Dubai: The city is extending itself to the Dubai Outlet Mall, literally. If there were just a few scattered villas within its immediate neighbourhood when the mall opened in 2007, it's looking a lot more crowded these days.
The Dubai Silicon Oasis has emerged as a bustling commercial and residential hub, while The Villa has come on nicely as a community. Then there are the apartment blocks forming the Skycourts cluster.
In effect, all of this is building up the catchment area that Dubai Outlet Mall can cater to. Currently, the catchment areas contribute about 10 to 15 per cent of visitor traffic to the mall. Is it then time for the promoters to consider going in for an expansion?
"We are over 92 per cent leased against the 83 per cent we had at the same time last year," said Vishal Mahajan, director. "We have always maintained that the concept of an outlet mall is a necessity for a mature retailer rather than the opening of another store.
"This way they get to support their mainstream shops through the cycle of merchandise as well giving customers the benefit of discounts."
Some time this year, the promoters will decide when and how an expansion should take shape. In its original masterplan, the mall would be the core of a much wider development that would include a hotel, officers and residential components.
The land is under the ownership of the Al Ahli Holding Group, who also developed the mall.
"Looking at future retailer demand, we could consider adding to the existing mall in parts rather than go in for a full-scale development," said Mahajan. "It doesn't make sense to build a mall of 2 to 3 million square feet for very little demand.
Proposals
"There's definitely a need to have a hypermarket keeping in mind the growing resident base in the vicinity."
The expansion could also take the shape of an additional retail component that will be supported by some form of office space or a hotel. "But our own decisions will be dictated by what happens to the nearby developments and how quickly they are filled up," Mahajan said. "In other words, only the timing needs to be decided.
"As for the masterplan, it has sustained over a period of time and there's no reason to change its fundamental character."
On the occupancy side, the mall is sitting pretty. One of its key retailers, Burberry, is completing the fit-out for a 5,000 square foot store from the 1,500 square feet it occupied earlier. This will be done by March.
Also, one of the region's premier retail entities, the Landmark Group, has taken up space for Splash, Shoe Mart, Ecco and a couple of its other brands. "When a retailer like Landmark shows confidence, that's something you can take into your own planning," said Mahajan.
Main business
"We have opened up channels of communications with various brand principals, either directly or through their partners here," he said.
"The results of some of these could take shape this year."
Not surprisingly, fashion and accessories continue to be the platform — representing 90 per cent — around which the mall has built up its retailer mix.
A cinema is also in the works, but not in the near term. For that to happen, a sustainable captive audience has to fill up the residences and nearby neighbourhoods to the mall.
"Building a cinema now would be a huge risk — for future expansions to work properly, we have to get things done organically," said Mahajan.
"It's slow, it's steady and just the way we want to grow."
