BCSC - Retail General - South Africa Study Tour
Date: 10 Oct 2002
BCSC members who travelled to South Africa as part of a study tour found themselves on a whirlwind visit that took in 14 centres in five days in four locations – and introduced them to a number of new concepts.
The 27-strong group representing all disciplines of the retail property industry, visited Pretoria, Johannesburg, Durban and Cape Town in September. They spent four days seeing the latest trends in centre development, design, mix and operation.
Comments Keith Stone, retail director of Lend Lease, who lead the Study Tour:
“The quality and sophistication of developments which were visited surprised many of us. There is no doubt that South Africa is producing some world class developments ranging from super regionals, including leading edge entertainment facilities, through to high end local centres and two quite different casino and entertainment-based developments.”
Stone said BCSC members were impressed with the way South Africans counterparts were developing exceptional centres that embraced their wonderful culture.
“The cultural influences are visible and audible wherever one goes and, in turn, add an extra layer to the retail experience which one cannot find, in my opinion, in North America or most of Europe and the UK.”
Stone added that the differing philosophy of two of the leading shopping centre owners - Old Mutual and Liberty- resulted in much discussion by the group.
The BCSC delegation met with Ian Watt, the Managing Director of Old Mutual Property, and enjoyed lively discussion on his companys approach to development. Watt pointed out that Old Mutual focuses on retail but extends their offer to include extensive entertainment. Cited examples included the 5,000 capacity multi-purpose arena and rooftop drive in cinema at Menlyn Park, Pretoria; a youth focused cinema and lifestyle tenant mix at the Zone at Rosebank in Johannesburg, and at the Gateway Theatre of Shopping Durban the already well reported wave experience, significant skate park and what’s purported to be the largest climbing wall in the world (set again within a youth focused edgy environment which includes light shows, rock music and even snow flakes!).
Meanwhile Liberty, owners of the very successful Sandton City in Johannesburg, made it clear that whilst there was a role for entertainment such as cinemas their focus was very much on the retail mix and driving sales.
Stone said that there were significant things to learn from the South African experience about marketing.
“One interesting factor in South Africa is that all shopping malls, including those out of town, charge for car parking. This puts even more emphasis on attracting customers to the centres for whatever purpose. The marketing initiatives of all the centres seemed particularly sophisticated but the entertainment elements, especially the unique offers such as the wave experience at Gateway, provide significant opportunities for organising sponsored events which potentially attract significant crowds from way beyond the core catchment area. Given virtual dominance of the car, every additional visitor is additional income.”
The group visit to Montecasino in Johannesburg and to Grand West Casino in Cape Town provided valuable insight into gaming-oriented developments - variations of which the UK could soon be seeing.
“Montecasino, targeting a more affluent customer and including significant retail (much of which is proving difficult), has drawn on Forum Shops Las Vegas for much of its theming but in a Tuscan style,” Stone says. “Whereas GrandWest reflects the culture and history of Cape Town and is more focused on wider entertainment for the family including adventure playgrounds and a successful Olympic size ice rink.”
One of the last stops the BCSC Study Tour made was at the Victoria and Alfred Waterfront development.
“With a tenant mix successfully targeting the downtown core shopper market and a thriving tourist population, V&A demonstrates that successful retailing is about experience,” Stone says. “If you can combine a waterfront location, views to Table Mountain and some wonderful African musicians as entertainment, it clearly helps!”
Concludes Stone:
“It is quite clear that the South Africans want their achievements to be recognised by the global industry – and so they should.”
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