Dubai: Abu Dhabi’s retail sector has got a series of high-profile launches between now and the time when the US department stores Macy’s and Bloomingdale’s open their doors in the latter half of this decade.
“Yas Mall is already running at close to full occupancy with a number of new stores currently undergoing fit-out and set to open soon,” said Matt Green of CBRE. “Only operational since November 2014, the mall is still currently building up its footfall performance. However, with its out of town location, weekday traffic has been somewhat quite.
“The Galleria is already fully occupied, although it is currently struggling somewhat for footfall due to the lack of office occupation within Sowwah Square. This has been compounded by ongoing delays to other major projects on Al Maryah Island which would otherwise have been generating additional traffic for the scheme, including the adjacent Cleveland Clinic. That aside, the mall still has a long waiting list of potential tenants waiting in the wings.”
The supply pipeline for new retail space is substantial, with an anticipated 450,000 square metres due by 2017, though this will obviously be influenced by construction delays. But international brands are using what is available now to put up their operations, some of them for the first time in the UAE.
“Over the past 18 months we have seen an increasing number of new brands entering,” said Green. This includes the recent entry of home retailer Pottery Barn Teen and Dutch teen clothing brand Scotch Shrunk, both of which opened at Yas Mall.
“This growth has been driven in part by a significant increase in supply amid the opening of a number of new malls, including The Galleria and Deerfields Townsquare in 2013 and Yas Mall in November 2014.”
