The IUP Journal of Marketing Management
Expectations of Retailers: An Empirical Investigation of Malls in Tier II Cities

Article Details
Pub. Date :Nov, 2018
Product Name : The IUP Journal of Marketing Management
Product Type : Article
Product Code : IJMM11811
Author Name : Pooja Khanna and Suresh Seth
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 23



The growing number of malls has compelled the stakeholders to ponder over the positioning of malls in the minds of not only consumers but also retailers. Retail professionals perceive the malls from consumers' perspective and part of their decision is based on the 'attractiveness' of the mall to consumers. Therefore, it becomes imperative for the mall managers to know the attributes that make the malls attractive to the consumers and retailers as well. This study attempts to explore the expectations of retailers from mall managers while deciding the location for their store. The results reveal that amenities, location of the mall and store, marketing focus, safety and security, and convenience are the important factors that influence retailers in selecting the mall for their store.


India has witnessed a massive expansion in organized retail over the last decade. There has been a continuous growth in the number of malls in India, and that has resulted in the escalation of marketplace. More than half of the population in India is brand-conscious, well aware of the latest trends in fashion and products. In spite of the temporary setback due to the hasty implementation of major reforms like demonetization and GST, India remains one of the fastest growing economies with purchasing power and per capita income also on the rise. Malls, which were earlier concentrated only in tier I cities, are now constantly expanding their reach to tier II and tier III cities. High rentals due to exorbitant land prices, lesser space and intense competition in bigger cities are the factors that are pushing retailers and mall developers to eye tier II and tier III cities. Tenant retailers are encouraged to shift to smaller cities due to better returns, lower operational costs and comparatively lesser competition. The yet to explore novelty value in smaller cities is a prime motivator for the retailer tenants to move to these cities. Consumer behavior in tier II and III cities has profoundly been influenced by shopping trends in metro cities (Khare and Rakesh, 2012). The smaller cities thus are witnessing a major shift from standalone shops to larger format retail malls that offers everything under one roof. Factors governing the shift in the trend are dynamic change in shopping habits, increase in the average spending power of consumers and increase in brand consciousness. Technology-driven lifestyle of consumers, knowledge harvested by the Internet and changing consumption and expenditure patterns have posed new challenges for the retail industry. The mall managers and retailers are trying hard to create a positive environment for the customers while shopping in malls, so as to create a long-lasting impact on consumer psychology.


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