CHAPTER 4

PROFILE OF SHOPPING MALLS

Chapter 4 Profile of malls Page No.

4.1 History of malls 91

4.2 Meaning and definition of malls 94

4.3 Top stakeholders of Mall 95

4.4 Types of malls 97

4.5 Key components of Mall management 100

4.6 Scope of malls 108

4.6.1 International scenario 108

4.6.2 National scenario 109

4.6.3 Mumbai level scenario 112

4.7 Problems of malls 125

4.8 Conclusion 127

4.1: History of Malls:

A shopping centre, shopping mall, or shopping plaza is the modern version of the historical market place. The mall is a place where different retail stores, services, and a parking area, which is conceived, constructed, and maintained by a separate mall management firm as a unit. They also include restaurants, banks, multiplex (theatres), professional offices, service stations etc.

Period of 1920s:

The concept of developing a shopping district away from a city center is generally recognized to J.C.Nichols of Kansas city. His Country Club Plaza, which opened in 1922, was constructed as the business district for a large scale residential development. It was having integrated architecture, smooth and lighted parking lots. In the latter half of the 1920s as automobiles to block the central business districts of large cities, small centers were built on the outskirts, The centres were usually anchored by a supermarket and a drugstore, supplemented by other convenience Country Club Plaza 1922(USA) type shops.

Period 1930s:

Many people’s consider Highland Park shopping village in Dallas city, in 1931 to be the first planned shopping centre, like Country Club Plaza, its stores were built with managed and control under the single owner, but Highland park occupied a single site and was not bisected by public streets and its store fronts faced inward, away from the streets, a revolutionary design.

Period of 1940s: Sears Roebuck& Co. set up large, freestanding stores with on-site parking, away from the centres of big cities. Night time shopping was inaugurated at Town & Country Shopping Centre in Columbus, Ohio in 1944.

Period of 1950s and 1960s:

The early 1950s was the decade of opening of the first two shopping centers anchored by full-line branched of department stores. Northgate in Seattle opened in 1950 and Shoppers World in Framingham in 1951. The concept was improved upon in 1954 when Northland Center in Detroit used a “Cluster layout” with a single Southdale Center Mall 1956 (USA) department store at the center and a ring of stores around it. The parking lot completely surrounded the center. Northland was also the first center to have central air-conditioning as well as heating. By 1964 there were 7600 shopping centers in the USA and many of them were strip centers serving new housing developments.

Period of 1970s:

By 1972 the number of shopping centers has increased due to a number of new formats and shopping center types evolved. In 1976 Faneuil Hall Marketplace in Boston (USA) which was the first of the “Festival Marketplace” built in USA. In 1975 also marked the debut of the country’s first urban vertical mall, Water Tower Place, which Water Tower Place Mall-1975 Boston opened in Chicago (USA). Water Tower (USA) Place mall were having its tony stores, hotel, offices, and condominiums and parking garage.

Period 1980s & 1990s:

In 1990 it was established that people shopped most frequently at regional malls and neighborhood centers. It was found that People’s average trip to mall was four in a month. Between from 1989 to 1993 new shopping center development was dropped drastically. The sharp decline in new center starts was credited to the savings and loan crisis, which helped sudden a severe credit crunch. In end of 1990s one of the innovative retail formats that have become Mall of America-1992 (USA) increasingly popular in the USA is the power center, which defined as a center between 2, 50,000 and 6, 00,000 square feet, with approximately 75% to 90% of its space occupied by category killers or destination anchor stores. In 1992 the largest mall in USA was Mall of America in Bloomington, which includes a seven acre amusement park, night clubs, restaurants and covers 4.2 million square feet with 50% devoted to retiling.

4.2: Meaning & Definition of Mall:

4.2.1: Meaning of Mall:

The word mall is first originated in the 17th century and it was coming from pall-mall game popular in the 17th century. Pall-mall, first recorded in the late sixteenth century, is borrowed through French from Italian, from elements meaning 'ball' and 'mallet'. It means mall 'a large area with shade trees used as a public walk or walkway’. Thus, a mall can be regarded as a kind of park, but a park is not necessarily a mall. The original sense of mall was a passageway used for pall-mall game and one particular pall-mall path, in London, was known as The Mall, and after this the word mall became a public walkway.

The concept of ‘Mall’ has become undividable part of modern people living in cities all over the world. In old days, people had to make a choice among shopping stores but today all that is available under one roof with a good shopping experience and different amenities such as gaming section, food courts, theatres etc.

In simple terms, a shopping centre can be distinct as a building that contains many units of shops but is managed as a single property, with different facilities less than one roof. A shopping mall provides good shopping experience, national and international variety of products, cinema, restaurants etc. A shopping mall is having huge space approximately 60000 sq ft to 70000 sq ft. providing spacious space and parking facilities. Malls are located normally from center of urban areas to outskirt of urban areas with growing culture of mall mania. Malls are well-known for six factors i.e. comfort range, luxury, spirit, entertainment, and convenience, which make malls beautiful to consumers or visitors.

4.2.2: Definition of Mall:

I) “A shopping mall or mall is a large building or series of connected buildings containing a variety of retail stores and typically restaurants also” (defined by- Oxford Dictionary).

II) “A shopping center is a group of retail and other commercial establishments that is planned, developed, owned and managed as a single property, typically with on-site parking provided. The center's size and orientation are generally determined by the

market characteristics of the trade area served by the center.” (defined by- International Council for Shopping Center)

4.3: Top Stakeholders of a Mall:

4.3.1. Government/Local statutory bodies:

It seems quite surprising that how a government or its allied agency can be a stakeholder in the development and growth of a mall but this is true. One should not forget the fact that it is the government or municipal corporation that has given permission to construct the mall. Though government is not a direct beneficiary but it has number of expectations from a mall ranging from changing demographic patterns of a underdeveloped area to provide employment opportunities, better lifestyle, increase in trade, and better urban image.

