Retail lifestyle mall readies for strong retail in Colombo
View(s):Each month there’s a new international brand that sets up in Sri Lanka which shows the high market demand for retail, a prominent retailer says.
The Colombo City Centre Mall, a colossal five-floor retail lifestyle mall that will host premium retail brands, a multi-cuisine food court, a spectacular 6-screen Cineplex has such confidence in the local market precisely for this reason and this project is currently on track for completion with the target being Q1 2018, its CEO Anand Sundaram told the Business Times.
This mall is part of the mixed-use development project by Abans Group in collaboration with SilverNeedle Hospitality. The mall will feature a large shopping arcade infused with a plethora of brands both local and international, supermarket, games and recreational activities providing an enjoyable experience for individuals as well as families alike.
“There’s a latent consumption and latent demand in the Colombo area for retail,” Mr.Sundaram said noting that the growth for this sector in the entire city is solid. He added that there’s a high business sentiment of strong retailing in the island. “This is why we see so many big international brands coming to Colombo.” He added that as Colombo grows and retail offerings mature and proliferate, tourists will arrive looking for the next new shopping experience.
The mall currently hosts reputed local and global brands namely, Abans, Armani Exchange, Apple, Mango and Odel amongst many others.
Mr. Sundaram added that Colombo City Centre was initially built around entertainment and food. “There’re 360 spaces only for the mall. It has 720 seats at the food court,” Mr. Sundaram noted adding that the country’s growing incomes – and the subsequent increases in disposable incomes and changing lifestyles – are the key to lifting its retail sector growth. If trends continue on their current trajectory, increasing numbers of Sri Lankans will continue to have more disposable income to spend on retail goods, he said.
Some analysts agree saying that in the fast-moving commercial goods segment, for example, demand for personal care items, such as facial and body creams is increasing.
With incomes rising and interest rates still favourable, purchases of white goods, electronics and automobiles are also on the rise. According to Nielsen, some 10 per cent of Sri Lankan households owned a vehicle as of February 2015. They say that the size of the Sri Lankan retail market is estimated to range between US$ 25 to 30 billion and it is expected to deliver early double-digit growth in the short term adding that the per capita income in Sri Lanka now stands at $3,912, which is one of the highest among South-Asian economies. As such they say that consumer spending is expected to witness a compound annual growth rate of 17 per cent in the coming period.
Mr. Sundaram noted that when planning a project such as this, there should be a thrust towards urban planning. Colombo City Centre is strategically positioned in an upmarket location within the Central business district, where some of Sri Lanka’s best schools, hospitals, shopping arcades, historical monuments and more are situated just a few minutes away.
When setting up a project, it’s more responsible to build a shopping area, parks, etc around the project, he added.