With a gamut of retail products and services offered under one roof, ‘Destination Malls’ format has emerged as an ‘one-stop solution’ in Bengaluru’s retail scene.
Destination Malls is defined by realty as a large regional centre consisting of an expansive array of retail, food and entertainment options under one roof.
“This format has been observed to be successful in Bengaluru, but its success rate is dependent on a host of factors like the location and primary catchment area,” Shrinivas Rao, CEO-Asia Pacific, Vestian told BusinessLine .
“Phoenix Market City, in the eastern part of the city, can be considered as a prime example of this format. This mall offers a gamut of retail products, services and occupier profile which comprises apparel and footwear, skin and healthcare services, cosmetics, gaming, entertainment, food and beverage, hypermarket, consumer electronics and home decor,” he added.Make or break
Although the primary catchment area for this mall is essentially the Whitefield area; however, it transforms into a weekend destination hosting consumers from across the city. Rao said: “Also the presence of another mall in the vicinity (the VR Mall situated right next to Phoenix Market) is complementing the consumer needs is an added benefit sure to heighten the growth and success of this leisure and retail destination.”
Quoting a Vestian analysis, Rao said: “Mall within the city limits or in the suburbs, large size, presence of diverse retail options, and conducting events at regular intervals are factors that positively contribute towards the success of this retail concept.”
According to Rao, two factors that may interfere or hinder with the growth of this concept are design, positioning and land costs as this format effectively requires to be spread across at least eight lakh square feet to a million square feet of retail space.Soaring land prices
While the city (Bengaluru) is expanding, the prices continue to sky-rocket even in suburbs and peripheries of the city. Soaring land prices in the city make it difficult for builders to find and dedicate such hefty investments into a venture of this magnitude.
Another challenge to the success of ‘destination mall’ concept is related to its design and positioning.
“A competent infrastructure capable of actively engaging a visitor’s interest for atleast half a day forms the basis of the destination mall concept,” explained Rao.