final_report

MALL MANAGEMENT To study the present practices in Indian malls & need of effective Mall

Management

Dissertation Project

Project Guide - Prof. R.P. Sharma

SUBMITTED BY-

REKHA

ROLL NO-33

MBA (I) 2009-11

INDIAN INSTITUTE OF FOREIGN TRADE

2

Certificate

This is to certify that the Dissertation Project titled “Mall Management.” submitted by Rekha,

Roll No. 33, of Indian Institute of Foreign Trade, Kolkata is a bona fide record of her own work

and has been successfully completed under my supervision and has not been submitted

elsewhere for the award of any degree.

Date

Place

Dr. R.P.Sharma

3

Acknowledgement

I would hereby like to place on record my sincere thanks to all those who have been related to

this project in any way.

I would like to thank Dr.R.P.Sharma, my project guide for taking out time from his busy

schedule and constantly guiding me throughout the project duration.

I sincerely hope that my work would do at least some justice to the efforts of all those who

supported me in my endeavors.

Date

Place

Rekha

Roll Number 33

MBA (IB) 2009-2011

Indian Institute of Foreign Trade

4

Table of Contents

Executive summary/Foreword……………………………………………………………...……..5

Introduction……………………………………………………………………………………......6

Objective and scope …………………………………………………………………………....…6

Definitions (mall management terminology)………………………………………………...……7

History of malls worldwide…………………………………………………………………..….11

Types of shopping center…………………………………...........................................................12

Component/composition of a mall…………………………………………………………….…16

Shopping Center Quality Index……………………………………………………………….....17

Forbes list of world largest shopping malls …………………………………………….……….19

Different divisions of mall management………………………………………………..…….….26

a. Facility management

b. Mall positioning/location selection

c. Zoning

d. Promotions/marketing

e. Infrastructure management

f. Traffic management

g. Ambience management

h. Finance management

Study of some malls in Kolkata & Delhi………………………………………...………………30

Issues related to mall management in the Indian retail market……………………………..……37

Conclusion………………………………………………………………………………….……38

Bibliography & References………………………………………………………………………39

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EXECUTIVE SUMMARY-

Until recently, street markets and bazaars were the top performers in the Indian retail space, and

they contributed immensely to sales. Traditional market platforms now have to imitate malls by

creating a better overall shopping experience for potential customers by offering a mix of diverse

products - including food and beverage as well as entertainment outlets - preferably under one

roof, like malls do.

A consumer is attracted to a mall because of the availability of world-class ambience and

services, exposure to a multitude of brands, tempting promotional offers and significant periodic

discounts. The superior ease of shopping in air-conditioned, aesthetic comfort as well as access

to a variety of food options are added incentives to mall visitors Mall management has been

identified as a critical factor for the success of malls and the retail industry across the world.

The Indian retail market is expected to continue its growth trajectory in coming years. Mall

management broadly includes mall positioning, zoning, tenant mix, promotions/marketing and

facility/finance management.

Currently, the Indian retail market lacks designated mall management firms. Large real estate

developers and retail chains either have their own mall management arms operating as

subsidiaries or have contractual agreements with international property consultants. Rising

competition has caused mall developers to focus on core competencies and accurately researched

offerings to their target customers. To begin with, they attempt to understand the shopping needs

of customers in their focus 'catchment' areas. Then, they proceed to build a well-planned bouquet

of retail options that addresses the needs of those consumers. On their part, retailers have become

a lot more vigilant in terms of expansion and evaluate specific dynamics and profitability of each

location more carefully than ever before.

Till recently, mall management was limited to facility management by a majority of developers

in India, leading to gaps in mall management practices. Given the high future of malls and

increasing competitiveness within the Indian retail market, there is an ever-increasing need for

effective mall management.

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INTRODUCTION

Malls have been there in India since a fairly long time; still many new are coming up in tier II

cities and metropolitan cities. Mall culture is evolving and organized retail is expanding in India

like never before. It‟s just not a place for shopping anymore; in fact Malls have become a

socializing place where go for entertainment, get together and fun.

Though mall culture began over a decade ago, but the profitability of these mall have already

started declining .Many malls are running into losses, relevant footfalls are low and no

differentiation of services offered by them. The main reason being that mall management

practices are not effectively implemented. People are not delighted and they are not able to

differentiate between various malls. The success of a mall is not achieved only by housing the

best mix of retailers, but also by setting up new standards and procedures in mall management

that will provide a platform to differentiate its products and services from competitors. This

study will cover all aspects of mall management that overall improves the appeal and

profitability of the mall. In the long run, it helps to serve the customers‟ expectations and

differentiate it from the competitors and successfully serve the expectations of growing mall

market.

Objectives and scope:

The main objectives and the scope of this study are to understand the emergence of mall culture

in India. To understand the importance of mall management and how effective management

practices mall can contribute to increased mall business and delighting the customers in this

growing mall maniac culture.

