#BizTrends2025: How collaboration between retailers and landlords is shaping customers’ experiences

By uncovering the "why" behind consumer decisions, this multidisciplinary approach is not only reshaping the way retailers understand and adapt to shifting consumer behaviours, but it is setting the stage for greater transformative change.

As we move into 2025, several key trends are influencing the growth in this sector, including the revival of physical stores, alongside the expansion of e-commerce, the rise of values-based consumerism, digital innovations as well as sustainability initiatives. However, all have a central theme, which is that of growing the focus on the customer experience.

Physical environments continue to thrive – even in the age of e-commerce

While many anticipated the demise of physical retail environments, believing the rise of e-commerce would dominate consumer markets, fast forward to 2025, and the narrative has changed: brick-and-mortar retail is thriving, as brands adopt hybrid models.

Shalia Naidoo, behavioural science and innovation head at Standard Bank confirms that based on its research, online and physical experiences are thriving together. While consumers want the convenience of online shopping, they value the tangible sensory experience that is only obtained from physical retail. Further research indicates that 32% of consumers still crave the personal service that only in-store shopping can provide.

To enhance this physical experience, malls integrate convenience and flexibility through omnichannel experiences which include digital gift cards and large digital screens which serve as dynamic advertising tools to attract foot traffic and communicate brand stories, while assisting shoppers to navigate malls with ease.

For example, malls can create environments that enable retailers like Zara and H&M to use digital displays to showcase their latest collections, while luxury brands such as Louis Vuitton and Gucci also use digital artistry in their window displays. These in-store digital enhancements not only draw customers in but also improve turnover by creating engaging and functional retail environments.

Understanding customers to build loyalty

Value-based consumption has become a distinguishing feature of modern retail. Personal ethics are increasingly influencing shopping decisions, particularly among Millennials and Gen Z. Whether it's to support disadvantaged communities, or alignment with environmental concerns, this trend calls for brand openness and accountability.

Increasingly, consumers will want to know the ‘story’ behind a product, including how it was created, and the impact it has on the environment. Brands that don’t heed to this growing trend, may risk losing consumers.

To remain competitive, malls and property managers are leveraging omnichannel drivers and data-driven analytics to understand these customer behaviours, preferences, and spending patterns, and we are likely going to see more use of digitally driven insights, leveraged in physical malls, to deliver targeted promotions and foster a deeper connection between retailers and consumers.

In-store experiences will continue to be an important differentiator. The secret to success, however, is not cutting-edge technology, but about mastering the fundamentals of retail.

The significance of choice architecture, and how people navigate, and interact, within a space cannot be overstated. Consumers want meaningful convenience, and with more transactions happening via digital devices, landlords are working towards solutions that facilitate seamless digital payments including omnichannel integration, digital concierge services, and investing in smart infrastructure like self-checkout kiosks or mobile-enabled point-of-sale (POS) systems.

Sustainability and utility management

As the industry evolves, landlords are also addressing high utility costs—a significant expense—through smart solutions. By installing advanced metering systems to monitor electricity, water, and gas usage, landlords can pinpoint inefficiencies and recover costs effectively.

Integrating solar power solutions and green retrofitting older malls with energy-saving technologies like LED lighting and efficient HVAC systems, not only offsets rising utility costs but also aligns with sustainability goals, appealing to both tenants and customers.

Landlords are also focusing on understanding and managing utility costs through measurement and cost-recovery strategies which will continue to be a focus.

The pursuit of meaning

Retail in 2025 continues to be defined by a desire for experience, authenticity, and purpose. While some consumers still chase fleeting trends or viral moments; there is a growing trend that shows consumer preference for brands that provide meaningful experiences that complement their beliefs and deliver quality products.

The key to success for retailers and landlords is striking a balanced mix between digital convenience and physical connection, values and luxury, innovation and personal touch. Expect to see more of this.

Landlords and retailers collaborate to enhance the customer experience

Landlords and retailers are engaging in more creative leasing initiatives and collaborative projects, bringing interactive and experiential initiatives to shopping environments.

A case in point is the collaboration between Sandton City and Lego’s LEGO® Your Dream Car Generation activation, which transported shoppers to a riveting deconstructed car manufacturing garage, leveraging high-end technology, to ‘’generate’’ their dream car. Such initiatives call for a multidisciplinary understanding of the evolution of retail and consumer experiences.

Embracing both behavioural science insights and strategic collaborations will be pivotal in shaping the future of retail.