Tuesday, Mar 27, 2012

Gulf News

Dubai Even as Dubai’s retail sector writes a remarkable turnaround story, the Oasis Centre — which has seen its share of highs and devastation — will stick by what it has learnt well in the past three years. And for good reason too.

Last year, the mid-tier mall — which reopened in 2009 after fire gutted the original property — recorded a more than 20 per cent increase in visitor traffic. The gains were driven by the mall’s emphasis on not focusing overwhelmingly on retail. Fitness facilities were given a strong push and so were the newly introduced casual dining concepts.

In short, leisure and entertainment are doing their part in pulling in the traffic, with the weekends recording an average 40 per cent higher footfall than on weekdays.

“On account of the addition of wellness and fitness tenants, we have seen a change in the profile of visitors,” said Neelesh Bhatnagar, director at the mall, which is part of the Landmark Group. “We have an increased number of habitual visitors who actually frequent the mall more than four times a week, leading the weekday traffic to increase by over 30 per cent over the previous year.”

To get a line on habitual visitors, more than 70,000 square feet have been dedicated to fitness and wellness options, with some of these brands occupying choice positions on Level 3. These, together with the retail options, will ensure the momentum is carried into this year as well.

“2012 looks good with both tourism and the local job market getting better. The UAE has reinforced its position as a safe haven for business and trading and as a residential hub in the Middle East.

Same formula

“Retail has also emerged as one of the sectors driving sustainable growth for the economy, [thus] bringing a focus back on the industry.”

With the initial three-year leases drawing to a close, the mall management is sticking to the same formula for the majority of its tenants. Incidentally, longer term leases, of five years and more, are starting to be more than a novelty in the UAE retail sector. Some of the newer malls, according to industry sources, are already using this tactic to draw in key tenants and commit them to longer tenures.

“While anchor stores are offered a longer lease period, this is still not as long as ten years and most often depends on our negotiations with the tenant,” said Bhatnagar. “We have not considered offering ten-year leases.”

A key source of strength for the mall has been its umbilical ties with the Landmark Group, whose portfolio of retail brands makes up 76 per cent of the tenant base. While that offers the Oasis Centre a committed base irrespective of market dynamics, on the flip side it leaves the mall with limited leeway to tap outside retail brands.

Bhatnagar, not surprisingly, does not see it that way. “At this point we do not have space for new retail outlets to be opened,” he said. “The balance [24 per cent] is occupied by various stores from leading retail groups like Al-Futtaim, Apparel, Alshaya, Rivoli, Lals and Americana. In the past six months seven stores have opened.

“The Oasis Centre actually has a well-balanced mix at the moment. While fashion and apparel brands do seem to dominate, this is reflective of any mall in the region.”

By Manoj Nair?Associate Editor

Gulf News 2012. All rights reserved.