Rationale behind this study

1. Mall market developing at a fast pace, but still its business is declining.

2. Most of the malls are not working out well in terms of attracting relevant footfall, serving

customers expectations and delighting them.

3. Increasing competition due to opening up of new malls in both urban and semi-urban

areas but challenges faced in terms of their long term sustainability.

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Definitions (mall management terminology)

Anchor stores-

The largest retail outlets, usually located at the ends or corners of shopping centers, and chosen

in part for their potential to attract customers to the shopping center generally; departmental

stores usually anchor regional and super-regional malls and supermarkets are typical anchors.

Arcade-

An entertainment area offering coin operated computer games and other amusements.

Back of the house-

the office ,stock room, and other non-retail areas of a store.

Big box-

a large stand-alone store that specializes in a single line of products, such as home

improvements, toys, or office supplies; no frills discount stores that sell in volume and category

killers are often big box stores.

Cart-

a wheeled display from which merchandise is sold in pedestrian areas of a mall, often fitted out

with shelves, display racks, and the like.

Cash Wrap-

the front counter with the cash register and often a wrapping or packing area.

Category killer-

a large national chain store specializing in one line of products such as home improvements,

office supplies, or toys, that can overwhelm both smaller and more diverse competitors because

of its size, variety of merchandise, and prices.

Community room-

an area available for public use,ranging from a bare meeting room that can accommodate folding

chairs and tables to a more elaborate hall with stage, adjacent kitchen, and other services.

Double dumbbell shape-

a cross-shaped shopping center with anchor stores at the end of each cross.

Draw tenant-

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a store that attracts a large number of potential customers to a shopping center, often an anchor

store.

Dumbbell-

a linear shopping center with anchor stores on each end.

Factory outlet-

a retail store that sells merchandise direct from the manufacturer, usually at reduced prices.

Food court-

a separate area of a shopping center containing fast-food outlets and a common seating area.

Free standing store-

a retail outlet not associated with a shopping center,especially those at a distance from congested

shopping areas and downtowns.

Gross leasable area (GLA)-

total floor space available for retail sales,usually in square feet.

Junior department store-

(1)a small department store offering a limited selection of goods;

(2) a scaled down version of a full-sized department store.

Kiosk-

a semi-permanent booth placed in pedestrian areas of a shopping center and used to sell small

items or to offer specific services, such as jewellery repair.

Mall rat-

a young person who frequents a shopping center primarily for socializing and entertainment,

rather than for shopping.

L-shaped –

a shopping center with two linear strips of stores connected at right angles, forming the letter L;

anchors are typically located on the two ends or at the ape, with parking inside the apex; L-

shaped is a common design for community-sized centers.

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Mall manager-

the person employed by the owner or a management company to supervise daily operations of a

shopping center.

Mall mayor-

the retailer who acts as the informal spokesperson for the tenants of a shopping center.

Mall walker-

the person who walks in a shopping center for exercise, especially during a period set aside for

this purpose before stores have opened in the mornings.

Market area-

the geographical area from which a shopping center draws its customer.

Off-price center-

a retail store that sells brand-name clothing or other goods (often with labels removed) at

reduced prices.

Outlet tenant-

a free standing retailer or service located on a separate parcel in front of a shopping center; also

called a pad tenant.

Outparcel-

(1) a physically separate store or service, such as a restaurant, bank, office, or motel,

included in a shopping center‟s property

(2) unoccupied land on a shopping center‟s property

Shrinkage-

(1) difference between value of inventorised merchandise and merchandise book value,

attributable to waste, shop wear, carelessness, fraud, theft, and so on;

(2) more specifically, loss of merchandise due to shoplifting, usually reported as a percentage

of sales

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T-shaped –

A shopping center compromising two linear arrays of stores forming the shape of the letter T,

with anchor stores at each of the three ends and parking on all sides.

Tall-wall stall

A temporary display and counter built against on empty wall

Temporary tenant-

typically, a retailer that rents space in a common area for a cart, kiosk, tall-wall stall for less than

a year.U-shaped , linear array of stores forming the shape of the letter U, with anchors placed in

the center or on the ends and parking inside the U.

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HISTORY OF SHOPPING MALLS

The first structure resembling what is considered to be a "shopping mall" in the present-day is

located in The City of Damascus, the capital city of Syria. It is called Al-Hamidiyah Souq in

old Damascus and dates back to the seventh century. Isfahan's Grand Bazaar, which is largely

covered, dates from the 10th century. The 10 kilometer long covered Tehran's Grand Bazaar also

has a long history. The Grand Bazaar of Istanbul was built in the 15th century and is still one of

the largest covered markets in the world, with more than 58 streets and 4,000 shops.

Gostiny Dvor in St. Petersburg, which opened in 1785, may be regarded as one of the first

purposely-built mall-type shopping complexes, as it consisted of more than 100 shops covering

an area of over 53,000 m2(570,000 sq ft).