4.3.2. Customers:

It has been rightly said that it is not the product but the customer that gives you the profit. If customers are not visiting to your store, how a mall will survive in the long run. Thus, end consumers are the important stakeholders. The significance of the customers can be learnt from the viewpoint that they are the reason for the success or failure of a mall. Customer can visit your mall any time during the trading hours. Customer can be any one like a student, housewife, businessman, teenager, young executive, newly marries couples, tourist, or even a senior citizen. He can be from any age group, caste, and religion.

4.3.3. Occupants (Shopkeepers):

Shopkeepers (occupants) are as important for a business as blood for a human body. They are Departmental store, Multiplex, Food comers, Saloon, Banks (ATMs), Anchor store, or any other shopkeeper. They may have purchased property or can be on lease. Accordingly, they may have permanent or temporary occupancy. Shopkeepers can be global brand (like Tesco, Wal-Mart, and Sony) and purely Indian (such as Big Bazaar, Airtel, and Reliance Trends).

4.3.4. Mall Developers:

Mall developers themselves may be the stakeholders. Though it looks strange that how developers can be some sort of stakeholders knowing that they have no role to play once the malls are ready. Once a mall is built and possession is complete,

developer, hands over it to mall and facility management team. In practice, facility manager is third party and mall management/marketing team is a separate business unit (SBU).

4.3.5. Investors:

Investors and financers are different entity. Investors are the persons who purchase property in malls in bits and pieces when mall is under construction or can come also in finished stage.

4.3.6. Mixed Stakeholders:

Besides the above mentioned stakeholders, still there is a long list of people that have different expectations from a mall and thus are interested in the growth of malls. These stakeholders may vary from mall to mall and are very important for variable income and mall marketing plan. They usually are either associates or partners in the business. They would be media partners (Television, Radio FM, and Newspaper), Airline Partner, Event sponsors, Kiosk owners, and Outdoor advertisers.

4.4. Types of Malls:

4.4.1. Neighborhood Mall:

This center is designed to provide convenience shopping for the day-to-day needs of consumers in their local area only. Normally half of these malls are anchored by a famous supermarket. These anchors are supported by stores offering sundries, snacks and personal services. A neighborhood mall is usually configured as a straight line band with no enclosed walkway or mall area.

4.4.2. Society center:

A society mall classically offers a wider range of apparel and other light goods than the neighborhood malls. In this type of mall surrounded by the more anchor outlets are supermarkets and discount department stores. Society mall tenants occasionally contain ‘off price’ shopping mall selling such items as apparel, home improvement/furnishings, toys, electronic or sporting goods. The center is normally constructed as a strip line, straight line, L shape or U shape. Of the eight different types of mall society malls encompass the widest range of formats.

4.4.3. Regional Mall:

This type of mall provides general products (a large percentage of which is apparel) and services in full length wise and depth wise variety. Its main attractions are their anchors outlet. Earlier traditional outlets, mass merchant, discount department stores or fashion specialty stores were running under this type of mall. A typical regional mall is usually enclosed with and inward orientation of the stores connected by a common walkway and parking surrounds the outside perimeter.

4.4.4. Super-regional Mall:

This type of mall similar to a regional mall, but due to their larger size a super regional centre has more anchors, a deeper selection of products, and draws from a larger population base. As with regional centers, the typical design is as an enclosed mall (Air-Conditioner mall) frequently with multilevel of designing in this type of mall.

4.4.5. Fashion / Specialty Mall:

A Mall composed mainly of fashionable apparel outlets, boutiques, designer’s outlets and craft outlets carrying selected fashion or unique products of high quality and price. These malls do not be anchored outlet, though sometimes restaurants or entertainment can provide the role of anchors outlet. The physical design of the mall is very stylish, emphasizing a rich décor and high quality landscaping. These types of mall usually are found in trade areas where income level of customers must be high.

4.4.6. Power mall:

A mall consist by a number of large anchor outlets, including discount department stores, off-price stores, warehouse clubs or “category killers” i.e., stores that offer tremendous selection in a particular products category such as fashionable wearing, crafts, electronic products etc. The mall typically consists of several free standing unconnected anchor outlets and only a few small specialty tenants.

4.4.7. Theme/Festival Mall:

These malls typically employ a unifying theme that is carried out by the individual shops in their architectural design and to an extent of their merchandise. The biggest appeal of these malls is to tourists customers they can be anchored by restaurants and entertainment facilities. These malls generally located in urban areas, tend to be adopted from older, sometimes historic buildings and heritage place of city can be part of mixed use projects.

4.4.8. Outlet mall:

Usually located in rural area or occasionally in tourist locations, outlet centers consist mostly of manufacturer’s outlet stores selling their own brands at a discount. These malls are typically not having anchor outlet. A strip pattern is most common design of this type of mall, although some are enclosed malls and others can be arranged in a village cluster.

Type of Mall Area of Mall ( in Reach ability Minimum square feet) time ( in population minutes) support required Convenience 15000-30000 05 2000 Neighborhood 30000-100000 05-10 3000-40000 Community 100000-450000 10-20 40000-150000 Regional 300000-900000 20 150000 -300000 Super-Regional 500000-2000000 30 300000 + Table 4.1: Area wise type of shopping mall

Type of shopping center tenants:

Convenience Neighborhood Community Regional/Super regional Minimart Supermarket Junior department Full department store store Restaurant Drugstore Discount store Fashion store Beauty parlor Discount store Supermarket Megaplex Dry cleaner Restaurant Off price Entertainment center superstore Fast food service Furniture store Variety store Food court Medical/Dental Hardware store Family wear Large formal specialty office store store Automotive store Furniture store Large off prices store

Table 4.2: Type of tenant shopping mall

4.5. Important Components of Mall Management:

In the past few years, some malls were constructed without doing any feasibility study or rigorous market survey. Though initially they were successful in attracting people but after few years they went out of competition because they failed to convert visitors into regular customers. The simple reason of failure was to not understanding of local customer needs. It seems surprising, how mall developers can spend millions of rupees without due diligence exercise on their feasibility. But the new generation mall developers are well educated and experienced.

