MMBOMBELA – More and more shops in Riverside Mall are closing their doors as they struggle to stay financially afloat.

Mediterranean, Primi Piatti, Galaxy and The Market have all ceased operating – the latter just this past week.
Locals who own businesses in the mall, who all spoke to Lowvelder on condition of anonymity for fear of victimisation, said the reason is mainly because renting premises has become unaffordable.

Revenue has also sharply declined because of an increased number of competing malls in Mbombela. Up to 650 000 customers used to visit Riverside each month, but it is estimated that this number has decreased by at least eight per cent over the past two years.

Mediterranean, a popular seafood restaurant, was vacated overnight. The owner declined to comment on the reasons.

Astronomical rent, apparently ranging from R400 to R1 000 per square metre, seems to be at the heart of tenants’ despair. Adding to their woes is the fact that customers have less disposable income, resulting in shops’ turnover dropping by at least 20 per cent. “We are barely keeping head above water,” one of the concerned tenants said.
A low income, 60-square metre store, tenant supplied a tax invoice which shows the amount of almost R40 000 that will soon be debited from his account by Excellerate Real Estate Services.

“I don’t know if my store is going to survive,” the tenant said, and added that the rent increases by around 10 per cent annually.
Another tenant who has branches in both Riverside and i’langa malls, pays a base rent of R122 000 for a 120-square metre shop at the former – tax and other contributions excluded.
He added that his turnover at Riverside has decreased by at least 20 per cent, where as it increased by 20 per cent at i’langa, possibly as a result of recent upgrades at the latter. The businessman said exorbitant rent and ever declining feet count are at the root of the problem.

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Tenants have been hesitant to speak to the media, alleging that their stores will be closed down within 10 months of publication, and “there will be hell to pay”.
One of the tenants fears even losing his residential property.  “We pleaded that our rent be reduced, but it falls on deaf ears,” another tenant said.
“No tenant at Riverside Mall is able to tell you that their store has shown any growth in the last two years.”

The tenant added that at least three more stores will close at the end of the month – one of which is actually in arrears. “I poured all my blood, sweat and tears into my shop, but now I have nothing to show for it,” the tenant said.

Should it continue like this, Riverside Mall will soon be a white elephant,” the tenant remarked, but added that the centre has been more than accommodating in assisting to get out of a remaining lease agreement.

Another shop that closed its doors today, believes that marketing is at the heart of the problem. “The marketing of Riverside, and that of its main competitors, are worlds apart.
There are six new, top fashion brands in Riverside, yet no one knows about this.”
“Whereas i’langa’s decisions are made by a locally based committee, Riverside’s decisions are made from Cape Town. They have a big problem on their hands. I wish that they would share their vision with us on how they will make Riverside number one again and I hope it includes attracting anchor tenants,” the tenant said.

Though most agree that their woes fall on deaf ears and that the owner, Old Mutual, only cares about money, not knowing what is going on on the ground, the mall’s management said it has been more than accommodating.

Riverside Mall’s marketing manager, Beate Dreyer stated:

“Riverside Mall has been an integral part of the Mbombela community for 20 years, with strong ties
to both its tenants and patrons.

Riverside has had an exceptionally high tenant retention rate, retaining 95 per cent yearly, with some of our loyal tenants being with the mall since our inception in September 1998.

“As is the case in all malls, existing tenants leave and new ones are introduced to the mall. Retail operating conditions fluctuate with the economy and this impacts every retailer differently. However, the recent year has still seen positive occupancy rates in the mall, with only six tenants exiting compared to 13 new tenants. Our experience has been that we have dealt with matters satisfactorily with regard to exiting tenants.

Riverside Mall centre management and owner value the mall’s dynamic mix of tenants without whom, as with our shoppers, Riverside Mall would not exist. As such, the mall’s management team has an open-door policy to ensure that any concerns and queries are addressed in a responsive manner, and our tenants are supported to the best of our ability.

“Riverside Mall is situated in the thriving and rapidly growing Riverside Park City Improvement District, with many exciting developments set to take place in the future. We are excited to celebrate our 21st birthday in 2019, and look forward to sharing this special occasion with our tenants, community and staff.

 

“We look forward to many years of inclusive activity and prosperity for the mall and tenants alike.”

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* Lowvelder previously  reported that The Body Shop in Riverside Mall was one of the stores that was forced to close its doors. The store is in fact only closed for renovations and will reopen again soon. Lowvelder regrets the error and apologises for any inconvenience caused.