The Sunway Group expects the retail sector to be “extremely competitive” with 40 malls anticipated to enter the market in Greater Kuala Lumpur next year. Of these, 12 will have a net lettable area (NLA) of about one million sq ft and above, says Sunway Shopping Malls and Theme Parks CEO H. C. Chan. Malls of this size should have a considerable impact on the sector.
Chan says there are two obstacles facing Sunway’s retail business; the steep competition entering the market and the “critical juncture” it finds itself in as a result of evolution in the mall business.
“We are at a critical stage of our journey. Critical because in the last two years we have seen malls open with just 50 per cent occupancy,” he says, adding that the mall management sector has become saturated and the group will have to give enhanced customer service and experience.
Chan says the group is in the midst of planning and strategising for the next leap forward and will look at improving its themed concepts. Because the company is an integrated developer, Chan says, it has planned most projects to leverage on each other and the surrounding vicinity.
The group, he adds, is involved in between seven and eight sub-segments of the property sector. They are in every location, in different parts of the city, Penang, Ipoh and Johor.
Because of its experience in mall operation and management and its network of properties, the group has managed to set itself apart from others. Nonetheless, it will get harder to fill up space despite the team having learned the details of retail operations and management. It will become easier with each new mall, Chan states, but it will also be tougher because of the overall environment it is operating in.
