Airport Junction weathers market saturation
Isaac Pinielo | Wednesday May 25, 2016 16:19
The last few years have not been easy for the shopping mall, which is Botswana’s second largest by size.
A sluggish economy, increased competition from Game City and other centres, all contributed to the mall’s instability in its early years.
Despite the challenges on several fronts, Khumo Property chief executive officer, Outule Bale believes the mall has now found its footing and plans future developments.
Speaking to Mmegi Business on the sidelines of Airport Junction’s fourth anniversary celebrations last Saturday, Bale said during the first years the mall experienced teething problems that included poor selection of tenants.
“At first, we thought we had found the right mix of tenants, but only to learn that it was not the case,” he said.
He said because of the poorly selected tenants, some had to leave after finding that they were not at the right mall.
Bale also stated that they have been facing a challenge in their attempt to ensure that the mall is relevant, with viable logistic channels for buyers and sellers alike.
He said the mall also experienced challenges last year in the form of power outages and water shortage.
“Performance of the tenants was greatly limited by the power outages and water shortages that were experienced last year,” he said.
Bale further explained that some tenants occupy some space in the mall hoping to get good results, but end up vacating when they do not get the needed results.
However, the CEO said the mall is gradually improving and finding a footing. “The challenges we encountered taught us that we ought to choose tenants for the shopping centre with due regard for the concepts of clustering and sales improvement,” he said.
He emphasised that a good tenant mix includes a variety of compatible or complementary retail or service providers, and an efficient space allocation and proper tenant placement that encourages the interchange of customers and retail activities.
Airport Junction is a mix of retail and entertainment, offering visitors the chance to shop at their favourite stores as well as spend time with family and friends.
Over its first year of operation since April 2012, the centre has gone to become reputable for satisfying customers’ needs to be entertained while shopping.
Playing host to some of the most contemporary lavish events in Gaborone, the name Airport Junction has become synonymous with big and relevant events like; The APJ Motor Show, Christmas Carol Show, Food and Wine Show, Cyclo GP bicycle competition, and the Chinese New Year celebrations.