The Nation Newspaper

Tag: MALLS

  • Online shopping: A threat to malls?

    Online shopping: A threat to malls?

    Shopping malls and online shops continue to play important roles in the world of modern retail. While consumers are rapidly engaging in digital channels, findings have it that most of them still want to see products physically before making a purchase.

    Also, an online shop, which used to offer cost advantages, such as lower overheads, has seen rising return rates and increasing customer expectations around free and faster shipping, which can take a bigger bite out of profits.

    Retailers have been advised to balance and optimise their online and in store operations because, while physical stores still dominate retail, online shopping is growing at a faster pace.

    However, though online shopping is growing at a steady pace, profit margins are not. Rising online costs are also forcing retailers to strive for a careful balance between online shopping and shopping mall. Online sales profits are being weighed down by free delivery, free return, and packaging costs, resulting in a lower margin than physical stores. One growing problem is that consumers are taking advantage of free delivery and free returns to see products in person, a challenge that’s becoming a problem for online retailers. “There’s a new trend that people are buying multiple sizes of things to try them out at home and then return them.

    As it is believed that shopping malls will likely dominate retail for years to come, dealing with the overhead and liabilities that are part and parcel of mall operations such as rent, utilities and staffing can still be a worthwhile investment. Physical stores offer consumers the ability to see the products before they buy and provide shoppers with the instant gratification of being able to immediately take their items home with them after paying. Malls also give consumers the chance to actively engage with store persons, ask questions, and make enquiries about other products that they might be interested in.

    A recent survey reveals that 85 percent of consumers still prefer shopping in stores and seeing products before making a purchase decision. More than a third of respondents (36 per cent) said they don’t like waiting for items to ship, and 90 per cent said they are more likely to make a purchase when receiving assistance from a knowledgeable store associate.

    Online retailers, such as Yudala are also testing the waters with physical stores, Jumia travels has a presence in Ikeja City mall. Mr P, a South African clothing retailer with presence in all shopping malls in the country, has also opened an online shops in an attempt to broaden their brand’s reach. The report said the retail space continues to be in flux, but the direction of the flux is different from what many had previously projected, with online outlets trying to penetrate the malls distribution channel rather than the other way around.

    But, despite the surge in online capabilities, mobile applications and other technology advancements, majority of consumers still want the tangible experiences offered by physical stores.

    The ability to see, touch and feel products as well as take items home immediately rank highest among the reasons consumers prefered shopping in stores to online.

    By a fairly wide margin, the primary motivation for shopping in stores is to see and try out products before purchasing. However, some notable differences exist among shoppers, depending on their gender, age and location.

    In particular, female shoppers overwhelmingly want to see, touch and feel products before buying them. Males, on the other hand, tilt more towards immediate satisfaction of taking items home with them.

    Shoppers at both ends of the age spectrum, younger and older generations,  want to see or try products out in stores more than their middle-aged counterparts. Young shoppers clearly convey an “I want it now” mentality versus older cohorts.

    But while physical stores still hold primacy in shopping experience, seven per cent of respondents say online is the only way they shop, a trend expected to grow in the coming years.

    To see, touch, feel and try out items is the top reason consumers choose to shop in physical stores as against online. With 62 per cent of shoppers wanting to kick the tires, retailers must take full advantage and up their game to create compelling in-store shopping experiences. Forty-nine per cent consumers say they choose stores over the web because they want to take items home immediately. This suggests that next-day, let alone two-day shipping, cannot fully replicate the immediate gratification of buying products in store and taking them home. Its why speed to market and figuring out last-mile delivery expectations keep retail executives up at night.

    One in five shoppers cites easy returns as key reason for shopping in stores. Despite the robust online shopping  movement, roughly another fifth (18per cent) of consumers still seek the enjoyment  and likely social aspect  of going shopping in stores.

    The ability to ask store associates questions ranks fairly low on the list of reasons to shop in stores. Accustomed to having information at their fingertips and on their mobile phones, consumers don’t seem particularly motivated to seek answers from store employees or at least, not a good enough reason to go to the store.

    When breaking down the data further, significant differences exist between genders when deciding whether to shop online or in stores. From the female perspective, it’s all about the ability to see, touch and feel items. Two-thirds (66 per cent) of female shoppers say trying-it-out is a deciding factor for shopping in stores. Shopping for products with a high fashion percentage, like apparel and accessories or home furnishings, is a likely driver.

    While seeing or trying out products is the top-ranked reason given by men (59 per cent) instant gratification ranked next as important. A higher share of men (54 per cent) than women (47per cent) say taking items home immediately is why they shop in stores.

