The data advantage for retail experience hubs
In today’s competitive retail landscape, staying ahead requires innovative thinking and strategic partnerships. At Attacq, we have embraced this challenge head-on by partnering with Nedbank to leverage retail banking data in ways that enhance tenant mixes and overall shopping experiences across our malls, including Mall of Africa.
This article is based on a presentation by Michael Clampett (Attacq) and Josephine Baliah (Nedbank), delivered at the 2024 South African Council of Shopping Centres (SACSC) Congress, held at the Cape Town International Convention Centre from 30 July to 1 August 2024. (See more information here.)
Since 2016, around the time of Mall of Africa’s launch, we’ve recognised that to compete with established malls, we needed more than just prime locations and attractive retail spaces. We needed insights. This meant gathering actionable data that could inform our decisions and give us a competitive edge. Our journey towards using data-driven insights to enhance our retail experience has evolved significantly, starting with Wi-Fi analytics and moving into advanced banking data solutions.
We began by analysing Wi-Fi behavioural analytics for mobile devices moving around our retail experience hubs. This approach allowed us to map visitor behaviour, uncovering patterns and retailer overlaps that traditional methods could not detect. For instance, our data revealed that a substantial number of new visitors frequent Bounce Inc., an indoor trampoline park at Mall of Africa, underscoring the importance of understanding and leveraging visitor habits.
Building on these Wi-Fi data insights, we then collaborated with Nedbank to use their extensive transaction data to gain a deeper understanding of our visitors and tailor our offerings accordingly. This partnership has been particularly transformative in refining our leasing strategy. By leveraging transaction data from both bank cards and retailer payment terminals, we developed predictive models to identify the most suitable tenants for our malls. This approach not only attracts successful brands but also reduces the risks associated with tenant selection, improving occupancy rates and ensuring tenant success.
A case in point is utilising data-driven insights to introduce an apparel brand into a mall that we would not have thought would be ideal for this brand. But by identifying a strong demand for the kinds of products produced, we were able to successfully integrate this functional fashion outlet, which has since become a popular destination for our visitors.
At the heart of our strategy is a commitment to enhancing the experience of customers. By understanding where our visitors spend their time and money, we can curate a tenant mix that meets their needs and preferences. For example, visitors to Bounce Inc. at Mall of Africa typically spend about 59 minutes inside and visit three other stores during their trip. This kind of granular insight allows us to ensure that the right mix of stores is easily accessible, making each visit more enjoyable and productive for our customers.
We also discovered that Bounce has a peak visiting hour at 15:00 and sees a surge in visits at the end of the month. These insights help us in planning events, promotions and tenant placements to maximise engagement and sales during these peak times.
Our goal isn’t just to attract top retailers. It is to maximise turnover they can generate. To entice turnover, we need to acquire visits and spend. This philosophy drives our approach to tenant acquisition and placement.
Looking ahead, we envision a future where data-driven leasing decisions become the norm, not the exception. Our collaboration with Nedbank has shown that when malls and banks work together, the insights gained can lead to better decisions, healthier malls and more satisfied customers.
The entire property management industry stands to benefit from this approach. By ensuring that each mall’s tenant mix is tailored to its specific shopper profile, we can offer unique and compelling experiences that set us apart from the competition. This not only attracts more visitors but also drives higher sales and boosts the overall health of the retail sector.
The partnership between Nedbank and Attacq is a testament to the power of data in transforming the retail landscape. By continuing to harness these insights, we are poised to enhance shopping experiences across our malls further, including at Mall of Africa, ensuring they remain premier destinations for both tenants and shoppers alike. Our future thus holds exciting possibilities as we continue to innovate and lead the way in data-driven retail strategies.