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  1. HOME
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MAR.17, 2023

Shopping Mall Business Plan

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Article Retail & Ecommerce Business Plans Retail Store Business plans
Shopping mall business plan

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Table of Content

    1. Shopping Mall Business Plan Sample and Template

    This business plan for building a shopping mall can be a great resource for entrepreneurs looking to start their own shopping mall.

    It provides an overview of the mall’s structure, operations, and financials to help them understand the market and make well-informed decisions.

    Lastly, it includes a marketing strategy that outlines how to start a shopping mall and how it will differentiate itself from the competition, which can be used for various business plans like Supermarket Business Plan.

    2. Executive Summary

    Business overview

    The Arcade Shopping Mall is a one-stop shopping destination for quality products and services. It will offer its customers various products and services, from clothing, electronics, and health and beauty to entertainment and leisure activities. The small shopping mall business plan will also feature a large food court, a play area for children, and a variety of specialty shops.

    The mall will provide a safe, pleasant shopping experience for its customers and will strive to create a sense of community within the mall. The mall will be conveniently located in a densely populated area, making it easily accessible to customers.

    We plan to use the latest technology to create an enjoyable, stress-free shopping experience. Our mall will feature a variety of high-end stores, restaurants, and entertainment options, including a movie theater, bowling alley, and arcade. We plan to use innovative marketing strategies, such as social media campaigns and targeted advertising, to reach our target customers.

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    Products

    Our Wholesaling Business Plan offers a wide variety of products for customers. We offer a selection of luxury and everyday items, including

    • Clothing and Apparel: T-shirts, jeans, dresses, jackets, activewear, sweaters, and accessories.
    • Footwear: Athletic shoes, sandals, boots, and dress shoes.
    • Electronics: Phone accessories, tablets, laptops, headphones, and speakers.
    • Home Goods: Furniture, bedding, kitchenware, and home décor.
    • Beauty Products: Makeup, skincare, hair care, and fragrances.
    • Jewelry: Watches, necklaces, rings, and earrings.
    • Toys: Action figures, dolls, and educational toys.
    • Sporting Goods: Exercise equipment, team sports gear, and outdoor recreation gear.
    • Books and Movies: Books, DVDs, and video games.

    Customer Focus

    Same as our Sandwich Shop Business Plan, we will ensure that our customers are always our top priority. We will provide excellent customer service in all aspects of our business. We will ensure that our customers always have access to the products and services they need. We will strive to create an enjoyable shopping experience for our customers. We will also use customer feedback to continuously improve our services and products.

    Management Team

    Our management team will consist of experienced professionals from various backgrounds. We will have a team of experienced managers and supervisors who will be responsible for overseeing the day-to-day operations of the shopping mall. Compared to our Food Truck Business Plan, we will also have a team of experienced marketing and sales professionals responsible for driving customer traffic and sales.

    Success Factors

    Our success will depend on several factors, including our ability to provide excellent customer service, our ability to source high-quality products and services, and our ability to market our products and services effectively. We will also need to be able to manage our operations and finances effectively. Additionally, we will need to be able to develop and maintain relationships with our suppliers and vendors.

    Food Delivery Business Plan
    Suitable for food delivery or general delivery concepts.

    Financial Highlights

    Our financial highlights include revenue projections, capital and investment requirements, and estimated profits. In the business plan shopping mall project, we will generate revenue from selling products and services and tenant rent payments. We will also have initial capital and investment requirements to construct the shopping mall and purchase equipment and supplies. Our expected profits will depend on the success of our operations and our ability to generate customer traffic.

    • Revenue growth of 8.5% year over year
    • Operating profit of $5.0 million in Year 1
    • Positive cash flow from operations of $2.5 million in Year 1
    • Total capitalization of $20 million
    • Debt-to-equity ratio of 1.0:1
    • Return on equity of 15% in Year 1
    • Payback period of 5 years

    Shopping Mall Business Plan - Proforma Financial Projections

    3. Company Overview

    Who is Arcade Shopping Mall

    Arcade Shopping Mall is a modern shopping complex located in the heart of a major metropolitan area. The mall offers a wide variety of goods and services and has grown to become a destination for shoppers from all over the region. The mall is owned and operated by a private developer who has invested significant capital into the mall to keep it competitive and up-to-date.

    Arcade Shopping Mall History

    Arcade Shopping Mall was opened in the year 2020 and since then has quickly become a popular shopping venue. It is conveniently located near public transportation and other nearby amenities. The mall business proposal offers a wide selection of department stores, specialty shops, and an array of dining and entertainment options. The mall also features an indoor play area for children and a movie theater.

