Let’s spend a day at the mall!
This phrase had become synonymous with having a fun day out with friends or family- which meant, shopping, food, games, frolic, and more, just to generally end the weekend days on a high. Malls have over the last decade evolved into places of entertainment as well as business, both of which go hand-in-hand.
But, as the years have passed, the trend of malls has been in decline all over. And, this is evident more so from the situation of malls all over the city of Guwahati.
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Guwahati has had many a success in the genres of malls and shopping centers, with CityMart, Vishal Megamart, Kolkata Bazaar, Dona Planet, HUB, Central Mall, NCS, Aurus, and City Centre leading this space. The vibrant city of Guwahati had learned what it was to shop in malls, with huge queues at these places. People lined up at the malls, even if just to window-shop or spend some quality time. Food, entertainment, games, shopping, these places were your go-to for all your needs.
However, with time, only a handful of these have survived. The malls that used to be echoing spaces for cacophony, laughter, and fun are now lying desolate, emanating pictures of haunted houses.
According to a recent consultancy report released many of the small shopping malls are increasingly becoming ‘ghost malls’ as consumers are shifting towards online shopping and larger retail centers for enhanced experiences. These ghost malls, defined as properties with a vacancy rate exceeding 40%, have seen a notable increase, reaching 64 in 2023 from 57 in the previous year, as highlighted by real estate consultancy Knight Frank India.
This trend reflects a decline in consumer demand and raises concerns about potential job losses and economic repercussions, particularly impacting small retailers and service providers. This trend of upcoming ‘ghost malls’ in Guwahati can be attributed to a variety of factors. Some say this is due to the increase in the demographic resorting to online shopping. Others relate it to the fact that shopping malls are just a dying trend and business owners there fail to keep themselves in the loop with the outside market.
Many small businesses also die out at the shopping malls due to competition from other players in the market. Struggling to compete with the convenience and variety offered by larger shopping centers, many small mall owners find themselves in a downward financial spiral. This forces them to shut down.
Talking about this trend of ‘ghost malls’, a discussion was picked up with the management of the top malls and shopping centers of Guwahati.
Speaking to GPlus, a senior management official of the Central Mall said, “I don’t believe that the malls are dying out in Guwahati. Compared to what the population is in Guwahati, it is relevant. Yes, many businesses have shut down in recent years, and the footfall in the malls has certainly reduced. But, still, the numbers are high if you compare how many choices the people of the city have today. There is not one brand that does not have a showroom in GS Road or the other major parts of the city. And, this in comparison to the population of Guwahati is apt. The Guwahatians today have a lot of choices, and in this, some of the shops are bound to suffer. A decline in the growth of malls is bound to happen as many new are coming up and there is competition among them all. But, we cannot term that as dying out of the malls or their failure.”
Many also attribute this decline to the external factors that come into play, i.e. the location and property of the mall.
In this context, talking to GPlus, a senior official of the Times Square Mall in Guwahati said, “The properties in Guwahati are generally sold to the highest bidders for setting up complexes and business. And, if the land owners or the property owners do not get adequate remuneration from the businesses, then they are forced to close shop or sell off the property. This may also be a kind of mentality set by them that forces them not to descale or reduce the rates competing with the market rate. This also at times, eventually forces the businesses to shut.”
Another executive from one such popular mall in the city which shut down a few years ago, discussed about the state of the property prior to their closure.
“The overall footfall started to dip as there were other competitors in the game and people preferred to go there than to visit us. This caused issues as we were not able to pay rent to our property owner on time, in the end forcing us to shut down. Many asked us to increase the rent of our shops in the complex but that would be unethical wouldn’t it?” she said.
Also in this respect, another senior management official of City Centre Mall In Guwahati said, " See the thing is if there is an issue of coordination between the staff of any mall, in terms of leasing, work distribution, etc then we can see a downward spiral of that establishment. The workload and duties of the staff have to be balanced. We at City Centre are evident of this, having a monthly footfall of 3,00,000 or more depending on festivals and what not-we can also expect a similar effect if the above norms are not followed to the hilt."
But, even if such occurrences are on the rise, many people and residents of Guwahati are still fond of shopping malls and the experience that it provides.
In conversation with GPlus, Praveen Nath, a resident of Bharalumukh said, “I feel like this has both faces to it. On one hand, where we are today opting for online shopping and better deals, we still love to visit shopping malls and entertainment centers for our shopping and other needs. This is sort of a ‘culture’ that will never probably vanish completely. It is quintessential.”
The culture and popularity of shopping malls and centers are still imminent amongst the general public. Although, with the aforementioned growing trend of dying shopping malls it remains to be seen as to how their future pans out. Will they rise from the dead again or ‘ghost’ us for real?