Footfall at Ibn Battuta Mall, the flagship development of Nakheel’s retail arm, rose 10 percent in the first quarter of the year as it benefited from growth in surrounding neighbourhoods and an affordable product offering.
The number of visitors to the mall grew in the quarter despite sliding consumer confidence in the UAE and a slowing tourism sector.
This was largely thanks to more apartments in the surrounding area being handed over to their owners, and Ibn Battuta’s relatively large number of affordable brands, a company official said.
“There are a several drivers for this growth – the surrounding Nakheel communities of Discovery Gardens and the Gardens are growing, so Ibn Battuta Mall now has a larger population in its immediate catchment area,” said David Thurling, managing director of Nakheel Retail Shopping Malls.
Discovery Gardens has become one of Dubai’s most affordable neighbourhoods with the completion of several new properties amid a sharp downturn in Dubai’s real estate market.
The cost of renting a studio in the area has fallen by around 50 percent in the last six months.
“In addition, we have seen a number of new stores opening this year – including @ Home, Shoe Mart, New Look, and Borders – which gives an even greater mix of quality retailers across a wide range of price points,” Thurling said.
“We also believe that it is important for a mall to offer more than simply shopping. We have focused on building a family friendly destination offering real value for money dining, leisure and entertainment facilities.”
The company said it measures the number of visitors using a 98 percent accurate technology called Shoppertrak, but did not say whether sales in the period had also risen.
Most Dubai retailers have seen sales decline this year as a result of falling tourist numbers and job losses in the real estate and financial sectors.
Alshaya Co, the largest retailer in the region by number of stores, said in March that sales in the year to date were down by 15 to 20 percent, compared with the corresponding period last year.
Nakheel said last month that it has delayed a $3 billion expansion programme by 12 months as a result of the economic downturn.
The company’s retail division unveiled an ambitious shopping mall development programme across the UAE in April last year and said it would build five new projects, including one on the Palm Jumeirah.
As a result, Australia’s largest department store operator, Myer, said that it would postpone its plans to enter the Dubai market.
But many retailers and mall operators are sticking to their ambitious expansion plans.
The developers of the 10 million sq ft Mall of Arabia have told Arabian Business that the project is going ahead as planned, and Alshaya will be rolling out 200 new stores across its 16 markets this year.
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