Shopping malls and shopping centres attract new customers to stem decline

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When you look at shopping malls and shopping centres, you begin to wonder about the whole concept of a shopping mall. Somehow it seems outdated.

Yesterday, I was at Blue Route Mall in Retreat. You have these huge walkways and smaller shops spread across a vast retail space. You feel a bit lost, and the place itself lacks variety and interest. A few people were huddled around the bakeries. One coffee shop had no customers. And so it goes.

Even in small shopping centres, tenants are finding that the rentals are too high. In one local centre, a flame-grilled chicken outlet has closed and is moving to premises on a nearby main road because of the high shopping centre rentals. Something is going on here.

So, what’s it all about?

For one thing, online shopping means you don’t have to go to these dreary malls or shopping centres, especially if you only want basics like bread, milk and eggs. Even those can now be delivered to your door. The other thing is that fuel prices have risen so much that, unless you’re combining several errands, it doesn’t always make economic sense to drive to the local shopping centre.

Mall owners know this. They know they have to give people a reason to visit.

I recently noticed that Rosebank Mall has attracted a new type of tenant: a shared workspace aimed at young professionals who can work, meet people and enjoy themselves. I don’t know what rental they are paying, but it is clearly an attempt to make shopping centres more interesting.

Shopping centres and malls were a novelty years ago, but many have become tired and predictable places.

Of course, there are exceptions. If you visit Hyde Park Corner in Johannesburg, you’re still impressed by the quality and range of shops. If you go to the Gardens Shopping Centre above Roeland Street in Cape Town, you’ll find a relatively small centre with an interesting mix of retailers. It’s an enjoyable place simply to wander around. There is an old-fashioned tobacconist, a French deli, a German butcher, specialist homeware stores and even a dedicated liquor retailer. Those kinds of specialist businesses give people a reason to visit beyond simply buying groceries.

That is exactly the direction in which the industry appears to be moving.

Shopping centre owners are increasingly trying to turn malls into destinations rather than simply places to shop. They are adding entertainment venues, family attractions, gyms, restaurants and specialist food outlets that encourage people to spend more time there. These are experiences that online shopping simply cannot replicate.

Many centres are also bringing in medical suites, beauty salons, government services and co-working spaces. The idea is that people can accomplish several tasks in one visit, making the mall part of everyday life rather than somewhere they only visit occasionally.

At the same time, online shopping has not been ignored. Many shopping centres now offer click-and-collect facilities, dedicated collection points and improved access for ride-hailing services, turning malls into distribution hubs as well as retail destinations.

Another noticeable trend is the move towards mixed-use developments. Instead of relying solely on retail tenants, developers are combining shopping with offices, apartments and even educational facilities. That creates a steady stream of people throughout the day and reduces dependence on traditional retail spending.

The types of retailers being attracted are also changing. International sportswear brands, specialist lifestyle retailers and niche concept stores are replacing some conventional chains. Family entertainment businesses are occupying space once reserved for traditional retailers, while grocery-anchored centres continue to perform relatively well because people still need to shop for everyday essentials.

The biggest pressure appears to be on South Africa’s largest regional and super-regional malls. Industry data suggest shoppers are visiting them less frequently and spending less time there than they once did. Smaller neighbourhood shopping centres have generally proved more resilient because they offer convenience and quick access to essential services.

There is no evidence that shopping malls are disappearing altogether. Rather, the business model is changing. Large retailers are reducing the size of some stores, vacant space is being repurposed, and landlords are searching for tenants that offer experiences and services instead of simply more shelves of merchandise.

Perhaps the age of the shopping mall as a place simply to buy things is drawing to a close.

The successful shopping centres of the future are likely to be those that give people a reason to leave home, meet friends, enjoy themselves and experience something they cannot order with the click of a mouse.

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