From small space comes huge opportunity

Mall carts, kiosks are now a thriving $10b industry in US

December 13, 2005|Associated Press

FRISCO, Texas -- They are one of the most lucrative sectors in the retail industry, generating billions of dollars in sales, and arguably are the most underpublicized: the kiosks and carts that dot the aisles of big shopping malls, selling everything from candles to computers.

These freestanding merchants are tremendously popular -- Tillie Martinez says she sometimes has customers lining up 10 and 12 deep to buy her personalized Christmas ornaments at Stonebriar Centre mall north of Dallas. And while she sells just a few months a year, she has a loyal following.

''The fun part is getting the repeat business from someone who last year bought something for their baby's first Christmas," she said.

Carts and kiosks are a thriving industry, bringing in an estimated $10 billion in annual sales for the merchants and landlords, more than triple that of 10 years ago, industry analysts said.

Marshal Cohen, senior industry analyst at NPD Group Inc., a market research company based in Port Washington, N.Y., said the kiosks are changing mall dynamics.

''Kiosks are a huge opportunity for the mall, the entrepreneur, and the individual consumer. It removes one of biggest barriers and that's the entrance and walls to the stores," he said.

The kiosk concept relies on nostalgia for some of their appeal, allowing shoppers to revisit long-gone marketplaces where push-cart merchants sold their wares. But behind the sentiment is solid strategy: Some of the merchants are small businesses looking to expand or try new ideas, while others are Fortune 500 companies looking to strengthen their foothold in a national market.

Some kiosks and carts operate year-round, but during the holidays there's a population explosion of these merchants at malls. For example, Hickory Farms, the Maumee, Ohio-based company known for its sausages and cheese, goes from one year-round store to 542 kiosks plus another 176 stores.

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