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Discuss this article (16 Comments)BinHendi pulls out of Dubai shopping mall
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 11 June 2009
SHOPS CLOSED: Bin Hendi has pulled out permanently from Deira City Centre, claiming it is no longer upmarket enough for its brands. (Getty Images)
BinHendi Enterprises confirmed on Thursday that its first own branded mall, BinHendi Avenue, has closed due to a lack of luxury shoppers in Dubai’s Deira City Centre.
Mohidin BinHendi, the president of BinHendi enterprises, said the closure was not the result of the downturn in Dubai’s retail sector but rather a consequence of shoppers choosing newer, glitzier malls over older ones for their luxury purchases.
“We are in luxury goods, and the mall is no longer for luxury goods,” he told Arabian Business.
“When new facilities come the old facilities lose their charm, and it’s happened to all the malls.”
Deira City Centre was the third major mall, after Al Ghurair City and Bur Juman, to open in Dubai when it threw its doors open in 1996.
The Majid Al Futtaim owned development was the city’s largest mall until Nakheel’s Ibn Battuta opened in 2005.
Today it is one of Dubai’s most affordable malls, with brands like Carrefour, H&M and New Look among the tenants.
BinHendi will continue to operate two Second Cup coffee shops in the centre.
The two-storey BinHendi avenue had been home around 26 high-end stores selling brands such as Hugo Boss, Porsche Design, Phat Farm, plus a BinHendi Boutique selling luxury watches and jewellery, and dining outlets. The avenue was opened to a huge fanfare in December 2005.
In February a new BinHendi Boutique was opened in Emaar’s The Dubai Mall, following on the heels of another store in the Burj Al Arab in June 2008.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Rent and MAF Refusal to Understand their loyal customers
Posted by Not Suprised considering, Dubai, UAE on Wednesday 8 July 2009 at 15:28 UAE time
At last a realistic comment thank you Mr Bin Hendi ! when we talk such percentage down turn figures we are advised its only us no one else is suffering ! I'm only saddened that your organization being one of the first retailing groups who like the rest of us invested over the years in MAF has been treated in such a way ! - MAF never allowed a concept in their mall unless it comes within their criteria so Bin Hindi avenue would have been a concept that they wanted and agreed to at the time no doubt in the early times of Bin Hendi avenue the strategy of DCC was upper to medium brands, however with up and coming competition of other malls DCC without informing retailers decided to adopt a lower market target group changing customer demographics, No doubt the arrogance will continue of we are best and everyone wants to lease from us. MAF refuse to understand retailers and current market conditions it truly is a shame they didn't stand by Bin Hendi they've been a loyal customer to MAF since the start - I'm sure the situation could have been resolved . Finally just so you all know MAF now demand rents 1 year in advance, excellent timing in todays climate i! n addition they issue contracts 8 months prior to the previous lease expiry and enjoy bombarding you with follow up emails as to why they don't have the renewed lease back immediately. Bizarre considering the previous lease still had 8 months to go ! Not to mention the covering letter of outlining in bold letters this is not negotiable under any circumstances just to add insult to injury ! - so much for loyalty in MAF eyes ! How about the one where they tell other favored retailers who continually operate on 70 per cent discount when your lease expires and encourage them to approach you to take over your store with the advice that they will not renew your lease ! if you question the ethics of this practice you get a blank wall.
Posted by Not Suprised considering, Dubai, UAE on Wednesday 8 July 2009 at 15:28 UAE time
At last a realistic comment thank you Mr Bin Hendi ! when we talk such percentage down turn figures we are advised its only us no one else is suffering ! I'm only saddened that your organization being one of the first retailing groups who like the rest of us invested over the years in MAF has been treated in such a way ! - MAF never allowed a concept in their mall unless it comes within their criteria so Bin Hindi avenue would have been a concept that they wanted and agreed to at the time no doubt in the early times of Bin Hendi avenue the strategy of DCC was upper to medium brands, however with up and coming competition of other malls DCC without informing retailers decided to adopt a lower market target group changing customer demographics, No doubt the arrogance will continue of we are best and everyone wants to lease from us. MAF refuse to understand retailers and current market conditions it truly is a shame they didn't stand by Bin Hendi they've been a loyal customer to MAF since the start - I'm sure the situation could have been resolved . Finally just so you all know MAF now demand rents 1 year in advance, excellent timing in todays climate i! n addition they issue contracts 8 months prior to the previous lease expiry and enjoy bombarding you with follow up emails as to why they don't have the renewed lease back immediately. Bizarre considering the previous lease still had 8 months to go ! Not to mention the covering letter of outlining in bold letters this is not negotiable under any circumstances just to add insult to injury ! - so much for loyalty in MAF eyes ! How about the one where they tell other favored retailers who continually operate on 70 per cent discount when your lease expires and encourage them to approach you to take over your store with the advice that they will not renew your lease ! if you question the ethics of this practice you get a blank wall.
Economy
Posted by Rajesh, Dubai, UAE on Saturday 13 June 2009 at 19:31 UAE time
Rents play a very big part in everyone's business in this part of the world & the fluctations in rents does not help anybody to have a long term view, last few years we have only seen upwards trends with the medium & lower income group totally ingnored, this was bound to happen as they are true bareometers who run the economy,one should start looking from the common man's angle to create support to have stable economy.
Posted by Rajesh, Dubai, UAE on Saturday 13 June 2009 at 19:31 UAE time
Rents play a very big part in everyone's business in this part of the world & the fluctations in rents does not help anybody to have a long term view, last few years we have only seen upwards trends with the medium & lower income group totally ingnored, this was bound to happen as they are true bareometers who run the economy,one should start looking from the common man's angle to create support to have stable economy.
Everyone's to blame!
Posted by Hussain, Dubai, United Arab Emirates on Saturday 13 June 2009 at 12:03 UAE time
MAF surely needs to get their pricing sorted out. The days have come when the tenant has a better say than the landlord!
Howver, the Bin Hendi group has a lot to be blamed for the present debacle.
The Bin Hendi group has always works more on flair than any business acumen. How did it ever make sense to open an area in DCC which is almost inaccessible. No where in the world do you see so much retail space dedicated to luxury shopping as you do in Dubai. Like the real estate hype, retail comes crashing down as well!
Posted by Hussain, Dubai, United Arab Emirates on Saturday 13 June 2009 at 12:03 UAE time
MAF surely needs to get their pricing sorted out. The days have come when the tenant has a better say than the landlord!
Howver, the Bin Hendi group has a lot to be blamed for the present debacle.
The Bin Hendi group has always works more on flair than any business acumen. How did it ever make sense to open an area in DCC which is almost inaccessible. No where in the world do you see so much retail space dedicated to luxury shopping as you do in Dubai. Like the real estate hype, retail comes crashing down as well!
Bin Hindi
Posted by Mansoor, Dubai, UAE on Saturday 13 June 2009 at 10:28 UAE time
I think other luxury brands would have to keep the profits minimum if they want to survive as there are newer malls opening every few months. And with the sort of competition if you want to compete then reduce and gone are the days when things would havebeen bought for any price.....??????????
Posted by Mansoor, Dubai, UAE on Saturday 13 June 2009 at 10:28 UAE time
I think other luxury brands would have to keep the profits minimum if they want to survive as there are newer malls opening every few months. And with the sort of competition if you want to compete then reduce and gone are the days when things would havebeen bought for any price.....??????????
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