Managing Tenant Mix in New Shopping Centres

The tenant mix of a shopping centre is recognized widely as a critical determinant of marketing and financial success. For new shopping centres the early development of a strong tenant line‐up is particularly crucial as these centres endeavour to establish their market position and market share. Recent environmental changes, however, are having a major impact on lettings and are presenting significant problems for the development and management of tenant mix in new in‐town centres. Highlights the importance of tenant mix, and shows how a high proportion of new in‐town centres have been struggling recently to secure the desired quantity and quality of lettings, in the face of increasing competition, reduced property demand, and in some cases scheme‐design deficiencies. A case example of tenancy development in the early stages of growth for one centre is analysed in detail to observe some of the difficulties, noting slow rates of growth, fluctuating occupancy levels, high rates of tenant failure and variations in merchandise mix. Concludes with a discussion of the implications for centre marketing and management.