Mall makeover mantra: Shape up or ship out

MALL CRAWL: The new system means the mall developer shares the performance risk as well.

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New Delhi: From Tibetan kiosks to luxury shops, Select City Walk at Saket in Delhi, has it all. But unlike other malls, it's all well thought of.

It is said to be the first mall not to have pre-sold shops. The tenants have been called by invitation and the lease rental is a share of the revenue earned by them.

This means the mall developer shares the performance risk as well. So, it's critical for each of its stores to perform well.

“We took a decision on the positioning of the mall and it was tough saying no to people when our spaces were empty. But it pays off in time,” says CEO & President, Select City Walk , Pranay Sinha.

Zoning or the science of putting the right tenant in the right place is a critical aspect of mall's tenant mix; for instance, having a jewelry shop next to an apparel store.

Developers like DLF, Garuda and prestige are studying consumer behaviour in detail to decide on the placing of brands in their malls and sustain shoppers' interest.

For instance, men fashion stores are located at the ground floor because of their short span of shopping interest, whereas women do not mind walking up to the first or second floor if they like a certain store or a particular brand.

You will also see more high fashion brands on the ground floor as they are ready to pay higher rentals.

Even the anchor brands are placed on various floors to distribute the footfalls. With 400 malls expected to come up in the next three years, malls cannot afford to be a mere real estate play. A revenue sharing lowers the unfront cost for tenants. But if they do not perform, they are out.