After several postponements due to among others the Covid pandemic impact, the Arena Mall in Nsambya is scheduled to open later this year.
The Knight Frank-managed mall was initially slated for opening in the second half 2020 but this was delayed due to Covid.
With construction complete, the iconic mall will be opening its doors, with brands such as LC Waikiki, Cafesserie, Frango and Great Burger set to be the debut retailers.
This will be the entry of Frango mints, a U.S. brand of chocolate truffles sold by Garett Brands. At the Arena Mall, Turkish clothing retailer, LC Waikiki will have its second store in Kampala having launched the first at Acacia Mall at the end of last year.
The mall will be a lifestyle game changer for the residents of Muyenga, Munyonyo, Bunga and others who commute to the city by Ggaba road. In its neighborhood is the executive Méstil Hotel and Residences.
American and British footwear giants, Skechers and Clarks, were initially projected to enter the Kampala market and anchor the mall, but it looks their entry will likely come later perhaps due to the impact the retail business has suffered globally due to Covid.
Covid-related restrictions like lockdowns and interruptions in international travel have hugely impacted supply chains. The lockdown measures in different jurisdictions have also left many consumers strapped of cash and thus unable to spend.
In the first half of 2021, turnover rent for service and fashion retailers in properties managed by Knight Frank Uganda showed single digit growth in 2021 as compared to 2019 numbers. This is according to Knight Frank Uganda’s latest Kampala market report.
General food and grocery traders were still approximately 12% below 2019 numbers due to depressed spending by consumers while the restaurant sector continued to post negative growth of some 38% due to curfew.
Average supermarkets turnover recorded a 3% decline y-o-y during the period under review and a further 20% decline compared to a similar period in 2019.
Uganda’s Covid vaccination rate has been too slow with only about 1.1 million people out of the 40 million population, inoculated. Scientists have pegged the reopening of the economy to mass vaccination. However, government says access to the vaccines has been difficult.
This means a possibility of new lockdown measures and closure of businesses cannot be ruled out.
According to the Knight Frank outlook, rents and occupancies will be relatively subdued in the months to come as a result of the recent lockdown. Landlords will be unable to issue any further concessions.