    Comparing the average, a higher percentage of young (less than 35 years) and old shoppers (65+) cite the need to see, touch, feel and try out items as the primary reason they shop in stores. This appears to be indicative of age groups that have more time on their hands to go to stores and shop around.

    An interesting relationship came up between age and instant gratification. Compared with older shoppers, a higher percentage of younger shoppers say they shop in stores to take immediate possession of items. For example: 62per cent of 18-24-year-olds cite taking items home immediately as a reason they shop in stores, compared with just 40per cent of shoppers aged 65+.

    The youngest age segment (18-24) also over-indexes on returning items more easily, enjoying the in-store experience and interacting with store associates compared with the overall consumer population.

    The key figure that stands out when looking across location types: urban versus suburban versus rural shoppers, is the low percentage of rural shoppers, who say they only shop online (four per cent) compared with the seven per cent national average. Undeveloped or under-developed logistics and delivery infrastructures in rural areas likely come into play here.

    Conversely, a significantly higher share of rural shoppers (71 per cent) say the reason they shop in stores is to see, touch, feel and try out items. Often needing to drive long distances to shop, rural consumers may well consider in-store shopping an event and a time investment, so they want to be sure to get the items right.

    Given the onslaught of online competition and the attention and investment dollars being diverted to advancing e-commerce capabilities, it is  important for brick-and-mortar retailers not to lose sight of their physical store strategy.

    Malls hold an advantage for its ability to satisfy shoppers’ needs to try out products and immediately take them home.

  • Stakeholders seek investment in retail malls

    Stakeholders in the real estate sector have called for greater investment in retail malls. The call is coming against the backdrop of a report that showed that demand for space for retail malls in the country has increased by 905 per cent in the last 10 years.

    The call, according to them, is necessary considering that the sector has had a turbulent time since last year, leading to a lull in housing development.

    Broll Nigeria Chief Executive Officer, a real estate services company, Mr. Bolaji Edu, who gave the percentage at a roundtable to discuss the growth prospects in the retail industry, observed that from just two modern shopping malls sitting on 30,000 square metres in Lagos, the retail arm of the sector has grown to over 300,000m2 last year and is projected to reach 301,780m2 by this year end. And despite the current economic challenges, the retail arm still offers more growth and opportunities. The event was tagged: “Retail Industry: 10 Years from Now.”

    “The last 10 years have seen a boom in retail real estate and the country now boasts of over 300, 000m2, which represents a 905 per cent growth,” Edu said.

    Although there are challenges to malls development in the country, especially in terms of prospects of turnover, funding, slow take-up rate, and restricted access to foreign exchange (forex), as well as the ban on items directly linked to real estate from the official forex window, and weakening naira on the black market, among others, real estate experts still believe that the retail arm of the sub sector offers vast opportunities for employment generation. One of them is Head, Real Estate Finance, West Africa, Stanbic IBTC, Mr. Adeniyi Adeleye, who urged prospective investors to have confidence in the retail arm of the industry.

    Adeleye’s position was supported by the submissions of the Retail Portfolio Executive, Broll Nigeria, Mr. Gavin Cox. According to Cox, over the next six to 12 months, there will be little growth in rents because  retailers will have to struggle under the current economic situation, while demand for rental space is expected to fall until the business environment improves for retailers.

    “Future development must look at new designs and how they are put together as well as energy efficiency. We also have to make case for smaller malls,” Cox said.

    Speaking from a developer’s perspective, the Development Manager, Nigeria, RMB Westport, Mr. Wallace Wilkins, observed that there remains huge growth prospect in the sector, but the challenges to be addressed included infrastructure; supply chain; finance, especially repatriation of proceeds; and bringing the right retailers on board.

    But in spite of this growth, the Director, Actis, an investment company, Mrs. Funke Okubadejo, however, said the penetration of the retail segment had been very low. She noted that stakeholders in the industry must educate people on what retail is, so as to change their perspective on retail space, considering that other countries see retail as a huge investment for job creation.

    The one-day event focused on the emerging trends in the intersection of the dynamic interplay of developers, retailers and financers in running their operations in a symbiotic model that results in a win-win situation for every party.

  • Why we prefer some malls to others, by youths

    Shopping malls have become the most visited places by persons of various ages.

    They have various stores, such as Shoprite, Silverbird Cinema, KFC, Lounge, and Mr Price.

    People visit malls to either window-shop, lounge, see movies, party, eat and carry out other activities.

    The Nation Shopping spoke with some youths on their favourite store and their reasons.

    Roseline Aghian, a frequent shopper, said: “Mr Price is actually my favourite spot in the mall because I love shopping cloths and fashion and I think their prices there are moderate so I come here a lot. Also, the discount I enjoy from them when they slash their prices almost by half encourages me to come here and their cloths are of quality.  I can say that it is one place I love coming to.”

