Dubai: Finding the next growth factor when you have already built up 100 locations across a wide geography can be quite daunting. Or some may see it as time to take a breather. But for Centrepoint, the “mini-mall” brand owned by the Landmark Group, the 100-mark is a milestone and not an end in itself.
In fact, it is prising open new markets such as Libya this month and assessing options in Algeria, Morocco and Tunisia. Franchising opens up the possibility to get into a new market with the minimum fuss and optimum impact.
“We have already exercised the franchise option in Pakistan, Tanzania and, just recently, Libya,” said Vinod Talreja, director for Centrepoint at Landmark Group. “In all of the new markets we hope to get Centrepoint into, franchising is a live option and there are possibilities being reviewed at this moment.
“Outside of the GCC markets, it is quite difficult to come upon large-sized unused retail areas that would be ideal for a Centrepoint location. But these are the markets we need to be for the next phase of growth.”
A Centrepoint location — which houses Landmark’s own mid-tier brands such as Babyshop, Splash, Lifestyle, Shoe Mart and Beautybay — could be anywhere between 30,000 square feet to 80,000 square feet. The upcoming one in Libya is upwards of 40,000 square feet.
Revenue generation
Indeed, its GCC locations make up 90 per cent of the brand’s revenue generation, with Saudi Arabia and the UAE being the top contributors. Overall, the 100 locations now cover 5 million square feet and the target is to double it in the next five years.
“New markets and multiple locations outside of the GCC will mean their share as a percentage will grow — but we do not have a set target on how much non-GCC locations should make up in the overall and when,” said Talreja.
“It’s obvious the big possibilities are in Egypt, but where there’s still great difficultly in sourcing sizeable GLA [gross leasable area], and Erbil. But you also have markets such as Qatar where new many malls are set to open in the medium-term.”
On whether Centrepoint could ever consider accommodating brands other than Landmark’s, Talreja said: “Within these locations, there’s already such merchandise available through Splash, for instance. But I don’t see Centrepoint directly setting aside space for a non-Landmark brand.”
Recently, the Landmark Group has also been adding up to its interests in the F&B space. But they need not necessarily form part of the Centrepoint offering. And for a valid reason too.
“We have quite a few in-mall locations and mall managements do not necessarily approve of F&B concepts inside stores,” said Talreja. “Instead they would prefer these to be in the food court or dedicated F&B locations. But we did introduce a cafe concept at one of our Kuwait locations and that too at a non-mall location.
“At the branding level, Centrepoint is associated with a mid-market value destination. We will play strictly within these parameters — that’s where the growth going forward is.”
With a little help from franchising.
