‘More large malls planned for metro areas’

SOUTH Africans can expect to see more shopping centres built this year as retailers seek to unlock markets, despite a sluggish economy.

Amanda Stops, chief executive of the South African Council of Shopping Centres, says large new shopping centre developments will be focused in metropolitan areas.

“For the next two years, new shopping centres bigger than 30 000m² will include several greenfield developments on the fringes of our metropolitan areas. Residential growth in their immediate vicinity will drive the sustainability of these centres.

“Infill shopping centre development (will occur) where there are a large number of households in an area underserviced by retail.

“This (will) capitalise on existing infrastructure and the centres should act as catalysts for other commercial activities.”

Major metropolitan areas, such as Joburg, Cape Town, eThekweni and Tshwane, have the highest population growth. This affects the needs for housing, job creation, schools, and infrastructure, including retail centres.

With higher population growth and household income than other provinces, Gauteng and the Western Cape will be the focus of shopping centre development in coming years.

These two provinces also have the highest average annual household income. The national average household income is between R9 000 and R10 000 a month. Averages for the Western Cape and Gauteng range from R12 000 to R13 000 a month.

Stops says shopping centre development plans under way for this and next year will create about 600 000m² more retail space in shopping centres of more than 30 000m².

Total retail space in shopping centres bigger than 30 000m² increased from 1.8 million square metres in 1993 to more than 7.8 million square metres last year. Seventy-two percent of these larger shopping centres are in the five metropolitan areas.

“The market must be sustainable, with adequate supporting households and enough disposable income. With this in mind, the demand for retail space will keep increasing in Gauteng and the Western Cape.”

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