ON THE COVER NEW MALL RISING Up-and-Coming Attractions The Klang Valley Is home to some of the largest shopping malls In the world and Is a shopper's haven. Malaysia Retailertak.es a closer look at what some of the newly opened malls have to offer and also how the stalwart malls are coping with new competition. By Tan Thiam Hock & Samuel Ngeow t has been said that shopping is Malaysians' favourite pastime. Newly Completed Retail Malls In 2014 IJudging from the bustling crowds at the popular malls here and the sheer numbers and sizes of the malls in the country (some of NAME LOCATION COMPLETION NLA (sqft) the largest in the world), the phrase does bear some truth. From the Main Place USJ 21 USJ, Subang Jaya 1Q2014 237,000 most luxurious designer labels such as Louis Vuitton and Chanel to the more affordable local brands like Padini and F.O.S, there's Encorp Strand Mall Kota Damansara 1Q2014 308,800 something for everyone when they are shopping here. With the Jaya Shopping Centre Sec 14, Petaling Jaya 1Q2014 300,000 impending entries of many new malls and the ongoing expansion Nu Sentral KL Sentral 2Q 2014 651,800 of retail spaces for the existing ones, the locals are spoilt for choice D'Puize Cyberjaya 3Q 2014 240,000 when it comes to their preferred weekend activity. Quill City Mall Jalan Sultan Ismail 4Q 2014 770,000 OVERVIEW OF THE RETAIL INDUSTRY IOI City Mall Putrajaya 4Q 2014 1,350,000 Tan Sri Datuk Eddy Chen Lok Loi, Source: WTWResearch President of Malaysia Shopping Malls Retail Developments Scheduled for Completion in 2015 Association (PPK Malaysia) says, "Generally, the mall industry is doing NAME NLA (sqft) well, given the rising population and Sunway Putra Mall 620,000 thelarger consumer base. In fact, most of the malls, especially those well- Capsquare Mall (former PIKOM ICT Mall) 220,000 located ones, have seen an increase in The Atria Shopping Mall 450,000 footfall. Today, many existing malls Sunway Velocity Lifestyle Mall 800,000 are upgrading themselves to keep Sunway Pyramid Phase 3 70,000 up with the changes in consumer tastes and preferences. So, the malls Total 2,160,000 are very dynamic, they don't just Source : WTW Research Tan Sri Datuk Eddy Chen build the mal1 get me tenants in> ^ Foo Gee Jen, Managing Director of property consultant CH Williams stop. In fact, they are continuously Talhar & Wong Sdn Bhd, states that there are great uncertainties on rejuvenating and reinventing themselves. If you look at Sunway the country's current economic outlook. Despite the decrease in Pyramid for instance, they are continuingly looking for ways to petrol prices since December 2014, consumers are still concerned upgrade and to improve their shoppers' comfort and convenience." of rising living costs, with the upcoming implementation of GST in April 2015. Based on his statements, the retail sector will remain According to Tan Sri Datuk Eddy, malls in good locations continue stable but the market is expected to see fewer activities in the 2015. to achieve very high occupancy and many of them are even 100% tenanted, while some of them may well have a waiting list of people Foo also points out that the retail malls located within Kuala Lumpur waiting to get in. "I'm quite optimistic regarding malls, but having continued to outperform those located outside Kuala Lumpur in said that, there are some challenges for a number of the smaller 2014, with the former recording a vacancy rate of 12.0% compared localised (neighbourhood) malls because they don't have the to the latter's 24.5%. "The retail sector is expected to stay quiet but sufficient size and mix to make them fully lifestyle malls to cater to buoyant in 2015, with new retail mall owners likely to experience a bigger crowd. So, the challenges are more for localised malls and increased difficulties in maintaining occupancy rates, in view of the some of them may well be facing financial issues," he reveals. likely completion of more malls in 2015," he says. 42 MALAYSIA RETAILER Vol 3 No 1 New Kids on the Block The total retail space in Klang Valley has been steadily increasing throughout the years. Thanks to the opening of 101 City Mall, Quill City Mall, D'PuIze Shopping Centre (all three in late 2014) and other new shopping malls, it has expanded more immensely. In order to tap into this bustling retail industry, developers are launching a flurry of new malls across the region. At least 10 new shopping malls are slated for completion in Klang Valley alone this year. So, the question is, how will the new malls fare and will they be able to penetrate the barriers of entries set by the existing malls? By Samuel Ngeow IOI City Mall: Serving South Klang Valley It started off as a vision to build IOI Resort the mall's designs are based on a palm