Dubai: Although business in some economic sectors may not be performing well due to the world economic crisis, Neelesh Bhatnagar, director of the Oasis Centre and Landmark Group and CEO of Emax, said the mid-range retail business was certainly doing exceptionally well.
The middle market shopping malls can only be described as gold mines, he said.
"Due to the community demands on low price shopping and keeping up a lifestyle that people have become used to, the Oasis Centre offers a unique opportunity for shoppers to enjoy the perks of the good life without spending conspicuously."
As a brand, the Oasis Centre, located on Shaikh Zayed Road, has been part of the shopping experience from a time when Dubai did not have the super malls that exist today. The original Oasis Centre was destroyed in a fire, but the Landmark Group re-launched the Oasis Centre mall, which cost Dh900 million to rebuild, last March 28.
There is ongoing demand that continues to outstrip supply for middle-market shopping malls, as these are very convenient in terms of price and quality, Bhatnagar said.
Even though the econ-omic crisis hit everyone worldwide, that does not mean people have stopped shopping, Bhatnagar said. Given budget constraints, people are looking for strategically placed shops that have offers that fit their financial plan. The centre has reported about a 20 per cent increase in the number of visitors during the world economic crisis.
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The number of shoppers at the mall is increasing, Bhatnagar said, and they have more than 20,000 over the weekends and holidays. Bhatnagar said having various promotions had played an integral role in generating awareness about the mall.
"The Oasis Centre is more a commercial mall than an entertainment mall. Therefore people visit the centre to shop, and we do have 25 per cent growth in sales value."
The big value of middle-market malls, he said, is that "retailers feel that investing in such a business has now gained momentum due to a number of reasons. The advent of malls started this trend which has now picked up as a good number of medium range brands have started to get their own shops in our mall."
This is coupled with a boom in organised retail, the entry of new foreign brands and rapid expansion. There are various advantages that accrue to retail investment which make such investments profitable deals.
Capital appreciation is also a steady income source via monthly rentals, Bhatnagar added. The Oasis Centre's current occupancy rate is 96 per cent, with four more shops coming soon. Bhatnagar says his rental prices are 30 to 40 per cent below those of the big malls.
The Oasis Centre is also planning to expand its brand internationally, Bhatnagar said.
"The rising boom in middle market retailers has ensured excellent growth opportunities. Thus, we already have Oasis in India and in three years time we will have one in Abu Dhabi, two in Saudi Arabia, one in Jeddah and another in Riyadh."
