Parque Arauco
Country: Chile
Role / Services
How can we innovate within mall spaces to foster entrepreneurship?
Parque Arauco, a prominent player in Chile's shopping mall industry, with presence across Chile, Peru, and Colombia. In 2019, Chile's retail sector faced challenges amidst widespread protests, shifting public sentiment. The situation intensified in 2020 with the COVID-19 pandemic, leading to nationwide lockdowns and temporary closures. To adapt, Parque Arauco sought to attract a new segment: entrepreneurs. This group, thriving during the pandemic, preferred simple processes and free B2B tools over traditional shopping malls perceived as expensive and complex.
The challenge
Following extensive field research and numerous co-creation workshops, we introduced "Arauco PopUp," a novel business unit designed to offer turnkey, customisable spaces that small businesses can lease for short durations. This initiative enables entrepreneurs to transition their brands from the digital realm to the physical world effortlessly.
Arauco PopUp significantly alleviates the challenges faced by entrepreneurs, offering them the opportunity to explore brick-and-mortar retailing without jeopardising their business's financial stability. Additionally, this venture equips small business owners with an array of digital tools aimed at enhancing their success within the mall setting.
The solution
For the business owners, Arauco PopUp has proven to be an effective solution, minimising entry time and costs associated with mall presence and demonstrating superior sales performance. Furthermore, businesses participating in Arauco PopUp experienced an average 76% increase in sales compared to their counterparts not utilising the PopUp model, despite being situated in comparable mall locations.
For the shopping centers, this translated into a significant decrease in vacancy rates, transitioning from 80% occupancy to full capacity at 100%. Additionally, it streamlined idle time associated with rotation. Opening a popup store saw a reduction of approximately 87% in time, decreasing from 4.5 months to just 2.5 weeks. Similarly, closure time improved by approximately 85%, decreasing from 3 months to only 13 days.
Get in touch
I'm always happy to explore new opportunities and projects. Whether you have a potential collaboration in mind or simply want to connect, feel free to leave me a message here or reach out via email at valentina.paz.lopez@gmail.com.
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