Dubai: Oasis Centre recently celebrated a year since its reopening following a fire. Gulf News talks to Neelesh Bhatnagar, CEO of Landmark Group, the mall manager of Oasis Centre, to find out how the mall is faring one year on.
It's been just over one year since Oasis Mall reopened. How has the mall been faring in terms of sales and footfall during one of the most trying times for the retail industry?
We opened during the first quarter of last year so it's been just over a year.
The whole of the year has been a recessionary year so things have been slow in Oasis and in Dubai in general. However, from the fourth quarter of 2009 there has been a sturdy increase in sales and I can confidentially say that the retail industry is turning around.
When we reopened, we already had a loyal customer base from the old Oasis Centre and saw a lot of customers come back.
What strategies are used for the mall concept and what aspects of it attracts footfall?
We are a retail company and have designed Oasis Centre to be a retail destination, not an entertainment destination.
We don't have many entertainment venues which allows for a high conversion rate which is currently at 85 per cent.
We have avoided building cinema theatres because they occupy a lot of retail space, parking space and don't really boost shopping figures.
What are the main success factors of the mall concept?
Oasis Centre is a big value shopping destination which is in line with the philosophy of the Landmark Group itself.
Because of the current economic climate, customers have become very value conscious. Mid-value shops are quite an insulated sector of retail.
When economy goes down, you get a lot of high spenders who downgrade themselves and buy from the mid-market range.
When things are booming, a lot of people upgrade themselves from the lower end to the mid market.
You either get a lot of customers from the spending level below or above.
That's why we have been able to achieve growths in our turnovers and profits.
How much of your retail relies on tourism?
When we first opened the Oasis Cente in 1997, it was one of the only retail destinations along Shaikh Zayed Road.
In the last four to five years, retail space has increased everywhere in Dubai as everyone geared up to accommodate the 20 to 25 million tourists each year.
That programme got delayed because of the recession and the number of tourists coming to Dubai decreased.
By the end of 2010 and 2011 Dubai is becoming more of a value tourist destination with hotel rates going down and value for money shopping festivals.
However, Oasis Centre focuses on the local population. We do not carry any entertainment options which tourists tend to be more attracted to.
We don't have impulsive types of shops such as boutiques or gimmicky shops as that's mre geared to tourists.
In terms of demographics, almost 40 per cent of our shoppers are Arabs.
The shopping mall has a family-oriented environment so we get a lot of Arab families who feel very comfortable shopping with women and children.
As a shopping destination, Oasis Centre is convenient.
It's not massive and you can easily get to know the entire mall in one visit, it provides just the right choice and we don't over clutter the mall with the choice and it's good value for money.
These key factors are more attractive to the local population instead of the tourist population.
How have you catered to retails demanding less rent to match the economic times?
This is generally a phen-omenon across this region. There was a lot of expectation across Dubai when a lot of retail space was leased out.
But now during the downturn, a lot of tenants are going to their landlords because of their high rents.
Right now, Oasis Centre's lease rates are 40 per cent less than some of the other malls in the area.
We are also retailers and we want our retailers to make money. A landlord cannot survive if the retail is not surviving.
How has the World Cup affected your footfall and sales?
In the evenings when the matches are going on, there is literally no shopping happening.
Everyone is glued to the TVs in the mall, because we are part of the campaign and showing the matches in the mall.
The matches take place during prime shopping time; 6pm and 10.30pm which really takes the shopping mood out.
Once the matches are over and with the DSS footfall should increase.
The World Cup has however been very good for selling LCDs.
Two weeks before the start of Fifa there was a 40 per cent increase in the sale of LCDs.
Other sports and clothing shops such as Sun and Sand, Babyshoppe, Adidas and Nike are capitalising on the football and selling jerseys of the teams.
Do you have any plans to take this mall concept and launch it anywhere else in the UAE?
Right now we don't have plans to open any new Oasis centres.
Right now the strategy of Landmark Group is to increase its retail presence in malls.
Essentially we are a retail company not mall managers. Oasis Centre was the flagship mall of the group.
