Crescat Boulevard gets a facelift
The Crescat Boulevard, adjacent to Colombo’s Cinnamon Grand hotel, will be revamped in a few months.
A property belonging to the John Keells Group, the shopping mall and food court at Crescat will be shut down for a major re- haul by next February, a John Keells Holdings top official told the Business Times. He said that last year’s Easter Sunday attack had impacted the profitability of the mall and had pressed them to explore more options for this property at the heart of Colombo.
“The business was very much affected due to the April 21 attacks. The tenants were not making profits. We realised that the bottomline was getting squeezed," the official said. He also noted that numerous malls being opened compelled them to rethink the strategy for Crescat Boulevard, famously known as Crescat, a three floor, modestly-sized shopping centre along the busy Galle Road in Colombo 3. It is one of the first luxurious shopping malls in Sri Lanka, with high-end retail shops and food court. The shopping mall houses two floors of designer stores, exclusive boutiques, bookshops, food arcade and supermarket.
Hyper malls like Colombo City Centre (CCC), owned by the Abans Group, and Singaporean company, SilverNeedle Hospitality, opened one year ago and Shangri-La hotel mall, One Galle Face opened just last week bringing in fierce competition to this segment. CCC has 210,000 square feet of retail space and One Galle Face consists of 490,000 square feet.
The official said that this prompted them to reposition Crescat and elevate its composition. “We will be having a different mix of tenants after we reopen which will include offices and a food court," he said.
The supermarket concept was initiated in Sri Lanka with the departmental stores of Cargill’s and Millers, during the colonial period. Now most shopping malls are essentially mixed- use businesses that incorporate social entertainment options, offer a unique appeal along with a sizeable depth of shopping experience, and are in prime destinations that are easily accessible by both public and private transport.
After the war, the rapid urbanisation and digitisation, led investors to believe that Colombo will have increasing disposable incomes and lifestyle changes of the middle-class leading to a major revolution in the retail sector. It is happening, but slower than anticipated.