you can browse through the options.
The strip malls, failing to provide these facilities, are gradually losing their popularity. The investors and builders of the malls are backing out from investments because of the huge amount of cost being engaged in maintenance and electricity. Still, the revenue and profit margins are not meeting up to their desired standards. If this trend continues, the concept and culture of strip malls will soon lose its charm and popularity.