Components of Mall Management:

4.5.1. Positioning of Mall:

Positioning of mall defines as the category of services offered by a mall. Usually mall Positioning is determined after a detailed survey of households in the local area where mall is going to be constructed. This customer survey includes demographics, psychographics, income levels and competition in the area. It also includes the location of the mall which is determined by the access, visibility etc.

The main objective of location is to create a differentiate image of a mall among consumers. It forms the basis for differentiating a mall from its competitor’s mall. Positioning assists in creating a unique image in the mind of customers to recall for the masses when they think of a mall. For example, when a customer thinks of purchasing a LED Television or digital cameras, the Sony or Samsung brands come to top of his mind. This is a separate aspect that at the time of final purchase, he/she adheres to that particular brand or not. Basically final buying decisions are influenced by both the brand appeal and social status of the person.

The objectives of location of a mall are:

1. To create sense of appreciation

2. To promote loyalty

3. To improve image

4. To enhance brand

5. To improve image of quality

6. To beat competitors

7. To attract customers

8. To maintain and attract good sales staff

Broadly, malls can be positioned in two different ways. a. On the basis of offerings b. On the basis of anchors

The detailed description about both the forms is discussed as below:

(a) On the basis of offerings:

As the very name suggests, these malls are positioned mainly on the basis of its offerings and discounts which should be reflected throughout its retail mix.

Offerings further can be classified as under:

(i) Luxury:

Under this type of positioning, a mall is positioned through advertising as a ‘Luxury Malls’ where selections of tenants is exclusively for luxury class of their vertical. Local and small players though financially sound are not allowed under this particular form of positioning. For example, Sony, Lenovo, Apple fall under the luxury segment within the consumer electronics brand. Similarly, Monte Carlo, Raymond, Peter England, Levi’s are luxury within the apparels brand.

(ii) Value for Money:

Value for money style positioning reflects the message to public that their malls are neither expensive nor economical in price. They offer value for money product in mall. This offering is not depicted by one or more outlet but entire mall would represent the same ‘value for money’ image.

(iii) Economy:

Under this style of positioning, mall owners create awareness that their mall is for those people who are money-conscious and looking for affordable goods and services. Economy class malls usually are full of customers especially on weekends. Impulse buying is more in case of economy malls because first time or occasional visitors are more attracted towards cheap range goods like D-Mart.

(b) On the basis of anchors:

Under this type of positioning, malls are positioned on the basis of anchor outlet. These are classified as under:

(i) Entertainment facility:

The main theme of such mall is to provide entertainment to customers and all possible means of enjoyment. Entertainment is offered in the form of movie theatres, swanky rides, waterfalls, gaming zones, scary houses, ice-rings, bungee jumping, Kids play stations, Racing Cars, Video Games, interactive Kiosks, and so on.

(ii) Hypermarket:

One of the most common and widely clear features of a successful mall is the existence of hypermarket. The primary reason for having hypermarket in a mall is to increase footfalls and conversion rate. History reveals that few malls which initially had no or very less occupancy rate became consumers’ first choice after the presence of hypermarkets. In short, under this type of positioning malls are positioned on the basis of hypermarket concept.

(iii) Specialty outlets:

Under this type of positioning, malls are positioned according to the specialty stores in the mall. Specialty stores involve the message that most of the stores specialize in one particular segment of the brand such as consumer electronics, jewellery stores, book stores, home furniture stores, and so on. This type of positioned malls conveys the message that they offer all the national and international brands under that category.

Observations:

The positioned malls usually keep their offerings same for the entire life span of the mall. Though new outlets, new brands can come and go during the span of time but offered concept remains the same. Therefore, utmost care must be taken while setting up the mall and deciding about the positioning. In short, positioning is:

• Placement of products or services in consumers mind.

• What the customer believes about your product’s value, features and benefits.

• A comparison to the other available alternatives offered by the competitors.

• Belief tends to based on customer experiences and evidence, rather than awareness created by advertising or promotion.

• Not what you do to a product but what you do to the mind of the potential customer.

4.5.2. Zoning:

In the shopping mall industry customers can be broadly divided into two categories namely

• Determined customers

• Impulse customers

Determined customers are those customers who know what their needs are and how to fulfil them. Therefore, they go to shopping mall with the intention of buying and carry proper money. If everything as per their thinking and things are as per their requirements, taste, and budget, they do not waste time and buy the things. In case, they find things costly or opposite of their prospect, usually they leave that shopping mall and they don’t come back to same mall.

While on the other hand, this type of customers is totally opposite to determined customers. Impulse customers are those customers who visit the mall with no intention of buying but if something appeals to them, they buys product from mall. Both types of customers are important for a retail store. But in practically problem rise is how shopping malls should entertain them and how will be the revenues increase.

Zoning is the solution of this problem that allows shopping mall help attract both types of consumers. Zoning is a division of shopping mall space under which mall developers basically prepare right tenant combination to attract both types of customers especially the impulse customers.

Zoning means to division of mall space into various zones for the placement of various shopping mall. A mall is dependent on the business of its tenants, which translates to the financial feasibility of the tenant in the mall. Creating the right tenant combination not only helps in attracting and retaining shoppers by offering them multiple choices and satisfying multiple needs, but also facilitates the smooth movement of shoppers within the mall, avoiding unnecessary clusters and bottlenecks.

