Lighting the way: Virtual reality areas, mixed-use offerings and independent retailers could reignite the shopping centre

Virtual reality areas, mixed-use offerings and a focus on local, independent retailers could reignite the shopping centre, writes Michael Peter, founder and CEO of P&P Group.

The majority of shopping centres in Germany bear the suffix “arcade” or “gallery”. This appendix represents not only the modest levels of creativity that have been applied to the modernisation of malls, but also the wider problems facing the asset class.

Over the years, a great number of the various elements that make up a shopping mall have become humdrum and interchangeable. This is why classical shopping centres have declined in relevance. Just like a classic car, they regularly need major repairs and maintenance. In practice, this means an overhaul of brands, offerings and aspirations.

There are clear indications that the market is saturated. In Germany, for example, there are currently 545 centres — and in 2021 precisely one new mall was opened: FLAIR in Fürth near Nurem