The Oxford Covered Market in Oxford, England opened in 1774 and still runs today.

The Burlington Arcade in London was opened in 1819. The Arcade in Providence, Rhode

Island introduced the retail arcade concept to the United States in 1828. This was a forerunner of

today's shopping mall [4]

The Galleria Vittorio Emanuele II in Milan, Italy followed in the 1870s

and is closer to large modern malls in spaciousness. Other large cities created arcades and

shopping centres in the late 19th century and early 20th century, including the Cleveland

Arcade, Dayton (Ohio) Arcade andMoscow's GUM, which opened in 1890. Early shopping

centers designed for the automobile include Market Square, Lake Forest, Illinois (1916)

and Country Club Plaza,Kansas City, Missouri (1924).

An early indoor mall prototype in the United States was the Lake View Store at Morgan

Park, Duluth, Minnesota, which was built in 1915 and held its grand opening on July 20, 1916.

The architect was Dean and Dean from Chicago and the building contractor was George H.

Lounsberry from Duluth. The building is two stories with a full basement, and shops were

originally located on all three levels. All of the stores were located within the interior of the mall;

some shops were accessible from inside and out.

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Types of Malls/Shopping center types-

Neighborhood center-

This is designed to provide convenience shopping for the day-to-day needs of consumers in the

immediate neighbourhood.Mostly half of these centers are anchored by a supermarket, while

about a third have a drugstore anchor.

A neighborhood center is usually configured as a straight-line strip with no enclosed walk-away

or mall area, although a canopy may connect the storefronts.

Community Center-

It typically offers a wider range of apparel and other soft goods then the neighborhood center

does. Among the more common anchors are supermarkets, super drugstores, and discount

department stores. Community center tenants sometimes contain off-price retailer selling such

items as apparel, home improvement/furnishings, toys, electronics or sporting goods.The center

is usually configured as a strip, in a straight line, or L or U shape.

Regional center-

This type of center provides general merchandise ( a large percentage of which is apparel) and

services in full depth and variety. Its main attractions are its anchors: traditional, mass merchant,

or discount department stores or fashion speciality stores. A typical regional center is usually

enclosed with an inward orientation of the stores connected by a common walkway and parking

surrounds the outside perimeter.

Specialty center/ Fashion-

A center composed mainly of upscale apparel shops, boutiques and craft shops carrying selected

fashion or unique merchandise of high quality and price. These centers need not be anchored,

although sometimes restaurants or entertainment can provide the draw of anchors. The physical

design of the center is very sophisticated, emphasizing a rich décor and high quality landscaping.

These centers usually are found in trade areas having high income levels.

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Power center-

A center dominated by several large anchors, including discount department stores, off price

stores, warehouse clubs, or “category killers” , i.e. stores that offer tremendous selection in a

particular merchandise category at low prices. The center typically consists of several

freestanding (unconnected) anchors and only a minimum amount of small speciality tenanats.

Theme/Festival center-

These centers typically employ a unifying theme that is carried out by the indivisual shops in

their architectural design and, to an extent, in their merchandise. The biggest appeal of these

centers is to tourists; they can be anchored by restaurants and entertainment facilities. These

centers, generally located in urban areas, tend to be adopted from older, sometimes historic

buildings, and can be part of mixed use projects.

Outlet Center-

Usually located in rural or occasionally in tourist locations, outlet centers consists mostly of

manufacturers‟ outlet stores selling their own brands at a discount. These centers are typically

not anchored. A strip configuration is most common, although some are enclosed malls.

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General Characteristics of Shopping Centers

Type of center Typical

gross

leasable

area

(sq. ft)

Gross

leasable

area range

(sq. ft)

Minimum

site area

(acres)

Primary

trade

area

radius

(miles)

Primary

trade area

drive time

(minutes)

Minimum

population

support

required

Convenience 20,000 15,000-

30,000

-

Neighbourhood 50,000 30,000-

100,000

3-10 5-10 3000-40,000

Community 150,000 100,000-

450,000

10-30 3-5 10-20 40,000-

150,000

Regional 450,000 450,000-

900,000

10-60 8 20 150,000+

Super- regional 900,000 500,000-2

million

15-100+ 12 30 300,000+

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Type of shopping center tenants

Convenience Neighbouhood Community Regional/super-

regional

Minimart supermarket Junior department

store

Full department store

Restaurant drugstore Discount department

store

Fashion department

store

Beauty parlours Discount department

store

Supermarket Megaplex

Dry cleaners Restaurants Off-price superstore Entertainment center

Fast food service Furniture store Variety store Foodcourt

Medical /dental office Hardware store Family wear store Large format speciality

store

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COMPONENTS OF A MALL

Food court

A common feature of shopping malls is a food court: this typically consists of a number of fast

food vendors of various types, surrounding a shared seating area.Here, it is important to maintain

the right airflow direction to avoid food odours leaking to atriums and subsequently to all the

other areas of the building. Also, proper ventilation air quantity should be planned so as to

provide for air exhaust from the kitchen.