4.5.3. Promotions events:

Promotional events that help promote brands are an essential part of mall management. Some of the most effective promotional models include celebrity visits, food festivals and talk shows, which increase footfalls and as a result, increased revenues. This is like national holidays such as 26th January and 15th August and religious celebrations such as functions. Considering mall developers can work out marketing techniques in order that match the requirements of local consumers and addressing the challenges of local or regional competitors.

Malls are also involved in promotional activities and events. Considering the local rituals, preferences and latest trend, each mall prepares a Marketing Calendar.

The common examples of promotions and events organized in India involve:

(i) Fashion Shows

(ii) Exhibitions

(iii) Book Fairs

(iv) Travel Fairs

(v) Musical Contests

(vi) Auditions

(vii) Talk Shows

(viii) Movie promotion event

Besides this, each mall celebrates various national and international days which are famous among common youth. Public holidays, long weekends, religious holidays, educational breaks, are also considered while preparing a Marketing Calendar.

Benefits of Promotions and Events:

(i) Most favourable utilization of mall space

(ii) To create new source of avenues for mall shopping mall

(iii) To attract new customers

(iv) To beat competition

4.5.4. Facility Management:

Facility means to the mixing of people, place, process and technology in a building. Facility management are specialized companies who provide specialized services to malls start from parking facility, security service, housekeeping service and cash management. Facility Management also provide electro mechanical services like control and fire detection, access control, power management, water management plumbing, Supply Chain, Marketing Research, Logistics and Design etc.

In addition to above services, they also offer business services like customer help desk service, guest relations, and meeting room management. Few of facility management companies also provide soft services like pest control, cleaning, and physical and security surveillance, gatekeeper services, and administration services. There are few other expert functions that facility management companies are also taking up.

Under facility management various activities are classified as follows:

(i) Infrastructure Management:

It means to supervision and administration of various facilities provided to tenants, risk management measures such as adopting necessary safety measures, conducting asset liability and environmental audits as well as imparting emergency and evacuation training.

Under infrastructure management following facilities are offered:

(i) Air conditioning,

(ii) Provision of adequate power supply,

(iii) Safety issues related of signage,

(iv) Issues related to water supply, sanitation, etc

(ii) Ambience Management:

This aspect refers to the management of the overall aesthetics and appearance of a mall.

Under ambience management, following provisions/facilities are made:

(i) Arrangement of parking

(ii) Arrangement of fountains,

(iii) Handling of staircases

(iv) Take care of lifts and escalators

(v) Music and overall look of the mall.

(iii) Traffic Management:

Traffic management basically includes handling customer traffic into the mall and parking areas. Customer traffic management involves crowd managing inside the operational area of a mall. The flow of customers is related to the design of the mall. Under traffic management, facilities are offered to malls relate to the effective managing of crowds, both within the premises and in the parking zone. The significance of traffic management is increasing rapidly and demanded by one and all because of the simple reason that the flow of people is related to the design of the mall and the spatial distribution of its tenants.

For example, take a case of round-shaped mall which though attractive but will have a crowding in the centre of the mall, as everyone has to pass through the central area while moving from one side to the other. Therefore, greatest precaution must be taken care of while planning about the design of the mall.

4.5.5. Finance Management:

Financial Management is concerned with the acquisition, financing, and management of assets with some overall goal in mind. Financial Management entails planning for the future for a person or a business enterprise to ensure a positive cash flow.

Under finance management function, facilities management companies cover the following activities:

(i) Accounting system to track the debt and invoices,

(ii) Cash receipts and collection of income

(iii) Organizing resources to deliver an efficient and effective annual audit.

4.6. Scope of Mall:

4.6.1. International scenario:

• Malls are no more necessity of consumers; it has become habit of consumers all over the world. Malls had an iconic status in the eyes of consumers. • Shopping centers and malls have been growing steadily since 1980 with the highest growth recorded in the year 2008. Malls had robust infrastructure and promoted weekend trips and drive culture for shopping and leisure. • Many malls have become famous because of size or products or as a place for socializing. • The focus has over the years has shifted to workings of mall design, which has an important role in making a mall successful. Mall developers have realized that just creating a flashy building with central air conditioning, spaces for large anchor stores and food courts, covered parking, etc does not guarantee the success of a shopping mall. • Apart from adequate planning and study of the catchment area, nitty-gritty like mall size, shape, design, mall management, ambience and positioning are largely instrumental in determining the fate of a mall.

Name of Origin Opened Leasable Shops Remarks Rank mall in area (Square feet) 1. New South China 2005 659612 2350 It was vacant in first China Mall 8 years, because of inaccessibility 2. Golden China 2004 557419 More Largest cosmetic Resources than shops Mall 1000 3. SM mega Philippines 1991 506435 More largest shopping mall than mall in Southeast 1000 Asia, roof garden with 55 species of plants and trees 4. Isfahan Iran 2012 470000 770 + houses an City international Center financial centre and a five star hotel 5. Utama Malaysia 2000 455000 700+ Skybridge, a tropical

rainforest and South East Asia's largest rooftop garden 6. Persian Iran 2012 450000 2500 World’s Largest Gulf number of stores, Complex 262-room hotel, helipad 7. Central Thailand 1990 429500 600 Largest in total area world 112000 sq ft 8. Mid Malaysia 1999 420000 430 Office tower block Valley Megamall 9. Cehavir Turkey 2005 420000 343 The world’s second Mall biggest clock in the world is atop the building's 26,910 sq ft glass roof. 10. Sunway Malaysia 1997 396000 800 Pyramid design Pyramid Table 4.3: Top 10 malls of the world

4.6.2. Indian scenario:

4.6.2.1. History of Indian Malls in 2000s:

Since 2005s the Indian consumer market has seen a major growth in shopping centers popularly known as ‘malls’. There is an increased demand for quality outlets space from a varied segment of shopping mall and brands, which include products and apparel chains, consumer durables and multiplex operators. Shopping mall development has also fascinated real estate developers across cities in India. As a result, from just 3 malls were in 2000 to increase over 570 operational malls with area of 180 million square feet by 2014.

