eBusiness Weekly
Dr Keen Mhlanga
Shopping malls have become an essential component of the retail landscape in many cities across the world. These elegant complexes provide a varied range of services and experiences that respond to shoppers’ wants and tastes.
Shopping malls have spread around the globe, from bustling metropolises like Beijing and New York City to cosmopolitan destinations like London and Dubai, revolutionising the way people buy and socialise.
In this article, we will look at the shopping mall culture of cities such as Beijing, London, New York City, Tokyo and Dubai, as well as their services, benefits and global investment potential.
In recent years, the number of retail malls in Beijing, China’s huge capital city, has increased rapidly.
Beijing is a retail wonderland, with over 170 shopping complexes and over 40 000 retail businesses.
Beijing provides consumers a wide range of shopping choices, from historic multi-story department stores to futuristic mega-malls.
The Village at Sanlitun, in particular, stands out as a high-end shopping destination, with designer boutiques, luxury brands and upmarket eateries. These malls’ items are sourced both domestically within China and through cooperation with well-known global businesses.
London, United Kingdom, continues to flourish in the Digital Age. Despite the growing popularity of internet shopping, London has a vibrant retail environment.
London provides a mix of traditional and contemporary retail experiences, with over 30 major shopping malls, including iconic sites such as Westfield London and Oxford Street.
These shopping centres house a variety of retail retailers, fashion outlets, electronics stores, and grocery stores. Products featured in London’s malls are manufactured in a variety of locales, with sourcing from both local and international sources.
New York City has long been associated with shopping, with a plethora of department stores and speciality boutiques. The city is a shopper’s paradise, with over 100 shopping complexes and numerous more ones under construction.
New York City’s shopping malls serve to a wide range of tastes and prices, from the iconic Macy’s in Herald Square to the upmarket Fifth Avenue retailers. Product sourcing in these malls includes both domestic and international production facilities.
Antiquity Combines Innovation in Tokyo, Japan, the bustling city of Japan, features a rich array of shopping malls. Tokyo accommodates to the diverse tastes of its citizens and visitors, with everything from traditional multi-story department stores to futuristic mega-malls.
Tokyo provides a mix of traditional Japanese craftsmanship and multinational brands, with over 100 big shopping malls and several smaller ones sprinkled around the city.
Depending on the type of product and co-operation with global companies, the manufacturing locations of products seen in Tokyo’s malls can vary.
A shopper’s paradise in Dubai, UAE has evolved as a significant shopping destination in recent decades, attracting travellers from all over the world.
Dubai provides a spectacular shopping experience, with over 70 shopping complexes and other under-construction developments.
Malls such as The Dubai Mall and The Mall of the Emirates provide a mix of local and international merchants, as well as entertainment and food options. Global trade influences the sourcing of products in Dubai’s malls, with a diverse range of production regions participating.
Shopping malls around the world provide a variety of services to meet the needs and preferences of customers.
Retail stores, restaurants and cafés, entertainment facilities such as movie theatres or arcades, beauty salons, fitness centres, supermarkets and other services are widespread in shopping malls.
In order to attract customers, shopping malls frequently hold special events or promotions. Because global trade permits products to be supplied from multiple countries, the manufacturing sites of products featured in shopping malls might vary greatly.
Sam Levy’s Village in Harare is a well-known shopping mall in Zimbabwe. This mall features a combination of local and foreign retailers such as apparel stores, pharmacy, home design stores, and eateries.
The products in this mall are sourced from numerous production areas across the world, including Zimbabwean producers as well as international vendors from South Africa, China, and the United Kingdom.
East Park Mall in Lusaka is a well-known retail mall in Zambia. This mall has a variety of stores, including fashion outlets, electronics stores, and grocery stores, as well as entertainment alternatives including a cinema complex and a food court.
Depending on the sort of product, the products found in East Park Mall may have been manufactured in Zambia, South Africa, China, India, or other countries.