Department stores

When the shopping mall format was developed by Victor Gruen in the mid-1950s, signing larger

department stores was necessary for the financial stability of the projects, and to draw retail

traffic that would result in visits to the smaller stores in the mall as well. These larger stores are

termed anchor store or draw tenant. Anchors generally have their rents heavily discounted, and

may even receive cash inducements from the mall to remain open. In physical configuration,

anchor stores are normally located as far from each other as possible to maximize the amount of

traffic from one anchor to another.

Stand-alone stores

Frequently, a shopping mall or shopping center will have satellite buildings located either on the

same tract of land or on one abutting it, on which will be located stand-alone stores, which may

or may not be legally connected to the central facility through contract or ownership. These

stores may have their own parking lots, or their lots may interconnect with those of the mall or

center. The existence of the stand-alone store may have been planned by the mall's developer, or

may have come about through opportunistic actions by others, but visually the central facility –

the mall or shopping center – and the satellite buildings will often be perceived as being a single

"unit", even in circumstances where the outlying buildings are not officially or legally connected

to the mall in any way.

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Shopping Center Quality Index-

Quality of shopping malls in terms of building quality is one of the most important factors. An

overall ranking of various factors affecting the success of shopping center can be done by taking

various base quality parameter categories that constituents S.Q.I

1 Building Presentation -exterior design

-interior design

2 Mall management -security & access

-maintenance

-parking management

3 Functionality -structural design

-store size

4 Service & Tenancy -tenant mix

-effective space

-toilet

-power supply

-lighting supply

5 Access & circulation -circulation of person

-circulation of merchandise

-accesibility

-signage

6 Facilities -horticulture

-restaurants, food court

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-multiplex

-bank, ATM

-playground/game station

-employee facility

7 Scope for other entertainment -places for events

-common area

8 Developer past experience -financial strength

-past retail/mall experience

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World's 10 Largest Shopping Malls

Ten shopping malls rank as the world's largest, based on the amount of "Gross Leasable Area"--

the number of square feet the property has for revenue-generating activities like retail, dining and

amusements. Asia is home to eight of the world's 10 largest malls, six of which were built in the

last three years. Rankings are based on statistics from Eastern Connecticut State University,

which compiles data from mall management companies.

1.South China Mall

Location: Dongguan, China

Year Opened: 2005

Gross Leasable Area: 7.1 million square feet

In the Chinese mall arms race, this facility opened a year after the Golden Resources Mall to

displace it as the country's and the world's largest. The space includes wind mills and theme

parks, plus a replica of the Arc de Triomphe.

2.Golden Resources Shopping Mall

Location: Beijing, China

Year Opened: 2004

Gross Leasable Area: 6 million square feet

Not sprawling, this is a stacked-up five-story mall. Approximately 1,000 stores, selling plenty of

familiar global brands like Nike and DKNY. A truly ambitious real estate project, with new

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apartments and offices, surround the mall. A tough location outside the heart of the city has

resulted in disappointing traffic from foreign tourists.

3.SM Mall of Asia

Location: Pasay City, Philippines

Year Opened: 2006

Gross Leasable Area: 4.2 million square feet

Includes the first Olympic-sized swimming pool and first IMAX theater in the Philippines.

Spread over four buildings, customers can get around on a 20-seat tram.

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4.Cevahir Istanbul

Location: Istanbul, Turkey

Year Opened: 2005

Gross Leasable Area: 3.8 million square feet

Europe's largest shopping mall has a roller coaster, wave pool and several IMAX theaters.

5.West Edmonton Mall

Location: Edmonton, Alberta, Canada

Year Opened: 1981

Gross Leasable Area: 3.8 million square feet

The biggest in North America, the West Edmonton Mall has over 800 stores, along with

attractions like a water park, skating rink, casino and rides.

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6.SM Megamall

Location: Mandaluyong City, Philippines

Year Opened: 1991

Gross Leasable Area: 3.6 million square feet

Fun stuff includes bowling, ice skating and a 12-cinema movie theater, along with traditional

mall fare like arcade games. Customers can also get a haircut or see a doctor at the Manila clinic.

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7.Berjaya Times Square

Location: Kuala Lumpur, Malaysia

Year Opened: 2005

Gross Leasable Area: 3.4 million square feet

Built with an adjacent hotel and convention center. In addition to over 1,000 retail shops, the

mall includes a 12-story-high roller coaster, plus a pool, skating rink and "Cosmo's World," a

children's theme park.

8.Beijing Mall

Location: Beijing, China

Year Opened: 2005

Gross Leasable Area: 3.4 million square feet

The first real suburban mall in China, located about an hour from downtown Beijing, this center

has four levels with parking for 8,000 cars, plus a man-made beach. Bootlegged DVDs of

American movies are a top seller.

