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Kisumu Real estate: Lessons for shopping Mall Developers in Kisumu

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For some time now, Nakumatt financial challenges have been on our national media for all to be aware. Nakumatt stores in Kisumu and elsewhere in the county has been going without meeting its financial needs and shelves running out of items. This has led to many people leaving the giant supermarket chain and traffic to mall hosting them drastically reduced. This is where developers need to pond about.

Is it a good idea to have a shopping mall that majorly hosts a supermarket? What happens to other businesses that are hosted by the same mall in case the supermarket closes? What can Kisumu real estate developers run and apply going forward? These questions came up because with the challenges that Nakumat hard nearly the whole of this year, traffic to the shopping malls hosting Nakumatt went down and so are the traffic to the businesses hosting in these two shopping malls.

It’s on record that several shops have closed their shops at Nakumatt Mega as a result of reduced traffic to this mall occasioned by the decline in Nakumatt supermarket. Going forward, Kisumu real estate developers should engage in;

Kisumu real estate

Better Planning

Its time a mall should not be 50% occupied by one tenant like a supermarket. In theory, it sounds easy but more difficult in practice. It’s one thing which will solve this issue of other businesses suffering because of main play running into a problem. A bigger plan for a more inclusive mall should perhaps be developed that will bring banks and many other large institutions with a lot of traffic to a business. It’s should be more of a business center than a shopping mall that is dominated by one player.

A section of planning perhaps belongs to the county government or local authorities. How close should a shopping mall be from one another? At the moment, there are incidences where you find shopping malls border one another like Naivas Kisumu and Khetias Victoria branch in town. When the shopping malls are too close to one another, the main de-service which they bring to one another is fierce competition and that can result in lack of enough clients to break even.

More offices and shops within a Business Mall

This is part of the bigger plan of developing malls going forward. This will draw more people to the place and therefore the impact of one business going down will be minimized. Office spaces should be provided for both small and large organizations. The current practice I see in a mall like Nakumatt or United Mall hosting Tusky is where there is the main section occupied by the supermarket then small portions for private practice and smaller shops.

Affordable rent

Many times you will find that rents at these malls are so high, preventing businesses to break even and even stay there for long. Much as all businesses are looking for returns, developers should balance high rent and opportunity costs of foregoing rent because of tenants walking away or avoiding a premise.

What else can Kisumu real estate developer learn from the developments around Nakumatt and Tusky? Share with us. Write to us and will update the article and include your thoughts.

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