Business | Economy
Mall official says waning consumer confidence will stage a turnaround
The waning consumer confidence across the globe may not be a boon to the shopping industry, but retail experts on Monday expressed optimism that the situation can turn around.
- By Cleofe Maceda, Staff Reporter
- Published: 23:40 April 21, 2008
Dubai: The waning consumer confidence across the globe may not be a boon to the shopping industry, but retail experts on Monday expressed optimism that the situation can turn around.
"I believe that we are in an economic cycle and we're being pulled down around the world by declining consumer confidence, but that will turn around. And I'm also confident that our industry can play a very important role in turning around consumer confidence and not playing into the negativity," said Michael Kercheval, president and chief executive officer of the International Council of Shopping Centres (ICSC) in the US.
Kercheval was one of the speakers at the Middle East Council of Shopping Centres in Dubai that opened yesterday.
The convention, which continues today, has attracted prominent business leaders from the Gulf and showcases the retail realty sector.
With the recent economic turmoil, experts at the conference were asked how the declining optimism among consumers can impact the retail industry.
A recent report earlier showed that consumer confidence in the Middle East has slumped significantly, implying a decline in residents' propensity to spend.
"I think we're seeing a cycle, a cyclical shift of consumer confidence and I'm optimistic that this will come back," said Kerch-eval.
Rene Tremblay, ICSC worldwide chairman assured that the shopping centre industry has always been very resilient in difficult times, with certain countries even showing promising retail growth and managing to avoid bankruptcies or closures amid the crisis.
However, he cautioned retailers against over expansion, as the economic crisis could impact shopping centres that cater to the low-end markets.
"If I was a retailer, I would be cautious on the pace of expansion that I would do. What we've seen is normally, the A-type malls are always very strong, and the B or C malls are impacted by some closures when retailers try to reorganise their portfolio," said Tremblay.
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