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9.Zhengjia Plaza

Location: Guangzhou, China

Year Opened: 2005

Gross Leasable Area: 3 million square feet

Has been known to attract over half a million shoppers on a good day. Another mixed-use space,

the mall has a hotel and office tower in addition to retail stores.

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10.SM City North Edsa

Location: Quezon City, Philippines

Year Opened: 1985

Gross Leasable Area: 3 million square feet

The first major "mega mall" built by SM Prime Holdings, which now claims three of the largest

10 in the world. It's a five-story complex that boasts over 100 retail outlets and restaurants, along

with 12 cinemas, a bowling alley and skating rink. An IMAX theater could be added soon.

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Mall Management

Globally, mall management broadly includes:

-positioning a mall

-zoning – formulating the right tenant mix and its placement in a mall

-promotions and marketing

-facility management – infrastructure, traffic and ambience management

-finance management

Positioning a mall

Positioning a mall refers to defining the category of services offered based on demographics,

psychographics, income levels, competition in neighbouring areas and extensive market research

of the catchment. For example, if the market research indicates that the average number of

households living in a particular area belongs to the upper middle class, then a high-end retail

mall would suit the location. An example of this practice can be seen in the upcoming malls,

Select City Walk in Saket and DLF‟s Emporio in Vasant Kunj. We believe that these retail

developments are prime examples of good mall positioning. These malls have been specifically

designed after an extensive market research, based on the catchment area of South Delhi. The

malls provide high-end luxury products catering to the elite class (socio-economic classification

A and B consumers) residing in South Delhi. Positioning also refers to the location of the

shopping mall. A good location defined in terms of factors like ease of access via roads, good

visibility, etc. is considered as one of the prime prerequisites for a mall. Although other activities

such as trade/tenant mix can be revisited or redefined, the location remains fixed, making it an

imperative factor for a mall.

Zoning –

Formulating the right tenant mix and its placement in a mall. Tenant mix refers to the

combination of retail shops occupying space in a mall. A right tenant mix would form an

assemblage that produces optimum sales, rents, service to the community and financiability of

the shopping mall venture.

Zoning refers to the division of mall space into zones for the placement of various retailers. A

mall is dependent on the success of its tenants, which translates to the financial feasibility of the

tenant in the mall. Generally, there are two types of consumers visiting malls – focused and

impulse buyers. The time spent by focused buyers in malls is relatively lower compared with

impulse buyers who also enjoy

window shopping. There is little that retailers can do to attract focused buyers as they usually

know what they require and from where. However, right tenant mix and optimum retailer

placement after a diligent zoning exercise can help retailers attract both types of consumers,

especially the impulse buyers.

Formulating the right tenant mix based on zoning not only helps attract and retain shoppers by

offering them multiple choices and satisfying multiple needs, but also facilitates the smooth

movement of shoppers within the mall, avoiding clusters and bottlenecks. This helps influence

shoppers‟ mall preference and frequency of visits. It also helps in building a distinct image in the

minds of shoppers, which is critical considering the robust upcoming supply of malls.

27

The selection of the right anchor tenant plays a crucial role in establishing a good tenant mix.

The anchor tenant is defined as the largest occupier in a mall in terms of square feet. Vanilla

retailers cluster around the anchor and feed off the shopping traffic it generates. The successful

execution of the zoning exercise for a mall is carried forward through lease management on an

ongoing basis. Forging good leases with retailers is an essential part of ensuring the presence of

the right retailers in a mall. The Forum Mall in Koramangalam, Bangalore is an example of

a successful mall led by good zoning and tenant-mix mall management practices.

Promotions and marketing

Promotional activities and events in a mall form an integral part of mall management. Activities

like food festivals, handicraft exhibitions and celebrity visits increase foot traffic and in turn

sales volumes. Organising cultural events has time and again proved vital in attracting consumers

to a mall. Such activities may also act as a differentiator for a mall. Developers can work on

drafting marketing strategies for individual malls to meet the needs of the local consumer base

and the challenges of local, and in some cases, regional competitors.Ansal Plaza, the first mall in

Delhi, is an example of a successful mall led by good promotions and marketing mall

management practices.

Different divisions of mall management

Facility management

Facility management refers to the integration of people, place, process and technology in a

building. It also means optimal utilization of resources to meet organizational needs. It

broadly includes infrastructure, ambience and traffic management.

Infrastructure Management –

Infrastructure management refers to the management of facilities provided to the tenants

within the mall. This includes provision of adequate power supply, safety issues in case of

emergency and miscellaneous issues related to signage, water supply, sanitation, etc. as

shown in Figure 1. These form an integral part of mall management as they are the basic

amenities that any tenant would look for in a mall. Infrastructure management also includes

risk management issues such as essential safety measure asset liability and environmental

audits as well as emergency and evacuation training.

Ambience Management –

The overall shopping experience provided for consumers becomes an important factor for the

success of any mall.

