High Street vs. Shopping Mall: Where Should You Invest Your Retail Business?

Retail business is on the rise these days. Whether you want to choose between high street commercial areas or shopping malls. But it is not easy to find the best location for your business. Both of these locations have their own advantages and disadvantages. 

Every business wants to be seen by as many people as possible. You also want the location where your business is put in front of your target audience as well. So, which is the best place to do your business? Let’s find out by reading the guide below to help you decide. But first, you should know the difference between a high street and a shopping mall:

The Difference Between Commercial High Streets and Shopping Malls

A high street is a dedicated place for retail businesses in a city or a town where businesses can have their own place to sell their items. As your business is located in one common place where all the other shops are, it is easier for shoppers to buy whatever they want or need in one place. This can help them save time as they won’t go far away or here and there to purchase different items. 

Shoppers purchasing one specific item; might be encouraged to buy other items from other shops while walking in the area. Businesses also take advantage of the increased footfall in the area.

On the other hand, when it comes to shopping malls, it is a large buildings usually outside of the city or town, where indoor shopping is done by the shoppers. This is one of the best locations for a family experience with entertainment like cinemas, entertainment activities, or events. 

Shopping malls have lower rental fees as compared to high street areas. Moreover, retailers can take advantage of its business model called “revenue sharing” as well.

Which is the Best Investment for Your Business; Commercial High Street or Shopping Mall?

To help you decide which one is a better option for investment, take a look at the advantages and disadvantages of high streets and shopping malls: 

What Commercial High Street Offers You?

Commercial high street makes it easier for shoppers to spot a specific brand while passing by. In a mall, it is not that easy to find a certain brand shop. It is also time-consuming to buy one specific thing as you might go here and there on the floor or you have to go to the upper or lower floors of the building. 

High street shops’ branding does not only attract customers but it is also a great place for brand recall for the passerby. 

In a shopping mall, you don’t have any control over the usage of the heating or air conditioning. But, in high street areas, you can control the temperature according to your store requirements. Moreover, you can even switch off when there are no peak hours. 

Your business on the high street can benefit from the exclusivity as it is not possible in a multi-tenant mall. Your customers can also enjoy the facility of valet parking or drop-off at the doorstep. But these kinds of facilities are not available in malls. 

Maybe you want to own your stores in the mall, but most of the malls only lease their property. Therefore, many businesses will choose the high street to own their own stores. 

There are many factors responsible when it comes to the success of your brand in a mall. Things like where the mall is located, how the developer is maintaining the mall, and what are his efforts to attract footfalls are some of the fewer things that also matter. 

Moreover, if other businesses are not going successful and more of the shops are closing. It is also not going to be good for your business as well. But If we talk about the high street area, then it might not be the case.  

What Does Shopping Mall Offer You?

Shopping mall has its own advantages for retail businesses. For example, when there is any festival, event, or latest movie openings. It is like free advertising of your retail brand that can draw many customers to your business.

Moreover, in malls often celebrities come to launch their movies or any product. So, you can take advantage of these events in order to attract a lot of footfall. 

However, if you want to promote your brand on commercial high street through marketing. Then it is an individual effort that can be expensive as well.

If you want to be an anchor tenant and want to have a large area for your business. In this case, you can attract many customers in a mall. Retail businesses and departmental stores are easy to run in malls due to the large available. But, if you want a large area for your business on the commercial high street. Then, it won’t accommodate you in such an area as for every business the place is divided. 

Apart from having the availability of large space, in shopping malls businesses have to pay less for the rental services. Rent on the high street is high and most of the stores are tenanted properties; therefore, preventing them from sub-letting. This can be one of the main reasons that they look for the franchisee model. But, most of the brands might not accept this. 

As there are amenities and all the facilities available in the mall, it is easier to find a staff to work. But, this is not the case in the commercial high street area. Amenities like change room, food court, and safety are important for your workers. 

Final Note

As discussed above, whether it is commercial high streets or shopping malls, they have their own advantages. Now, it is your decision to choose what location will work best for your business requirements. However, If you are going for the retail business, then a shopping mall can be the best choice. 

The availability of large places as well as low rental costs is ideal for your retail business. However, it all depends on your brand requirements, so keep in mind all these factors discussed in this article.