Mdantsane City review

Posted On Thursday, 12 March 2009 02:00 Published by
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The successful opening of Mdantsane City in East London on 24 April 2008, witnessed a first, state of the art facility for the Mdantsane community

Boasting over 100 stores, this shopping world was positioned to serve its primary market, the people of Mdantsane and its main objective being, to take shopping to the people.

The centre has achieved expected retail growth levels since its opening. The last quarter has seen a total foot traffic growth level of 38%, and market penetration (Mdantsane’s primary market) increased from 28.78% in October to 59.85% in December 2008. “These figures are very exciting for us given that shopping trends take time to change for new centres and more so given the current retail market, they defy retail trends”, says Sisa Ngebulana, CEO of Billion Group.

Although 2008 was presented with many challenges as a direct result of the sharp increase in rates and consumer goods, thus shrinking household disposable income, Mdantsane City remained resilient in its performance. December 2008, being the first festive trade period, displayed an exciting performance growth of 65% increase in turnover and a consistent growth of 27% and 35% growth for the 2nd and 3rd quarters respectively.  

Foot traffic increased from an average 445 000 a month to over a million (1 034 236) in December month alone, with a consistent average spend per head of R50.39.  This is due to rapidly changing shopping patterns of traditionally CBD and highly improved taxi routes to the centre from within Mdantsane which is a result of good co-operation by taxi owners.

Amongst the centre’s great achievements, Mdantsane City was nominated by the SACSC (South African Council of Shopping Centres) as one of the countries safest shopping malls, and offering great shopping convenience.

Mdantsane City has also displayed her passion for the local community, through its understanding of business responsibility and social development. This has stemmed strongly from the owners’ desire to use the establishment as a platform for progressive growth in the area. Projects implemented in the year 2008 include the following:

• Sponsorship towards local boxing tournaments
• Amalinda Football Association contributions
• Local Football donations
• Mdantsane Winter blanket distribution to needy households
• BCM Mdantsane Festive Carnival 2008
• Food parcel distribution during Christmas to destitute, elderly and orphanage homes

Total social investment was recorded around R500 000 in the past 8 months since opening.

This year we are looking forward to the opening of the SAPS on-site Police Satellite Station, which will be one of the first for a South African shopping mall. This is a partnership between the centre and local SAPS, Vulindlela Police Station. “We are excited about this project which has already proven positive results in its temporary set-up over the festive period. This platform has extended various other police services , says Nobubele Ncube, Centre Manager.

Overall, we anticipate further growth for Mdantsane City and the spread of “sunshine” in our community. The execution of our marketing strategy in 2009 will showcase our “out-of-the-box” forward thinking, specific to our community driven focus. This year promises to be fun, eventful and offering a unique shopping experience for our shoppers.


Publisher: eProp
Source: Billion Group

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