Ambience management includes management of parks, fountains and overall look of the

mall. A mall is not just a place for shopping but is also a place where people spend their

leisure time. In favourable, lush green landscaping with seating facilities and the presence of

food and beverage inside or outside the mall can increase foot traffic.

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Traffic Management –

Traffic management includes managing foot traffic into the mall and parking facilities. Foot

traffic management involves crowd management inside the operational area of a mall. The

flow of people is related to the design of the mall and the spatial distribution of its tenants.

For example, a star-shaped mall tends to have a problem of crowding in the centre

of the mall, as everyone has to pass through the centre while moving from one side to the

other.

Circular malls, on the other hand, would not have this problem. They tend to have better

pedestrian flow and less congestion. Managing parking facilities includes provision of ample

parking and maneuvering of cars in the parking lot.

Finance management

Professional financial management of a mall as a business venture is a must. Mall

management also covers financial management, which involves monitoring and controlling

of various issues such as:

-Cash receipts and collection of income including rentals, service charges, car park receipts,

electricity and other utility income

-Developing standard financial templates so that a detailed annual property budget is

prepared

- Developing accounting systems to track the ageing of debts, payment delay patterns, bad

debts and payment of all invoices and expenses

-At times, organizing resources to deliver an efficient and effective annual external audit.

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Inorbit Mall in Mumbai

This mall built by K Raheja Corp is a good example of facility management in a mall. It has

two anchor stores placed at the two corners of the mall. There are three entry points, one each

from the two anchor stores and another entry directly to the mall atrium. With three entry

points, traffic management within the mall is better organized.

The mall also provides ample parking space and superior infrastructure management. The

Inorbit Mall commands higher rental values of INR 175 per sq ft per month compared with

other malls in the north-western suburbs of Mumbai with average rental values of INR 135

per sq ft per month in 4Q06, indicating it‟s success story.

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(SOME MALLS OF DELHI & KOLKATA)

Malls in Kolkata

City Centre:

This project, promoted by industrialist Harshvardhan Neotia, and located at Salt Lake, has been

designed by one of India‟s best known architects, Charles Correa. „City Centre‟ is a dynamic mix

of shopping mall, Cineplex (INOX), entertainment area, food court, offices, and residences-

nestling amidst open spaces, lush greens, and the contours of an ideal cityscape. Big brands like

Shopper‟s Stop and Adidas have set up their shops in the complex. There are several aspects to

„City Centre‟; with no boundaries to separate it from the street, it is open to everyone- all income

and age groups. The Complex has a parking space for as many as 800 cars, 14 entry and exit

points, and large spaces to amble around. The „City Centre‟, which is the single-largest

architectural endeavor in Kolkata in recent times, has truly changed the way the city looks, and

complements the city‟s artistic heritage. The location of the project makes Salt Lake the

epicenter of not just its immediate population (nearly half a million), but also of the upcoming,

adjoining township of Rajarhat (with an expected population of about 750,000).

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Forum:

It is a two lakh square feet mall, situated on Elgin Road , in South Kolkata with Shopper‟s Stop

as anchor .This shopping mall established by Sunsam properties within the Saraf Group was

opened to the public in March 2003, with the launch of Shopper‟s Stop. Along with the retail

brands having their outlets, the Forum also houses, a 300 capacity food court and a 4-auditorium

multiplex called INOX. The multiplex, INOX has been the first of its kind in the city, having a

sitting capacity for over 1000 viewers, and situated over 30000 square feet. Hence it can be

really a great experience of shopping and movie-going for the Kolkatans, who do not want to

compromise on the quality aspect. The retail outlets at Forum have witnessed almost 30-35 %

increase in sales after the opening up of the multiplex in 2003. Most retailers are extremely

happy with the growth rate and expect their sales to increase further in the coming months .At

INOX , ticket sales have been averaging at almost 90% of the theatre capacity – the highest box

office sales amongst all the multiplexes in the country . Forum has truly changed the experience

of Kolkatans with regard to shopping and entertainment in the city .

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22 Camac Street:

This large format-shopping complex is located on Camac Street. The retail brands like

Pantaloons, Westside, Pizza Hut , Planet M, Grain of Salt and Add Life , have already set up

their outlets in the complex. It has 4 distinct blocks with a common atrium. The most

advantageous aspect here is its huge parking space in the basement. It also houses smaller multi-

branded outlets. The footfalls stay steady throughout the week and gets to an uncontrollable high

over the weekend .Some of the outlets rank among the leading individual retail outlets of the

country. The total floor area of the complex is 380,000 square feet , and has 4 restaurants and 3

banquet halls.

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MALLS IN DELHI / NCR-

Due to the emergence of the 'Great Indian Middle Class', the country is witnessing a kind of

retail revolution and shopping malls are coming up like mushrooms, to cash in that revolution.

Few years back west Delhi had not even a single shopping mall but today you will a mall here

after every 5 Km ,same is the case with all other parts of the city.

