Early next year, the ICSC's distance learning programme on aspects of mall management and marketing will be launched at a tutorial in Dubai. What is clear is that the region's shopping centre 'industry' is growing at a rapid rate. The region's first shopping mall was inaugurated in 1981. In the light of this phenomenal growth, the recent downturn in retail spending caused by the drop in oil prices, and the acknowledged softening of retail rents in some locations, industry commentators are increasingly discussing the existence of oversupply conditions. Dubai has always been something of a barometer for the region's industry.
Opinions there vary from one extreme to the other.
A veteran retailer from South Africa, Watts is one of the few centre managers with responsibility for both leasing and operating retail units, and this gives him a unique perspective. He sees the proliferation of new retail outlets within the numerous new malls as the real danger. To own a shopping centre seems to be the flavour of the month, and each new mall takes a slice of the cake. Unfortunately, it's killing the operators. Every time a new store is put up, turnover is dropping and overheads are increasing.