Sri Lanka’s John Keells Holdings postpones refurbishment of shopping mall due to increase in sales
A senior official of Sri Lanka’s John Keells Holdings (JKH) has reportedly said the company has decided to postpone the previous decision to refurbish the Crescat shopping mall in Colombo due to rising sales in the ongoing Christmas and New Year season.
“After the April attacks the sales of the shops in the mall fell but we can see an increase in sales in this month due to the Christmas season,” Property Group President Suresh Rajendra has been quoted as saying in the local media.
He has noted that 10 percent of shops in the mall had closed following the consumer spending squeeze following the Easter Sunday attacks in April and one of the bombings took place next door to Crescat, at the JKH hotel Cinnamon Grand.
“The remaining clients struggled with their sales until November,” Rajendra has said.
He has further said the group had planned to close the mall in February for refurbishments, but due to an expected growth in sales in Christmas and New Year, the renovations have been postponed until a fresh decision is taken.
The new government which came into power in November has introduced widespread tax cuts, putting more cash in the hands of the consumer in a bid to stimulate stagnant growth through consumption.
Some Crescat occupants had been surprised at JKH’s decision to ask them to vacate the premises in 3-months for renovations, as they were earlier told that they could continue business while refurbishments continued, the local English newspaper Daily Mirror had reported.
As the mall is over 20-years old, it is a matter of when, not if, to refurbish, Rajendra has said, adding that tenders have been called to refurbish the mall, which is expected to last six months once it begins.
As sales have normalized, rentals have been brought back to normal levels, he has said.
“We plan to re-position all the shops because we want to compete with the new malls in the country. We do not plan to remain in the same position as we are now after the refurbishment.”
“We have like a one fifth of what other malls have. So we want to manage that place to the fullest.”
He has further said that there is no guarantee for the shop owners in the Crescat mall presently, will get a place after the re-opening.
“If anyone wants to have a space in the new Crescat they will have to re-negotiate with the Crescat Management,” Rajendra has added.
OSL take:
The increase in sales recorded by Sri Lanka’s Crescat mall after suffering a setback following the Easter Sunday attacks in April, is indicative of the overall return to normalcy of the country’s economy. The increase in sales is also indicative of the growth in consumer spending and money circulation in the local market. Given the overall growth recorded by Sri Lanka’s economy, it is indicative of the expansion of business opportunities in the island.
| Article Code : | VBS/AT/18122019/Z_3 |