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Retailers News South Africa

Mdantsane mall shops struggling

Two years after its grand opening with the promise of putting Mdantsane on the map, the R550 million Mdantsane mall has left some local businesses in limbo.

Once described as the "Las Vegas in the desert" because of its bright lights by Billion Group project director James Stewart, the mall has cast a dark cloud over some tenants.

Inconsistency and expenses

They claim to be trading poorly because of inconsistent foot traffic through the shopping centre.

Other businesses around the mall said they were also taking a knock and losing out on customers.

Musa Lô, who runs a boutique at the mall, said his business had been running at a loss since last year, and to make matters worse he pays R21 416 in rent and about R1 000 for lights and water.

"We are not as busy as we used to be, and the only time we make money is at the end of the month.

"Things looked good when I opened my business a year ago but rent is too much and some shops have left because of that."

On an average month he makes just over R30 000 and most of it goes towards rent.

"We are crying about the rent but we can't just sit at home and do nothing," he added.

A boutique manager who introduced himself as By-Fall, has also been running his shop at a loss while the other branch in town was apparently doing far better.

"Business has been going down since last year and it could be because of the opening of Hemingways Mall, as some people seem to prefer it as it has lots to offer.

"But I'm not going anywhere," said By-Fall.

Dropping figures

In June last year the Daily Dispatch reported foot traffic at the mall to be 715 000 visitors a month, with six businesses having closed their doors since its opening.

According to general manager Dean Deary, the figures had dropped to 650 000 visitors while two more tenants had been lost.

Deary said reasons for people leaving the mall varied and that "the local community was very brand conscious".

Hopes for development

Businesswoman and member of the Mdantsane Business Chamber Beatrice Caza, who raised concerns three years ago about how local businesses would suffer once the mall started operating, said only consumers were currently benefiting.

"People are still excited about the mall because they don't have to travel to town any more as all the banks and shops are now here, but as business people we are crying.

"We expected the mall managers to include us in their planning as well as roping us in as participants in developing the local economy.

"We just saw a big structure cropping up in our backyard and most of the black businesses there are owned by foreigners," said Caza.

Deary said when they started the mall they had hoped to boost local business and retain money in the township.

"We continue to attract local businesses, as well as negotiating to bring in local government and municipal services where possible," he said.

Safety and security

An employee at a clothing shop said some people preferred Hemingways Mall because of safety and variety.

"We don't feel safe here because of the tsotsis who snatch our handbags. I'd rather spend R15 on transport and go to town."

Source: Daily Dispatch

Source: I-Net Bridge

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