Small Retail Centres Are Booming in South Africa
South Africa’s retail landscape is undergoing a significant transformation—and the biggest winners are not mega-malls or sprawling shopping complexes. According to the latest Clur Shopping Centre Index small retail centres particularly convenience and neighbourhood malls are leading the charge in post COVID retail growth.
Small Centres Outperform in Retail Sales Growth
The Clur Index for the year ending March 2024 exposes that minor retail centres have exceeded their greater complements in both foot circulation and sales growth. Convenience and neighbourhood centres have not only improved to pre-COVID levels but surpassed them, evolving as key progress drivers in the South African retail property market.
Key Findings:
- Neighbourhood and convenience centres recorded the peak marketing deals progress.
- Super-regional malls continue to lag behind, hostile to recover lost foot traffic post-pandemic.
- This performance change marks a structural transformation, not a short-term difference.
Why Are Small Retail Centres Gaining Ground?
Shifts in Consumer Behaviour
Modern shoppers now prioritize convenience safety and time efficiency. Instead of long-distance weekend spending flings at massive malls, clients prefer short, local trips to easily available centres near their homes.
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Rise of Remote and Hybrid Work Models
As more South Africans work remotely or on hybrid schedules, fewer people commute to city centres. This shift has raised the relevance of local community focused shopping centres.
Cost-Conscious Mindsets
Soaring fuel prices and insistent inflation have made consumers rethink travel. With fewer non-essential trips, local shopping endpoints are seeing increased patronage.
Retailer Realignment
Top retail brands are actively spending in smaller store formats to penetrate high-growth micro-markets, further encouraging the success of these solid centres.
Amanda Stops, CEO of the South African Council of Shopping Centres, notes: “Convenience centres are becoming primary retail nodes rather than secondary options.”
What This Means for Real Estate Development
Investment Shift Toward Community Malls
Developers are now revising retail property strategies, redirecting funds toward smaller, well-located centres that offer ease of access and relevance to the daily needs of local communities.
Redefining Success Metrics
It’s no longer about square metres or tenant count. Routine now hinges on location foot transportation efficiency and utility.
Boosting the Broader Economy
Beyond property performance, small retail centres are refreshing township economies and allowing local free enterprise. These centres support job creation SME growth and reasonable access to goods and services.
Future Outlook: A Long-Term Market Shift
- Constant growth is expected in convenience-focused formats.
- The dominance of super-regional centres may continue to wane unless they evolve to meet changing consumer needs.
- Retail products and landlords must reel their policies to align with modern shopper expectations.
Clur Research affirms this is not a trend but a long-term structural realignment of the retail ecosystem.
Expert Takeaway
The Clur Shopping Centre Index 2024 serves as a compelling guidepost for stakeholders in retail, real estate, and economics. Small is not only beautiful but profitable in South Africa’s post-pandemic consumer environment.
Call to Action
Have you noticed the rise of your local mall?