    Mrs. Joann Peters, who was visiting the mall for the first time, said his favourite spot is Shoprite because of the things they have and their prices which is affordable.

    “I love the mall in all because the other stores around have good things and the neatness of the mall,” he said.

    Another young man, who identified himself as MC Genesis, said: “I prefer KFC because of their ice cream and other products which are packaged maturely. Also, the discounts I get when I buy in large quantities not only here but in their other branches has encouraged me to patronise them more often.”

    An American, J. R. Teddies, said: “Shoprite is my favourite store in the mall because it is massive.”

    An anonymous person said: “I have no favourite store in the mall but I just enjoy shopping most especially with my kids.”

    Yet another youth, who identified himself as Jersey Lawrence, said: “I love coming to the Spar, KFC and I watch movies most times. I have no favourite spot in the mall as I basically enjoy shopping in the mall for anything. To me, it’s just a regular trip to the mall.”

    They also told The Nation Shopping about their views on the services of their favourite stores in the malls and made some suggestions.

    Aghain said she would like Mr Price to increase its closing time because some people who come between 8 and 8.30pm have to rush to leave the store.

    “Also, some of their cloths are mostly for teens, they should try and get more cloths for the working class because most of the cloths available are crop tops and high waist,” she said.

    “The customer service of Shoprite is poor and I would like if they can improve on it,” said Teddies. MC Genesis  said KFC’s services are very okay and of standard but I would like them to increase the number of their workers because in places such as this people come in their large number, more people should be hired to attend to people.

    Jersey Lawrence said: “For the Spar, they take time to attend to a customer and they should improve on that. The mall, on the other hand, should employ more workers,”

    Miss Ella Okechukwu Chioma said: “Everything about the mall is okay but I still believe they need to improve in all areas.”

    For Mrs Modupe Lawrence, Shoprite’s services are okay; the mall is also okay but when you want to compare it to international standards, I would rate them 40 per cent because in developed countries, people don’t pay for parking space, she said.

    “They also don’t have varieties of things inside where you can do a lot of things such as shopping for all categories of people; they don’t have much of it as you can just lay your hand on few things.

    ‘’I feel bad about being short-changed by Shoprite but at the same time, I look at the things they need to put together, such as electricity, workers and all that. The fact that the genuineness of what you are buying is guaranteed as you are sure that what you are getting here is not fake or adulterated is a reason I patronise them.”

  • Wired, wireless convergence, network management in malls, offices

    Technicians, information technology (IT) management personnel are working under great pressure. They have to work in big shopping malls, telecoms rooms chock-full of devices, expending considerable effort to construct and maintain IT infrastructure platforms. LUCAS AJANAKU reports on innovative solutions that could reduce these burdens.

    Shopping malls have become part of the reality of fast developing cities across the country. Similarly, offices have emerged from small to large depending on the scale of services being provided. These have placed burden on IT manager. They have little time to pay attention to new technologies and trends in the industry. As a result, they cannot provide suggestions for service innovations for technological decision-makers.

    The best way to simplify network Operation and Maintenance (O&M) management is to reduce the numbers of network types and network devices. In this way, device configuration, fault troubleshooting, and network maintenance can be substantially lessened. Then how can we unify network O&M management methods and reduce the number of network devices without changing the scale of existing campus networks? What are the critical technical difficulties?

    According to experts, there are multiple mature technologies for simplifying network O&M management in both wired and wireless networks. For example, stacking technology can be used in wired networks to virtualise multiple switches into one logical switch; in wireless networks, devices can work in master/backup mode, and a wireless AC can manage a large number of wireless APs in a centralised manner. If wired and wireless networks can be deeply converged, network O&M management will be significantly simplified.

    However, wired and wireless traffic is forwarded in a completely decentralised manner. As a result, the two networks adopt two independent mechanisms for device and service configurations, network management, fault troubleshooting, user authentication, and policy management. Although we can use stacking technology and AC cards to make network devices look like only one device and use the same authentication system to permit users to access wired and wireless networks through the same account, the problem of decentralised forwarding of wired and wireless traffic cannot be fundamentally solved.

    But experts say centralised forwarding of wired and wireless traffic simplifies network management

    If wired networks are capable of wireless network control, no independent wireless AC device or AC card will be needed, because identification, forwarding, and control of wired and wireless packets can be integrated on one network device. Such convergence at the Network Element (NE) level eliminates separate control and forwarding of wired and wireless traffic, unifies management of devices, services, and configurations, and shields management differences for IT personnel. In this manner, we can integrate the advantages of both wired and wireless networks.

