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Shopping malls going strong

11/12/2014 08:05
Both the number o visitors and the turnover of shopping malls in 2014 increased despite the conditions of economic recession for a third consecutive year in Cyprus.

The increase in consumption from last year's low base, the decline of wage uncertainty, the trend of concentrating in retail trade and the extension of opening hours seem to have contributed to the improvement of their financial performance.

According to the general manager of The Mall of Cyprus, Kypros Hadjistillis, its turnover from January to October recorded an increase of 5.3%. The number of visitors for the corresponding period of 2013 also increased by 4.4%.

"For the entire year we believe that the increase in traffic and the turnover of the stores will be at the same level as the results of the first ten months”, he told StockWatch.

The other mall that belongs to the Shacolas Group, The Mall of Engomi, is also recording an increase.

According to its general manager, Spyros Michailides, the traffic until November 2014 has increased by 7.9% compared to 2013 and 7.8% compared to 2012.

"The comparison with 2012 is made due to the economic events in 2013. Increases were observed in all types of stores. The Mall of Engomi accepts more than 1.5 million visitors a year with an average of 125,000 per month”, he said.

As for 2014, the number is estimated to be close to 1.6 million.

Regarding turnover, the increase was 35,2% for the first half of 2014 compared to 2013 mainly due to last year's dramatic events in the economy.

My Mall

My Mall in Limassol enjoyed increased traffic and turnover as well.

Its general manager, Yoram Kedem said that in the first 11 months of 2014 there is a substantial increase in turnover of about 25% compared with the first 11 months of 2013.

"The increase is attributable to several reasons, the primary of which is of course the extension of opening hours, which allows trade during Sunday and Wednesday afternoon," he said.

Consumption goes up

The increase in the turnover of the malls reflects the wider recovery in consumption.

According to the latest Cystat data, the turnover in retail trade in January-August 2014 increased by 3% compared to the corresponding period of 2013.

Meanwhile, according to JCC data, which is indicative of the stronger consumption, the use of credit cards in the domestic market rose by 5% in the first eleven months of 2014.

The recovery in the car market is much stronger. Private saloon car registrations for January – October soared 29.8% compared to last year.