New mall coming to South Africa later this year

Princess Mkabayi Mall in Vryheid, KwaZulu-Natal, is set to open on 31 October 2024.

According to the Moolman Group, the 30,000 sqm mall is over 90% let.

It is set to be the largest consolidated retail offering in an area covering almost 100 kilometres and will form part of a much larger mixed-use development.

The mall is situated on an ‘easily accessible’ 23-ha site and will be anchored by Shoprite, Checkers, Dis-Chem, and Woolworths, with a food offering and Clicks. Other retailers include Mugg & Bean, Cape Union Mart, Old Khaki, Crazy Plastics, and Crazy Pets.

“Among the mall’s many highlights is its considered interior, which has various artistic touchpoints and thoughtful details that create an excellent overall experience,” said the Moolman Group.

“Shoppers at Princess Mkabayi Mall will be able to enjoy free Wi-Fi, charging stations, workstations, and comfortable seating. The mall will include a large entertainment space and play area for children, a central meeting area, and eateries for all tastes.”

The mall is set to be solar-powered and equipped with backup power to ensure a reliable electricity supply.

It will also include a water plant from which water will be used in the garden irrigation system and other related functions.

Recent construction photos of the mall and renderings can be found below:

The Princess Mkabayi Mall is another example of the recent push into rural retail development.

With South Africa’s urban areas, particularly Gauteng, facing an oversupply of retail space, many developers are now moving into more remote parts of the country.

For example, McCormick Property Development will open the Madombidzha Mall in September 2024.

The 9,200 sqm centre is located close to Louis Trichardt (Makado) in the Northern part of Limpopo.

Many smaller shopping centres (roughly 10,000 sqm) opened in rural areas in 2022 and 2023, allowing access to a formalised, centralised shopping experience. The Princess Mkabayi Mall’s 30,000 sqm is comparatively large for a rural retail centre.

Although there has been a push into rural retail in South Africa, many low-income consumers have been impacted by the weak economic environment, which is characterised by elevated inflation, 15-year high interest rates, and load shedding.

Year-to-date retail sales in 2024 are up 0.9% compared to the same period in 2023, with June seeing a jump of 4.1% in June.

“Data suggests that these (year-to-date) gains have all come from the last three months – which coincides with load shedding cessation since March, a substantial petrol price cut in June, as well as the post-election improvement in sentiment,” said FNB Senior Economist Siphamandla Mkhwanazi.

Nevertheless, Mkhwanazi stressed that the broader consumer environment will continue to be strained due to high living costs, unemployment, and tight credit conditions.

“The upcoming two-pot pension system is expected to have a limited impact on consumer spending, given concerns about rising debt distress,” warned Mkhwanazi.

“However, there is potential for an improved consumer backdrop in the medium term as inflation eases and interest rates gradually decline.”

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