    Wired and wireless networks take advantage of each other’s management capabilities, reducing the number of management devices

    Wired networks can take advantage of the plug-and-play and zero-configuration capabilities of wireless networks to reduce the workload of configuring large numbers of access switches. At the same time, wireless networks can take advantage of the stacking and virtualisation capabilities of wired networks. In this way, all wired and wireless access and core devices can be virtualised into one device for management. By introducing Software-Defined Networking (SDN) ideas, we can enable network devices to automatically coordinate command translation, message synchronisation, and policy delivery. IT management personnel only need to manage one device, simplifying device, service, and user management.

    Chief Executive Officer, SO4 Engineering Limited, Soji Oluwasuyi said unified wired and wireless user authentication and policy management simplifies user management.

    According to him, IT management personnel can unify wired and wireless user authentication regardless of the role of the user desiring access. They can uniformly set all service management and security control policies such as service priority, bandwidth, and access rights. Network devices can judge these policies automatically and intelligently. Devices closest to the user side can automatically execute rights-related policies to enhance access security. Service experience-related policies such as bandwidth and priorities take effect on the link through which traffic is transmitted. As a result, all wired and wireless services can be configured with one mouse-click, and IT management personnel can be further relieved of heavy manual work.

    According to him, the Huawei Agile Campus Network Solution (ACNS) featuring wired and wireless convergence greatly reduces the burden of IT management personnel.

    As long as user traffic on wired and wireless networks can be forwarded in a centralised manner, multiple wired and wireless convergence solutions at device, service, and user levels can be used to simplify network O&M management.  To address this problem, Huawei introduced its ACNS, which puts the SDN-based idea of “wired and wireless convergence” into effect, and translates traffic forwarding into a software process. This idea implements converged forwarding of wired and wireless traffic and consistent user and management experiences on both wired and wireless networks.

    Huawei remains committed to freeing IT management personnel from complex technical terms and tedious manual configurations of massive numbers of network devices. With Huawei’s help, IT management personnel can use their knowledge and experience to the fullest and focus on suggesting IT planning and construction ideas for valuable enterprise service development and innovation.

  • Items are sold more expensive in malls

    Ever wonder why sales at the malls by the tenants tend to be more expensive when compared to the open market? These tenants say some things are responsible. There is a common believe that malls are arena meant only for the wealthy class. To Some people, a mall is an expensive place to go shopping as prices of items could be two times that of its open market counterpart. Some mall tenants spoke on the reason for this. Mr. Muyiwa Adebayo owns a footwear store in a mall, he said: “One of the reasons why what we sell here in the mall is higher than other places is because of the rent we pay to the mall owners and management. The rent here is very high, and services we render is second to none.” He said

    Adding that the quality of products at the mall is guaranteed, he said “we can give you assurance that the things you get here is of good quality”.

    Mrs. Titi Elegbede of Wrangler store also gave a similar reason as to why items at the mall are quite expensive compared to other places. “The only reason why we sell higher is because of the rent we pay.  It’s very expensive to get a shop here and the only way we can recover our money and make profit is to increase the prices of our wares.” Elegbede said not all items at the mall are expensive. “Some of our items are cheaper but the expensive out number them”.

    At Health plus, Samson Ikuopami said the rent and importation rate is what is responsible for expensive items at the mall. He said one advantage of patronizing the mall is being able to trace stores where faulty items are bought for refund. “Faulty items can easily be returned to the store where they are purchased from”.

    At Accessories 2 die 4, an accessories store, reason items are more expensive in malls is because our customers have to pay for services rendered apart from paying for items bought.

  • Malls get set for Children’s Day

    Malls get set for Children’s Day

    To retailers and wholesalers, Children’s Day is a special day. This is because they record impressive turnover as parents, schools, government officials, orphanages, religious bodies and others turn shopping malls to Mecca, TONIA ‘DIYAN reports.

    Children are often described as the leaders of tommorow. They are the future of any country. Therefore, if they are given proper foundation and development opportunities, they are capable of turning the adversity of the country into prosperity.

    On the other hand,  any nation that fails to accord good education to the children prepares to ruin all the expectations of any nation, an economist Prof Pat Utomi said during the celebration of Children’s Day a few years ago.

    United States 35th President, John Kennedy,  also said: “Children are the world’s most valuable resource and its best hope for the future.” It, therefore, goes without saying that the true essence of the celebration is to understand the significance of childhood.

    Next week is Children’s Day. As usual, children will not go to school that day. It will be time again for them to enjoy special fun-filled activities, including parties and games. Special celebrations will be held for them at eateries while the various amusement parks are also expected to play host to them.

    This day serves as a reminder to parents to renew their commitment to the welfare of children and teach them to live exemplary lives.

