News Feature | February 25, 2015

Terrorism Threats Extend To Retail

Source: Innovative Retail Technologies
Christine Kern

By Christine Kern, contributing writer

Malls nationwide increase security in response to terrorist threats.

The economy is not the only factor threatening the livelihood of retailers these days.  Now, terroristic threats are being made against some of America’s iconic malls.

According to CNBC, Malls across America are on alert after a video purported to be from Somalia's al-Qaida-linked rebel group was released over the weekend, threatening violence to malls in the Western world.

The hour-long video calls for attacks on malls in the U.S., Canada and London. The group behind the video, al-Shabaab, is the organization that claimed responsibility for a 2013 attack on the Westgate Shopping Mall in Nairobi, Kenya, that left 67 people dead.

Although there was no specific threat against particular locations, the Department of Homeland Security issued a warning to shoppers and merchants to be vigilant.

“Americans should still feel that they are free to associate, they are free to go to public gatherings…I would say that if anyone is planning to go to the Mall of America today, they’ve got to be particularly careful,” Homeland Security Secretary Jeh Johnson said, the Wall Street Journal reported.

The Mall of America outside Minneapolis, the country's largest mall which already has significant security measures in place, made a show of its anti-terrorist measures and made public assurances that the mall is safe. 

"Retailers are moving quickly to implement their top-level emergency plans," said Bill Thorne, a senior vice president at the National Retail Federation, in a statement. "That includes alerting personnel and shoppers to maintain a heightened level of vigilance at all times."

Despite the warnings, shoppers are not expected to shy away from their favorite stores, which is good news for retailers.   Traffic at shopping centers generated $2.5 trillion in sales last year.

"People look at it as they're not going to change their daily lives," Jesse Tron, a spokesman for the International Council of Shopping Centers trade group, told CNBC.

Regardless of safety issues, mall traffic is on the decline, as consumers opt to do more of their shopping online. According to a report by Goldman Sachs on Wednesday, month-to-date retail visits in February were down 2 percent.

And while malls are by their nature attractive targets for terrorist attacks, most shoppers respond negatively to attempts to institute screening and security measures such as metal detectors that could hamper their shopping experience.