In recent months, the shopping mall industry has seen increased activity. With the opening of Mercury in St Julian’s and The Shoreline Mall in Kalkara, garnering strong interest from people living in the south of Malta, these developments have increased competition among already established shopping destinations such as Arkadia in Gozo, The Point and The Plaza in Sliema, Bay Street in St Julian’s, Centre Parc in Qormi, and Main Street in Paola.

In light of this, two long-established shopping malls - Plaza Centres plc and Main Street Complex plc - in their respective annual financial statements for 2023 have shared that recent refurbishments have been motivated by increasing competition on the market.

In the Plaza’s financial statements, the company noted that “competition was strong.”

“In this context, the Board of Directors are confident that the investments being made in upgrading the property is essential to remain competitive and attract new tenants to the Company’s property,” the statement read.

The company details a number of refurbishment initiatives that took place within the year. Apart from different green initiatives taken throughout the year, the company notes that the main refurbishment took place within the common areas of the shopping centre, coinciding with its 30th year since it opened.

The same was also highlighted in the financial results of Main Street Shopping complex, which for a number of years had been the sole retail centre in the south of Malta.

The company noted that the majority of the company’s concession agreements will be expiring at the end of 2025, with a few expiring in 2024.

It was noted that discussions with existing and new tenants “have commenced with mixed results, so far.”

The company said that some of the current tenants have expressed interest to extend while others remain undecided or intend to honour the current term of their agreement. Analysing further the reasons behind the mixed results, the company said that interest from new tenants have been described as slow on account of various factors cited by potential tenants.

“This includes the emergence of new and larger shopping malls in the south of the island with sizeable parking availability, intensifying competition from online activity, and increasing operating and rental costs versus stable turnover levels,” the company shared.

Despite so, Main Street highlighted that it remains “cautiously optimistic” that Paola “will remain a relevant commercial hub, enabling the complex to continue to attract relevant retail business.” 

To this effect, the company is embarking on a phased refurbishment and unit reconfiguration program aimed at refreshing Main Street Complex’s image “with the aim of strengthening its appeal to potential tenants and customers.”

This sentiment was also further amplified in Main Street Chairman Joseph A. Gasan’s statement, where he shared that as the Board continues to monitor the situation closely, after almost 20 years since it first opened its doors, it has approved a complete overhaul of all levels.

The refurbishment is set to start this year continuing into 2025, by remodelling one floor at a time.

“This will allow the complex to continue uninterrupted business while giving the Main Street the opportunity to introduce some new attractive brands alongside several of the shops already present,” the Chairman added.

Additionally, the company positively notes other refurbishment works and new developments in Paola, which will “positively contribute towards more visitors to the locality and consequently boost in commercial activity in the Paola area.”

This includes imminent plans for the opening of the new Vincent Moran Regional Health Centre, the ongoing expansion at MCAST and plans by Central Government for the conversion of Paola’s Schriber Ground into an open community space and the revamping of Ġnien il-Medierran.

‘Store refurbishments, in fashion at least, are mainly driven by the franchisor not the franchisee or tenant’

Recently, BigBon group announced that it shall be carrying out a refurbishment exercise on all five brands at The Point shopping Mall, in Sliema.

The first brand to start its renovations is Massimo Dutti, with the refurbishment process having began on 21st April. And, while it is temporarily closed in Sliema, the brand remains available at The Shoreline, along with the rest of the other BigBon brands: Oysho, Stradivarious, Bershka and Pull and Bear.

Asked whether BigBon’s recent plans were pushed by The Point in a bid to keep up with market trends and increase appeal for customers amid increased competition, The Point CEO Edwin Borg tells WhosWho.mt that refurbishments are part of the lifecycle of the shops.

“Store refurbishments, in fashion at least, are mainly driven by the franchisor, not the franchisee or tenant. Usually there is a lifespan for a fitout, at most it’s around seven years and they have another upgrade midway,” he continues.

Big refurbishments are often accompanied by noise, construction, and overall disruption. Indeed, Mr Borg says that refurbishment is not uncommon at The Point and that the plan is always to close off any shops that are being refurbished, and most of the work and inconvenience is happening on the inside.

Additionally, he noted that some works, that create more noise, would normally be scheduled during specific times to decrease impact on consumer’s shopping experience.

“Other than that, the area remains contained and the workers are vetted by the competent authority, including us, especially from the a health and safety and ESG, among others point of view,” he remarks.

At the moment, The Point currently has another ongoing project – Ladurée Malta.

The prestigious French brand will be taking over the former French Affair space located on the left outside corner of the main shopping mall entrance.

Despite construction happening on the inside, a section of the shop was concealed to offer basic café products such as coffee.

Mr Borg states that the works are currently in an advanced stage. While construction on the initial structure has been completed, “they are moving on to the next part to put the rest of the fit out.”

He points out that while the competitive is a bit tougher than it was before, in terms of consumer perspective, it is “working hard to make the place more attractive to the customer.”

Recently, it also inaugurated a pop-up garden adjected to the shopping mall, in collaboration with Richmond Foundation, that aims to serve as a relaxation point of greenery amid a developed area to clear the mind. This also includes yoga sessions and children’s activities such as storytelling.

A spokesperson for the mall explained that a conscious decision was made to create an atmosphere for customers to stop, take a breather and slow time.