The effects of mall renovation on shopping values, satisfaction and spending behaviour

•Renovation directly mediates shopper perception of the mall atmosphere.•Mall atmosphere mediates shopping values, which in turn affect satisfaction.•The utilitarian shopping value influences spending, but not shopper satisfaction.•Mall renovation has a significant indirect effect on spending.•Effect of mall renovation is mediated by mall atmosphere and the utilitarian value.

Managers renovate malls to keep up with newer shopping centres and retail formats that erode traffic. This paper investigates shoppers׳ psychological processes that trigger changes in spending behaviour in the renovated mall. Renovation has a direct impact on the perception of the mall atmosphere and an indirect one on shoppers׳ hedonic and utilitarian values, satisfaction, and spending. Renovation affects shoppers׳ spending through the perception of utilitarian shopping benefits.This study is the first of its kind to explore the effects of mall renovation on shoppers׳ spending. It focuses on the effect of renovations on shoppers׳ holistic perception of the mall atmosphere. The hedonic benefit contributes more to shoppers׳ satisfaction than does the utilitarian value. However, the utilitarian value affects shoppers׳ spending while the hedonic value does not.