The Demand for Kiosks in Shopping Centers Grows by 10%: What Drives This Expansion and What Are the Consequences?

Small kiosks in shopping centers are compact retail spaces designed to make the most of high-traffic areas like hallways and courtyards, which would otherwise be underutilized. With an average size of less than 20 square meters, these kiosks represent a profitable business model due to their low operational costs and spatial flexibility. They promote diverse offerings, generate additional revenue, and provide unique products within shopping centers, enhancing the customer experience.

In Mexico, although kiosks account for less than 1% of the gross leasable area (GLA) in shopping centers, they have seen a 10% expansion over the past four years, maintaining a consistent market share. According to SiiLA data, this growth has been primarily driven by businesses in food and beverage, consumer products, and personal services, which make up 86% of the occupied GLA.

The sustained growth of kiosks is a testament to their viability as a commercial strategy. Their success lies in their adaptability to market demands, offering a flexible and accessible platform for businesses of all sizes and industries.

Significant chains and firms use kiosks to increase brand exposure, often leading to both kiosks and medium or large-sized stores from the same company within a single shopping center. Among the companies that occupy the most kiosk space in Mexico’s major retail markets are the accessory and fashion retailer Surtidora Departamental, the children’s recreational chain Piccolo Ludo, as well as food and beverage franchises and stores like Häagen-Dazs, Krispy Kreme, and Starbucks. These companies represent one-fifth of the national kiosk GLA.

Despite the preference for larger stores, kiosks continue to attract a wide range of businesses and maintain their market share. The significant tenant demand for kiosks is a clear reflection of their profitability.

According to SiiLA Market Analytics, kiosks have occupancy rates that reflect their high competitiveness compared to other spaces. While large stores such as anchor stores and mega stores have 99% and 90% occupancy rates, respectively, kiosks maintain an 80% occupancy rate.

This demand underscores the popularity and effectiveness of kiosks as a business model and highlights their ability to quickly adapt to consumer trends and economic conditions, offering tenants a low financial risk option. Kiosks also allow shopping centers to optimize underutilized spaces, increasing the total GLA value. They provide an accessible platform for small entrepreneurs and large brands seeking visibility without renting larger, more expensive spaces. This makes kiosks a dynamic and effective solution in Mexico’s retail market, benefiting property owners, tenants, and customers alike.

For more information about the commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.