4.6.2.2. Evolution of Shopping Malls in India:

For many people organised shopping mall appeared in India with the launching of first malls in 1999. The launch of “Ansal’s plaza” in Delhi and “cross roads” in Mumbai is welcomed as the glow in Mumbai city. Even only three shopping malls existed in India at the end of 2002. However, if one were to define shopping malls as enclosed shopping spaces, then Mumbai Crawford market (opened in 1869) and Kolkata’s new market (1874) surely have the pride of place as the pioneering malls in India. Delhi’s Connaught place (opened in 1931) should also definitely be considered, with its covered arcades. More recently, new Delhi’s partially underground palika

Bazaar, the mini- malls of the late 1980 on Bangalore’s Brigade Road and shopping centers built by private developers in Ahmadabad and other cities have all had a role to play in the evolution of organized retail spaces in the country. So, it would be accurate to view the most recent off spring of a long lineage or organized shopping centers.

4.6.2.3. The Mall space distribution:

Today in Indian economy the retail sector is very promising particularly organised retailing, it is spreading in the entire tier – I, II, III cities of India. As per the study conducted by knight & Frank India shows that by the year 2012, the total mall space available in India is approximately 75 million sq. ft. the following table shows the mall space distribution in the major cities of India.

Table 4.4: Mall Space Distribution in Some Selected Cities of India By 2015

Mall space distribution by 2015

Sr.No City Area Square Feet % of distribution

1 Delhi 2,25,00,000 30

2 Mumbai 20,25,00,000 27

3 Hyderabad 52,50,000 7

4 Bangalore 37,50,000 5

5 Pune 37,50,000 5

6 Others 1,95,00,000 26

7,50,00,000 100

(Source: Knight & Frank study)

4.6.2.4. Trend of Shopping Mall in India:

There was a time when India’s first mall, crossroad, Mumbai, found it difficult to manage customer traffic. In order to restrict foot falls, the mall decided to allow entry to those who had either a credit card or a mobile phone. A lot has changed in the last 10 years; malls are now being abandoned by shopping mall and consumers alike. The year 2008 saw huge growth rate in mall space coming up all over the country. It was followed by a slow down and mall mania became mall trauma. Over 200 malls have

mushroomed in the last 5 years from 2008 to 2012; a majority is grappling with high vacancies and low footfalls. Some have shut up shops and others are converting themselves into commercial spaces.

Gross lettable area(sq ft) Phoenix Marketcity Mumbai 1150000 Lulu Mall Cochi 1045000 Ambience Gurgaon 1030000 R City Mumbai 1007000 Mantri Square Bangalore 920000 Express Avenue Chennai 900000 great India Noida 900000 Neptune Magnet Mumbai 900000 High st phoenix Mumbai 850000 Brigade Orion Bangalore 800000 Phoenix marketcity Pune 800000 Amanora park Pune 770000 Phoenix Marketcity Bangalore 700000 Empress City Nagpur 610000 South City Kolkata 610000

(Source: Asipac Consulting) Graph No. 4.1

Average Daily Footfalls Phoenix Marketcity… 65789 Lulu Mall Cochi 62156 Ambience Gurgaon 61061 R City Mumbai 67914 Mantri Square Bangalore 56058 Express Avenue Chennai 68500 great India Noida 90803 Neptune Magnet Mumbai 44476 High st phoenix Mumbai 51330 Brigade Orion Bangalore 50256 Phoenix marketcity Pune 13158 Amanora park Pune 30000 Phoenix Marketcity… 25411 Empress City Nagpur 10000 South City Kolkata 56158

(Source: Asipac Consultancy) Graph No. 4.2

New changes in Shopping Mall Industry:

• Major regulatory changes of allowing single brand retail to 51% FDI and 100% FDI in wholesale cash & carry through automatic route had an important role to play in the copious mall growth across the country. • It is important to take note of that the evolution of malls was caused due to the launch of malls of different sizes. • Post 2006, gigantic malls with their gross leasable area (GLA) greater than 700,000 sf rose significantly from just 2 malls to 18 malls by 2013 and 10 more malls of such sizes are expected to come up 2015. • India has 570 malls till May.2013 compared with 225 malls was there in 2008. • Of the malls under construction, 20% of the malls will have GLA of above 700,000 sq.ft. and are expected to come up in Bengaluru, Mumbai and NCR. This clearly highlights that the need of bigger and more cosmopolitan cities is leading to amplification of mall areas. • Till 2006, the malls were 3 to 4 storey high; however, with the advent of colossal malls, the malls grew vertically also and are now many are 5 to 6 storey high.

4.6.3. Mumbai city scenario:

Mumbai city hold a tag of financial capital of the India and contributes around 5 per cent of the country's GDP. The city is home area of important financial institutions like the Reserve Bank of India, the Bombay Stock Exchange and the National Stock Exchange. Besides that Mumbai city is the entertainment capital of the country, the city has rich cosmopolitan demographics. These factors also ensure that the city remains leading in terms of the real estate growth. The region referred to as Mumbai Metropolitan Region (MMR), covers the city of Thane and Navi Mumbai along with Mumbai city.

