Klang Valley to see around 2.15m sq ft of new retail space by H2 | Realestate Asia
, Malaysia

Klang Valley to see around 2.15m sq ft of new retail space by H2

The retail supply stands at 66m sq ft as of H1.

Following the completions of Mitsui Shopping Park Lalaport and Malaysia Grand Bazaar in Bukit Bintang with combined NLA of approximately 1.0 million sq ft, the cumulative supply of retail space in Klang Valley, Malaysia stands at circa 66.09 million sq ft as of 1H2022, according to a Knight Frank report.

Mitsui Shopping Park Lalaport and Malaysia Grand Bazaar forms part of Bukit Bintang City Centre (BBCC) - a 19.4-acre integrated development encompassing serviced residences / residential suites, hotel, office, retail, an entertainment hub and transit hub.

Here’s more from Knight Frank:

Introducing a myriad of first-to-market brands, including NITORI, Nojima, Coo&RIKU, Shin’Labo, Match Eight, Tamaruya, Lalaport BBCC brings new concepts and authentic Japanese shopping experience. Through its event spaces, namely the Central Rooftop Garden, Wow Plaza, and Grand Steps, and coupled with its integrated mobile app and loyalty reward programme, Lalaport BBCC offers convenience and enhances consumers’ shopping experience.

Curated to house local brands, Malaysia Grand Bazaar – the city’s first artisanal mall, pays homage to creators and crafters as it seeks to become an incubator of local entrepreneurs to scale up their businesses and reach a wider customer base.

The next half of the year (2H2022) will see the scheduled completion / opening of four shopping centres / supporting retail components with a collective retail space of circa 2.15 million sq ft. 

The official opening date of the completed retail component with circa 326,000 sq ft of NLA at Datum Jelatek, initially targeted in 1H2022, has been delayed. During the review period, a subsidiary of Gagasan Nadi Cergas Bhd has entered into a 30- year chilled water supply agreement with the mall to support efficient operations. 

The landscape of Taman OUG is set to transform with the impending demolition of Plaza OUG. The redevelopment will make way for a new mixed-use project comprising a 6-storey shopping complex, a hotel and serviced apartments.

Mall operators continue to embark on asset enhancement initiatives (AEIs) to cater to the ever-evolving consumer preferences, and to address the health and safety of shoppers.

WCT Mall Management is taking additional measures to provide a cleaner and hygienic environment by installing air purifying system in all of its retail premises, namely Paradigm Mall Petaling Jaya, Gateway@KLIA2 and SkyPark Terminal. 

The refurbishment of family rooms at IPC Shopping Centre encompasses antibacterial flooring and advanced air ventilation system with air purifying properties. Other upgrading works include new escalators and playgrounds, which solidify the mall’s position as a family- friendly shopping destination.

Lotus’s Malaysia is going green through its latest rooftop solar photovoltaic (PV) project involving 12 stores and one distribution centre. The installation of the solar PV system is equivalent to planting over 300,000 trees, as it offsets over 6,600 tonnes of carbon emission annually.

With the resumption of all economic activities boosted by the nation’s high vaccination rates, retail giants including Mr DIY, InNature, AEON, 7-Eleven, Padini and Bfood (operator of Starbucks and Kenny Rogers), reported improved profits compared to the previous year.

Local and foreign brands continue to debut in prime shopping malls while existing retailers continue to strategize for expansions.

Shifting consumer behaviour coupled with the acceleration in digital transformation amid the COVID-19 pandemic have led retailers and mall operators to increasingly adopt omnichannel strategies to increase sales and improve engagement.

AEON Co. (M) Bhd is accelerating its digital shift and seamlessly merging its offline with online via multiple platforms including myAEON2go, AEON loyalty programme, iAEON app and AEON Living Zone to improve customer experience.

As for Ikano Centres, in addition to its individual mobile app with integrated reward programme, IPC and MyTOWN Shopping Centre have ventured into social commerce, offering shoppable live streams and collaborations with GoGet to introduce personal shopping services, as well as run campaigns on GrabFood and FoodPanda. To further drive engagement, Ikano Centres has created Soulmates, an online platform to provide affordable retail spaces for small businesses.

With the changing landscape in consumers attitudes, behaviours and purchasing habits, retailers are placing greater emphasis on convenience and accessibility as well as on creating immersive experiences to drive footfall.

Sushi King, which has long incorporated automation at its restaurants, such as self- order and robotic tray delivery, is focusing its expansion strategy on Sushi King kiosk and Sushi King satellite outlet, which offer takeaway sushi.

Also, following the rising demand for contactless purchasing experience, the adoption of vending machine has also grown significantly. ATLAS Vending – the largest vending machine operator in Malaysia, has introduced Braille-enabled and accessible vending machines, as well as ATLAS TryBot, which leverages on automated sampling.

Cloud kitchen and virtual / online food halls are also redefining today’s dining scene. Catering to current consumers’ lifestyle and pace of life, Epic Food Hall, which has over 30 brands under its belt, offers delivery, dine-in and pick-up services. Officially launched at Glo Damansara, COOX cloud kitchen alongside its mobile app enable F&B operators and consumers to leverage on the growing platform.

TiffinLabs, a Singaporean food tech company with over 20 brands across different cuisine will debut new virtual restaurants through a partnership with Loob Holdings – the owner of Tealive, and Bask Bear. The partnership will deploy up to 100 kitchens to bring in TiffinLabs’ virtual restaurants into Malaysia.

The launch of PrestoMart Near U, which combines a retail mart with an e-commerce fulfilment and courier services, further deepen the penetration of q-commerce in Malaysia. Fulfilling hyper-local and on-demand delivery, q-commerce is set to become the next era of e-commerce.

Grab, Southeast Asia’s leading superapp, recent completed acquisition of a majority stake in Jaya Grocer, makes on-demand grocery delivery more accessible to consumers in the country. The deal strengthens GrabMart’s footprint across Malaysia, and expands the reach of Grab’s e-wallet services such as GrabPay and GrabRewards in all Jaya Grocer physical stores. 

 

 

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