CHENNAI: Covid-19 has stalled three mall projects that were planned to be launched by the end of 2022.
Four other malls projects have remained on the drawing board.
Only one mall under construction at Chennai Airport is likely to open anytime soon.
Lack of investors to absorb new retail space and sales hit further by the second wave, have adversly impacted malls in and around the city.
For instance, a leading construction firm that was planning a large mall in north Chennai is having a rethink as it is unable to find investors for the retail space in the present scenario.
However, mall operators are bullish about a quick recovery unlike last year when malls were the first facilities to be shut down and the last to be reopened to avoid crowding in public spaces to control the spread of Covid-19.
Stakeholders stressed the need to incentivise retail tenants by offering waiver on rentals as anywhere between five and 15 per cent of shops in malls had remained closed for more than a year, since March 2020.
Chennai and suburbs are home to 10 malls of different sizes.
Even before the coronavirus struck, the city saw several shops falling vacant on the pioneering malls located on Anna Salai, Radhakrishnan Salai and Poonamallee High Road.
Pankaj Renjhen, COO and joint MD of ANAROCK Retail, said that prior to the second wave lockdown, malls were witnessing 30% sales.
About 10% of the shops are expected to be closed by the second wave.
CREDAI (Tamil Nadu chapter) president Suresh Krishn said that mall operators must incentivise tenants by offering revenue share for at least one year to retain occupancy.
“Similarly, parking fees must be redeemed, if visitors purchase in mall stores,” he added.
Meanwhile, Munish Khanna, chief revenue officer of Express Avenue mall, said that retail shops may advance their annual sale offering discounts in August to July to attract visitors.
“We are optimistic of a return to pre-Covid footfalls in quick time after the second wave,” he added.