Designing small, delivering big with Kali Chan

Throughout the APAC region, we’re seeing developers shifting away from large shopping malls in favour of smaller, more compact retail assets. These assets typically comprise malls of around 20,000−50,000 square metres, containing between 50 – 150 units. They often provide a rich mix of uses and activities, including F&B, leisure, event space and facilities for life learning and hobbies, appealing to specific local demographics. Sometimes, they focus on a very niche interest areas; for example, entire malls might provide immersive experiences for anime, manga and cosplay fans, with retail and F&B promoting these themes.

With small-scale retail developments, the emphasis is on experiential design or localised aesthetics and experience. They often reflect the local cultural context and the architectural identity of the surrounding community, creating a strong sense of place and belonging. As such, they generate real engagement with local consumers, which in turn increases footfall. 

This trend is being driven by a number of factors. Firstly, there’s limited land available for development in Asian urban centres, which means small-scale retail projects are more feasible due to their reduced site footprint. The economics of such projects are also more viable. There’s less investment required, less construction involved and shorter development times, meaning upfront costs are reduced and ROI can be realised quicker. And the assets themselves are easier to market and lease, making small-scale retail an attractive proposition for investors and developers. 

Community needs and consumer demand are other major drivers. Even though it’s five years since the pandemic, the post-covid desire for meaningful retail experiences is still strong across the region. Shoppers continue to look for unique and personalised retail interactions, and these are more easily achieved through small-scale retail. 

For example, with smaller retail developments designers can create uniquely targeted spaces. They can focus on very specific consumer cohorts and very local preferences. This means they can be strong in their design choices, creating tailored and immersive retail experiences. Larger malls and projects, on the other hand, have to appeal to a broad spectrum of shoppers, which means design schemes tend to be fairly generic and ​‘safe’. Through its localised focus and targeted aesthetic, small-scale retail can achieve greater impact, making it a popular choice among developers looking to satisfy specific consumer trends and tastes. 

Small-scale retail enables developers to stand out and achieve differentiation in a market where ​‘big retail’ is well established. Consumers are very familiar with the megamall format in Asia; small-scale retail gives developers the opportunity to do something bold and different. 

Small-scale retail assets also assimilate seamlessly into existing neighbourhoods, causing little disturbance or disruption. Reduced construction means less noise, traffic and pollution, minimising the impact on the local environment. There’s also less encroachment into local land areas, resulting in minimal stress on communities and ecosystems. 

What’s more, these assets are inherently more flexible than larger malls, meaning they are easier to pivot and reposition. If consumer trends change, small-scale malls can be reconfigured to meet shifting demands without the need for wholesale demolition. And as we know, repurposing and repositioning is infinitely more sustainable than the ​‘demolish and rebuild’ model, helping to retain embedded carbon and avoid further environmental degradation. 

I personally value the freedom small-scale retail allows to create what we call ​‘third space’. This refers to common areas – coffee shops, outdoor zones or leisure spaces – where people can come together as part of a specific local community, rather than a vast and anonymous retail cohort. In my opinion, genuine social value can be achieved through localised common spaces and amenities that respond to local need and identity. And these spaces are the hallmark of smaller retail assets. 

In this way, small-scale retail creates strong connections with local people and specific target groups. These developments can promote a sense of community ownership and pride, generating long-term customer loyalty. Their agility also means they can be adapted to celebrate seasonal events or cultural festivals, creating experiential and ​‘instagrammable’ moments that attract consumers and provide a boost to the local economy. 

To create engaging retail spaces and maximise the consumer experience, we need to integrate architecture, landscape architecture, interior design and branded environments – all the disciplines, in fact, that Benoy offers under one roof. Being able to work collaboratively across these specialisms means we take a fully integrated design approach that activates, enriches life and enlivens retail assets. Technology is also key to providing interactive spaces and experiences. LED walls, digital touchpoints and wayfinding help to engage and delight, ensuring our designs meet expectations for digitally savvy consumers. 

Leveraging our multidisciplinary tech and design skills, Benoy combines international best practice with local knowledge and sensitivity. Our recent projects in Shanghai include Shanghai Huamu Time Edition, a new cultural and commercial landmark; Oasis Wisdom Valley Garden, a nature-inspired retail hub; and EXPO Place. As these schemes demonstrate, by bringing multiple specialisms together we create cohesive, successful and sustainable solutions for small-scale retail development.

For further discussion, please contact
kali.​chan@​benoy.​com