Digitalization influence on shopping centers strategic management

Abstract

Abstract Shopping centers are an important aspect of the extremely dynamic life of the 21st century consumer. Nowadays, worldwide, shopping centers represent significant multimillion euro investments, remarking themselves with bold architectures and structures and an individual brand image. Retail markets are currently under transformation by a confluence of new retailing technologies, dramatic shifts in the demographic profile and preferences of more affluent and educated shoppers. Part of the market share in modern retail moved to new forms of selling, which weakened the offer of some traditional retailers, while also creating opportunities for retailers to move and integrate their offerings with new digital tools (via electronic commerce, social commerce and mobile commerce). Meeting customer needs and increasing sales are the primary drivers behind retailers use of information systems and technology (IS/IT). New developments in IS/IT offer new opportunities and challenges for organizations and society. The current paper proposes to analyze the way digital media and information technology (computers and mobile devices) influences the virtual and physical shopping experiences, and shopping centers management consequently. The need for communication & sales channels integration, the impact of new information technologies (IT’s), the growing role of social / digital media, the balance between personalization and privacy – all represent challenges retail industry needs to currently adapt to face digitalization. E-commerce is transforming both consumer behavior and retailing business models, by greatly expanding shopping convenience, selection and affordability.