R2.6bn

CityPress - - Business - JUSTIN BROWN justin.brown@city­press.co.za

The Mall of Africa in Wa­ter­fall City in Midrand is on track to achieve – or sur­pass – its fore­cast an­nual turnover of R2.6 bil­lion for the first year of op­er­a­tion.

Mar­i­jke Ar­ran, a Mall of Africa spokesper­son, said: “The cen­tre’s trad­ing den­sity [which re­lates to the turnover per square me­tre] was above ex­pec­ta­tion, es­pe­cially con­sid­er­ing that we are a new mall with no es­tab­lished shop­per be­hav­iour pat­terns.”

Last month, Ar­ran said su­per­re­gional malls across South Africa had a monthly trad­ing den­sity of about R2 500 per square me­tre.

“Us­ing this as a bench­mark, we es­ti­mate that Mall of Africa will achieve a monthly trad­ing den­sity of R2 000 per square me­tre, based on the fact that we are a new mall and still have to es­tab­lish trad­ing pat­terns.

“Hence, we es­ti­mate an an­nual turnover of R2.6 bil­lion [in the first year of trad­ing],” Ar­ran said.

She added that in May, the mall’s first full month of trade, “Wool­worths, Edgars, Game, Dion­Wired and Check­ers were some of the ten­ants that achieved and ex­ceeded their set bud­gets for the open­ing”.

“Our fast food sec­tion and the restau­rants per­formed bet­ter than ex­pected, and con­tinue to do so.

“Ten­ants that traded above ex­pec­ta­tions for the first full month of trade in­clude Wool­worths, Edgars, H&M, Zara, Cot­ton On, Check­ers, Game, Tru­worths, Mr Price, Krispy Kreme and Star­bucks, to name a few.

“The first month of trade saw in ex­cess of 1.3 mil­lion feet fre­quent­ing the mall,” she said.

The foot count for the last three days of April was 285 637, and for May it was 1.364 mil­lion.

The foot count tracks the num­ber of peo­ple who visit a mall each day, and there can be dou­ble count­ing within the space of a month.

For the three days of April and most of May, the Mall of Africa es­ti­mated that 700 000 unique peo­ple vis­ited the mall.

The 130 000m2 mall, which is owned by At­tacq (80%) and At­ter­bury (20%), cost R5 bil­lion to build.

Dirk Nico Prinsloo, an an­a­lyst at mar­ket re­search group Ur­ban Stud­ies, told City Press last month that the Mall of Africa and the shops within the cen­tre were likely to gen­er­ate R2 bil­lion or more in rev­enue in the first year of op­er­a­tion, climb­ing to be­tween R3 bil­lion and R4 bil­lion by the third or fourth year.

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