Mumbai city had given first Mall to the country, the city is home to some of the most famous and successful malls in the country and the retail rent rates are amongst the most expensive in the world. While the size of the consumer market in the city is particularly large. This situation, coupled with the global financial crisis in 2008, forced shopping mall to curtail their expansion plans and put some large shopping mall on the brink of bankruptcy.

While the confidence of the shopping mall was shaken, the mall projects in the city were stalled due to poor liquidity. Many mall projects have been spoiled because of poor design and high concentration of malls in particular catchment area. These malls are spread all over the city, stretching from Nariman Point in South Mumbai to Bhayander in the Western Suburbs and Kalyan in the Central Suburbs. The city of Mumbai is divided into 4 zones: Island City, Western Suburbs, Central Suburbs and Navi Mumbai. The malls in these zones have been analyzed and their characteristics have been studied in order to provide a thorough examination of mall space in Mumbai.

Zonal Classification of Retailing in Mumbai

S.No. Zone Locations 1 Island City Nariman Point, Haji Ali, Worli, Lower Parel, Dadar, Mahim 2. Western Suburbs Bandra, Santacruz, Andheri, Goregaon, Malad, Borivali, Dahisar, Mira Road- Bhayander stretch 3. Central Suburbs Matunga, Chembur, Ghatkopar, Mulund, Thane, Kalyan, Bhandup 4. Navi Mumbai Airoli, Vashi, Kharghar Table 4.5: Zone wise Mumbai city

MALLS IN MUMBAI METROPOLITAN REGION

With an approximate current urban population of 18.30 million people (as per Census 2011-provisional data) and based on an ideal PCMS (Per Capital Mall Space) sq.ft. Of Mumbai Metropolitan Region (MMR), Mumbai can currently absorb total mall space of 20.130 million sq. ft in GLA (Gross Lettable Area). Of this, there are 32 operational malls in the region, with a total GLA of 13.054 millions ft. As of now, as per available information, there are only 7 new malls in Mumbai which opened after 2012, totalling a GLA of 3.011 millions ft. There may be a few more projects on the planning sheets or drawing boards of developers which are not yet to be informed to public.

Mumbai City Map

Malls in Mumbai:

4.6.3.1. Atria The Millennium Mall (Worli):

• Atrium, The Millennium Mall is a Shopper's destination, situated next to Nehru Planetarium in the heart of Mumbai City on Worli. • The Mall, designed by the world famous Architect Hafeez Contractor. It was opened in 2006. • With a Area of 550000 sq feet. • Famous for world class design ambience and international brands. • The mall is a five level complex consisting of Shopping, Entertainment, Food & Leisure catering to the needs of both middle & upper middle class of urban people • The Ground, I, II & III levels will consist of Large Showrooms, Departmental Stores with a variety of national and international brands. • While on the IVth level of the complex is Entertainment with Video Games, Pool, Bowling Alley and the Food Court. • One of the specialty is, its design which is fully made up of glass, showrooms, entrance, escalators (almost everything) • 1, 00,000 sq.ft. car parking in double basement • Advanced fire detection and fire fighting system

4.6.3.2. Centre one Mall (Vashi):

• It is the first mall in navi Mumbai • Center one is brought to you by The Nandu Group of Companies. • With a Area of 150000 sq feet. Visibility of all the shops. • Conceptualized by RTKL, USA, one of the World's best design houses with long-standing experience in designing & executing malls • The complete proposition--Shopping—Entertainment—Food---Frequently needed services, offered at one single destination, giving center one the absolute edge over other conventional & unorganized markets.

4.6.3.3. High Street Phoenix (Lower parel)

• formerly known as Phoenix Mills, is one of the largest shopping malls in India

• Its area is 6,50,000 square feet, In addition to the mall, the compound hosts a five-star hotel, a multiplex, commercial space and a residential tower.

• It was opened in 2008.

• High Street Phoenix (HSP) has more than 500 stores, including national, international and budget shops also.

• It is owned by The Phoenix Mills co.ltd.,

• The mall consists of the Palladium, Sky zone and Grand Galleria. South Asia’s largest 20 lane bowling concourse.

4.6.3.4. Inorbit Mall (Malad):

• Inorbit Mall is a subsidiary of the K. Raheja Corporation which runs shopping malls in various parts of India. • Area 364000 Sq ft • The first Inorbit Mall (having many branches now) opened in 2004, in Malad. • it claimed to be the biggest mall property in South East Asia, housing Mumbai's largest food court. • Mall is famous for movie promotion and music launch by bollywood. • In 2010, Inorbit Malad launched "Mall Walk", a scheme where people could use the mall property for their morning walks at no cost. • The mall often plays host to cooking classes, self-defense workshops and free music concerts.

4.6.3.5. Phoenix market city (kurla):

• Phoenix Market city, a shopping paradise in the heart of Mumbai located in Mumbai on LBS Marg and near to BKC.

• Area 11, 50,000 sq ft.

• Opened in 2011.

• It brings the international standard hub of retail with domestic and international brands along with entertainment and commercial office spaces.

• The Phoenix Market city, Kurla which is spread across a retail space of about 2100000 square feet,

• houses close to 350 plus brands across all categories

• Phoenix Market city has entertainment like PVR Gold Class, 8 Screen Multiplex, Snow World, 16 Lane Bowling, Flight for Fantasy, Bungee Soccer, laser tags & 55 plus F&B options to offer.

• Phoenix Market city is all about the exclusivity, expanse and the experience that will transform the retail space forever.

• Main attraction is biggest snow world.

4.6.3.6. Nirmal Lifestyle (Mulund):

• The mall has been built on most challenging concept, ever built in the country.

• It was opened in 2004

• Total area of the mall 10, 00,000 sq ft.

• The open mall concept not only placed Nirmal Lifestyle on national platter, but has been successful in defying all myths associated with its popularity.

