Bread and games

Consumers who arrive at the shopping center are now “on a mission”. After doing their window shopping online, they arrive on site with specific destinations in mind. Result: in 2023, customers stay in shopping malls for less time than before the pandemic. To “revitalize” the place and get people to wander around more, you have to attract them by offering them bread and games: supermarkets, restaurants and entertainment.

Sales generated in shopping centers have reached 2019 levels and often surpass them, assure the managers interviewed. But window shopping seems to be a less popular pastime. For example, in regional centers managed by the Mach Group such as Place Longueuil, Place de la Cité, Le Carrefour de l’Estrie and Le Center des Rivières, the average time of a visit varied from 90 to 120 minutes before the pandemic. Now shopping trips last 60 to 90 minutes. This downward trend is observed in several other centers, in the city or in the region, says Jean-François Grenier, senior director of the Altus Group. According to him, on average in regional and supraregional centers, the time spent shopping on site has fallen from 70 to 50 minutes.

To extend the duration of customer visits, it is necessary to bring back the grocery stores, which had deserted the shopping malls, note the landlords and managers interviewed. Restaurants and entertainment are also available. According to the lessors, these efforts – which ensure that consumers wander everywhere – will make it possible to restore to the shopping center this “unifying vocation” which characterized it more before the pandemic. An increase in spending is also expected to follow. “It increases the frequency of visits to the shopping center,” underlines Mr. Grenier.

“Are we getting the right deal?” » This question has long bothered Pierre Lapointe, president and CEO of the Mayrand Alimentation Group, when he decided to open a store at Mail Champlain, in Brossard, in April 2020.

While 40 years ago, supermarkets occupied a prominent place in shopping centers, he recalls, they then left them due to rent increases. Thus, many brands have become local businesses. But now they are starting to set up there again, as Avril has done in recent years at Promenades St-Bruno, at Place de la Cité in Quebec and at Galeries Rive Nord in Repentigny, as well as IGA Extra at the Rockland Center, Mount Royal. The Asian supermarket chain T & T will open a branch at DIX30 in the fall of 2024.

And it is clear that their presence generates traffic. Thus, Pierre Lapointe’s apprehensions did not materialize. His Mail Champlain store is operating. Yes, he made the right deal, he now confirms without hesitation. His grocery store is the business that attracts the most customers to Mail Champlain, he maintains.

Groupe Mayrand Alimentation, which specializes in the sale of large formats, has four stores in the greater Montreal area. The Brossard grocery store is among those that operate best “per square foot,” says the big boss.

“In very large centers, historically, there were supermarkets. They were taken out. But there, it’s coming back,” also notes Jean-François Grenier.

“The majority of shopping center owners are trying to reintroduce a little more catering and local shopping, where there is less online shopping,” he adds.

At the Mach Group, we also make the same observation, according to Alexandra Bélanger, marketing director. The private investment capital company is also “in discussions” to attract more local businesses, such as supermarkets and Dollarama stores.

In certain projects, food retailers are even involved in the new transformations, as is the case in Quebec with the Fleur de Lys shopping center. The developers, brothers William and Jonathan Trudel, who wish to modify the site to make it a place to live with housing and green spaces, ensure that the popular Walmart and Maxi stores – already on site – are integrated into the metamorphosis.

“We create destinations”

Beyond businesses where customers frequently visit, entertainment venues also add minutes to the visit counter.

Thus, in June, Place Fleur de Lys inaugurated Préski, an indoor snow sports center open all year round. Two years ago, Clip’n climb, dedicated to climbing, set up shop at Mail Champlain.

The Royalmount, future shopping center under construction at the corner of highways 15 and 40, will host a performance hall and an aquarium.

Catering also plays a crucial role in attracting people. We are not talking here about the traditional food fair bringing together fast food chains, but about concepts allowing you to eat well and even have a drink.

The Time Out Market, a gourmet hall located at the Eaton Center, in the heart of downtown Montreal, is a good example, underlines Johanne Marcotte, executive vice-president, portfolio management, retail, of JLL, which notably manages the Eaton Center, Galeries d’Anjou and Place Laurier in Quebec.

And for many retailers, business has picked up again in shopping centers. To survive, you must constantly renew your stores, believes Sylvain Lafrance, president of the Marie-Claire Group. And for good reason, almost 60% of the company’s stores (Marie Claire, Grenier, Claire France, San Francisco, Livøm and Dans un Jardin) are located in a shopping center.

Over the past year, around thirty of them have been renovated. “For us, shopping centers have always been our main business. »

And what does he say to those who predict their death? Mr. Lafrance rejects this idea out of hand. “In certain shopping centers, we are starting to increase rents. » An undeniable sign, according to him, that there is a revival.