Thursday, March 25, 2021

Is There an Uptick in the Convenience Shopping Center Space Amid The Pandemic ?

 


It is widely reported that retail sales are down in Q1 2021. With rising fuel prices and electricity prices this does not bode well for retailers. Ever increasing costs places pressure on the bottom-line and inflationary price increases are inevitable making it more difficult for the consumer who is also under financial pressure. No wonder retail sales are down. 

The Nethold Group have however found that there is a keen interest in the convenience center space amid the pandemic. These centers typically cater for the convenience market and located close to residential markets or in locations with easy access on busy roads. These centers are ideally positioned for social distancing since, in many cases, the customer can stop in front of the shop where he/she want to purchase. This ensures minimal contact with other people and ensures convenience for the customer. 

The rentals in these centers are also generally cheaper than in large shopping malls. It is however argued that there are less feet in these centers. A counter argument is that the lower rentals offsets the lower feet count in these centers compared to large malls. The visibility is generally also higher in these types of centers since there are less tenants than in larger malls. 

The Nethold Group have found that more and more retailers are looking towards the convenience center market which is creating demand for the retail space offered by these centers. Vacancy rates have come down since August 2020 which bodes well for the convenience center market.

Nethold Group

The Nethold Group owns convenience centers in prime locations.

Contact details:

Tel : 012 - 364 2555

Website : www.nethold.co.za 




No comments:

Post a Comment