Shopping centers come up with a few ideas for the end of the year
Published: Tuesday, Oct 15th 2024, 10:30
Back to Live Feed
Halloween, Black Friday and Christmas: The end of the year is the busiest time for Swiss retailers in terms of sales. The operators of local shopping centers are optimistic about this time despite a few hurdles - and are coming up with all kinds of special ideas.
"The weeks before Christmas are very important for shopping centers and the retail trade in general," says Marcel Stoffel, founder of the industry organization Swiss Council of Shopping Places. "Experience shows that around 20 to 25 percent of annual sales are generated in November and December," says the expert.
In order to attract as many people as possible to the shopping centers during this phase, the centers offer various promotions and events. Because it is clear among operators that you can no longer score points with stores alone.
The Mall of Switzerland in Ebikon, the second largest shopping center in Switzerland with 65,000 square meters of space, has set up a Halloween indoor mini golf course, for example. Visitors can play there throughout October in a spooky Halloween atmosphere and post selfies on social media.
Christmas preparations are also already in full swing: the St. Gallen shopping arena, for example, is building a train on which customers can ride through a lavishly decorated polar landscape. And at Sihlcity in Zurich, a tree house is being built where customers can enjoy wintery dishes before Christmas. Fairy lights and lots of decorations are a matter of course at all the centers.
Online retail remains major competition
"If you feel comfortable, you stay longer and spend more," says Stoffel. However, it is difficult to measure whether all this effort is financially worthwhile for the centers. "But those who save on visitor events and decorations will notice in the long term. Because the competition never sleeps," he says.
Shopping can also be done online. But towards the end of the year, the shopping experience will come to the fore. This allows bricks-and-mortar retail to set itself apart from online retail, explains UBS retail expert Meret Mügeli. After all, online shopping in particular is causing problems for shopping centers.
It is true that online business stagnated in the first half of 2024 at 3% compared to the previous year. But Mügeli says: "This slowdown cannot be interpreted across the board as a shift back to bricks-and-mortar retail".
Rather, following the sharp rise in online shopping during the coronavirus pandemic, this is probably a continuing normalization effect. "On the other hand, consumer demand is subdued overall, which is also reflected in online retail sales."
The expert assumes that total Swiss retail sales will increase by 0.3% in real terms - i.e. taking inflation into account - in 2024. "Adjusted for prices, there will be a slight improvement in momentum, as last year was characterized by a significant slump in demand," she says.
Customers hold back on consumption
Shopping centers are also noticing the subdued consumer sentiment. "The general rise in prices can of course be felt," says Sihlcity, for example. While footfall is more or less stable, people are also shopping and consuming more consciously and at lower prices, says center manager Sandro Engeler.
Nevertheless, the shopping centers are generally positive, even if they are not making any sales forecasts. "Compared to 2019, we are seeing a slight upward trend in both sales and visitor numbers," says Fabienne Diez, Center Manager of Shopping Arena St. Gallen. Compared to the previous year, sales are "stable", she adds.
At retail giant Coop, which operates 50 shopping centers such as Volkiland, Letzipark and the Wankdorf Center, the trend is also positive, according to a spokesperson. "We are confident that we will achieve our goals," he says.
Expert Stoffel hears different things from the sector: "The mood is particularly good in centers that are fully let. Vacancies are noticed by customers and have an impact on overall sales," he says.
Small and very large shopping centers also tend to fare better than medium-sized ones with areas of around 20,000 square meters. "The smaller ones are often well utilized as local supply centers and larger ones can also integrate offers such as leisure or health facilities that attract customers thanks to their space," he says. But regardless of size, marketing activities will increase at all centers in the coming weeks - and the fairy lights will twinkle.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic