There are too many malls, some say. (I disagree yeah, I think it’s more of inexperienced operators instead. By the way, building a mall and operating it successfully are not the same yeah) By the way, the malls which are really doing well continues to do well and not really affected by many of these newer malls. Among them? Suria KLCC, Mid Valley Megamall, 1 Utama and Sunway Pyramid which continues to attract everyone to shop there. (or window shop there…)
Well, speaking of Sunway Group which is well known as a savvy mall operator, they are expanding… In fact, another RM2.5 billion will be spent for malls within the next 4 years. The locations of these ‘mall openings’ are Johor, Ipoh, Penang and Seberang Perai.
Article in edgeprop.my here. Total net lettable area (NLA) under Sunway Group will increase to 7.271 million sq ft of which an extra 3 million NLA will be coming within the next 4 years. New malls will be constructed in Johor, Ipoh and Penang but the Seberang Perai one will be an extension. There will also be a 4th phase to Sunway Pyramid.
H C Chan, CEO of Sunway Malls & Theme Parks said, “Overall, at the national level, there is definitely an oversupply. But there are pockets that are still underserved. It depends on the location.” He also shared that Sunway’s malls do better because they are located in “townships that are supported by office, hotel, medical centre, education and residential footfall”. Besides that, the group has also gained “a certain amount of loyalty among its retail tenants — 70% of them are happy to set up shop in the group’s next new mall, which means a high tenancy level”.
Where online shopping is concerned, Chan explained that “statistics show that in Asia, 88% of total retail sales are still done at physical stores compared with 12% online”. It meant that malls are not going to die anytime soon. He said, “Within five years, the ratio is expected to be 80:20 and equilibrium to be reached at that point.”
As for the never ending competition, this is what Chan said, “In another three years, we can expect to see all the major malls in the city attempting to outdo each other. Would this mean the worst? No. If anything it means more choices and better value for consumers.” It’s a long article, do refer to Article in edgeprop.my here.
Imagine every other week, we hear of bad news from the established malls. Whats happening? Yeah, you guessed it, when even the established malls are facing difficulties, it meant the whole market is not doing well. Consumption always relate back to the employment market. As for the online shopping, I shop online every week. Yet, my purchases from malls, well they are still much higher than what I have purchased online.
Perhaps I am from Gen-X? Perhaps, then again, I personally do not think online will ever kill offline. Not within my generation anyway. Assuming I live to 75, that’s another 33 more years to go yeah. Unless of course we no longer have friends whom we could have a cup of coffee with. If we have no friends, it’s best to stay at home. Or someone who would give us a warm hug after many months of not meeting up with them. If no friends are willing to give us a warm hug, then yeah, do stay at home yeah. Happy understanding.
<Featured Image is courtesy of Stock Photos from Shopping king Louie>
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