    Note

    The mall has a management team that is dedicated to providing excellent customer service and creating a safe and comfortable shopping environment. The team works hard to ensure that the mall is clean and well-maintained and that customers have an enjoyable shopping experience. The mall also works to keep up with the latest trends and to stay ahead of the competition.

    The mall has grown steadily since its opening, and the management team is always looking for ways to improve the mall and make it more appealing to potential customers. The mall is committed to providing an enjoyable shopping experience for all who visit.

    The key elements of the business concept of Arcade Shopping Mall are:

    • Convenience: Arcade Shopping Mall provides customers with a convenient and easy-to-use shopping experience that can be accessed from any device.
    • Rewards: We offer a variety of rewards programs that allow customers to earn rewards points for their purchases and redeem them for discounts.
    • Variety: Our selection of products ranges from the world’s leading brands to unique and hard-to-find items.
    • Quality: We are committed to providing customers with the highest quality products and customer service.
    • Engagement: Our interactive shopping experience encourages customers to engage with our products and services.

    4. Industry Analysis

    The shopping mall industry has grown tremendously over the past several years, with the number of shopping malls in the United States nearly doubling since the 1980s. Shopping malls have become a staple of American consumer culture, providing various goods and services in one convenient location.

    The global shopping mall industry is estimated to be worth $1.4 trillion in 2018, with the U.S. contributing the largest share of that figure. This growth is projected to continue, with the global market expected to reach $2.7 trillion by 2025. The growth is driven by several factors, including changing consumer preferences, technological advances, and an expanding global middle class.

    The shopping mall industry is highly competitive and fragmented, with major players such as Simon Property Group, Westfield Corporation, and Brookfield Property Partners controlling a large market share. These companies operate large, regional shopping malls that are often the destination of choice for consumers.

    Despite the competition, there is still room for smaller, locally-owned shopping malls to succeed. These malls can focus on providing a unique experience that appeals to local shoppers and differentiates them from larger national players. In addition, these malls can focus on providing services and amenities that larger malls may not have, such as specialty stores, local restaurants, and entertainment options.

    Overall, the shopping mall industry is expected to remain a lucrative market for the foreseeable future. With the right approach, locally-owned malls can still achieve success in this crowded and competitive space.

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    5. Customer Analysis

    Demographic Profile of Target Market

    The target market for a shopping mall should be identified based on the location, the types of goods and services offered, and the demographic makeup of the local community. The demographic profile of the U.S. target market is highly diverse and includes a mix of gender, race, ethnicity, income level, and age. The U.S. population is estimated to be 329,064,917, with an estimated median age of 37.9 years. The population is 68.6% non-Hispanic White, 13.4% Hispanic, 13.3% African American, 5.9% Asian, and 4.3% of other races or multiple races. The average household income is estimated at $59,039, and the median is $50,895.

      Total Percent
    Total population 690097 100%
     Male 276523 40%
    Female 413574 60%
    Under 5 years 67839 10%
    5 to 9 years 83669 12%
    10 to 14 years 67311 10%
    15 to 19 years 24108 3%
     20 to 24 years 59851 9%
    25 to 34 years 23741 3%
    35 to 44 years 86370 13%
    45 to 54 years 86811 13%
    55 to 59 years 41101 6%
     60 to 64 years 39866 6%
    65 to 74 years 58635 8%
    75 to 84 years 41295 6%
    85 years and over 9500 1%
    Total housing units 250,024 100%

    Customer Segmentation

    Shopping malls should segment their customers based on their purchasing behaviors. For the shopping mall business plan, customer segmentation can be based on age, gender, income level, and geographic location. The segmentation can be further divided into sub-segments such as age (under 18, 18-25, 25-45, 45-65, and 65+), gender (male and female), income level (low, medium, and high), and geographic location (city, suburban, and rural). By segmenting the customers, the business can better understand the needs of each segment and develop marketing strategies to target specific segments.

    6. Competitive Analysis

    In developing a shopping center business plan, the shopping mall industry is highly competitive and there are a number of established players in the market. In order to succeed, our shopping mall business plan must consider the market competition and identify ways to differentiate our product offering and create a competitive advantage.

    Direct and Indirect Competitors

    Direct Competitors

    The direct competitors of our shopping mall business plan include national and international shopping malls, department stores, specialty stores, and online retail outlets. We must consider the services, prices, location, and convenience factors that these competitors offer in order to compete effectively.

