With rising voids and falling customer spend, rarely has commercialisation been such a vital source of income for shopping centres. But Marcus Kilby, chair of the steering group behind the report, notes that some centres were failing to make the most of promotional spaces and RMUs in their haste to earn extra revenue.

“Commercialisation has developed over the last 10 years and is now far more extensive. It’s not just about adding the odd kiosk any more, but a broad overall strategy involving the centre’s promotions. How it fits into the running of shopping centres has become more complex and not everybody has got it right,” says Kilby.

The aim of the report, according to Kilby, was to provide a list of dos and don’ts to anyone involved in shopping centre commercialisation. Other points made, such as ensuring RMUs are well-staffed, or matching the style of promotions and kiosks with the overall look of the centre, are vital though perhaps more obvious. However, for small and medium-sized centres without experience in commercialisation, a list of effective solutions might encourage landlords to give it a go themselves.

And while bigger landlords are well-versed in commercialisation strategies, the relationship between management and retailers seems to be a universal problem. Several of the report’s recommendations focus on encouraging landlords to make promotional strategies clearer to inline retailers.

“Retailers should have an understanding of what’s happening and who they can talk to if they have a problem or a query. The retailers we’ve spoken to do see commercialisation as an avenue to improve business – for example they see an increase in trade when a mall cafe is set up near their store. But there hasn’t been dialogue at ground level. Landlords need to explain the opportunities to retailers to give them a better understanding of commercialisation and how it can work for them,” Kilby concludes.

But it’s not just retailers. According to the report, landlords need more guidance in planning promotional events and other aspects of commercialisation, such as RMUs and digital advertising sites. Simon Donaldson, chair of the BCSC Commercialisation Group, says: “There’s a myth that commercialisation only works for centres like Bluewater and Brent Cross, but the report has shown there’s a way for every shopping centre to prosper from it. The key is to get a good understanding of the target demographic so that events can be planned to suit shoppers’ tastes and interests.”

The adverse effect that poor commercialisation plays on shopping centres in terms of footfall and customer spend can be overlooked by some landlords. Attention to detail is a theme throughout the report, whether it’s preventing RMUs from cluttering up the mall or ensuring products complement rather than detract from inline retailers. These are major points of contention with retailers, and perhaps by addressing them head on, retailers will be more inclined to take part in commercialisation strategies rather than view them with suspicion.

“We have managed to get through to a lot of retailers thanks to the PMA. All the right people were interested from the start, so they’re still involved with it now,” Kilby explains. So what happens next? “This is the start of a fairly long process. We want to use it as a base for seminars and discussions and take it forward from there,” adds Kilby.

And Donaldson, as head of commercialisation for major developer Lend Lease, is keen to spread the word on good commercialisation practices. “I don’t have a problem with people knowing what we’re doing in our centres. There’s a need for all of us to talk to each other to find out new ways of doing things,” he says.

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