Search for convenience and lower cost drive expansion of '' strip malls ''

São Paulo-Consolidated in more mature markets the strip malls, smaller malls, have gained relevance in Brazil in the last four years. The ease to find land, the lower cost in construction, and the increasing search of Brazilian consumers for convenience drive the model.
The attractions have aroused the interest of companies like the Best Center. Founded in 2011, the administrator has 34 shopping malls in operation format and have plans to launch new ventures.
Currently, four are under construction and, according to the Director General of the Best Center, João Fernando Sammarone, the company has a landing bank of 19 land to be developed, all in the State of São Paulo and Rio de Janeiro. The regions, business, home to all the developments of the company and are today the main pole of expansion. The intention, however, is to win space also in other locations in the country. "We are constantly prospecting new regions for the purchase of land and purchase of enterprises already in operation," he says.
The company is today the largest in the segment. To give you an idea, in the southeast of Brazil there are only 59 strip malls, according to a study of the Brazilian Association of Shopping centres (Abrasce). The number is far from the reality of markets such as the US and Europe. Shopping center and retail specialist and Director of the consulting firm Make it Work, Michel Cutait claims that the model has not yet scored in Brazil, despite being an important trend in the industry. According to him, the segment only began gaining strength in the country from 2010, with the boom in retail. "There were initiatives, but began to grow as business model between 2010 and 2013."
Despite being a new concept, the Director of operations at Abrasce, Adriana Colloca, says the strip malls have tickled the Brazilians. "The enterprises want to meet different demands of the shopping center: customers who want convenience and solve immediate needs."
One of the first initiatives in this market was the Ventura Mall, located in Campinas (SP). Opened in 1993, the enterprise was one of the first strip malls opened in Brazil. At the time, says the commercial Director, John Paul Rafful Kanawaty, the idea was to bring together in a single location and food service operations, focusing on convenience. From there to here, Kanawaty says that there has been a big growth in the market. "It is a trend that will continue, since people are seeking more and more convenience."
The lower cost for the construction and greater ease to find suitable land, as compared to traditional malls are other aspects that contribute to the growth of the market. In large centers, says Cutait, is increasingly difficult to find land that may receive a traditional shopping center, once the format demands a large space. In strip malls the process is simpler.
In relation to the cost of construction, Kanawaty, Ventura, says that there is a significant difference. While the average cost to build a strip mall is R $2500 per square metre (m ²), a traditional demand of some R $5000 m ². Adriana, Abrasce, also points out that the investment is less, "with good rates of return."
The company, which today manages only the Ventura Mall, has an interest in building other malls. The releases, however, must not occur in the short term. "We have land where we could build and we have received offers, but it has to be a sure-fire opportunity, especially in relation to location."
Recipes
One of the things that distinguishes the strip mall the mall''s traditional revenue line, which is more limited. In Ventura, for example, virtually all revenue from rents. "We have revenue from media and vending machines, but most of it is rent," he says. According to him, the amount charged is also smaller than the practiced in traditional malls, around 40% lower.