{"id":79839,"date":"2016-10-14T08:53:25","date_gmt":"2016-10-14T06:53:25","guid":{"rendered":"http:\/\/www.myza.co.za\/malls-go-high-tech-as-retail-developers-up-the-ante\/"},"modified":"2016-10-14T08:53:25","modified_gmt":"2016-10-14T06:53:25","slug":"malls-go-high-tech-as-retail-developers-up-the-ante","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/malls-go-high-tech-as-retail-developers-up-the-ante\/","title":{"rendered":"Malls go high-tech as retail developers up the ante"},"content":{"rendered":"

Malls go high-tech as retail developers up the ante<\/a>: <\/p>\n

\"Dainfern-Square-photo-by-Wieland_Gleich\"<\/p>\n

HIGH-TECH FUTURE: While the days of mega mall development in SA are limited, high-tech mixed-use destination retail developments such as Johannesburg\u2019s acclaimed Dainfern Square are in demand. Photo: Wieland Gleich<\/p>\n<\/div>\n

IN the fiercely competitive South African retail sector, mall developers are upping the ante to include a high-tech, interactive shopping environment in a bid to lure shoppers to their centres for longer.<\/p>\n

This is one of the strongest indications that technology \u2013 specifically Internet access \u2013 is in fact facilitating bricks and mortar retail development, rather than hampering it through the rise of online shopping platforms, according to leading national developers Abacus Asset Management.<\/p>\n

In addition to acclaim for several malls in its portfolio*, Abacus recently scooped the top honours for its mixed-use retail development in Johannesburg, Dainfern Square, at the SA Council of Shopping Centres\u2019 (SACSC) annual Retail Design and Development Awards**.<\/p>\n

The company says that although the days of building new mega malls are numbered, there is a rise in demand for \u201cmixed-use destination retail developments\u201d, ranging between 15 000m\u00b2 and 25 000m\u00b2, which cater to high living standards measure (LSM) shoppers.<\/p>\n

DIGITAL DRIVE:<\/strong>
With online shopping in South Africa accounting for just 1% of total retail spend, landlords are incorporating a greater digital experience than ever before into new retail developments, according to Abacus managing director Gavin Blows.<\/p>\n

\u201cAt first free Wi-Fi was the limit to which developers were willing to spend on digital platforms in their centres, but now multiple platforms are emerging in new developments,\u201d said Blows. This included high-tech features such as a central digital management system which governed a mall\u2019s website, mobile app, Wi-Fi offering and linked to Bluetooth location beacons throughout the centre, he said.<\/p>\n

\u201cThis allows the mall\u2019s management and marketing team to have a coordinated, meaningful engagement with their shoppers,\u201d he said. \u201cThe enhanced experience also has a positive effect on shoppers\u2019 dwell times, which in turn increases turnover for the mall.\u201d<\/p>\n

CASE STUDY:<\/strong>
To this end, the company introduced a full fibre optic backbone and unique Bluetooth beacon location technology to Baywest Mall when it opened in June 2015. This has enabled shoppers to interact directly with brands and stores at the mall via a multi-platform Baywest Mall smartphone application, said Blows.<\/p>\n

The move was made possible thanks to a partnership between Abacus and Skybird Technologies, which is tasked with driving the \u201cdigital vision\u201d of new Abacus developments.<\/p>\n

\u201cIn addition, we have entered into a national partnership with Vodacom, which will light the fibre and provide FTTB [fibre to the business] services for tenants in our new developments,\u201d said Blows.<\/p>\n

More and more landlords were becoming savvy by implementing Bluetooth technology and Wi-Fi capabilities into developments, he said.<\/p>\n

\u201cThe digital platform is the new tenant in the mall. We don\u2019t expect online shopping to impact massively on retail developments. Online shopping will be used more as a reference point, with the majority of shoppers preferring to enter the physical retail environment.\u201d<\/p>\n

THE FUTURE:<\/strong>
The future for retail development in South Africa lies in high-quality offerings in high LSM areas \u2013 malls just larger than convenience centres, ranging from 15 000m\u00b2 to 25 000m\u00b2 in size \u2013 said Blows. Such developments were not just retail-orientated, but also offered health and lifestyle components, mixed with high-end office space, he said.<\/p>\n

\u201cThe tenant uptake is good because the trading densities are high. These are niche centres which are trading very well at the moment.\u201d<\/p>\n

Trends show a rise in demand for centres offering a mix of office, health and lifestyle facilities, especially in Johannesburg and Cape Town where traffic congestion meant residents wanted to work, exercise, shop and eat out \u2013 all within easy reach, said Blows.<\/p>\n

Market research conducted by Abacus ahead of the development of Dainfern showed that the area \u2013 Fourways \u2013 was one of the highest growth areas in the country. The company is opening its next high-end mixed use retail development in October in the form of The Sanctuary in Somerset West \u2013 not far from Abacus\u2019s other celebrated boutique centre, Waterstone Village.<\/p>\n

DAYS NUMBERED FOR MEGA MALLS:<\/strong>
Jaco Odendaal \u2013 one of the country\u2019s leading development visionaries and Abacus chairman \u2013 said there were very few opportunities left for the construction of new mega malls unless we accept a high level of cannibalism. The company\u2019s last mega mall was the 90 000m\u00b2 Baywest Mall.<\/p>\n

\u201cThere are very few opportunities left to develop large malls. The market has reached maturity in that respect. You\u2019ll see a lot of expansion on large malls, and a redevelopment of their offerings, but in terms of demographics, they are basically fixed for the time being,\u201d he said.<\/p>\n

Despite this, super regional malls remained the best performing assets over the long term, he said.<\/p>\n

The company expected the current economic climate to gradually improve, he said.<\/p>\n

\u201cThe property sector is a long-term investment and we believe that interest rates have reached their peak. The economy has had slow or no growth for an extended period, and in time retail spending will once again increase as the economy expands and households have more disposable income,\u201d Odendaal said.<\/p>\n

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