Retail activity is gradually improving, but demand has yet to catch up with supply growth
The performance of Surabaya’s shopping malls continues to vary. Many malls have struggled, displacing many tenants. Nonetheless, others continued to see tenant expansion with F&B retailers dominating the trend. More events and exhibitions are being held on a regular basis. In terms of visitor numbers, several malls are beginning to return to pre-pandemic levels.
The mall owners use this situation to their advantage in order to continue to grow. Various new strategies and concepts are being implemented in order to entice more people to return to malls. A more favourable situation is expected to assist tenants in optimising the number of visitors and sales. After nearly two years of being closed due to the pandemic, several tenants carried out renovations by changing the store’s concept. Some of them have also been relocated by landlords in order to attract more visitors to the mall.