Friday, April 3, 2009

The Rise of Township Shopping Malls

It has been fifteen years since the first township Mall was built in Dobsinville, Soweto for less than R10 million. Within fifteen years the rise of township shopping centers has forced marketers to consider them a real force in the retail industry. There are currently thirteen Malls in South African townships with a total investment value of R5 billion. Maponya Mall in Soweto is the largest of these, costing the developer R700 million. Township residents no longer need to leave the township as leading retailers such as Pick and Pay, Woolworths, Mc Donald’s are now at their door steps. Mega City Shopping Mall in Kwa Mashu has published results of Consumer spending as being R 16 443 per m2 in 2007 and rising to R 20 213 per m2 in the 36 000m2 Mall. This is evidence that there is an undeniable presence of a black middle class with increased spending power at these Malls.