Thursday, April 11, 2013

Impact of E-Commerce’s on shopping malls

Torp Shopping Mall, Uddevalla
In his paper "Electronic Commerce’s Impact on Malls" Tobias Rönnberg Halvorsen, department of Real Estate and Construction Management at the Centre for Banking and Finance, Royal Institute of Technology, KTH, in Stockholm investigates the impact of e-commerce on shopping malls and how shopping malls should adapt to e-commerce in the future.
The author describes the the expansion of malls in Sweden where the number of malls has doubled in the last 15 years. In 2011 Swedish malls had revenues of over 622 billion SEK which approximately corresponds to 30 per cent of the entire retail market. Parallel to this development, Swedish e-commerce established itself on the market in the mid 90’s and started growing at the beginning of the new millennium. In 2003, e-commerce constituted about 1 per cent of the Swedish retail market. In 2011 the figure was 5 per cent. Even during the latest financial crisis e-commerce has continued to grow. According to the author e-commerce does not affect malls to any greater extent so far, because e-commerce is still a relatively small part of the retail market. But this might change over time if e-commerce will continue to grow. Malls should therefore start planning for a response and identify Internet and e-commerce as a complement and business opportunity.

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