AFTER THE BELL: Reports of the death of the retail shopping mall have been greatly exaggerated

The retail shopping mall may be experiencing a renaissance, with physical stores making a remarkable comeback. Despite the pandemic and the rise of cheap fast fashion retailers like Shein and Temu, successful malls are creating unique experiences that draw customers in. The Clicks Group recently acquired a controlling share in beauty retailer ARC, with plans to expand their physical presence.

Trading densities across South African malls are currently above 5%, and vacancies are low. Fourways Mall, once notorious for its dysfunction, has seen a dramatic turnaround and is attracting new clients, with its trading densities increasing significantly. Recent online sales have continued to thrive, with Amazon becoming the go-to destination for big-ticket items and hard-to-find products.

However, the fast fashion industry is struggling, as EU and US de minimis rules require customers to pay higher customs duties on smaller packages from Shein and Temu. As consumers become more discerning, they may be gravitating towards higher-quality, long-lasting products. The success of malls like Fourways Mall demonstrates that physical retail can offer a unique experience that complements digital shopping. The future of shopping will undoubtedly be a blend of both virtual and physical experiences.