For most shopping centres, the car park is viewed as an operational necessity, a place where customers leave their vehicles before heading inside to shop, dine or catch a movie. Yet one of the largest physical assets on a retail property is often one of its most underutilised.
For customers, it is one of the biggest assets from an experience point of view, they can choose which shopping centre they go to depending on their experience with the carpark.
Like aligned industries such as airports, hospitals, and gaming, forward-thinking shopping centre owners and investors are beginning to see the car park differently. Rather than simply a cost centre requiring maintenance, security and cleaning, it can become a strategic commercial asset that enhances the customer experience while generating additional revenue.
More than just a place to park
The customer journey begins long before they enter a store. Their first impression is formed the moment they drive into the centre, and with more than 90 per cent of customers visiting by vehicle, it’s so important. This is also the lasting impression you leave with every shopper. It can determine whether they return to the centre time and time again, or whether, in a moment of frustration, they decide, “I’m never coming back here again.”
A well-managed car park creates a seamless arrival experience, reduces stress and encourages visitors to stay longer. The easier it is to park, the more likely customers are to return and the longer they spend shopping, dining and enjoying the centre. Centres where we have operated valet parking, such as Highpoint Shopping Centre and Eastland Shopping Centre in Melbourne, have results that demonstrate this. After the initial Christmas valet pop-up service, over 80 per cent of customers surveyed said they wanted the valet to continue after Christmas, with the likelihood of 75 per cent surveyed would use the service again. With an overall 4.5 star rating, the appetite for the service was there to continue on into a permanent fixture.
Creating new revenue streams
Valet parking is no longer reserved for luxury hotels. Increasingly, shopping centres are introducing premium parking experiences that customers are willing to pay for, particularly during weekends, peak shopping periods and major retail events.
Beyond direct parking revenue, valet services create opportunities for:
- Sponsored valet, we have dealerships wanting to promote their brands in the retail space.
- Premium reserved parking, for loyal customers and those seeking ultimate convenience.
- VIP memberships and loyalty programs, to reward your best customers.
- Retail promotions and partnerships, with your retailers who value premium services for their customers.
- Vehicle servicing, carwashing, detailing and charging while customers shop.
- Seasonal campaigns during Christmas and major sales to promote extra sales or simply take the stress out of peak periods.
- Event partnership opportunities within the centre or externally.
These value-added services transform an existing asset into a revenue-generating business opportunity.
Increasing retail spend
Convenience has become one of retail’s greatest competitive advantages because customers can choose your competitors over you. When customers know they can arrive, hand over their keys and begin shopping immediately, they save time and enjoy a more relaxed experience.
That convenience often translates into longer visits, more dining, additional browsing and ultimately increased spending throughout the centre. Research suggests that for every extra minute at a centre, an extra $1 is spent.
Australian research has demonstrated a strong positive relationship between customer dwell time and retail expenditure. Studies consistently show that customers who stay longer generate higher retail revenues. The result is a win for retailers, customers and centre management alike.
In the second year at GPT’s Highpoint, valet parking users now spend an average of 87 per cent longer in the centre than the average customer. Longer dwell times are closely linked to increased retail spending, making this a valuable outcome for both retailers and the centre, helping create a stronger trading environment at Highpoint.
A powerful marketing opportunity
The valet zone itself can become premium real estate. Vehicle display partnerships with automotive brands, product launches, sampling activations and sponsorship opportunities create new commercial income while adding excitement to the arrival experience.
Instead of simply processing vehicles, the car park becomes another customer touchpoint where brands can engage directly with visitors. First Class Valet operates valet services at car dealerships across the country and is looking to partner with retail sites to promote their brands.
In most cases, the walls of a carpark provide a great opportunity for supplementary revenue streams through paid advertising, and at the same time make those bare walls look a whole lot nicer!
Leveraging technology and knowing results
First Class Valet have the only Australian licence for paperless and SMS valet technology. Digital ticketing, SMS vehicle retrieval, live reporting and occupancy analytics provide shopping centres with valuable insights into customer behaviour and parking demand.
These data-driven insights can help optimise staffing, improve traffic flow and support future planning decisions, all while enhancing the customer experience.
The carpark – a strategic asset
Shopping centres continue to invest heavily in retail fitouts, dining precincts and entertainment experiences, yet many overlook the significant commercial potential sitting beneath them. By rethinking how parking is managed, centres can improve customer satisfaction, create new revenue opportunities and strengthen relationships with retailers.
The car park is no longer just somewhere customers leave their cars.
With the right strategy, technology and service partner, it can become one of the most valuable contributors to the overall shopping centre experience and one of the smartest investments a centre can make.
As customer expectations continue to evolve, unlocking the hidden value of the car park may be one of the simplest ways to drive both revenue and long-term loyalty.
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