    Indirect Competitors

    Indirect competitors include other entertainment venues, such as movie theaters, amusement parks, and other leisure activities. We must consider how our shopping mall will provide unique experiences and services that will draw customers away from these competitors.

    Competitive Advantage

    It is important to identify the unique features and benefits the shopping mall offers to make it stand out from its competitors. Competitive advantages include low prices, convenient location, extensive product selection, and excellent customer service.

    Our competitive advantage lies in our ability to offer a unique shopping experience. We will focus on creating an inviting atmosphere with high-quality customer service and an extensive selection of products and services. We will also focus on providing exclusive deals, discounts, and innovative shopping experiences, such as virtual reality tours and interactive displays.

    7. Marketing Plan

    The marketing plan for the shopping mall business model will focus on five key aspects:

    • Target market identification: The target market for this shopping mall business is consumers who are looking for a convenient, wide selection of products at competitive prices. The target market will consist of individuals with various income levels and spending habits.
    • Branding and positioning: The shopping mall will be positioned as a premier shopping destination offering an extensive selection of products at competitive prices. The brand will be associated with quality and value.
    • Marketing mix: The marketing mix for this shopping mall business will include traditional advertising, direct mail, online marketing, and public relations. The focus will be on reaching the target market and communicating the message of value and quality.
    • Professional website: The shopping mall will have a professional website with an e-commerce platform for online shopping. The website will feature information about the mall, including store listings, events, promotions, and more. The website will be optimized for search engines and will include social media links.
    • Promotions strategy: The promotions strategy for this shopping mall business will include discounts, coupons, loyalty programs, and special events. The promotions will drive traffic to the mall and increase sales. These promotions and discounts could include special offers on particular days, “buy one get one free” offers and more.

    Direct and Indirect Competitors

    The direct competitors for this shopping mall business are other shopping malls in the area. These competitors include large retail stores, department stores, and other shopping centers. The indirect competitors are online retailers and other e-commerce sites.

    Promotions Strategy

    We plan to offer a variety of promotions to attract customers to our shopping mall. As the owner knows how to open a mall, he suggested, we will offer discounts and special offers on a regular basis to encourage customers to purchase products and services. We will also host events and activities, such as fashion shows, product launches, and special offers.

    We plan to partner with local businesses and organizations to offer exclusive discounts and promotions to our customers. We will also employ loyalty programs to encourage repeat customers.

    Any questions? Get in Touch

    Pricing

    Our pricing strategy will be based on offering quality products and services at competitive prices. We will offer high-end products and services at premium prices and budget-friendly products and services at more affordable prices. We will also offer discounts and special offers on a regular basis to attract customers.

    We plan to offer various payment options to make our products and services more accessible to our customers. We will accept cash, debit, and credit cards, as well as e-wallet payments.

    8. Operations Plan

    Operation Functions

    Security: The mall must ensure that customer safety is a top priority. This will include having a security team on-site to monitor activity and respond to emergencies.

    Maintenance: The mall will need a team to keep the building and grounds in good condition. This will include regular cleaning, repairs, and upkeep of the facility.

    Customer Service: The mall must provide customers with an enjoyable shopping experience. This will include providing friendly, helpful service and responding to customer inquiries and complaints.

    Marketing: The mall must have a marketing plan to promote the mall and attract customers. This will include advertising, public relations, social media, and other promotional activities.

    Management: The mall will need to have a management team in place to oversee the day-to-day operations of the mall. This will include setting goals, creating policies, and ensuring the mall operates efficiently and profitably.

    Milestones

    4/15/202X – Obtain Funding

    4/22/202X – Develop Business Plan & Hire Professional Team

    5/1/202X – Lease Property & Secure Necessary Permits

    5/8/202X – Begin Construction

    5/15/202X – Hire & Train Staff

    5/22/202X – Finalize Construction & Buy Necessary Fixtures & Equipment

    6/1/202X – Launch Marketing Campaign

    6/8/202X – Open for Business

    6/15/202X – Monitor & Evaluate Performance

    9. Management Team

    The management team of the shopping mall will include a team of highly-skilled professionals who will be responsible for the day-to-day operations of the mall.

    Company Staff

    The Company Staff consists of experienced professionals who are dedicated to providing superior customer service. The staff is responsible for ensuring that the mall is safe, clean, and enjoyable for customers.

