Download Malls Presentation

Malls Presentation
May 23rd, 2012
THE NEED FOR MALLS
“We used to build civilizations. Now we build shopping Malls”
(Bill Bryson)
Life is rather hectic.
Time has become a valuable factor. People are looking for
more convenience in their lifestyles. The “MALL” concept
offers a rather appealing choice of recreation.
Different Shopping Experience
Lifestyle Centers:
Entertainment Malls:
shopping centers where
entertainment facilities are
also found, such as cinemas,
food courts, kids areas, etc…
Outlet Malls:
in which manufacturers sell
their products directly to the
public through their own
branded stores, often at
heavily reduced prices
Generally, it's a center that
does not have an anchor
tenant in the classic sense
(that is, a department store).
However, lifestyle centers
increasingly have a cinema as
a major tenant. Others have
just a small collection of
exclusive shops.
MALLS - A large, often
enclosed shopping
complex containing
various stores,
businesses, and
restaurants usually
accessible by common
passageways
New Town Centers:
following traditional urban
designs, providing a
pedestrian-friendly
environment that also
contains public spaces that are
available for community
events. They usually include
cinemas, sit-down restaurants,
as well as residential and
office space
Community Malls:
are built close to residential
areas to enable nearby
communities to have easier
access to the mall without
having to endure traffic
Rent vs. Cost of Doing Business
Beirut has the most expensive retail rent in the Middle East, it’s ranked as the 30th most
expensive city in the world. The rent of retail space is more expensive than Stockholm,
Helsinki or even Luxembourg (The Daily Star, Cushman & Wakefield Consultants)
Changing Policy
Infrastructure Impact
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Enhancement of infrastructure inside
and around the malls
Utilities charges (electricity, gas, water,
etc…) have become encumbering
Safety & Security Impact
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Political turmoil necessitates the need for
additional security measures adding the
costs
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Inflation is increasing (5.2% in 2011 and
6% in 2012 – CIA )
Salaries Increased Dramatically
Increase in municipality Taxes
Built Up Property Taxes
Income Taxes
Increase in VAT will lead to a decrease in
sales
Corruption increased to record high
Retailers on the Move
• Changing patterns of consumer behavior:
– Demographics are changing
– Shopping habits have evolved
– Meeting points
• Time of transformation create opportunities
– Modern retail vs. traditional retail
– Smaller more efficient stores, multiple locations
• Changing trends: retailers must adapt business models
– Encouraging frequent shopping
– Improved merchandising
– Customer service
• Entertainment and shopping
– Targeting and attracting consumers
– Benefitting from the others
Malls - Who is Benefiting?
A Win-Win Situation for All
Consumers
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Merchandising mix offers wider choices
Competition decreases price
Offers and promotions
Improved client service
Leisure and entertainment
Easy Parking
Retailers
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Faster Growth; Open new stores
Good locations give better exposure
benefitting from inflow of clients
Marketing
Specialized Retail
Higher standards
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Mall Developers
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Long Term investment
Higher returns
Contributing in urban sustainability
Government
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Generation of Tax Revenue (Built up,
Municipality, VAT, contracts, Income Tax)
Construction Permits (large sqm)
Improved collection
Utilities revenues (electricity, phones,
internet, etc.)
Employment revenues (taxes, NSSF, etc.)
Corruption