According to a recently published report by Knight Frank, a reputable real estate firm, the average yields in the retail sector have climbed to 9.5%, which is 4.0% higher than those in the residential sector. This surge highlights the dynamic nature of the retail market, predominantly driven by malls and supermarkets.
With this backdrop, it is intriguing to explore the strategies that supermarkets and malls employ to attract shoppers and sustain their businesses. This article delves into the tactics used by various retail entities to pull in customers and maintain their competitive edge.
Supermarkets and malls strategically choose locations with high vehicular traffic. By situating themselves along busy highways and major roads, they capitalize on the steady flow of potential customers who pass by daily. This is evidenced by malls such as Garden City Mall and Thika Road Mall which are located along Thika Super Highway. This visibility not only attracts spontaneous visits but also establishes the retail spot as a convenient stop for commuters.
Positioning on the ground floor of buildings significantly boosts foot traffic. Ground floors are naturally more accessible and visible, making them prime spots for attracting shoppers. This strategy is particularly effective in multi-story malls where upper floors might see less footfall.
Retailers often choose locations on the ‘going home’ side of major highways. This tactic caters to the convenience of shoppers who prefer to stop by on their way home from work or errands, rather than making a special trip
Establishing retail outlets near residential areas is another effective strategy. By providing convenience to nearby residents, supermarkets and malls can ensure a steady stream of customers who appreciate the ease of accessing shopping facilities close to home
Awarding points for shopping is a popular strategy among retailers. Loyalty programs incentivize repeat visits by offering points that can be redeemed for discounts, free products, or other rewards. This not only boosts customer retention but also encourages higher spending
Investing in the overall shopping experience is a key strategy. This includes maintaining a clean and appealing environment, providing excellent customer service, and offering a wide range of products. Many malls also incorporate entertainment options, such as cinemas and food courts, to enhance the overall appeal.
The rising yields in Kenya’s retail sector reflect a vibrant and competitive market. Retailers are employing a variety of strategies to attract and retain shoppers, ensuring their businesses remain afloat in a challenging economic environment. By choosing high-traffic locations, positioning themselves for convenience, and engaging customers through loyalty programs and promotions, these retailers are well-positioned for continued success. As the retail landscape evolves, staying attuned to consumer preferences and embracing innovation will be crucial for sustaining growth and profitability in this dynamic sector.