• It was voted as “Mumbai’s Favorite Mall” twice by a survey done by popular news dailies.

• The Glass dome is largest in the south East Asia, hence is one of the beautiful features of the mall.

• It also has the largest open space area, which complements beauty with hassle- free shopping.

• It has almost all famous brands under its wide stretch arena.

• The proposed plan of integrated projects in four phases would make it to be one of largest convention centres in this part of the globe.

4.6.3.7. Raghuleela mall, (Kandivali):

• Raghuleela is a mall situated in Kandivali, a suburb in Mumbai

• Total area of the mall 3, 75,000. • It was opened in the year 2007.

• Developed by Raghuleela Properties Pvt.Ltd., the mall covers 400,000 sq ft

• Commercial space having four floors and more than 800 shops.

• There is double level parking for over 500 vehicles

• it provides exclusive banquet hall with corporate level service. • It is a house for all brands national and international.

4.6.3.8: Neptune Magnet Mall

Opening date: 2004

Developer: Neptune Ventures & Developers

Total retail floor area: 1056000 sq.ft.

No. of Restaurants: 14

Footprints in a week: 25000 visitors

No. of outlets 300

4.6.3.9. Hypercity Mall (Malad): • Hypercity Retail (India) Ltd. is part of the K. Raheja Corp. Group, a leader in the Indian retail sector. K Raheja Corp helped create retail boom in India with Shoppers’ Stop.

• Hypercity, India’s finest hypermarket offers its customers a dominating assortment of over 44,000 quality products across categories which offer great value in a large, modern and exciting format.

• Area 1, 20,000 sq ft. & opened in 2006

• Today Hypercity has 12 stores across Mumbai, Hyderabad, Bengaluru, Bhopal, Ludhiana, Amritsar, Jaipur, Pune and Ahmedabad.

• Hypercity, Malad was named as one of the “Top 100 Must Visit Stores” in the world by UK’s Retail Week Magazine.

• Every Wednesday consumers get the best offers, savings and the lowest prices on Food products (including fruits and vegetables) with Hyper Wednesday deals.

• In addition to this, they have Discovery Fridays – A day full of best offers on electronics, fitness and furniture every Friday.

• Hypercity, Malad was named as one of the “Top 100 Must Visit Stores” in the world by UK’s Retail Week Magazine.

4.6.3.10. R-Mall (Mulund):

• R-Mall is a mall situated in Mulund and Thane, main connecting suburb of Mumbai and navi mumbai • Opened in 2003. It Developed by Runwal Developers Pvt. Ltd., • Area 250,000 sq ft • It was designed by Chapman Taylor & Partners (UK). • R Mall is a 4-storeyed air-conditioned mall covering an area of approximately 80,000 sq ft on each floor. The site includes a 7 level car parking facility.

4.6.3.11. Crossroads Mall (SoBo Central), (Mahalaxmi)

• This is one of the oldest malls of the Mumbai.

• Crossroads, renamed and currently known as Sobo Central,

• It is a modern shopping mall in India.

• Opened in September 1999

• Developed by Piramal Holdings Ltd., a subsidiary of a major pharmaceutical group, it is India's first mall management company.

• The mall covers an area of 150,000 square feet, spread over four buildings in the heart of the city.

4.6.3.12. Oberoi Mall, Goregaon:

• Oberoi Mall is a unique one- stop destination for shopping, dining and entertainment. • With the Oberoi Mall, Oberoi Constructions sets a benchmark in Mumbai's retail landscape, a world-class retail and entertainment complex. • Opened in 2008. It offers over 500 exclusive brands under one roof • Spread across 7 lakh square feet. • The neat and expansive food court SPOON (managed by Blue Foods) serves the best of Asian and International cuisines in a cheerful family friendly dining area. . • Its 100-meter long atrium allows for uninterrupted view of every store in the mall and serves as a venue for large events, promotions, live shows and other activities. • Cultural events, promotions, live musical shows, children's events, and art & craft fairs feature regularly in the mall's calendar.

4.6.3.13. R City Mall (Ghatkopar):

• R City Mall, owned by Runwal Group • Opened in 2009. • The mall was opened in two phases, the total size of the first phase of the development is 750000 square feet • Total area 12,00,000 million square feet (after second face) • R City is destined to become Mumbai's leading entertainment and lifestyle destination that will raise the bar in providing an outstanding experience in Mumbai. • One of the biggest malls in Mumbai. • Blend of local and foreign brands.

4.6.3.14. Palladium Mall (Lower Parel):

• The city’s first luxury and premium retail and entertainment destination. • Total area 300000 sq ft. • It opened its doors to customers in 2009. • This south Mumbai mall has in a short span of time become an iconic landmark not only for the city but also for many around the country. • Its unique design expression makes the mall a striking structure in the architecture of the city that never sleeps. • Palladium has been recognized for an excellence in retail sector and takes pride and inspiration from the recognition received at various platforms across the world.

4.6.3.15. Growel Mall (Kandivali):

• Growel mall, Inspired by the European hill towns • Growel’s 101 is a themed mall and designed by Kaplan McLaughlin Diaz and Form 4. The design revolves around a typical neoclassical architecture. • Mall has national, international and budget brands. • Area of the mall is 750000 sq ft. • It was opened in 2010. • Mall has been organizing various community based events like dance workshop, painting exhibition, activities for children. • Mall is planning its Phase 2 very soon.

4.6.3.16. Korum Mall (Thane):

• The KORUM experience is spread across 400000 sq. ft. • Showcasing over 100 of the finest brands under one roof. • Opened in 2009.

• It is a project of Kalpataru Properties.

• Korum Mall was awarded the Asia Pacific International Property Award 2009 for Best Retail Development.

• House for Bollywood actors and actresses for music launch and movie promotion.

