Locations of retail space and survival of business - a study. (Part 1 - Pearl Point Shopping Mall).

Dear readers,
I know nothing about ‘feng shui’, however; I do believe location plays vital role in the success of a business. I suppose there are no ‘thumb rules’ in regards to pick the right location for your business but the characteristics of the location itself, design/architecture of the building and surrounding demographic factor counts a lot in attracting business. I guess a big part should nevertheless be contributed by the management of the premise to enhance attraction of shoppers.

Based on my observation around Johor Bahru and Kuala Lumpur, once a new building or shopping complex is facing death sentence it is very difficult to resuscitate hence it will be abandon eternally. These had happened to the ‘Best World’, the multimillion dollar ‘Water Front’ in Johor Bahru, the ‘World Wide’ building in Shah Alam and many more.

So where are you going to locate? Sorry, I dont have the answer. As a Muslim, I am not a superstitious neither that I have the ability of Donald Trump to explain, theorized and remedy a financial tragedy and transform a slump into upmarket Manhattan. However, I would like to suggest that before you decide on opening a retail shop please do a lot of research and avoid supporting your decision based only on ‘rental costs’ as you might incur higher costs of failing a business.

In the vicinity where I live (Jalan Klang Lama, OUG and Jalan Kuchai Lama), there are three major shopping complexes that we can study on ‘impact of location’ towards business survival. I will not conclude anything but we shall together ponder on the fate of rising and downfall of the retails glory of retailers of these three buildings which are predominantly occupied by Chinese retailers.

The first one is a retail, hotel and condo complex facing the main road of Jalan Kelang Lama. It is well known as Pearl International Hotel, quite a busy hotel famous with tourist and expatriates. Occupied in the same building (Pearl Point Shopping Mall) are the anchor retail tenant that is the Dhatti Supermarket on ground floor (formerly Jusco Supermarket), with other outlets like Domino Pizza, Watson, Guardian (first floor) and three stories of retail spaces. Most of the first floor is 40 percents occupied with only 20 to 30 percents occupation in second floor.

The second floor used to be full of ‘hand phone seller booths’ which have totally been gone nowadays. There are lots of disappearing act in the first and second floor which I am not definite that the current retailers status in remaining there. Currently there are 2 computer shops in second floor. Even on weekends you don’t get to see crowded shoppers unlike its neighbor ‘Pasaraya Central’ or the other one which is Citrus Park (well known as Parkson). If I am not mistaken, parking is around RM2.00 per hour which is still in higher price compared to the ‘Pasaraya Central’ which is only RM0.50 redeemable if you shop above RM20.00 over there.

Although the management of the building is actively doing lots of promotion like fashion and stage shows but with competition from neighboring complexes, the not so far away giant and modern ‘Mid Valley Megamall’, and hypermarkets in Bukit Jalil, it is very difficult for them even to attract residents around the area. When fate of retailers to survive is largely depending on shoppers, only the right kind of business will do well in the environment.