Mall mania

REAL ESTATE: Large format malls are coming to a place near you.

It's time we brace ourselves for a "mega mall-invasion". The Mall of Arabia, due to open in 2008, is set to be the world's biggest mall with over 10 million sq ft of space.

The Mall of Emirates, on the other hand, with 6.5 million sq ft in total area, has around 500 outlets, a ski resort, an Alpine-style hotel and a parking lot for 7,000 cars.

Beijing's new Golden Resources Shopping Mall offers 6 million sq ft of space while Minnesota's Mall of America is spread over 4 million sq ft. It takes about two days to explore Beijing's new 6 million sq ft Golden Resources Shopping Mall.

Back home, India, too, is ready for a boom in large format malls. According to Shubhranshu Pani, vice president (retail), Trammell Crow Meghraj, over 20 such malls are planned, each covering an area of over 1 million sq ft, are at various stages of construction.

Closer still, in the NCR region, Unitech's Great India Place is coming up with retail space of 1 million sq feet. DLF too is building a 1.5 million square feet mall on 14 acres in Sector 18, Noida.

DLF's Mall of India along NH-8 in Gurgaon will be a 3.6 million sq feet mall spread over 32 acres. The Mall of India will have a large entertainment area, large city town squares, perfectly zoned and offering a total retail experience, besides food and beverage offerings.

Ambience's Ambi Mall in Gurgaon is a 1.8 million sq ft shopping mall and Omaxe Connaught Place in Greater Noida has a total built-up area of 1.9 million sq ft.

According to Pani, the three malls being developed in Vasant Kunj in Delhi will have a common corridor connecting them all. As a cluster, these malls will have a combined space of 1 million sq ft.

Ajay Khanna, executive director, DLF, informs that they have plans for more 1.5 million sq ft plus malls in Mumbai, Ahmedabad, Baroda, Jalandhar, Pune and Hyderabad in the future.

In Mumbai, at least eight malls covering an area of over 1 million sq ft each are being developed. To begin with, there is R-Mall at Ghatkopar, then two 1 million sq feet plus malls have been proposed in Thane. Orchid is planning another one in Dahisar. Then there is the 1.7 million sq ft Nirmal Lifestyle at Mulund (which is half operational) and Phoenix Mall built over 1.3 million sq ft.

In Bangalore, at least three malls with 1 million sq ft of space are under development. Ludhiana will soon have a 1.6 million sq ft mall by Today Homes.

According to Knight Frank Research, retail in India is currently estimated to be a $230 billion industry, of which organised retailing makes up 3 per cent or roughly $7 billion. Organised retail is expected to grow at the rate of 25-30 per cent per annum and is projected to attain a size of $23 billion by 2010.

Though we are sure that most developers would have got their math right before launching huge mall projects, what exactly is the justification for such huge malls?

According to Ajay Khanna of DLF, "1.5 million sq ft malls will work well in small cities as well. Developers can pack in more in a larger space. The larger the mall, the better it is". Agrees Pani, "In a large format, the customer gets more," says Pani.

The real reason behind the feasibility perhaps is that the number of retail brands is rising sharply in India and therefore they are on a lookout for more space.

"These malls will become regional supercentres and people from far off places will travel to access many options under one roof," he explains. He, however, warns that the minimum footfalls for a typical 1 million sq ft mall need to be 50,000 plus for it to sustain itself. Time to turn back to the customer!