Some Shopping Malls in Delhi

EDM

The East Delhi Mall is popularly known as EDM. It is located at Kaushambi near Ghaziabad.

This mega project is responsible for triggering a major transformation in East Delhi's retail

scene. The East Delhi Mall of Delhi houses not only a shopping complex but also a multiplex,

dining, entertainment, banquet and hotel components. It provides specialty stores spread over 3

floors, 3 screen multiplex with seating arrangement of about 750 people, a vast common sitting

area in the food court, a children's play area, 26 hotels rooms and diverse other options. The East

Delhi Mall has been visualized as the ideal family destination which would be capable of

meeting all the needs of today's families. The Shopping Zone Spread over three floors, the

spacious shopping zone houses a departmental store and specialty stores which include well-

known names such as Cantabil, Spykar, Catmoss, etc.

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The Entertainment Zone

Extending over 50,000 square feet, the entertainment zone houses a 3 screen multiplex (PVR), a

leisure space consisting of a children's play area, virtual reality game stations, internal children's

play land and a large multi-cuisine food court. Popular eateries like Pizza Hut, Mc Donalds, Cafe

Coffee Day, etc are favorite hangouts for mall regulars.

The Banquet and Hotel Zone

The Banquet and Hotel Zones have been designed to ensure that one's needs for privacy are met.

The Banquet halls have a covered area of 24,000 square feet along with an open terrace area of

20,000 square feet.

METRO WALK MALL-ROHINI

The retail environmentat Metro Walk is spread across 2.21 lakh sq.ft and is anchored to

the park. This retail development has both a fun / amusement / impulse driven retail mix

as well as convenience shopping options for an extended catchment area. It overlooks a

large lake which acts as the separator between the mall building and the park. It also has a

small area ( 3.5 acres) dedicated to POGO branding.

There are total 78 retail shops including eating joints. You will find many of the major

brands here.

Food and Beverage Outlets : KFC, Punjabi by Nature, Fast Trax, Spoon the Food Court,

Pizza Hut, Yo China, Nirula's, Pind Balluchi, Flaming Wok, Gola Sizzler, Baskin Robins,

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Ruby Tuesday, Barista, Costa Coffe, McDonald's, Cafe Coffee Day, Geoffrey's and

more..............

Retail Outlets : Adidas, Levis, Reebok, Pantaloon and many more....

MGF Metropolitan Mall

The MGF Metropolitan Mall is a project of the MGF builders. The mall was the second to raise

shutters in Gurgaon or Delhi National Capital Region. The principal attractions of this mall are

PVR Cinemas, McDonald's, OM Book Shop and Shoppers Stop.

The MGF Metropolitan Mall at Delhi incorporates over 150 stores and is a beautifully planned

shopping mall covering an enormous retail space of over 250,000 square feet. A unique feature

of MGF Metropolitan Mall of Delhi is the parking space, which is huge compared to other malls

and extends through three levels.

The MGF Metropolitan administration briskly handles on-road traffic on weekends or special

occasions. They are known to take considerable trouble in managing traffic and helping people

to cross roads to reach the mall, unlike in other malls. The management at the MGF Metropolitan

Mall in Delhi takes excellent care of their resources and customers. Innovative in attitude, they

turn futuristic when it comes to management on important days like Christmas, Diwali and on

other such events. The PVR Cinemas eaters at level 3 of MGF Mall.

AEZ Square Mall

It is situated in Vikaspuri in West Delhi AEZ Square is one of the most posh malls in the city.

The latest venture of the AEZ Group, a leading name in the Indian real estate area, this mall has

set a benchmark as far as architectural planning, designing and construction quality are

concerned. In an attempt to compete with the best retail entertainment centers this masterpiece

created by the AEZ group is at par with some of the best international shopping centers. Apart

from sheltering the best brand names and designer wears this mall also offers exclusive dining,

leisure and other entertainment options. Paradise for shopaholics the AEZ Square is spread

across acres of land. The magnanimity of the mall just leaves you spell bounded. Offering a

plethora of choices, be it shopping, eating out, gaming, reading a book or listening to music this

mall offers everything under a single roof. Be it Mango, Gucci, Reebok or Nike you are sure to

find everything that is a part of your shopping list. Also a famous hangout for most of the youth

of the city this mall witnesses large footfalls on weekends.

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ANSAL PLAZA

Ansal Plaza is a new age shopping destination for shopping connoisseurs in the city. Be it

branded clothes, trendy jewelry, designer items, traditional footwear, body care products or

cosmetics you are sure to find everything out here. Apart from shopping the mall authorities also

in an endeavor to entertain their customers constantly and consistently organize music programs,

art exhibitions, poetry sessions, fashion shows, etc, to make your shopping experience a

memorable one. Ansal Plaza at Delhi is an exquisite sample of contemporary architecture

beautifully landscaped with greenery and fountains. Located at Hudco Place in the heart of

Delhi, it has emerged as a major landmark. The mall offers a climate-controlled environment that

removes the fatigue usually associated with shopping. Careful employment of modern

technology has created well-lighted, spacious and customer-friendly shopping spaces. Complete

with an amphitheater, a shopping complex, twin level parking and best of the brands under one

roof, Ansal Plaza at Delhi offers a complete family experience.

