For obvious reasons, the large-size malls like Ikeja City Mall, The Palms, Novare Lekki Mall, all in Lagos, are giving way to small-size malls and neighbourhood stores that define the future of formal retail in Nigerian real estate sector, experts have said.
Besides less capital outlay, small-size malls are also preferred today going into the future because, according to the experts, these facilities which could be as small as 3,000 square metre (sqm) can conveniently fit into specific neighbourhoods as opposed to the more popular large malls.
Large malls such as Novare, which sits on 22,000 square metres and others that are even of larger sizes demand large scale constructions and, oftentimes, significantly disrupt the lives of neighbourhoods.
Small or large, malls or retail spaces present investment opportunities for space suppliers. It is estimated that, in spite of what has been done so far, modern retail in Nigeria accounts for less than 10 percent of the industry and continues to be significantly underdeveloped.
This means that the sector presents a unique opportunity for real estate developers and investors who can fill the gap by developing smaller neighbourhood malls.
“Purpose-built mid-sized retail outlets sited in neighbourhood areas are able to serve the needs of the local residents while simultaneously offering the similitude of experience that large-scale mall customers crave,” Ade Sun-Basorun, CEO Designate, FoodCo Nigeria Limited, affirmed.
Sun-Basorun, who spoke at the 5th edition of the West Africa Property Investment Summit (WAPI) Summit held in Lagos recently, pointed out that small-size malls ease the travel time and stress customers experience in commuting to large malls which are typically located in major city centres.
