PRINT THIS STORY:

CHANGE TEXT SIZE:

STILL HEADING FOR THE MALL

Time and money spent in the mall holds steady, ICSC survey reveals

By Michael Baker

Mall shopping trends are remaining stable, according to ICSC’s seventh annual compilation of consumer patterns at regional and super-regional centers. Generally, the 2000-2001 data show continuing stability in such variables as the number of mall visits, the duration of each visit, the stores shopped and the amount spent.

For starters, shoppers still make, on average, about 40 mall visits every year, according to the survey, which was compiled from exit interviews conducted in 2000 and 2001 by three mall companies — General Growth Properties, The Rouse Co. and Simon Property Group — with slightly fewer than 36,000 shoppers at 99 malls. The data were assembled and cross-tabulated for ICSC by Deloitte & Touche.

Young shoppers are the most prolific in terms of mall visits, with 14-to-17-year-olds making about 60 outings a year. Seniors 65 and over also make an above-average number of mall visits.

Those visits are not being cut short, either. ICSC data have previously pegged the average duration of a mall visit at about 75 minutes; the 2001 figure was right in line with precedent, at 78.1 minutes. Larger centers attract longer stays. Centers bigger than 800,000 square feet enjoy an average visit duration of 79.5 minutes, compared with 73.4 minutes for those under 800,000 square feet.

Again, teens and seniors stay significantly longer at the mall than shoppers in other age groups (figure 1). Females outstay males by a margin of more than 14 minutes. Hispanics (average stay 90.3 minutes) are at the mall longer than Asians (79.9 minutes), whites (78.3 minutes) and blacks (70.5 minutes).

Where do they shop?
Mall shoppers visit an average of 0.9 department stores on each visit and make purchases at 0.5 department stores. The average number of stores visited increases with age (from 0.7 for 14-to-17-year-olds to 1.2 for seniors over 65). The relationship between department store visits and shopper age will be increasingly interesting to track as time goes by, in view of store operators’ strenuous efforts to connect with younger demographics.

Unsurprisingly, the average number of department stores visited and shopped increases sharply with length of stay at the mall, from 0.8 visited and 0.4 shopped for a stay of 30 to 60 minutes; to 1.4 visited and 0.8 shopped for a stay in excess of three hours.

For in-line stores, the average number visited and shopped is 1.4 and 0.7, respectively. But in contrast to department stores, both the number of mall stores visited and the number shopped declines with age, from 1.6 visited and 0.8 shopped for 14-to-17-year-olds; to 0.8 visited and 0.4 shopped for those 65 and over.

Not surprisingly, the number of mall shops visited and shopped increases sharply with income. Shoppers with annual incomes under $25,000 visited 1.2 stores and made purchases at 0.6 of them, while those earning more than $75,000 visited 1.7 stores and bought at 0.8 of them.

Consistent with the results for department stores, the number of mall shops visited and shopped increases with length of stay, from 1.3 visited and 0.6 shopped during a 30-to-60-minute stay, to 2.5 visited and 1.2 shopped during a stay of longer than three hours.

How much do they spend?
Average spending at in-line shops was $37.40 in 2000-2001. The average amount spent at department stores in the ICSC sample was $35.90. Females outspent males by almost $10, and Hispanics and Asians spent more than other ethnic groups ($40.40 for Hispanics and $38.80 for Asians, versus the mean average of $35.90).

Higher expenditures at department stores are also associated with increasing age, income and, of course, length of stay (figures 2, 3 and 4), with the third and fourth hours of a mall visit extracting incremental expenditures of $16.30 and $12.30, respectively.

Peak expenditures at in-line shops are made by those in the 25 to 44 age group and in the higher income groups (e.g., $54.50 for shoppers with incomes above $75,000, versus the average of $37.40 for all shoppers).

Spending at in-line stores also rises appreciably with time spent at the mall, from $31 for a 30-to-60-minute visit to $70.80 for a visit that exceeds three hours.

Average expenditure on food is $4.70. In total, each mall shopper spends an average of $75.10 per trip at all store types.

Shopping patterns and sales productivity
Malls with high sales productivity are associated with longer trip durations and with a significantly greater number of mall stores entered and shopped. The data indicate that although higher-productivity centers exhibit a mall-store conversion rate (the number of stores purchased at divided by the number visited) similar to that of other malls, they enjoy an average transaction value that is significantly higher — $57 for malls in the upper productivity quartile, compared with $46.86 and $45.17 for median and lower-quartile-productivity malls, respectively.

Restaurant/food spending is also higher at malls in the upper quartile. Last, upper-quartile malls enjoy a larger percentage of high-income shoppers — more than 31 percent have household incomes above $75,000, versus slightly less than 18 percent for malls in the lower quartile.

The bottom line: Data from the 2000-2001 ICSC shopper database indicate the continuing stability of most key variables, including frequency of visits and spending. Old habits die hard.

Michael Baker is director of research for ICSC.

© 2008 ICSC. All rights reserved. | Terms and Conditions | Privacy Policy | Contact ICSC | ICSC Home |