The shopping centre assault on local strip malls has gone up a notch this year. Fairfax reports some giant operators are morphing into pseudo town centres by adding independent brands and services to attract the local community.
Is that what small business owners and customers want?
Do we want shopping centres to become so large that consumers are forced to do everyday business there? Or to give shopping centres that much power over small-business tenants and the community?
Yes, the best shopping centres give customers want they want: convenience from more shops under one roof, easier parking, better facilities and a stronger shopping experience. As they add boutique brands, dining precincts and services, there is less need to visit suburban shops.
Many strip malls, usually spread across two sides of the street in key suburban thoroughfares, only have themselves to blame. Their retailers do not work together to promote the precinct; council support is inconsistent or non-existent; and the shopping experience is sullied by empty shops that are boarded-up eyesores.
Marketing campaigns that encourage people to "shop small" and support local retailers, although well-meaning, are ineffective. It's hard to support local retailers when it's a struggle to park due to limited spaces or excessive clearway restrictions, store choice is poor, and the local shops have a depressing feel.
I'm not against successful shopping centres expanding or capitalising on public demand. That's business. Rather, it's a question of balance.
Have local councils, regulators and communities thought about what will be lost as more shopping centres become the de-facto town centre, in turn killing local shopping precincts?
Sadly, we have seen this trend in regional towns where a large shopping centre kills the main street and eventually becomes the CBD. That trend seems to be occurring in capital cities that are allowing giant shopping malls to rip the character from suburbs.
How long until it is impossible to find an after-hours chemist in a small suburban shopping strip? Or a newsagent or post office? Or when you must drive to a shopping centre to buy fresh fruit, vegetables and meat because it is no longer viable to sell them in local shopping malls? Or visit a shopping centre to go to the movies and eat at a nearby restaurant?
Even once-vibrant local shopping precincts seem to be struggling. One I visited in Melbourne at the weekend had too many vacant stores or others with for-lease signs. That's despite rampant population growth adding thousands of new residents in the area each year.
The best local strip malls do more than sell basic products and services. They connect communities in a way that no shopping centre can. They give residents a reason to meet, talk, support each other and they create a sense of belonging and social harmony.
Have local councils, regulators and communities thought about what will be lost as more shopping centres become the de-facto town centre, in turn killing local shopping precincts?
Councils need to rethink the future of local shopping precincts. It's pointless trying to compete with shopping centres – that ship has long sailed. Rather, they need to view local shopping malls in the context of integrated, smart cities that connect residents. Cities that encourage people to walk, ride bikes, shop local, reduce their carbon footprint and experience their community.
Here's a crazy thought: what if more councils rent large blocks of unused space in local shopping malls and turn them into subsidised co-working spaces for local innovators and entrepreneurs.
Imagine injecting 100 young entrepeneurs into a rundown local shopping precinct. The influx of entrepreneurs, and the many people they meet each week, would revitalise strip malls. There would be new cafes, new energy and new reasons for residents to visit the area.
Alternatively, councils could rent unused space to showcase local artists. Some councils have experimented with pop-up spaces for cultural pursuits and much more could be done. Better still, why not add libraries or childcare centres to rundown shopping precincts?
Instead of congesting suburb streets with excessive property developments, councils could encourage more development around dilapidated local shopping malls. Done well, mixed-use developments could energise local commerce and add to the community's character.
Of course, there's only so much councils can do because suburban shopping malls are mostly made up of privately owned buildings. Still, councils could show more foresight to buy or rent unused space and use it to boost the local shopping precinct.
As millions of Australians works from home for part or all the working week, the opportunity to boost local shopping precincts is staring councils in the face.
Letting suburban strip malls die means ever-larger shopping centres that have more control over small business and the community. Who wants the shopping centre's CEO to be the de-facto mayor in the city's new town centre, where fewer people know each other, or care?
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