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Large malls continue to rebound from effects of Covid-19

Urban Studies index shows improvement in customer satisfaction with super-regional centres

The Mall of Africa in Midrand. Picture: DENISE MHLANGA
The Mall of Africa in Midrand. Picture: DENISE MHLANGA

The latest Urban Studies shopper index (USSI) for super-regional centres shows a recovery trend for SA malls, which experienced a marked drop in trade during and immediately after the Covid-19 pandemic.

The report shows customer satisfaction is improving as these centres adapt and enhance their offerings.

During the pandemic, when economic activity stopped or slowed dramatically, businesses faced declines in foot traffic and customer satisfaction. According to the index, large malls were more affected than other categories of shopping centres, as restrictions and safety concerns kept shoppers away.

However, the data has shown a steady improvement in customer satisfaction. The index, which measures customer satisfaction across major shopping centres, has increased from a rating of 4.34 in quarter one 2019 to 4.55 in quarter two 2024.

“The peak experienced in quarter two 2024 was first achieved in the third quarter of 2022. Two years of Covid-19 has had a negative impact (foot count) on super-regionals; more [so] than any other shopping centre category,” the report reads.

Sandton City, Victoria Wharf Centre and Mall of Africa are leading the pack with a strong upward trend. The report indicates that these malls maintained high customer satisfaction levels.

However, not all super-regional centres experienced uniform recovery. Fourways Mall and Cresta Shopping Centre’s ratings fluctuate, while East Rand Mall and Westgate Shopping Centre continue to rank lower.

The Pavilion, near Durban, has emerged as the best performer, climbing the index hierarchy from number 12 in the first quarter of 2024 to six in the second quarter. The mall saw a 5.7% increase from 4.37 to 4.59.

Key factors behind The Pavilion’s success include the introduction of new shops, renovations, enhanced cleanliness, improved safety measures and exceptional customer service.

“Shoppers appreciated the renovations, new shops and the overall improved shopping experience. The excitement about these upgrades contributed to a better perception. Positive mentions of the mall’s cleanliness, safety and pleasant atmosphere increased in the second quarter, indicating improvements in maintenance and security,” the report said.

Despite these positive trends, the report found that issues such as security and maintenance problems persisted.

“There were still negative reviews about security and maintenance issues, particularly air conditioning and escalators. [But] the frequency of positive reviews and the variety of aspects appreciated by the shoppers outweighed the negative aspects in the second quarter compared to the first quarter.”

GobaN@businesslive.co.za

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