The Zambezi Mall opened in 2010 and rebranded Tshwane China Shopping Mall is situated in north-east Tshwane and has fallen into a state of neglect and disrepair. It should never have been allowed or built. A quick examination of this regional shopping centre trade area shows it faces significant problems. From an accessibility point of view, it is well-positioned but constrained by mountain ridges and a total lack of demand within its trade area.
Several years ago, when discussing the opportunity of opening up motor dealerships in the Silverton area, developers indicated that there would the densification of the area to the north of Eersterust, which has not happened. Furthermore, with the large number of shopping malls on Sefako Makgotho Dr, such as Kolonnade Shopping Centre and several regional and neighbourhood centres, it could be argued that this shopping mall was a non-entity from the beginning.
But it is not only Tshwane China Shopping Mall that faces these problems. Many shopping centres as reported by BusinessTech are closing down or have low occupancy rates. This includes Fourways Mall, Killarney Mall & Brooklyn Mall. The question then is – who should be held accopuntable for this? Is it the overzealous property developer who is not doing enough detailed feasibility studies? Or is it the consultants conducting the feasibility studies who are not approaching the exercise holistically? At the end of the day, one must wonder what responsibility local municipalities have in this.
Accessibility Studies Ensure Market Alignment & Sustainable Mall Development
A mall’s accessibility to its target market is a key factor that requires conducting proper accessibility studies that consider both travel time and having sufficient consumer capacity within its trade area to be financially viable. Studies have shown that changing demographics within a shopping mall’s trade also impact the viability of many shopping centres in the country (eg Brooklyn Mall). To realistically look at the viability of a shopping mall one has to define its trade area and have access to geospatial data including the size of the residential and working population, their consumption patterns, and the proximity to competitor shopping centres.
Understanding the traffic volumes passing a shopping centre is vitally important but one must distinguish between transient traffic and that which reflects the more permanent demographics of the area. Having this information enables the shopping centre to develop an appropriate mix of retail shops. The consequence of not doing proper accessibility studies for new shopping malls is it creates permanent infrastructure that will either need to be upgraded, modified or torn down if not financially successful (eg Elardus Park Mall).
What it also does is that it impacts significantly on especially small independent businesses that have taken up floor space within the shopping malls. They not only lose their sources of revenue, but it results in a significant loss of employment for their staff. In instances like Tshwane China Shopping Mall & Elardus Park Mall, investors poured millions into the project, with many of them investing their pensions, which resulted in them losing their retirement funds.
The broader trend of declining mall occupancy rates, especially in regions like Gauteng, where market saturation is higher, suggests that overzealous expansion without conducting accessibility studies and careful market alignment is leading to long-term challenges. This is exacerbated by changing consumer preferences and South Africa’s economic downturn. Moving forward, developers and local municipalities must work in tandem, using accessibility studies with appropriate geospatial data to ensure a sustainable network of shopping malls that can thrive, meet market demands, create jobs and contribute to the economy despite the many external challenges they may face.
To read more about about conducting an accessibility study for shopping malls or retail outlets click here