The anchor brands at Ansal Plaza at Delhi are:

Marks and Spencer

Shoppers Stop

CROSS RIVER MALL

Cross river Mall, a dream venture of Suncity Projects Pvt. Ltd. has redifined the business of large

format retailing in East Delhi. The Mall houses top-of-the-line brands in fashion, lifestyle, food

& beverage, entertainment and leisure, all encased in a world class mega ambience that replicates

the best of replicates international retail practices. Located in the heart of Shahdara's Business

District in the vicinity of highly affluent areas like Anand Vihar, Preet Vihar, Rishabh Enclave,

Nirman Vihar, Suraj Mal Vihar etc., this 2.5 lakh sq. feet Mall opens a new genre of cutting edge

retail and entertainment experience to over 4.5 million urban consumers from the area and other

parts of the Capital and the NCR. The Mall arcs over 12,380 metres which flows across 800 feet

in sleek lines coupled with mind blowing landscaping and lighting. A 150 feet wide road to the

front and an 800-feet common frontage lends the plot a distinct locational advantage.

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Issues related to mall management in the Indian retail market-

Lack of Feasibility/Market Research Prior to the Development of a Mall

In the past, some malls were constructed without carrying out a rigorous due diligence exercise

on their feasibility. The market scene is gradually changing wherein more and more developers

are approaching property consultancy firms to conduct feasibility and positioning studies for

their projects.

Zoning –

Landlords/developers tend to lease out retail space on a first-come-first-served basis. This creates

a sub-optimal tenant mix like a food and beverage outlet next to a designer apparel shop instead

of an accessories or a footwear shop.

Design Issues –

At present, most of the popular malls have long queues and congestion outside their main entry

points during weekends and festive seasons. Having only one entry and exit points also leads to

overcrowding. Similarly, the visibility of retail units from all vantage points is poor in many

malls.

Few Promotional Activities –

There are very few promotional activities organised in the majority of malls at present.

Developers perceive that these events only help increase foot traffic and not revenues.

Facility Management –

Good infrastructure/facility management of common areas becomes a problem in malls where

retail outlets are sold as strata title.

Parking –

Many malls in India do not have adequate parking. Since most malls are being built in the city,

developers typically provide basement parking facilities. However, these parking spaces are

inefficient due to low ceiling heights, bad lighting and single entry and exit points.

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Conclusions of the study-

Until very recently, mall management was synonymous with facility management in the mind of

most Indian developers. The realization that they are different and that professional mall

management will affect the long-term viability and success of a mall is being accepted across

developers, landlords and retailers. There are shortcomings pertaining to issues of mall

management in India. To overcome these shortcomings, developers must conduct professional

mall management practices starting from rigorous feasibility exercise or market research to

facilities, ambience and finance management of a mall.

In most of the developed markets, mall management is an established independent service line.

The retail sector in these developed economies is mature in terms of end-consumer demand,

number of retailers and experienced developers. In India, retail is an emerging market having

immense potential in terms of opportunities.

A common practice in developed markets such as the United States and Europe is the use of the

revenue share model in determining rent. Under this arrangement, the tenant will either pay a

fixed monthly base rent as minimum guarantee and/or a „percentage of sales‟ rent, whichever is

higher. This is beneficial for both landlords and retailers as landlords are encouraged to organize

promotional activities that would increase retailers‟ revenues because they may have a

percentage share in it. The model works successfully in bullish and bearish market conditions.

When the market is weak, retailers are protected from rising rental costs. This unique approach is

being adopted by Select City Walk, Delhi. The use of the revenue share model is expected to

gain momentum in the future as more and more Indian developers become corporatized.

To ensure that a mall attracts retailers and consumers, professional mall management is a

necessity. The mall market is an extremely competitive one, having a high degree of internal and

external competition, the latter being from established high-street locations across all cities. To

lure retailers and consumers to its mall, a developer has to ensure that their property follows the

best practices in the market especially in terms of mall management.

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Bibliography & References-

http://property.magicbricks.com/newproperty/img/MallMgt-

low.pdf?Country=Asia&Language=EN

http://en.wikipedia.org/wiki/Shopping_mall

http://www.delhievents.com/2007/06/metro-walk-mall.html

www.forbes.com/.../malls-worlds-largest-biz-cx_tvr_0109malls_slide.html

http://www.indianrealtynews.com/retail-market/mall-management-a-challenge-for-indian-retail-

industry.html

http://www.slideshare.net/decemberstar55/shopping-mall-trade-area-analysis

-Mall management by Abhijit Das