Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/331061
O N T H E G R O U N D : K U w a i T a relatively young retail market is growing up fast While Dubai, United Arab Emirates, is busy promot- ing itself as a global tourist destination, Kuwait seems intent on becoming a shopping mecca for Arab tourists across the Persian Gulf. And by all accounts, Kuwait is succeeding. This constitutional monarchy of some 3 million, wedged between Iraq and Saudi Arabia, ranks right behind the United Arab Emirates in retail development in the Middle East–North Africa region, according to an A.T. Kearney index. "Kuwait has been a leader in the Gulf in developing high-quality shopping centers with innovation and strong sales performances," said Phil McArthur, managing director of Dubai-based mall consult- ing firm McArthur & Co. "Many chains in the region report some of the highest sales performances in the world and have chosen Kuwait City as their market entry point." The prospects look good for the future, according to a report by Oxford Business Group. "The big macro-policy picture is that there is a hugely wealthy government that is spending on infrastructure, which is trickling down to the Kuwaiti nationals in the forms of much higher per capita income and much higher levels of already very high personal spending power," said Oliver Cornock, the Oxford Business Group re- gional editor who coordinated the report, in an interview with SCT. "So for the retail sector, that can only mean one thing: good times." Dubai draws millions of visitors from a wide area, including Europe and North Africa, but the Kuwaiti market is oriented more toward the local population, Cornock says. "There isn't much tourism to speak of in Kuwait," he said. But that lack apparently is offset by the favorable demographics. According to a report by Business Moni- tor International, 45 percent of the population is young: between the ages of 20 and 39. There are favorable cultural factors too. "Kuwaiti women do not generally wear abayas, so there is a much more open attitude towards fashion," the report said. "Kuwaitis love their shopping malls and restaurants," said one source, a woman formerly from California who requested anonymity. She has been living in Kuwait for roughly a decade and blogs about fashion and commerce under the pen name Crazy in Kuwait. One of the highest-pro- file centers is the Avenues Mall, which completed its third expansion last year. Avenues Mall now has 2.8 million square feet of gross leasable area, and owner Mabanee Co., of Kuwait, is in the design stage for expand- ing the property yet again, to 4 million square feet, including the addition of two five-star hotels. Avenues Mall boasts an 11-screen cinema, the first Carrefour hypermar- ket in Kuwait, an Ikea, two spas, a KidZania entertainment center and parking for 10,000 cars. The mall's Grand Avenue district is modeled after a tree-lined Parisian boulevard. Its Prestige section features high-end brands such as Christian Dior, Luis Vuitton and Prada. The mall's SoKu district (the name stands for south of Kuwait) pays homage to Manhattan's SoHo (which stands for south of Houston), with trendy, urban-style clothing and sportswear stores. Also at the mall is The Souk, which resembles a traditional Kuwaiti market with a maze of narrow streets, courtyards, fountains, cafés and restaurants. "The Avenues Mall has taken over Kuwait," blogger Crazy in Ku- wait told SCT. "People come from all over just for the Avenues. It has almost everything you can ask for, and it's not even completed yet." Not quite as big but eagerly anticipated is Shuwaikh Gate Hold- ings' The Gate Mall, a high-end retail complex with six floors and nearly 400,000 square feet of gross leasable area, slated to open later this year near the American University of Kuwait. Also on tap is Ajial Real Estate & Entertainment Co.'s novel Al Hamra Centre, a mix of luxury boutiques, cinemas and restaurants attached to Al Hamra Tower, which is, at 1,354 feet high, one of the tallest towers in the world. The Kuwait-based Tamdeen Group's 360 Mall, which boasts some 800,000 square feet of gross leasable area, contains the only Toys 'R' Us in Kuwait plus a 16,000-square-foot teenage- entertainment center. In March Marks & Spencer opened its largest store outside the U.K. in Kuwait. "Kuwait has a young market — 25 percent of the population is under 15," Cornock told this magazine. "They're tech-savvy, and they've got money in their pockets. Whether it's smartphones or sneakers, they want the best." — Spencer Rumsey 52 S C T / J U L y 2 0 1 4 t h e A v e n u e s m A l l d r A w s c r o w d s t o A i t . 52B_SCT_JUL14_OTG-Kuwait.indd 52 6/12/14 6:00 PM