Given China’s global industrial supremacy, expensive retail complexes abound in cities across the country. For example, The Village at Sanlitun, a prominent high-end retail destination, is located in Beijing. This shopping centre is home to fashionable stores, luxury brands, and upscale eateries.
Products found in such malls are frequently created both domestically in China and globally through cooperation with well-known global brands. It’s important to note that the specific availability of services and manufacturing sources can vary from mall to mall and may change over time as new trends emerge and consumer demands shift.
Malls can benefit a country and its owners in a variety of ways, including economic growth, job creation, greater tax income and improved consumer experiences. While I can provide some basic instances of how malls might benefit a country, I am unable to provide particular examples for Zimbabwe because my training data only extends until September 2021, and I do not have access to real-time data.
Nonetheless, here are some possible advantages:
Economic development: Malls frequently attract both large and small enterprises, which contribute to economic progress. They enable businesses, restaurants and entertainment venues to thrive, resulting in more sales, investments and overall economic activity.
Job creation: To operate and manage the many establishments within malls, a large workforce is required. They produce jobs not only in retail, but also in security, facilities management, marketing and other fields. This can help to minimise unemployment and improve the overall well-being of the workforce.
Increased tax money: Through sales taxes, property taxes, and employment taxes, malls create tax money for the government. This cash can be utilised to fund public services, infrastructure development and social welfare programmes, which will benefit the entire country.
Urban development and infrastructure: The creation and operation of malls frequently leads to improvements in urban development and infrastructure. They can operate as catalysts for surrounding region growth, encouraging investments in roads, utilities and transportation infrastructure.
Enhanced consumer experiences: Malls give consumers with a centralised area where they may access a large variety of products, services and entertainment alternatives. They provide convenience, variety, and a one-stop shopping experience, which can improve consumers’ overall lifestyle and satisfaction.
While malls can provide benefits, they can also provide issues and considerations such as environmental effect, competition with small local shops and socioeconomic differences. Malls’ specific impact and benefits can differ based on the local context and market conditions.
The most crucial question is whether malls are a good investment. Malls can be considered an investment in a number of nations, including Zimbabwe. Outlined are five countries where malls can be considered as an investment opportunity:
The United States has a thriving retail economy, and malls are a popular investment opportunity. Malls in the United States include the Mall of America in Minnesota, South Coast Plaza in California, and Aventura Mall in Florida.
United Arab Emirates: The UAE is known for its luxurious malls that attract tourists and residents alike.
Examples include The Dubai Mall, Mall of the Emirates, and Yas Mall in Abu Dhabi.
China: The retail sector in China has grown significantly and malls are profitable investments. The New Century Global Centre in Chengdu, the MIXC Mall in Shenzhen and the Golden Resources Mall in Beijing are all notable examples.
Brazil has a thriving shopping mall culture, and malls are regarded appealing investments. Shopping Iguatemi in So Paulo, BarraShopping in Rio de Janeiro, and Salvador Shopping in Salvador are a few examples.
South Africa: The mall sector in South Africa is well-developed, and malls are popular investment possibilities. Sandton City in Johannesburg, Menlyn Park Shopping Centre in Pretoria and Canal Walk Shopping Centre in Cape Town are a few examples.
While the mall culture in Zimbabwe is not as developed as in other nations, there are investment potential in this area as well.
Joina City in Harare, Westgate Shopping Mall in Harare, and Sam Levy’s Village in Borrowdale, Harare are some noteworthy malls in Zimbabwe.
Several variables can contribute to the conversion of buildings into malls. Here are some of the most typical causes, as well as global instances, including Zimbabwe: Consumer preferences are shifting: Consumer demands for modern shopping experiences and convenience may encourage building conversions into malls.
Older structures can be adapted to house a range of retail establishments and entertainment venues. Consider the following: To meet changing consumer preferences, Zimbabwe’s Fife Avenue Shopping Centre in Harare was renovated from an old building into a modern mall.