tree. City, a resort-style development away "If you were to observe carefully, you will from the city centre. Following the high notice that the roof, ceiling and building demand for the holiday type of hotel stays features are shaped similarly to a palm tree due to the development of Cyberjaya and leaf," he points out. Putrajaya, Palm Garden Hotel and Marriott Hotel was built. Witii the huge commercial Targeting the South success of IOI Resort City, the planning IOI City Mall is at the centre of several huge and construction for IOI City Mall began catchment areas. Starting from the south in 2007. However, because of the subprime are Putrajaya and Cyberjaya which extend mortgage crisis in 2008, the project was all the way to Seremban. "We noticed delayed for several years before it was that there are quite a number of shoppers finally opened to the public on November who come from as far as Nilai, Bangi and 2014. Since then, it has attracted droves Seremban. Since our mall is easily accessible of visitors, especially from the southern to them via the SKVE highway, they don't catchment areas. From a nine-hole golf mind the long journey," says Chong. course to a 1.5 million sqft shopping mall, IOI City Mall has truly become the largest To the west is Puchong, a fairly large land and most exciting lifestyle hub in Southern area with more than a quarter million Klang Valley. inhabitants. Currently, the population is being served only by a single shopping Shopping in a Resort Setting centre, namely IOI Mall Puchong, which IOI City Mall is a modern contemporary is located to the north. In this regard, IOI shopping centre in a resort setting, offering City Mall aims to cater to the needs of the had to travel to the city centre to satisfy prominent fashion brands, mouth• people of southern Puchong, beginning their needs. Now, with just a 15 minutes' watering dining choices and exciting from Bandar Puteri Puchong, because the drive away from their home using the indoor activities. It aims to appeal to the mall is nearer to them. SILK highway, they can choose to shop in surrounding population catchments, IOI City Mall instead," explains Chong. and, at the same time, hopes to provide The eastern catchment areas, commencing Likewise, IOI City Mall also aims to target an alternative shopping experience to from Kajang to Balakong and Sungai Long, shoppers from the northern catchment those living in the city centre and beyond. are huge untapped markets. "Previously, areas such as Seri Kembangan, Serdang, According to Chris Chong, General there were no major shopping complexes Bandar Kinrara and the fairly new township Manager of IOI City Mall Sdn Bhd, many of surrounding the areas and hence, the locals of Taman Equine. Vol 3 No 1 MALAYSIA RETAILER 43 ON THE COVER Staying Relevant Amidst intense competition, shopping malls must constantly evolve to remain relevant to their shoppers. Chong reveals that marketing is one of the most crucial elements for a mall to stay competitive. "We emphasise highly on advertisements and promotional activities, especially during the festive seasons, because for us shopping is all about the ambience and experience," he elaborates. Chong also specifies that apart from marketing, having a good operational team is vital in maintaining and improving the quality of the mall's facilities and services. To him, creating an unforgettable experience for the customers is essential but retaining it is equally as important. With that being said, a successful shopping mall must also possess a good mix of exclusive and popular retailers as their attractions. "We have unique tenants such as District 21, Home Pro, Index Living Mall and FitFlop, which are the first in Malaysia. Family-Oriented Attractions The mall also aims to please shoppers by At the same time, we also feature some of IOI City Mall is a lifestyle-oriented offering many of the major fashion brands the more common and popular ones such shopping mall that is built to cater to a very such as H&M, G2000 and Uniqlo while as H&M, G2000 and Uniqlo so that we can wide range of consumers, from the middle strategically and attractively presenting its compete with others." to upper classes of society. Equipped with a F&B outlets in an alfresco dining setting variety of family-oriented attractions such to offer shoppers a wholesomely enjoyable Future Expansion Underway as a major cinema chain, a bowling alley, an meal experience. Currently, Phase 1 of IOI City Mall has a Olympic-sized ice skating rink, an indoor Gross Development Value (GDV) of RM1.5 Active Leisure Park and two huge home Away from the Competition billion with a Net Lettable Area (NLA) living centres, IOI City Mall is the place to Chong views Mid Valley Megamall, One of 1.5 million sqft.