Reasons for the Failure of Most of the Plazas in Pakistan

Millions down the drain

General Amenities

  1. Accessibility: One of the most important points of consideration for visiting any retail spot is the ease of entry. Majority of plazas standing tall at main boulevard are facing the acute problem as customers face difficulty approaching them namely Jeff heights: poor entry and exit hamper customer flow. Latif center is sandwiched and blocked extreme unfriendly for customers to visit so a bigger segment tries to avoid going their limiting the business opportunity. Which is visible by the fact that only offices travel agents and wholesale traders prefer working there?  Unidimensional business cause lower occupation. The Big City is a prime example of poor retail attraction.
  1. Parking: Except the trade center and city tower none of the existing plazas have any reasonable parking. The entry and exit have poorly planned the ramps to enter and exit are too steep and narrow. The parking slots do not fulfill the requirement as the parking floors are used as storage yards. The other problem is dirty and poor lighting in the parking. The safety and security are normally not even bothered, so female customers do not prefer entering parking. Motorcycle parking is another hassle it depicts that plaza developer never considered the entry of worker in the building. Latif center, Lahore center, Hafeez center and all other have this issue causing entry and parking issues for customers with family and cars.
  2. Security Weakness: These plazas have absolutely no security services apart from the Trade Center and Mall 1, such as guards to check the cars, yet they charge parking fees. Such plazas do not look appealing since the lack of security discourages customers from shopping in that area due to the likelihood of robberies. Plazas that have security are comparatively more visited such as Mall 1 that has a wide customer base.  Moreover, providing security facilities shows that the plaza has good customer care services which attract more buyers.

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  1. The Unreliability of the Back Up Of Power: In malls such as Mall 1 there is a sufficient back up of power due to which the mall looks alive, hence customers would like to shop there. In other plazas such as Lahore center, the lack of power back up discourages customers from shopping there. Furthermore, due to the warm weather in Lahore, the plaza becomes hot and unappealing for customers to visit. This also depicts poor customer care service mainly because the environment is not friendly and the shop might appear closed if there I no light there. Due to the problem of electricity shortage in Lahore, it is a must to keep power backups in plazas at least.
  1. Mobility Within: These plazas such as Lahore center Hafiz center etc., do not have lifts and those like Trade center who do have no maintenance and shut down when there is no electricity due to which customers do not prefer using them. This way the shops in the mall do not seem accessible especially for disable and old people who cannot climb stairs. Keeping this aside, these plazas do not even have ramps for people to use. In comparison to such malls, Packages and Emporium have escalators and lifts with the availability of wheelchairs to cater to customers, this creates a comfortable environment that encourages people to come and shop in the mall.

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Lack of Maintenance

  1. Most of the plazas on Main Boulevard such as Hafiz center, Lahore center and Auriga aren’t well kept, they have an old architecture, the glasses and walls look dirty and weak due to which the plaza does not look appealing in the first sight, thus customers do not go there for shopping. The dirty floor, broken tiles and stains make the area look unimpressive. On the other hand Mall-1 and Gulberg Galleria are better kept hence attract comparatively more customers. Their floor and walls are clean due to which customers prefer going there in comparison to other plazas in the area. These problems have aroused due to the lack of funds allotted for maintenance. Since not a lot of money is invested in improving the plazas image, people do not prefer to visit it and the plaza hardly experience’s any market activity.
  2. On the other hand, unlike other visited malls in Lahore like Packages and Emporium, these malls have no information desk or staff to guide customers. This depicts poor customer service which further discourages customers from visiting these plazas.

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Customer Experience

  1. No Dedicated Customer Service Relation: Customers come across shabby walls dirty floors and broken tiles as well as shops that have displayed their products outside in the corridor making the area look congested. There is no maintenance staff that cleans the area in shifts such as in Packages mall and in Emporium Mall where customers go through different security checks before entering and occasionally comes across information desks and staff that is ready to help customers.
  1. Offering Mix: Most of the Plazas on Main Boulevard are dedicated to a single industry such as Hafiz center that is dedicated to the sale and purchase of technology products such as mobile phones and Laptops while Lahore Centre is involved in the sale of unstitched fabric. While successful plazas such as Packages give their customers a wide variety of brands attracting different classes, they also provide quality food services and a play area for children; they cater people from all age groups. Plazas such as Mall 1 and Gulberg Galleria have tried to provide all such facilities and are comparatively more visited, though Mall 1 is visited for its extravagant restaurants and Gulberg Galleria is usually only visited by the upper class.

Not providing appropriate financial returns

  1. Rental Yield: These plazas charge high rents such as 2000 – 4000 Rupees per sq. meter while the customer footfall in the mall is very low. This is the reason why people do not manage to make a lot of profit, hence they do not improve their services or the image of the shop, this further adds to lessen that attraction for customers to visit the mall and shop comfortably.
  1. Governments Property Tax: The government charges a fairly high property tax from its citizens which also discouraged them from buying property.  This means that fewer brands would want to but shops and due to the high rent they will be discouraged to open an outlet, the lack of choices and options discourages business activity.