Urban regeneration: Repurposing older structures to revitalise urban areas is a common component of urban regeneration programs.
Converting buildings into malls can attract businesses, increase foot traffic, and improve the neighbourhood’s overall appeal. Such as the Burlington Arcade in London, UK, was originally a residential complex that was converted into a high-end shopping arcade, contributing to the area’s regeneration.
Adaptive Reuse: Adaptive reuse is the process of reusing old structures for new purposes while conserving its historic or architectural value. This approach allows for the preservation of cultural heritage while also meeting modern commercial needs.
For example, the Power Plant Mall in Manila, Philippines, is an adaptive reuse project that converted a former thermal power plant into a high-end shopping center while retaining the original industrial aesthetics.
Economic factors: Economic issues such as retail space demand and the availability of suitable buildings might drive the conversion of structures into malls.
This is frequently influenced by factors such as market conditions, population expansion, and business prospects. Many former industrial structures, such as warehouses and factories, have been turned into stylish shopping malls in the United States, like The Source in Denver, Colorado.
Repositioning of assets: To capitalise on the potential profitability of the retail sector, property owners and developers may choose to reposition their assets by converting existing buildings into malls.
As an instance, the Mall of the Emirates in Dubai, UAE, was converted from an existing building into a world-renowned mall, featuring high-end retailers, entertainment facilities, and a ski resort.
Similar considerations, such as changing consumer preferences, urban rehabilitation projects, and the necessity for modern retail areas to cater to a growing population, drive the conversion of buildings into malls in Zimbabwe.
In the United States, businesses operating within shopping malls are subject to federal, state, and local tax regulations. They must register with the Internal Revenue Service (IRS) and comply with income tax, sales tax, and payroll tax requirements. Sales tax rates vary by state, and businesses within shopping malls are responsible for collecting and remitting sales tax on taxable sales.
In the United Kingdom, businesses in shopping malls must comply with tax regulations enforced by Her Majesty’s Revenue and Customs (HMRC).
This includes registration for value-added tax (VAT) if their turnover exceeds the VAT threshold. Additionally, businesses must report and pay income tax on their profits and comply with payroll tax obligations for employees.
Businesses in shopping malls in Canada are required to follow federal and provincial tax requirements.
They must register with the Canada Revenue Agency (CRA) for tax purposes, charge and return GST or HST on taxable sales, and meet income tax and payroll tax responsibilities.
Businesses in Australian shopping malls must adhere to tax restrictions enforced by the Australian Taxation Office (ATO).
This involves registering for the Goods and Services Tax (GST), reporting and paying income tax on profits, and meeting employer duties for payroll tax and superannuation contributions.
Businesses at shopping malls in Singapore are subject to tax restrictions governed by the Inland Revenue Authority of Singapore (IRAS).
If their annual turnover exceeds the GST registration level, they must register for GST. Furthermore, enterprises must declare and pay income tax on profits, as well as meet employer duties for payroll tax and Central Provident Fund (CPF) contributions.
These are typical instances of tax compliance obligations for shopping mall enterprises in several nations. Depending on the country, the specific tax legislation, rates, and compliance requirements may differ. Businesses must engage with tax advisors and follow the applicable tax rules and regulations in their respective countries.
Shopping malls have become essential components of retail landscapes in cities all over the world. From Beijing to Dubai, these advanced buildings provide a variety of services and respond to changing consumer demands.
Shopping malls play an important part in a country’s growth and development by providing economic benefits, job opportunities, and increased customer experiences. Shopping malls serve as hubs for products sourced from many areas, increasing the shopping experiences of consumers globally as global trade continues to transform the manufacturing landscape.
Dr Keen Mhlanga is an Investment Advisor with high skills in Finance. He is the Executive Chairman of FinKing Financial Advisory. Send your feedback to [email protected], contact him on 0777597526.