    Stores organise funfairs for kids while their parents do the shopping. They have fun times with the bouncy castle, train ride, merry-go-round and gleefully watch their favourite mascots entertain them. Seeing children as the best marketing tools, retailers rent temporary equipment that would enhance their fun during shopping.

    The celebration is certified by the United Nations (UN) to remind everyone about children’s right to enjoy their childhood without any encumberances, most importantly, to become educated adults in future.

    Fun-filled educative and cultural programmes are organised for kids by the government and non-governmental organisations (NGOs) in schools. Special television programmes for children are broadcast, as well as all kinds of fun activities to make the day memorable.

    Parents seem to be more concerned about their children’s wellbeing; therefore, they are eager and look forward to buying choice gifts that will keep lasting memories in the children. Some offer their children cartoon characters and greeting cards to express their love. For kids, it is a time to make requests and get it granted almost immediately.

    Mrs Folashade Akinremi of The Guest House, Ikoyi, Lagos said: “It is important to make every May 27 special for children. After all, children will not only remember parents for the material things they provide, but for the feeling of being cherished and how they are taught to share love among their mates.

    “Children are like precious gems, parents should understand the significance of the only day set aside for them apart from their birthdays and make them happy,” said Mrs Mute Olori of the African Independent Television (AIT).

    Managing Director,  Delightsome Gifts Concepts, Mrs Modupe Shopeju,  said children are adorable; they are divine gifts that parents get from the almighty. Their eyes are full of innocence. They smile when they receive love and admiration, they cry when it is their first day at school away from their parents, they giggle when they mingle with their peers, and they signify nothing but pure and faithful love. They truly symbolise God, therefore, let us as parents and mothers play our roles 100 per cent.

    “Childhood memories are the sweetest of all, they can be savoured for a lifetime. Children’s Day celebration is fun for the little ones but it is important for the parents too. Every parent must understand the importance of Children’s Day. Parents should be well aware about the little desires of their angels, said Mrs Nnenna Azuka, Marketing Manager, UAC Restaurants.

  • Ambode mobbed at malls

    Ambode mobbed at malls

    The All progressive Congress (APC) Lagos governorship candidate Mr Akinwunmi Ambode was practically mobbed by Lagosians at the weekend when he visited the Ikeja Shopping mall and Shoprite at Lekki.

    It was during the occasion valentine. Ambode, many said,  has endeared himself to the heart of the people of Lagos as an embodiment of hope for a better Lagos.

    The two shopping malls full to the brim by fun seekers came to a standstill with the shout of Ambo!, Change!, Ambode is our man!.

    Ambode has been enjoying show of love and reception from the people of Lagos at functions, which include road-shows, grassroots town hall meetings, and campaign rallies.

    He promised to continue providing conducive environment for self actualisation and prosperity. The ecstatic crowd promised him their votes come April 11.

  • Why tenants are quitting malls

    Why tenants are quitting malls

    About a decade ago when shopping malls made their debut in the country, retailers jostled for the few spaces available. Today, the story has changed as retailers are quitting the malls. Could this have been due to low patronage? Could it have been as a result of stratospheric rise in rent or an attempt to reposition the malls?  TONIA ‘DIYAN asks.

    A few years ago, the former Chief Executive Officer, Broll Nigeria, Mrs Erejuwa Gbadebo, said any start-up eyeing the malls would be on a wild geese chase because raising the funds to do that would be herculean.

    She said: “A young entrepreneur, who wants to start up a business inside any of the malls, may find raising the start-up money difficult. Only big retailers can become tenants in the malls because they can afford the high rent and meet management requirements.”

    Like a prophetess, what she said years ago is playing out as even top brands with the financial war chest are leaving the malls due to some of the challenges she identified.

    The Nation Shopping found out that most of the tenants in these stores no longer generate reasonable rate of returns on such investment and are forced to quit those cozy buildings.

    It is however not a general phenomenon as some tenants continue to report good returns on their investment as the lease renewal factor in some malls say it all.

    Mall owners argue that there is still high demand for retail space as human traffic remains extremely high and sales grow exponentially. They say more and more brands want to move into the few available malls on a daily basis.  According to them, 99 per cent of tenants have renewed their lease agreement in the malls.

    They however argue that the reason for the trend might be to reposition the malls for continuous patronage. They said brands that have left the malls are those that did not meet the needs of the customer on price, variety, type and size of merchandise.

    Ikeja City Mall Marketing Manager, Eniola Ositelu, said most of the tenants that have left the mall used the wrong business model and were not prepared to change the model to conform to the mall’s policy. Thus, they became casualties because their values to the mall with their low sales became unsatisfactory.