4.6.3.17. Viviana Mall (Vivacity) (Thane):

• Viviana Mall (Vivacity), one of the largest malls in India, is set to become every shopper’s dream destination. Built on prime land in the district of Thane,

• the mall is a first of its kind, not only in terms of its sheer size but also in terms of the quality of shopping mall and the overall shopping experience it has to offer.

• An area of Nearly 40,000 sq. ft. at Viviana Mall is devoted to titillate the taste buds of hungry shoppers.

• Area is 10, 00,000 sq ft. It was opened in 2010.

4.6.3.18. Metro mall:

• It is the First and only mall in kalyan and Dombivili. • Opened in 2008 and • has an area of 750,000 square feet • Metro Junction Mall is one of the biggest in India.

• An open auditorium for the public has been set up on the first floor

• The mall has the large Food court in the top floor.

• A big attraction at Metro Junction Mall is Big Bazaar, mac donalds, branded shops etc.,

• Metro Junction Mall the only mall in the Dombivali - Karjat/Kasara area and hence attracts people from these places.

4.6.3.19: K-Star Mall

Opening date: 2007

Developer: Kukerja Corporation

Total retail floor area: 250000 sq.ft.

No. of Restaurants: 9

Footprints in a week: 10000 visitors

No. of outlets 250

4.6.3.20: In orbit mall (Malad)

Opening date: 2010

Developer: K. Raheja Corporation

Total retail floor area: 600000 sq.ft.

No. of Restaurants: 18

Footprints in a week: 25000 visitors

No. of outlets 300

4.7. Problems of Indian Mall Management:

4.7.1. Lack of Market Research/Feasibility:

It was observed by the industry experts that earlier malls were constructed without carrying out a thorough research on their feasibility. This is also one of the reasons of their failure in spite of good response from public especially in metros. The market scenario is changing fast wherein more and more developers are hiring mall designers and property consultancy firms to conduct feasibility and positioning studies for their projects.

4.7.2. Zoning:

This is the common practice where mall developers tend to lease out retail space on a first-come-first -serve basis to attract others and ensure their they get the return on their invested money as soon as possible. Though as such nothing is wrong in the practice, considering everyone is the business for earning money. But this practice creates a sub-optimal tenant mix like a food and beverage shop next to a kids wear instead of a book or toys store.

4.7.3. Design issues:

Designing is also one of the major problem in the existing mall management practices. This situation becomes worsened during weekends and festive seasons due to high foot fall in mall. Old malls are having provision for one entry and one exit point lead to overcrowding and sometimes reason for road rages. Further, improper framework and malfunctioning of escalators is also one of the reasons for recent casualties in some malls in the recent past.

4.7.4. Free Promotional Activities:

In the majority of the malls, very few promotional activities are organized in the malls. The reason is that developers observe that these events only help increase foot traffic and not revenues of outlets in mall.

4.7.5. Facility Management:

Lack of facilities with regard to appropriate infrastructure is also the reason for the failure of the malls. Facility management basically means the integration of people, place, process and technology in a retailing place.

4.7.6. Parking Management:

In today’s scenario where everyone has an access to car, retail car parking management is the first port of call for customers and the very first impression about a store. Whether you run a small grocery store or multi-million large shopping complexes, the parking experience you offer to customers, will decide their mood for their whole shopping experience. Providing large open spaces for car parking will not even work, shopping mall should ensure convenient and safe parking facilities, with trouble-free direction-finding and clear pathways are necessary for smooth parking. First-class parking facility not only put your customers in a better mood but increases their stay duration in the shopping complex.

4.7.7. At the end of Mall Developers:

(i) Developing local supply chain

(ii) Government/political interference

(iii) Improper selection of brands to the environs and economic capacity of the people

(iv) Lack of professionalism in management

(v) Lack of skilled employees

(vi) Lack of understanding of the catchment area

(vii) Negative attitude of locality

(viii) No uniqueness or differentiation with its competitors

(ix) Wrong positioning of the mall and store

(x) Wrong selection of tenant mix

4.7.8. At the end of Brands:

(i) Delay in rent and other payments, which hamper the cash flow and thus the operational smoothness.

(ii) Government’s Role – The local bodies such as Municipal Corporation are simply silent viewers. Town planning department should come forward and take steps to avoid concentration of malls in a particular area as it puts pressure on the entire system consisting water supply, traffic, parking, congestion, electricity, drainage, etc. Further, with the breakup of joint family system, families will go smaller, giving rise

to traffic and parking problems. Therefore, traffic and parking issues, shortage of time shall force people to shop/entertain and eat at a single location. At the end of the day, only those malls which follow Darwin’s theory (survival of the fittest) will survive.

(iii) Lack of interest and supervision from head office and poor ability to understand problems of store managers which vary from store to store.

(iv) Poor delegation of powers and authority to the store managers.

(v) Poor participation in mall events and promotions.

(vi) Presence of many stores of same brands in a particular area spoils the charm and cannibalizes the business.

(vii) The mall industry is facing problems such as excessive rentals, selling retail space to individual investors and a lack of the right retail mix to attract best possible consumers.

4.7.10. Theft:

A mall’s design has made up of a number of different outlet stores, sections, it is almost impossible to continuously watch and supervise every one. Therefore, theft is an important security matter for many malls. The best way to overcome this challenge is to install well trained security guards at all possible locations, working in various positions around the facility, working closely with the individual stores to identify doubtful behaviour. Posting warning signs listing consequences of theft is prevention for theft in malls.

4.8: Conclusion:

Shopping mall is essential part of any modern city; it is a place where peoples meet regularly, enjoy regularly and shopping regularly. The size of shopping mall is deepened on the residential area near by that shopping mall. Shopping malls now days provides many services and it has become part of smart cities.