shoppertainment benefits retail stores

Posted On Friday, 18 May 2001 03:01 Published by
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CAVENDISH Square and Menlyn Park Shopping Centre, the Cape Town and Pretoria retail and leisure centres redeveloped by Old Mutual Properties,

CAVENDISH Square and Menlyn Park Shopping Centre, the Cape Town and Pretoria retail and leisure centres redeveloped by Old Mutual Properties, have become South Africa's top cinema destinations, entrenching the success of shoppertainment concepts. The leading positions of Cavendish Square and Menlyn Park among Ster Kinekor and Nu Metro cinemagoers are reflected in attendance figures for January, February and March. These show the two Old Mutual Properties' redevelopments ahead of the V&A Waterfront and Tyger Valley in greater Cape Town, Sandton City, The Pavilion in Durban and Century City's Canal Walk in Cape Town.

The Cavendish Square complex which first topped the national rankings in 1999, now attracts more than 20% of all moviegoers in the Western Cape, and Menlyn Park is drawing 27% of the Pretoria cinema market. This market share excludes figures for the Imax Theatre which opened at Menlyn Park in March. An average of 1,2 million shoppers are currently being attracted every month to Menlyn Park where a further 45 000m2 of retail space has been added to create one of South Africa's premier malls. The paid parking garage there is accommodating an average of 300 000 vehicles every month.

Cavendish Square, which is a third of the size of Menlyn Park, nevertheless attracts some 1 million visitors a month. The centre reported a 20% increase in visitor traffic for 2000, based on vehicle entry statistics which showed 2 million vehicles passed through the parking garage over the year. The strong visitor flows and cinema attendances, coupled with extended trading hours, are impacting on turnovers, and highlighting the international yardstick that 30% of moviegoers make other purchases in shopping centres housing cinema complexes.

Ian Watt, managing director of Old Mutual Properties, says that customers are looking for a more fulfilling experience and sales of books, CDs and related items are showing a commensurate increase where the retailers are linked to successful cineplexes.

'Extended trading hours are also a factor, as seen by the success of Cavendish Square, Menlyn Park, the V&A Waterfront and Canal Walk as some of the top six South African cinema destinations. All have longer hours than normal.'

Watt says a key challenge to retailers operating in shoppertainment-type centres is their adaptability to cater to the more conventional pressurised day-time shopping trip as opposed to the less-pressured leisurely after-hours expedition.

'We are finding that late shopping appeals to both working folk and youth markets who have time to relax and enjoy themselves in venues that make them feel comfortable and welcome.'

The impact on turnovers was illustrated last year at Cavendish Square where there were 30% increases in membership of the centre's One Billion Rand and R500 million clubs - retailers achieving sales of greater than R22 500/m2 and R11 250/m2 respectively.

Leonard Buhler, general manager of Edgars at Menlyn Park, says that, since the redevelopment of the centre, the store has experienced a 68% jump in turnover. In April, Edgars exceeded budget by R5m. In the year to April, turnover growth was 80%. For the first time in four years, Edgars Menlyn Park turnover exceeded that of its sister store in Sandton.

Amanda le Roux, area manager for Foschini, says turnover, boosted by new ranges and extended trading hours, has increased by 50% on last year's figures.

Truworths' area manager, Minesh Kathard, reports that the emporium at Menlyn Park, which grossed higher volumes than any other Truworths store in South Africa over the festive season, continues to show results far above expectations.


Publisher: Cape Business News
Source: Cape Business News

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