Sahara Centre pulls in big numbers

Sharjah-based Sahara Centre is projecting further strong double-digit growth on such key parameters as mall traffic for 2004 and 2005, before reaching a level of stability, according to the managing director.

In 2003, which was the second year of operations, Sahara Centre pulled in nearly 6.5 million visitors, which represents a 27 per cent increase over the 2002 numbers.

"In every business cycle, there will be a surge in the initial phase before reaching a period of relative stability. For us, that is not going to happen for at least the next two years," said Gavin Cox.

The 2003 figure was helped immensely by the opening of the supermarket, which led to increased visitor frequency during the weekdays. Cox puts these as higher by between 20 to 30 per cent on 2002.

Just as well for the other retailers in the mall, these shoppers, most of them with higher disposable incomes, tended to spend more hours at the mall during the weekdays.

"On the whole, we were able to fulfill our shoppers' desire for a destination facility which could meet all their requirements under a single roof. This is why we had such a high number despite retail in 2003 seeing its share of peaks and troughs," said Cox.

"These are figures way above our expectations, and is derived from the strategic decision making. Our success has also been borne out of being a very local kind of mall, with a focus on one community with very high disposable income levels - the young Arab families."

The mall is fully leased out, and the mall management is now making slight changes to the available gross leasable area - which was not divulged - to offer more features to the shoppers. "The idea is to develop space in the common area without cluttering it up."

The overall built-up area is one million square feet.

The turnover rate of retailers has also been well below the international average of 10 to 15 per cent for the initial phase, Cox added.

Would this be the platform for Sahara Centre to seek an expansion/extension to the existing facility?

At the time of the opening, investments into it had totalled Dh400 million. The mall is jointly owned by Bukhatir Investments Ltd. and Ghobash Investments.

"The mall has been such a success story so far that, inevitably, the opportunity of adding value to the existing real estate through necessary enhancements will be considered," said Cox.

"But whatever Sahara Centre does in the future, it is essential that it does not create high expectations in the marketplace. When the time is right, we will look to deliver added quality.

"There have been many cases where developers have started thinking, and talking, about expansion even before the initial project has been completed. Some have done so after the first year of operations. It is very important for the developer to know where he is going with the existing asset before making any plans."