Only shopping centres can provide a safe and a hygienic environment to 100% accountability and enforcement of social distancing norms

Industry leaders concur in SCAI Webinar on Confidence Building Measures

“Malls are a social infrastructure, not just meant for shopping; cater to all classes of society. Government must realise that job loss in retail will have a lasting impact on the economy.” - Irfan Razack, Chairman and Managing Director, Prestige Group

“We need to allay fear in the minds of people; malls are much better equipped to provive a safe and hygenic environment compared to establishments that have been allowed to open” - Harshavardhan Neotia, Chairman, Ambuja Neotia Group

“There is a strong pent up demand; India is a country of shoppers and has a huge latent demand. Shoppers will ultimately start coming out.”- Arjun Sharma, Chairman, Select Group

“30-40% people are dying to go out… the numbers are gradually increasing. Revival will happen in three stages – survival, reimagination and regrowth” - Dalip Sehgal, CEO Nexus Malls

Amidst absolute uncertainty and little respite coming from the government to provide relaxation to the shopping centres industry, the Shopping Centres Association of India (SCAI) hosted its second webinar Retail & Shopping Centres: Confidence Building Measures today with a single point agenda to highlight why shopping centres were far better equipped to resume operations. Panellists on the webinar asserted and collectively endorsed the ability of shopping centres to enforce protocols in a far more efficient manner than many others who have benefited from the relaxation.

Drawing on recent reports on the long queues that were witnessed across the country to buy liquor where social distancing norms were openly flouted, the group reiterated the need for stringent SOPs and emphasised on the industry’s ability to provide a safe and a hygienic environment while ensuring social distancing norms are ensured. The session which was hosted by Amitabh Taneja, Chairman, SCAI and moderated by Anuj Puri, Chairman, ANAROCK Property Consultants Pvt Ltd saw the presence of icons of the shopping centres industry in India including Arjun Sharma, Chairman, Select Group, Dalip Sehgal, CEO, Nexus Malls, Harshavardhan Neotia, Chairman, Ambuja Neotia Group and Irfan Razack, Chairman and Managing Director, Prestige Group.

Amitabh Taneja, Chairman, SCAI said, “In addition to the ongoing crisis points, the webinar focused on the need for prepping to Reopen Indian Economy's Front-end -- the joint processes, preparations and strategies that retailers and shopping centre owners will need to design in order to build consumer and partner confidence as India begins emerging from the restrictions. Conclusively, SCAI and I am happy that the entire panel believes in collaborative action and the need to work collectively in finding a solution to the issues at hand. I am confident, together, the industry will be able to successfully overcome the challenges of today. ”

The first segment focused on the current situation and looked at some pressing issues including what retailers and shopping centres can jointly do about the depleted consumer sentiment. Financials, on the other hand are in deep trouble with banks continuing to call up Lease Rental Deposits, zero mall revenues,  recurring costs and tenant relations in distress. What developers can do? How fast can we push for relief from banks and stimulus from government? What can we do to preserve tenant relations? How can we together reassure consumers of a return to better times?

The next segment looked at life post-pandemic. What will the industry need to be prepared for? Customers could be slow to return out of both medical security and financial well-being reasons. And hence the need for stringent protocols and guidelines to be prepared once the government approves the opening of shopping centres.

Finally, the third segment which looked at the future – the new normal and what do we expect that to be.

Will consumers behave differently? Will we be required to service them in completely new ways? Will our business approaches change profoundly? 

Some of the top highlights from the session are given below:

SHOPPING CENTRES AND MALLS ARE A SAFE TO OPEN; BRINGING BACK THE CONSUMER

?     For the country’s economic health, shopping malls must be allowed to open in the green zones

?     Only shopping centres can provide a safe and a hygienic environment to 100% accountability and enforcement of social distancing norms

?     Malls are a social infrastructure, not just meant for shopping; cater to all classes of society. They are a place for the common man to come, spend time and socialise.

?     The India story and the retail story is intact. There is a huge pent up demand. India is a country of shoppers and has a huge latent demand. India is a land of savers; can't change psyche of Indiana. Shoppers will ultimately start coming out.

?     While the fear in the consumer’s mid is high, mortality rates in India have been low. We need to allay the fears of the consumer.

?     Malls are equally safe, if not more, compared to any establishment allowed to open up

?     Mall owners are taking every step possible to bring the consumer back post-Covid

o  Working towards providing safety and a hygienic environment

o  Ensure masks are made compulsory

o  We can control inflow of people

o  Can devise mechanisms where for e.g. allow only 50% occupancy at food courts

o  Open coffee shops at 50% occupancy

?     3-stage revival process for the industry:

o  NOW : Survival and opening up to bring back the confidence;

o  Next 90-120 days – recovery, reimagine and re-energise the business model

o  Phase 3 : focus on regrowth by Diwali where we anticipate 80 - 100 percent consumers returning

?     Atleast half the customers re back in international markets where malls have opened up; we need to gain confidence and trust of the consumers. 30-40 percent consumers are dying to return to malls. The numbers are gradually increasing.

?     There will be a need to reimagine how malls can continue to provide the same level of engagement in the post-Covid times.

FINANCIAL STRESS AND NEED FOR RELIEFS, STIMULUS

?     Financial relief must be provided on urgent basis. Stress on industry will lead to a huge impact including job losses. For every 1 million jobs lost, the cascading effect is on 5 million jobs int eh entire ecosystem. Government must realise that job loss in retail will impact votes

?     Rs 10-15L crore stimulus required to push the economy. Government needs to fix the entire chain

?     Government needs to look at one year of deferment of EMI – restructure the loans in a way that interest and principal is deferred for a year.

?     We are not wanting waivers. It’s a cash flow issue. Don’t give us a drip.

?     Relaxation must be done instantly; don’t make us put pressure on the retailers; help us in focusing on making shopping centres safer, and getting the consumer back.

?     If nothing is done by the government, NPAs will reach Rs 20 lakh crore in the next month

?     There is no obligation to give any waivers on rental to retailers. Solutions need to be found jointly and in collaboration.

?     There should not be any problem in finding a solution on issues with retailers – but every company is in a different position and action will be different where a lot of companies will not be able to offer waivers as they are highly leveraged

?     One size fits all approach cannot be taken – solution cannot be found by talking to 200 people at the same time. Solutions will need to discussed with each one, independently. We have long term relationships with retailers and we don’t want these to become ‘legal’

?     There will be social problems if we don’t open the wheels of the economy in the next month

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