Malls lease space to brands for storage to aid logistics
A number of shopping malls have added logistics support to their retail activities and begun leasing storage space to brands to use as fulfilment centres. Businesses including Prestige Group have started leasing space for both offline and online retail.
Prestige Group has set aside 20,000 square feet of space at its recently opened Forum Mall in Bengaluru to be used for storage, ET Bureau reported. The business plans to do the same with the mall it is constructing as it will enable brands which rent store space in the mall to have more space to present their products to customers by storing their stock elsewhere.
“This will give brands more space to showcase products,” said Prestige Group mall chain Forum Malls’ CEO Muhammad Ali, ET Bureau reported. “Currently, brands use 15% to 20% of the space [they rent] to store products. A common facility will also help in online delivery. The business is thus looking for a logistics partner, according to Ali.
The explosion of e-commerce has emphasised the need for brick-and-mortar stores to offer more of an experience, in order to tempt shoppers out of the house. By having more space in their mall stores, brands will have more scope to create interactive shopping experiences.
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