May 23 rd 2012 THE NEED FOR MALLS L ife is rather hectic Time has become a valuable factor People are looking for more convenience in their lifestyles The MALL concept offers a rather appealing choice of recreation ID: 489625
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Slide1
Malls Presentation
May 23
rd, 2012Slide2
THE NEED FOR MALLS
L
ife
is rather hectic.
Time
has become a valuable factor. People are looking for more convenience in their lifestyles. The
“MALL” concept offers a rather appealing choice of recreation.
“We used to build civilizations. Now we build shopping Malls”
(
Bill Bryson)Slide3
Different Shopping ExperienceSlide4
Rent vs. Cost of Doing Business
Beirut has the most expensive retail rent in the Middle East, it’s ranked as the 30
th
most expensive city in the world. The rent of retail space is more expensive than Stockholm, Helsinki or even Luxembourg
(The Daily Star, Cushman & Wakefield Consultants)
Infrastructure Impact
Enhancement of infrastructure inside and around the malls
Utilities charges (electricity, gas, water, etc…) have become encumbering
Changing Policy
Inflation is increasing (5.2% in 2011 and 6% in 2012 – CIA )
Salaries Increased Dramatically
Increase in municipality Taxes
Built Up Property Taxes
Income Taxes
Increase in VAT will lead to a decrease in sales
Corruption increased to record high
Safety & Security Impact
Political turmoil necessitates
the need for additional security measures adding the costsSlide5
Retailers on the Move
Changing patterns of consumer behavior:
Demographics are changing
Shopping habits have evolved
Meeting points
Time of transformation create opportunities
Modern retail vs. traditional retail
Smaller more efficient stores, multiple locations
Changing trends: retailers must adapt business models
Encouraging frequent shopping
Improved merchandising
Customer service
Entertainment and shopping
Targeting and attracting consumers
Benefitting from the others Slide6
Malls - Who is Benefiting?
A Win-Win Situation for All
Consumers
Merchandising mix offers wider
choices
Competition decreases price
Offers
and promotions
Improved client service
Leisure and entertainment
Easy Parking
Retailers
Faster Growth; Open new stores
Good locations give better exposure benefitting from inflow of clients
Marketing
Specialized Retail
Higher standards
Mall Developers
Long Term investment
Higher returns
Contributing in urban sustainability
Government
Generation of Tax Revenue (Built up, Municipality, VAT, contracts, Income Tax)
Construction Permits (large
sqm
)
Improved collection
Utilities revenues (electricity, phones, internet, etc.)
Employment revenues (taxes, NSSF, etc.)
Corruption