High visitor numbers at shopping centres in Cyprus, in contrast to commercial streets and shops that “barely survive” in city centres, have created new realities for entrepreneurs.
Phileleftheros has learnt that a “battle” is unfolding behind the scenes between entrepreneurs and well-known commercial brands to secure positions in shopping centres.
Industry professionals told Phileleftheros that entrepreneurs have turned en masse towards shopping centres, closing shops that operated on commercial streets or planning network expansion exclusively within malls.
According to the same sources, it would not be an exaggeration to say that many entrepreneurs are on “waiting lists” to claim opportunities that will arise from the closure of shops already established in shopping centres.
Battle over new mall locations
At the same time, beyond competition for a position in existing shopping centres, a second “war” has erupted over locations where new malls will be built.
A stark example involves plans to build two new shopping centres in Limassol, in the areas of Agios Athanasios and Mesa Geitonia.
What is striking is not the creation of two new malls but the fact that the distance separating them is just 300 metres.
This is why residents and municipal councils have expressed strong reactions, arguing that their construction will worsen the area’s already acute traffic problem.
These two projects are being put to public consultation, one today and the other at the end of the month, and statements from residents and local authorities are awaited with interest.
The reactions, however, do not stop there. Shop owners in the area also oppose the plans, expressing fears that the operation of new malls will further reduce their turnover and, as previous examples show, will lead many to forced closure or even bankruptcy.
Commercial streets in decline
It is now self-evident that the development and operation of shopping centres has led many commercial streets into decline. However, as industry professionals commented to Phileleftheros, demonising malls will not solve the problem.
According to the same sources, retail needs both shopping centres and commercial streets to function in a balanced way. Therefore, strengthening one sector at the expense of the other should not be favoured.
What local authorities and relevant bodies should do, they emphasise, is create the necessary infrastructure so that commercial streets can compete with shopping centres.
The basic advantage of malls, they explain, is free parking and ease of access. If local authorities provide similar conditions for commercial streets, namely by creating free parking spaces and better traffic management, these areas could be revitalised.