    1. Owner/CEO
    2. CMO
    3. VP of Retail
    4. VP of Real Estate
    5. Store Managers
    6. Sales Associates
    7. Support Staff
    8. IT Staff
    9. Maintenance Staff
    10. Security Staff

    10. Financial Plan

    The financial plan for this shopping mall project is based on an initial investment of $10 million. This investment will be used to renovate the mall, purchase new inventory, and hire personnel to manage the mall. The investments will be made in the following areas:

    • Renovation: $3 million
    • Inventory: $2 million
    • Personnel: $2 million
    • Advertising/Marketing: $1 million
    • Legal Fees: $500,000
    • Miscellaneous: $1.5 million

    The total cost of the project is estimated to be $10 million.

    Any questions? Get in Touch

    Key Revenue & Costs

    The primary sources of revenue for the mall will come from rent from tenants, sales from tenants, and from other sources, such as parking fees and food court revenue. The mall is estimated to generate approximately $15 million in total annual revenue.

    The primary costs for the mall will include rent for the space, personnel costs, and advertising/marketing costs. The mall is estimated to incur total annual costs of approximately $10 million.

    Funding Requirements and Use of Funds

    The total project cost is estimated at $10 million. To finance the project, the mall will need to secure loans and/or equity investments. It is estimated that approximately $7 million in financing will need to be secured to cover the project’s cost.

    The funds will be used as follows:

    • Renovation: $3 million
    • Inventory: $2 million
    • Personnel: $2 million
    • Advertising/Marketing: $1 million
    • Legal Fees: $500,000
    • Miscellaneous: $1.5 million

    Key Assumptions

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    To successfully launch and operate the mall, the following assumptions will need to be made:

    The mall will have a total of 140,000 square feet of retail space, including anchor stores and smaller shops.

    The start-up costs for the project will be approximately $15 million.

    The mall will be open for business 12 hours a day, seven days a week.

    The mall’s primary target market will be middle-income shoppers in the local area.

    The mall will have an initial occupancy rate of 75%, with an average rent of $25/square foot.

    The mall will offer amenities such as a food court, movie theater, and play area.

    A team of experienced retail professionals will manage the mall.

    The mall will generate approximately $20 million in gross sales in its first year of operation.

    The mall will generate a positive cash flow by the end of its first year of operation.

    The mall will have an average annual occupancy rate of 90% over the next five years.

    Financial Projections

    Income Statement

      FY 1 FY 2 FY 3 FY 4 FY 5
    Revenues
    Total Revenues $360,500 $403,760 $452,211 $506,477 $567,254
    Expenses & Costs
    Cost of goods sold $63,900 $71,568 $80,156 $89,775 $100,548
    Lease $50,500 $56,560 $63,347 $70,949 $79,463
    Marketing $10,000 $11,200 $12,544 $14,049 $15,735
    Salaries $154,015 $172,497 $193,196 $216,380 $242,346
    Initial expenditure $10,000 $11,200 $12,544 $14,049 $15,735
    Total Expenses & Costs $288,415 $323,025 $361,788 $405,202 $453,827
    EBITDA $68,485 $76,703 $85,908 $96,216 $107,762
    Depreciation $27,160 $30,419 $34,070 $38,158 $42,737
    EBIT $16,563 $18,551 $20,777 $23,270 $26,062
    Interest $23,462 $26,277 $29,431 $32,962 $36,918
    PRETAX INCOME $17,563 $19,671 $22,031 $24,675 $27,636
    Net Operating Loss $0 $0 $0 $0 $0
    Use of Net Operating Loss $0 $0 $0 $0 $0
    Taxable Income $17,963 $20,119 $22,533 $25,237 $28,265
    Income Tax Expense $6,237 $6,985 $7,824 $8,763 $9,814
    NET INCOME $11,726 $13,133 $14,709 $16,474 $18,451

    Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $371,821 $416,440 $458,083
    Accounts Receivable $26,677 $29,878 $33,583
    Inventory $7,485 $8,383 $4,900
    Other Current Assets $2,315 $2,707 $2,707
    TOTAL CURRENT ASSETS $408,298 $457,408 $499,274
    Long-term Assets
    Long-term Assets $9,755 $9,755 $9,755
    Accumulated Depreciation $17,132 $19,188 $21,586
    TOTAL LONG-TERM ASSETS $28,600 $32,032 $36,036
    TOTAL ASSETS $436,898 $489,440 $535,310
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,800 $22,176 $24,926
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $18,300 $20,496 $23,038
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $20,100 $22,512 $25,303
    Paid-in Capital $20,267 $32,963 $31,081
    Retained Earnings $66,321 $72,290 $79,519
    Earnings $272,010 $296,491 $326,140
    TOTAL CAPITAL $416,798 $466,928 $510,007
    TOTAL LIABILITIES AND CAPITAL $436,898 $489,440 $535,310
    Net Worth $261,820 $285,384 $313,922

