Can malls compete with clicks? Experts say malls must offer experiences to survive e-commerce boom

SHAH ALAM - As Malaysians become increasingly comfortable with online shopping, traditional malls are struggling to stay relevant.

Experts warn that many could soon turn into "ghost malls" if urgent changes are not made.

The rapid rise of e-commerce has reshaped the way Malaysians shop, with more people choosing the convenience of a few clicks over the hassle of visiting physical malls.

Consumer Finance expert from Universiti Putra Malaysia (UPM) Professor Dr Mohamad Fazli Sabri said this shift has left many shopping centres struggling to attract visitors.

"Sometimes people feel reluctant to go to malls because they need to pay for parking, think about petrol costs and deal with crowds.

"So, over time, they become more comfortable with online shopping," he told Sinar.

He added that the Covid-19 pandemic also accelerated this change.

Fazli stated that malls unable to keep up with modern demands are at risk of continuously losing customers.

"People are now used to the convenience of just clicking on their smartphones and having items delivered to their doorstep.

"So, if malls cannot compete in terms of pricing, promotions and overall experience, they will keep falling behind. This is what could lead to the phenomenon of ghost malls," he added.

He believes there is a way forward, stating that malls must transform into lifestyle destinations by offering experiences that e-commerce cannot replace.

He also urged the government to recognise the bigger picture, as the survival of malls is tied to the local economy.

Meanwhile, Associate Professor of Economics and Real Estate Finance

Dr Muhammad Najib Razali pointed out that the problem stems from multiple factors, including an oversupply of malls, poor location choices, competition from e-commerce and shifting consumer lifestyles.