Retail giant Pick n Pay sets trend for developing stand alone retail centres

Posted On Thursday, 31 January 2013 07:07 Published by eProp@News
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The retailer has developed two new stand-alone retail centres in Chatsworth, KwaZulu-Natal and in Little Falls, Roodepoort, Johannesburg.

Both centres meet growing consumer demand for easy and quick access to retail centres in both metropolitan and outlying areas. Spire Property Management MD Marc Edwards, who handled the tenant leasing for the two new centres, says there is an emerging retail trend towards stand-alone centres such as the Chatsworth Centre and Little Falls.

“Our view is that a number of similar shopping centres, where the main food retailer occupies the majority of the space with eight to 10 complementary line shops, will grow in SA. “Shopping centres such as these allow consumers easy access to convenience stores with ample parking allowing for a quick visit or a longer, monthly shop,” Mr Edwards says.

The development of these stand-alone centres is in line with Pick n Pay’s strategy to develop new retail channels and sites, thereby growing its national footprint and providing greater convenience for their customers. Mr Edwards says there are clear benefits for tenants in the centres developed by Pick n Pay. “The biggest benefit is the location to the Pick n Pay store and access to the foot traffic generated by Pick n Pay. “Another benefit is the tenant exposure, due to the layout of these centres. There are no ‘tucked away’ spaces of ‘dead’ retail areas which you may find in larger shopping centres.”

Little Falls, an 8,800m² centre, houses a Pick n Pay, a Pick n Pay liquor store, a Pick n Pay Thyme restaurant and a Pick n Pay clothing store, along with seven line shops and two ATMs. It is the second new concept Pick n Pay centre, building on the concept of the flagship centre in Hurlingham, Johannesburg. Pick n Pay’s “green” stores feature fresh foods, more imported lines than any other Pick n Pay and specialist ranges unique to these flagship stores. They also have additional features such as a wine boutique and cheese room.

Spire Property Management was awarded the management contract to handle all aspects of tenant leasing for the Chatsworth Centre and Little Falls and worked closely with Pick n Pay on all aspects of the leasing project, including initial area and tenant analyses, lease reporting, lease negotiations and finalisation and assistance with the tenant installation and co-ordination process,” Mr Edwards says.

“We began the leasing process by ascertaining the ideal tenant mix and comparing this to neighbouring competition. The small size of the Pick n Pay centres and the limited number of line shops available also meant that the tenant mix had to be chosen carefully to provide the best possible variety for consumers.”

The tenant mix for both is based on “destination”- and “convenience”-type shops to make these small convenience centres an all-in-one shopping experience. The line shops have been chosen to complement Pick n Pay and affiliated stores without detracting from them. “The reputation of Pick n Pay, being a popular and ethical competitor with a substantial national footprint, made the leasing easier in terms of interest received from other tenants and the procurement of a favourable tenant mix.

“The thorough market research performed by Pick n Pay in determining the feasibility of the centre allowed for the market demand to be evaluated and targeted accordingly, making the ease of letting that much more pronounced,” Mr Edwards says.

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