    Cash Flow Statement

      FY1 FY2 FY3 FY4 FY5
    CASH FLOW FROM OPERATIONS
    Net Income (Loss) $11,316 $12,674 $14,195 $15,898 $17,806
    Change in working capital $19,100 $21,392 $23,959 $26,834 $30,054
    Depreciation $25,160 $28,179 $31,561 $35,348 $39,590
    Net Cash Flow from Operations $19,276 $21,589 $24,180 $27,081 $30,331
    CASH FLOW FROM INVESTMENTS
    Investment $160,950 $0 $0 $0 $0
    Net Cash Flow from Investments $160,950 $0 $0 $0 $0
    CASH FLOW FROM FINANCING
    Cash from equity $0 $0 $0 $0 $0
    Cash from debt $315,831 $35,000 $35,000 $35,000 $35,000
    Net Cash Flow from Financing $315,831 $35,000 $35,000 $35,000 $35,000
    Net Cash Flow $157,257 $176,128 $197,263 $220,935 $247,447
    Cash at Beginning of Period $0 $153,256 $347,759 $579,194 $838,849
    Cash at End of Period $153,256 $348,759 $579,194 $838,549 $1,146,285

    11. FAQ

    • What is a shopping mall business plan?
      A shopping mall business plan is a document that outlines the operational and financial objectives of a shopping mall. It typically includes market analysis, marketing strategies, financial projections, operational details, and other information necessary to start and operate a successful shopping mall. The plan should also outline strategies for managing the mall, including leasing strategies, customer service, and marketing.
    • What are the main types of shopping malls?
      • Strip mall: A strip mall, also known as a strip center, is a shopping center that consists of a row of storefronts, typically with surface parking in front.
      • Enclosed mall: An enclosed mall, or indoor mall, is an indoor shopping center that usually features a variety of stores and restaurants.
      • Outlet mall: An outlet mall is a shopping center that features discounted, name-brand merchandise from various stores.
      • Super regional mall: A super-regional mall is a large shopping center with numerous department stores, specialty stores, and restaurants.
      • Lifestyle mall: A lifestyle mall is a shopping center with a mix of upscale retailers, restaurants, entertainment venues, and services.
    • What are the main sources of revenues and expenses for a shopping mall?
      The main sources of revenue for a shopping mall include retail sales from stores, rental income from tenants, and income from food courts and other amenities. Retail sales are generated from the stores within the mall, which typically includes clothing stores, shoe stores, and other specialty shops. Rental income is generated from tenants who pay to occupy space in the mall. Finally, income from food courts, movie theaters, and other amenities can be a significant source of revenue.
      The main expenses for a shopping mall include property taxes, rent payments, utilities, maintenance costs, and marketing expenses. Property taxes are typically based on the assessed value of the mall’s property. Rent payments are made to the mall’s landlord and to the tenants who occupy space in the mall. Utilities include electricity, water, sewer, and other services. Maintenance costs include the repair and upkeep of the mall’s grounds and facilities. Finally, marketing expenses include advertising, promotions, and other activities to attract customers to the mall.
    • How do you get funding for your shopping mall business plan?
      One of the most common ways to fund a shopping mall business plan is to approach investors. This can be done through a variety of options, such as through angel investors, venture capitalists, private equity firms, and crowdfunding platforms. Through these sources, investors can provide funding in exchange for equity in the business, meaning that they will be part-owners of the mall. Additionally, some investors may provide debt financing, which involves the mall receiving a loan from the investor that must be paid back, usually with interest. Other sources of funding may include grants and government programs, bank loans, and personal savings.

    Download Shopping Mall Business Plan in PDF

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    Grocery Store Business Plan
    MAR, 18 ∙ 2023
    Supermarket Business Plan
    MAR, 17 ∙ 2023
    Head Shop Business Plan
    FEB, 09 ∙ 2023
    Diaper Manufacturer Business Plan Sample
    JUN, 16 ∙ 2022
    Tobacco Shops Business Plan Sample
    MAY, 09 ∙ 2022
    Maternity Clothing Business Plan Sample
    APR, 11 ∙ 2022
    Video Store Business Plan Template 
    FEB, 11 ∙ 2022
    Wholesaling Business Plan Template
    NOV, 11 ∙ 2021
    Farmers Market Business Plan Template
    JUN, 11 ∙ 2021
    Small Liquor Store Business Plan Template
    JUN, 10 ∙ 2021
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