South African malls told to sell experiences as physical retail growth stalls
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At the South African Council of Shopping Centres congress in Durban, retail strategists argued that centres must offer ticketed experiences and membership perks, with e-commerce now about 10% of local retail sales.
South African shopping centres will need to offer consumers more than a place to shop if they are to keep growing, according to speakers at the South African Council of Shopping Centres (SACSC) annual congress at Durban's International Convention Centre this week.
Jeremy Gardiner, a director at Ninety One, outlined South Africa's paradoxical position amid global geopolitical tensions, including the war in Iran, and said surveys indicate widespread financial distress among households. He cited the Old Mutual Savings and Investment Monitor 2026, which found that 53% of employed South Africans aged 18 to 65 earning at least R8,000 a month engage in sports betting and online gambling.
Business futurist Doug Stephens, founder and chief executive of Retail Prophet, argued that convenience alone is no longer a compelling reason to visit a shopping centre. “People don't need malls. Anything you really want to purchase can be bought online. Convenience has been handed to a smartphone,” he said, noting that long-term data in the United States shows up to 33% of malls became empty or derelict, with some demolished and others converted into logistics hubs.
Stephens said e-commerce accounts for roughly 10% of total retail sales in South Africa, meaning physical stores have not lost all their customers, but growth in physical retail space has flatlined. He proposed that centres invest in exceptional, ticketed experiences and membership models offering discounts, invitations to exclusive events and lounge access, pointing to China where shopping centres performed strongly even as screens proliferated.
Retail strategist Melissa Gonzalez, founder of The Lionesque Group, echoed the importance of physical experiences, saying consumers want to meet their favourite brands in person. SACSC president Muhammad Paruk said local centres are already adapting, citing Fourways Mall in Gauteng where tenant turnover increased 61% from R226.3 million to R365.2 million after a strategic reset that added lifestyle offerings and asset-management initiatives, including the October opening of The Pantry by Marble.
“Landlords are evolving malls beyond places of commerce into vibrant lifestyle destinations, offering something that cannot be delivered in a box,” Paruk said. “These are experiences, entertainment, human connection and a sense of community.”