Hoping to capitalize on the on-line craze, shopping malls around the country are now becoming Internet Service Providers (ISPs), in hopes of capturing the e-commerce dollars of their current shoppers.

Four malls operated by Copaken, White, Blitt located in Kansas and Indiana were the latest to offer free Internet services to their customers.

The service, offered through the AIM Smart Corporation (OTC:AIMS), allows a shopper to sign up for free Internet access, which can be used either from home or at kiosks at the mall. Utilizing a customized version of Microsoft's Internet Explorer browser, when shoppers first open their browser, they are taken to the mall's home page. Shoppers can receive information on new products, events, special offers and community activities, much of it tailored to the shoppers' individual area of interest. Shoppers can also order from electronic catalogs, which come on a separate CD-ROM, from local mall stores.

And, of course, they can also surf the net.

Bill Bain, manager of the Eastland Mall in Bloomington, one of the four malls that recently began to offer the service expressed enthusiasm for the program.

"This marriage of local retailers with cyberspace provides our shoppers with the convenience of electronic shopping and the money stays here in the area," he said.

AIM Smart has entered into agreements to provide the service to a number of shopping center operators, including The Rouse Company (NYSE:RSE), the WellsPark Group and Simon DeBartolo (NYSE:SPG). AIM Smart has agreements with 330 malls and has between 25,000 and 35,000 stores in its network.

"We are building on the existing relationship that each mall has with its shoppers," stated Garry Eberhardt, AIM Smart's chief operating officer. "There is tremendous value in loyal customers, and we believe people will choose to shop at familiar stores in their local area."

"The system is ideal for shoppers because it provides instant gratification in the form of immediate product presentation," added Robert J. Van Duren, president of AIM Smart. "When the product is ordered, it can be delivered to the home or the office in as little as 30 minutes."

The service also provides shopping malls with a great deal of information about the shopping habits and tastes of its customers, and an excellent opportunity to survey those same customers.

The Rouse Company, who signed up for the AIM Smart system earlier this year, has formed a partnership with Research International to study the habits of its shoppers and gather other information.

"We will be able to take our communication with our shoppers to the next level and gather their opinions about what amenities are important to them and what they expect from their trip to our malls," said Warren Wilson, vice president and director of site strategy for The Rouse Company. "Based on the results of the target specific questions, we will be able to make enhancements that will add value to their shopping experience and encourage repeated visits."

Published: December 24, 1998

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