    He said: “There have been three other casualties recently and these have been replaced with tenants that are performing extremely well. Tenants such as TM Lewin, V Shop and Melting Moments are doing wonderfully well, meeting all the requirements their clients,” he said.

    The Nation Shopping also found out that the exit of some South African retailers from some malls is solely based on the decision of the management of these malls to restructure the tenant mix and ensure the mall delivers a complete shopping experience to shoppers. Supply chain is said to have become an issue for some foreign retailers, particularly the South African retailers. Mall managements say they have discussed in detail with the retailers but most of them cannot change their business model to suit the Nigerian customer.

    According to mall experts, local tenants also face the same supply chain issues but overcome them with proper planning and proper stock picking.

    Though, there are a few tenants that underperform relating to issues of stock, display, merchandising, size ranges, varieties and so on, others have the best performances in their groups in some instances because they put the right effort and brain work into running their businesses.

    Ositelu told The Nation Shopping that there are strong brands that still trade in the mall. Brands such as Silverbird Cinemas, Mr Price, Da Viva, Mango (clothing outfits) amongst others are still in the mall. He explained that top brands such as  Lacoste, Audacious and Max have recently moved in and have started trading. His words: “Woolworths was the only store to arbitrarily close and that space has been re-let to two international brand clothing and fashion houses (Max and Red Tag)”

    He added that the decision for Truworths and Identity to quit the mall was taken by its management and the space has been re-let to Woodin, a new outfit. “75 per cent of Truworths space has been re-let to a brand that will be announced in due course when the lease is finalized,” he said.

    He said the mall anticipates that the balance of the space will be gone shortly as offers are out to 4 other international brand tenants adding that the mall still attracts the most foot traffic than any other mall in Lagos.

    “At Ikeja City Mall, tenants continue to trade and do well and will continue to do so.  The fact that all tenants who are due for lease renewal this year want to renew their leases is encouraging,” he said.

    Experts have said Nigerian businesses and consumers can and will benefit in due course as the point of the spear which will drive Nigerian retail business into the future is a number of new malls that are under construction or are being planned. Once Nigerians stop going to London to shop for goods and services they could conveniently get in Nigeria, then the first hurdle has been overcome. Devolving regulation on imports would be very good for the retail business. For example, if costs are brought down on electricity by having a steady supply, this will lead to substantial savings for retailers, thus will benefit the consumer.

    Ositelu concluded by saying: “There is a lot more positive news than negative and the smart retailers are taking advantage of this first wave, because they know they will grow retail empires in the years to come.”

    Advising retailers and brand owners, Gbadebo, said: “Owners of these malls look for successful merchants who are ready to convince them that the new store they are about to house has reasonable chance of success and will help the tenant mix.

    “If, as a retailer, you are considering a mall for a first-store venture, your financial backing and merchandising experience must be proven. Some small merchants with good business records and proven understanding of the market have a good chance of being considered by a mall developer. So, if a particular merchant has a good reputation in retailing, it might make a strong case for acceptance into his/her choice mall.”

    Mall experts say before a retailer moves into a mall, it is necessary to ask important questions such as: ‘Are the mall’s shoppers my prospective customers? Would the mall offer the best sales volume potential for my kind of products? Can I produce the appeal that will make customers come to my store? Can I deal with the competition of other stores within the mall? How much space do I need to handle the sales volume I expect to have? Where do I need the space (location within the mal)l?

    South African Norman Sander who works with Broll Nigeria said, for retailers who are prepared to develop a country-specific model and invest in research to support a supply chain, they should get the right stock, provide the best price and render the best services, rather than quit doing business in the country because there’s a bright future here.

    Sander said he has noticed a massive gap in the market for home ware retailers and he advises them to come and do business in Nigeria.

    Having said all these, some merchants say they find full satisfaction as mall tenants and do not intend to quit.  For Moradeke, owner of an accessory store, the drive is the crowd that throngs these malls daily. “Accessory stores make huge sales, especially at weekends and people visit the mall more on weekends; so, I make double the amount I make during the week. Another benefit is the location of these malls. They are very accessible,” she said

    And for Temitope, a cosmetics retailer, the mall is an interactive business-friendly environment. “Sales are better now that I am in a mall,” she said.

     

  • ‘Malls are sensitive to rising security concerns’

    ‘Malls are sensitive to rising security concerns’

    In 2011,when The Nation Shopping met with the quintessential Architect and Developer,‘Tokunbo Omisore, he shared with us the plans to restructure and extend the Old UTC Departmental Stores into Cocoa Mall in Dugbe, Ibadan and also to develop the Apapa Mall  Park on Lane in Lagos. Today,  these promises have been kept,  as shopping is in full gear at these malls. We met him again recently at the opening of Shoprite Store in Apapa  Mall and he shared with us his next lines of adding values to the Retail Growth in the Nigerian markets, among other related issues.

