But footfalls at some of the malls have been dropping as consumers choose the less-hassle online shopping

by FARA AISYAH / pic by MUHD AMIN NAHARUL

FOOD and beverages (F&B) outlets have become the saviours of malls as competition, overbuilding and online retail have left many of these once favourite consumer destinations almost deserted.

To counter the dwindling footfalls and exodus of tenants who seek cheaper options as sales drop, mall owners are restructuring their footprint, allocating more areas for food and dining outlets as a makeweight to draw the crowd back to their glistening structures.

Malls like the IOI City Mall and Sunway Pyramid have allocated acres of the built-up areas for food and dining. Korean and Japanese food outlets are becoming mainstays at these malls to cater for the rising demand.

Savills (M) Sdn Bhd deputy executive chairman Allan Soo said malls are merely one of the many parts of the retail experiences as consumers do not need to visit these establishments out of necessity or habit.

“As fashion merchandise continues to evolve (to e-commerce), the quantum or percentage of F&B outlets has begun to take prominence, although it depends very much on the location of the malls.

“In major malls like Sunway Pyramid where the total size exceeds two million sq ft, the content is actually bewildering as the mall has more than 150 F&B shops and brands, but it is only about 26% of over 700 shops in the mall.

“In smaller malls, the percentage can exceed 50% as fashion outlets will be less workable in such malls,” he told The Malaysian Reserve (TMR).

In March this year, TMR reported that about four million sq ft of new retail space is expected to be added to the already sizeable commercial footprint in the Klang Valley. The new retail space, the size of 76 football fields, is expected to enter the market by the middle of this year.

It is estimated that there are some 64 million sq ft of retail spaces in the Klang Valley, including 133 shopping malls.

Figures, however, show that occupancy rates for malls in Kuala Lumpur and Selangor continue to remain strong at 83.6% and 84.1% respectively. But footfalls at some of the malls have been dropping as consumers choose the less-hassle online shopping.

Soo said despite online retail in Malaysia is still low at 5%, it will eventually reach 20% like in other advanced retail markets such as China.

Sunway Malls and Theme Parks CEO HC Chan said the use of spaces in shopping malls changes according to consumer behaviour and other societal shifts.

“Fundamentally, there has been a shift of space use. Due to increased urbanisation, high-rise living and out-of-home dining, there is an enormous demand for F&B space within malls.

“While a decade ago, F&B space took up a single percentage of the mall’s overall leased space. Today, that number can go up as high as 40%,” he said.

Chan added that there has also been a growth in personal care and well-being sub-sectors over the years — which can be seen from the emergence of standalone stores including Innisfree, Dior and Channel — which have been a part of departmental stores.

He said these brands are increasingly taking up prime space in malls as a reflection of increasing consumer demand.

“Similarly, some of the big space users in bigger malls can be taken up by leisure space with the likes of family wellness centre, children enrichment and virtual reality parks, among others,” he said.

Chan said location and catchment area play a role in determining the use of space with the mall. He said on average, F&B space takes up close to 30% to 40% of Sunway Malls’ net lettable areas.