We all know how amazing shopping malls look and feel. Many people visit every day to have a great time and enjoy themselves with their friends. Clicking pictures, walking all around, watching movies and eating at the food court.
Those bright lights fascinate and surprise us, making our day happy and great, but the real question is ?
Have you ever thought about the financial income of those malls? How do they even make money ? Many people come to visit and walk around the mall but don't buy anything, but still how the mall is still profitable. Why are the mall prices expensive compared to other local stores ? What is the procedure to get a store open in the mall ?
There are plenty of unknown questions, which are hidden and unexplained. Even the malls have high security, employees, plenty of expenses like electricity bills, which come in lakhs. Those 24/7 lights sparkling and with centralised AC along with the music system.
Let's decode it.
The mall is constructed with crores of rupees in a prime location by a single owner or multiple people who collaborate in partnership and construct the mall. Eventually, once the mall is built, many business owners try for a proper space in the mall. It is decided by how much money you're willing to pay, and mall owners fix the place and price.
Sometimes it is done through the lottery system also, which is almost rare. It is based on square feet and no matter whether business happens or not, business owners should pay a particular amount for sure. If the business works effectively, there would be a share of the mall owners in their business, based on sales and revenue. When it comes to parking, there is not much investment, making things easier for money-making. The movie complex is another profitable for malls, as the footfall increases and it has more wealth opportunity. Once the movie is finished, people come directly out from the food court area, making the food business work effectively.
An individual spends almost 5 hours in a mall before watching a movie. He comes one hour before and leaves after 1 hour. The mall is planned in such a way that people would definitely find ways to buy those things. During festivals and key days, there are many cars, bikes or new tech products promoted by brands, conducting events for a few days. They charge high for those events and, as the mall is giving free footfall for more than 2000 people at one spot for many hours. There are certain stores, which are called kiosks. They hold a key position in the mall, where every other person visits the key location by buying the goods in the mall. Those stores are charged more than the mainframe stores.
