Dubai has been over retailed and will see the closure of certain malls, according to CEO Patrick Chalhoub. Retailers in Dubai are being offered free space and fit-outs in selected malls, according to the Middle East’s largest luxury distributor Chalhoub Group, despite the shopping centres’ footfall being too low to sustain luxury retails brands. Speaking to Arabian Business, CEO Patrick Chalhoub said those malls will likely cease to exist.
“It’s not a question of older [malls] but if they haven’t specialised themselves for a community or category or really understand customers, they will have a difficulty to survive… We have certain malls offering us spaces free of charge with a percentage rate and they’re ready to pay for the decoration, but it’s not enough. I prefer to pay the right price in the right location and right mall than just have a fantastic offer but not the requested traffic. So yes there will be causalities. But you still have malls charging prices higher than Madison [Avenue] so we have the two extremes…” he said