    Do you design,  build,  equip and maintain these malls. If not,  to what level of involvement does your company get?

    The Malls are designed, financed and constructed on a management contracting basis by my company – Top Services Limited

    The issue that is raising the greatest concerns in Nigeria right now is security. What measures are being put in place in the construction of these malls to ensure that lives and properties of tenants and shoppers are protected?

     

    Our Neighbourhood Mall developments are sensitive to the rising security concerns which is not peculiar to Nigeria only. It is a global concern.

    Our Malls are provided with detective security devices and guards that are frequently trained and informed on how best to save lives and properties at the Malls.

     

    If the prediction of the United Nations about Lagos becoming the third largest  city by 2015 is any thing to go by, with about 25 million population, should we be expecting to have a mega mall like the London Westfield,  being replicated in the country soon?

     

    As l do often express when given the opportunity; for the African Continent to grow positively we do need to take into consideration the economic challenges and the cultural values of our people and cities. Our traditional shopping ways(i.e the Nigerian communities), encourages different categories of retailers’ outlets/markets to shoppers, i.e from a neighborhood market to the larger ones.

    Unfortunately most of our Malls’ development are not supportive to the growth of the upcoming local retailers – by this I mean sustainability is in doubt as most do not take into consideration the economic challenges of the people nor the cost of energy challenge that is yet to be affordable.

    Adopting the London Westfield Mall in my opinion is like giving a young man a Rolls Royce car/vehicle instead of an affordable one that will help to develop him to being able to afford the former at a later stage of growth. A philosophy that defines the difference between ability to buy and one that can afford.

     

    Dovetailing your comments in 2011 when you became the president of the Africa Union of Architects,  you mentioned that the World Congress of Architects will hold this year in Durban,  South Africa.  What is the outcome of the Congress as regards the development of Africa?

     

    I believe the outcome is viewed differently by the regions of the World body of Architects. The ýoutcome of all said at the Architects World Congress will have a positive impact across the African Continent especially the forty- member countries of the Africa Union of Architects .

    As a representative of the African Architects we are hopeful that all said will convince decision makers of the need for Sustainable & Responsible Architecture in Africa. Africa has a history of going beyond what it can afford, but it must now adopt affordable development.

    At a global level, the outcome of the Architects’ World Congress, common to all, will be committed to “Environmental Imperatives for 2050”.

    Of great concern to the African Continent is to make cities and human settlements inclusively safe, resilient and sustainable.

     

    You also previously talked about  rebranding African architecture as plans to help in customising Africa’s capital cities  with architectural designs that are Afro-centric. How far have you gone on this sir?

     

    In the last three years, the union has made tremendous progress through few of our events in Cote d’Ivoire, Gabon, Morocco, Rwanda, Angola to mention a few.

    To further define this role the AUA became a Lead Partner of the UN- Habitat World Urban Campaign to ensure we provide better cities and better lives. As African city changers, we need to apply African solution to our needs and challenges, support the reduction of poverty alleviation and create opportunities to make our communities sustainable.

    The malls have brought new lease of life to their neighbourhoods and society.  Aside Lagos and Ibadan,which other part of the country are you looking at next? And how soon?

    Our next Mall development will come up in Akure, Ondo State on or before end of September 2015.

     

    For a man who derives so much pleasure in the business of malls,  our readers will want to know if you go shopping yourself?  Which of the malls  you conveniently  visit and what the favourite items on your shopping list are?

     

    I hardly go shopping but l do enjoy visiting Malls in every city of the World, studying the different design approaches to same. My interest in our growing local Malls is more of case studies, i.e adaptability and the growth support it provides the local retailers.

  • Malls are big social network avenue

    Malls are big social network avenue

    Beyond being a business complex, shopping malls are gradually becoming an arena for social networking, especially among the upwardly mobile and fun seeking youths. TONIA ‘DIYAN writes.

    The potentials and opportunities in the Nigerian business space have continued to attract investments from all climes. With this has come modernization of the business arena, as businesses are now gradually being conducted in very conducive atmosphere. One venue that has attracted Nigerians, especially the youth, is the numerous shopping malls that now litter the country’s market place. From the Palms Shopping Mall, in Lagos, to Kwara Mall, Illorin, Nigerians have continued to throng these edifices. However, it has become clear that not every visitor to these malls are shoppers. A recent survey by The Nation has revealed that the malls have become a convenient meeting point for a growing number of Nigerians, who have made the shopping malls a place to tidy up their business dealings.

