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Forums - News / General

For General modelling or hobby-related topics that are not covered by any other specific forum. Please keep to topics concerning the hobby.

Topics	3039
Messages	22969

Subject:

Shopping Center versus Mall

Date:

Nov 30, 2004

From:

David Nickels

Well around here the Hobbytown stores are in some pretty big "shopping centers" next to big movie theater complexes, etc.

One big issues for malls (I used to work for a hobby shop that moved out of a mall after decades...) is that mall rent is so high, space is often limited (can't have an R/C car track there) and on top of your base square foot rent malls charge a percentage of gross profit rent. Really hurts a successful business... Being in a mall store means you may not have a lot of room (or way too much so you have to try to fill the shop with stuff to look full), would have to have a number of full and p/t employees to be open 7 days a week, would not be able to offer any sort of discounts due to operating expenses, would have higher theft/loss rates. I would think the rent alone in a mall would be more than twice my own shop's monthly operating expenses in total (rent, utilities, postage, phone, etc.) Then your utilities themselves would cost more with all the lights, extended hours, etc.

At least for my own shop I am in a very well known, well located shopping center. There is a major grocery store here, office warehouse place, big hardware store, major doctor's office and a big Chinese buffet. Plus about 6 other small businesses. The plaza is in a busy part of town, right on the main north/south road, so access is easy and everyone drives past here every day. The only "mall" is about 12 miles north of here, in a busy, crowded area up past the interstate. Even that mall itself is suffering because it is old, doesn't carry high-end merchendise, and is far away from the center of town. A new mall is planned for down south, close to me, but I would not seriously think of moving there.

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