Given the changes in consumer behavior in Puerto Rico, in which there is a tendency to support more entertainment centers, shopping malls are betting on the transformation and diversification of their services to attract and maintain the flow of visits and sales, ruling out a future disappearance.
According to data presented by the president of the Association of Puerto Rican Shopping Centers (ACCP, in Spanish), Adolfo González, it is estimated that at present, about 20% to 25% of the space in shopping centers is occupied by entertainment and food. This percentage represents an increase when compared to previous years when these types of services occupied only 5% of mall spaces.
He mentioned that what was once known as traditional retail has changed and evolved. González commented that many traditional stores have had to establish their omnichannel platforms and that companies that had initially started as an online store have had to open physical stores to showcase their products.
“There is an evolution of the whole industry and of the stores, or rather from the point of view of the retailer, not the mall. All those who are physically have to have digital channels and all those who were or have started only digitally, see the importance of having a physical presence. In other words, shopping malls have proven that they are valid, but with adaptations and changes. We must provide more activities, more entertainment, more food offerings, among others,” said Gonzalez.
The president of the ACCP affirmed that shopping malls are not going to disappear and will not cease to be valid, since well-known brands have come to the malls to establish experience stores. Likewise, he said that telecommunications brands have established stores where consumers can see and try the products and get to know the brand. They can then buy from the store’s digital page, which represents a shift from traditional retailing.
“It is an evolution and transformation of the way stores are selling, but the need to have a physical presence is still there and so much so that many of the stores, as I mentioned to you that started only online have opened stores, because they need to have a physical presence as well,” González said.
When asked by The News Journal if entertainment centers such as Distrito T Mobile, Liberty Square, among other similar projects would have any harmful effect on the existence of shopping centers, the president of the ACCP said that “each one has different environments. The mall, well, has the advantage of having a greater offer, which is not only entertainment, but it is adding that element, but it maintains stores and has other offers that complement each other. I think there is room for everyone.
Shopping centers expand their offerings
Marnie Marquina, general manager of The Mall of San Juan, said that entertainment centers and shopping malls offer different experiences. She emphasized that entertainment centers cannot replace the shopping experience offered by a mall.
“By adding entertainment, malls seek to diversify their offerings and attract a broader public. The inclusion of entertainment spaces in malls provides positive experiences, and helps increase the time customers spend in the mall, which can translate into higher traffic and sales. At The Mall of San Juan, we offer a complete shopping experience, a varied retail offering and dining options for all tastes and budgets. We are the only shopping destination in Puerto Rico that offers luxury brands, benefits and loyalty programs for our customers and tourists who visit us,” said Marquina.
Francis González, president of Curzon Puerto Rico, owners of shopping centers such as Plaza Río Hondo, Plaza Escorial, Plaza del Sol and Plaza Isabel, said that in 2024 they will see the fruits of multiple negotiations, of which they are excited about the changes they will make in the shopping center community.
“Entertainment and dining destinations are central to the diversity of choices a mall offers. They complement the shopping experience, enriching it and making it more enjoyable for consumers. These options add up to provide visitors with a comprehensive and enjoyable shopping experience,” said Gonzalez.
Meanwhile, the general manager of Plaza Las Américas and Plaza del Caribe, Edwin Tavárez, affirmed that market studies carried out in both malls confirm that a large number of visitors to the mall are attracted mainly by the entertainment offer.
“Thematic fairs, exhibitions and entertainment events are held weekly for the general public. Periodically, special exhibitions are held in store spaces such as the opening of a temporary venue of the Museo de Arte de Ponce at Plaza Las Américas in 2007, the EcoExploratorio that has been open since 2014, the Daddy Yankee gallery in 2018, the Museo Al Revés in 2023, among many other examples,” he mentioned.
“Both malls offer cultural activities among which craft activities are highlighted throughout the year. The offer is complemented with monthly activities such as the Music Sunset and activities for children,” Tavárez pointed out.