    Thomas, a middle aged Nigerian, though has lived abroad for over a decade, he recalled with nostalgic feelings, the state of the few existent malls in the country in his formative years.

    “When shopping malls newly came into existence in this country, they could be likened to stand alone and high street stores,” he said.  Going by his recap of the years back, Thomas’ memory obviously didn’t fail him. That was the era when malls or stores like Leventis, UTC and Kingsway, held the Nigerian market in awe wonder.

    Though back then a shopping mall in the real sense of it may never have been established, a pseudo mall existed in select areas of Lagos, with the few modern stores positioned side-by-side to form a fairly long chain of stores. The stores were mainly outlets for selling groceries and other household items, with buyers doing their purchases and walking away. But now, the situation has changed.

    Today’s shopping malls are built with provision for socialising or bringing people together to benefit from themselves and the stores. Besides, the ultra modern shopping facilities are built with unique and distinctive features fitted with innovative benefits to shoppers, especially the youth. The presence of top international brands, who take up spaces at such malls, has also contributed to the modernization of the mall concept.

    These, and more, has made Thomas come to terms with the fact that malls are not only for shopping, but that it extends to being a place of fun. By extension, this has made it possible for youths, especially, to have a meeting point, as it now provides them an avenue for social networking where this category of Nigerians share transforming experiences among themselves, meet with their pairs for interactions and also exchange business ideas in a relaxed environment.

    Apart from the new vista opened up by the malls, such complex can now pass for a tourist attraction centre, boosting the country’s revenue generation, especially on the side of value added tax (VAT).

    For instance, on a visit to a popular Lagos mall, Bola Ogunlusi, an Ibadan based entrepreneur, was able to establish a contact that eventually opened her business up to bigger market opportunities. Recalling how it all started, Ogunlusi said after her shopping spree at the mall, she opted to have a drink in one of the relaxation spots within the complex. And there, from a casual interaction with another visitor, she got a break into a niche market for her batik attire. “Since that my encounter at the mall, it has been good business for me all the way,” she told this reporter.

     

    Attraction

    According to a centre manger in a Lagos mall, Feyi Shoyinka, the attraction to shopping in the mall is the low pricing regime embraced by retail outlets in the mall. “Pricing is the main attraction here and I think the mall’s retailers or tenants have keyed into this,” he said, adding that retailers, especially the foreign ones, know the market and the right competitive price- a factor that has ensured their continued survival in the market place.

    He revealed that shopping malls, owing to the volume of business transactions that go on there, has advantage over stand alone and high street stores; hence, the improved revenue enjoyed by the space owners in the malls. “People do not only come to do one thing, but they come to do a variety of things at shopping malls. They come on shopping trips and stay all day with their families having meals, seeing movies, window shopping, doing cloth shopping or using the mall’s Wi-Fi to do online shopping,” he explained.

    Haven said all these, findings has it that, the primary motive of these malls is to make huge profit amid all that they have to offer. Their management therefore with the consciousness that the consumer’s main spend driver is price, encourage tenant to be use to constant price slash and promotional package which is capable of keeping old customers and attracting new ones.

    From observations, tenants at these malls are doing pretty well; they store merchandise of varieties and mix of customers wants. If a retailer stores insufficient merchandise, he/she won’t meet up to the mall standard. The Nation Shopping learnt that demographic researches are carried out before malls are opened.

     

    Improving Customer experience

    Retail shopping is about convenience, comfort, security and providing a one top experience for shoppers. Malls offer unique experiences in the sense that they are more like community centers with a large variety of business merchandise. From time to time, the mall looks at what it can improve on, what it should change and add. For instance, at some point, the management of the malls conducted a survey to sample the expectations of its customers. The survey covered areas like the type of goods expected to be seen in the malls, and their choice of products. Everything is chosen according to the merchandise requirement of the market place.

    Besides, the introduction of the cashless policy regime led the mall managers to install ATMs, just as the mall also keyed into technology by providing point of sale (PoS) machines to encourage the policy. However, mall operators say five years from this time, they hope to see the regular London shopper staying and doing all their shopping in Nigeria. They promise to encourage such people to stay here and buy all that they need. Knowing that once the people know they can get the same quality stuffs here, Nigerians would stop going overseas to shop. Operators say they see the growing middle class holding a royalty towards shopping malls where they could come for their shopping most of the time and get whatever they want.

    According to operators, the malls have grown about 70 percent since their existence, which is a good indication. People stay longer in the mall. More people visit the mall on a daily basis, a lot more cars come in too. Retailers are doing better depending on how much marketing and advertising they can do for themselves.

    With the big population in Nigeria, there are lots of retail businesses that can still be boosted in terms of shopping malls. Because there are lots of people out there earning stable incomes and they want to go shopping.