Introduction

Chapter 3 Shopping Mall – an overview

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In the world, there is a tremendous potential for increasing an organized retail
sector. It has been acknowledged that retailing is accelerating. We all are witnessing the
emergence of new forms of retailing, to meet demand of variety seeking consumers. The
market is becoming more segmented with retail formats focusing on the need of
particular groups of consumers.
Shopping mall is bringing of different retail outlet, services with parking facility.

3.1. Evolution of Shopping Malls at global level
Rome is the best place of shopping market in world. Trajan?s Market was built in Rome
at around 100-110 AD and it is world?s oldest shopping center for the shopping mall. In
the year 1628, in Paris The Marche des Enfants Rouges was started. GostinyDvor was
opened At St. Petersburg in 1785with around 100 shops covering an approximate area of
5,70,000sq.ft.In the year 1890, in US the Cleveland Arcade was the first shopping mall.
Modern shopping malls at global level began to operate from the 1920s. In
Missouri, U.S.A. the first shopping centre called Country Club Plaza developed by J.C.
Nicholis Co. in the year 1922.Visitors used to visit by automobiles as the centre was
situated away from the city. In April 1950 in Seattle, U.S.A, the first shopping centre in
the world with centrally air conditioning and heating in it, Northgate shopping centre was
built. It was probably the first open air shopping centre in the world.
But, the first fully enclosed modern regional shopping centre in the worldwas
Southdale in Edina, U.S.A in the year 1956 by Victor Gruen. The centre was planned as a
social gathering also and thereby given the importance to social events. The first centre
which was officially named as „mall? was Bergen mall, began its operation in 1957 in
New Jersey. Another world?s largest shopping center was established in 15th century in
Istanbul, The Grand Bazzar with more than3,000 shops.
The total shopping center were 7,600 in U.S.A. alone at the end of 1964 which
Increased to 13,174 by 1972 (ICSC News, 2000). In 1976, Faneuil Hall Marketplace was
built by Rouse Company in Boston, U.S.A. mainly focusing on food, entertainment and
Retai l specialty items. This was first of its kind in the world. Many mall developers began
to copy this successful model in the world. The period of 1980s saw gaining more

Chapter 3 Shopping Mall – an overview

attention by Super-regional mall (800,000 sq. ft.) among the shoppers. In 1981, a largest
shopping mall in the world (until 2004) was opened up for public i.e. West Edmonton
mall with 5.3 million sq. ft. in North America. Now it is fifth largest in the world.
Thereafter, known for its unique and innovative combination of entertainment and retail
in the world, Mall of America with 4.2 million sq. ft. began to operate in the year 1992.
Literature shows that 40 million people visit Mall of America annually, largest visiting
mall in the world, including 16 million visiting by tourists (Mall of America – Leasing
Brochure 2010).
From the early 1990s, entertainment such as virtual reality games, adventurous
rides, multiplex cinema etc. quickly became more fashionable trend for the shopping
center which was also helped by technology advancement. In the late 1990s and early
2000s, another new form of centre started gaining popularity i.e. lifestyle centre. These
center along with fulfilling retail needs played the role of a multi-purpose leisure-time
destination, including restaurants, entertainment, and design ambience & amenities such
as fountains etc. It was the one of the open-air concept addressing the needs of changing
customers? lifestyle.
Shopping malls, in the 21st Century, continue to advance and help to fulfill social
and economic needs of the communities. With the blend of fashion, food, entertainment
and services, malls have significantly extended their part in the communities they serve.
By the end of the year 2009, there are 105,000 shopping center (7.3 billion sq. ft. GLA)
in U.S.A., 2,616 shopping center in Canada (ICSC – F.A.Q. Statistics).

Table No. 3.1
List of World’s largest Shopping Malls

Name of the
Mall

SM City North
EDSA

Central World

Country

Philippines

Thailand

City

Quezon City

Bangkok

Year of
Establishment

1985

1990

No. of shops in
mall

1,000

600

SM Megamall

Philippines

Chapter 3 Shopping Mall – an overview

Mandaluyong 1991 950

1 Utama

Mid Valley
Megamall

Golden
Resources Mall

New South
China Mall

Istanbul
Cevahir Mall

Isfahan City
Center

Persian Gulf
Complex

Malaysia

Malaysia

China

China

Turkey

Iran

Iran

Petaling Jaya

Kuala Lumpur

Beijing

Dongguan

Istanbul

Isfahan

Shiraz

1995

1999

2004

2005

2005

2012

2012

700

400

900

2,250

340

750

2500

From the above information it is clear that the concept of shopping malls is years old. It
was started in developed countries from the 16thcentury itself with lowest of around 300
shops and increase to 2,500 shops under one roof and over the period of years it grows
and innovated as per the requirement of customers. New South China Mall in China is
one of the biggest mall with 2,250 shops in shopping mall. Period of 21st century is since
when more and more shopping malls has started developing in more numbers in global
economy. It was accepted worldwide.
Globally consumers adopted buying pattern required products and services
from newly developed shopping malls. Earlier who use to buy from retailers, now buying
From shopping malls due to change in lifestyle. Both working family member prefer to go
once in weekday and do major shopping for all required household and semi luxuries
goods at a same time in global market.

Chapter 3 Shopping Mall – an overview

3.2.Evolution of Shopping Malls at India level
Shopping malls culture pioneered in western countries, now catching to Indian
also. The first Shopping Mall in India was started in the year 1991 was the Spencer Plaza
(Chennai, TN), established by Charles Durant and J. W. Spencer in Anna Salai, then
known as Mount Road, in the Madras Presidency. The property belonged to Spencer ;
Co Ltd. They had opened the first time organised Departmental store in the Indian
subcontinent in 1895 and the store had over 80 individual departments. In 1983, the
original building was gutted by fire. Spread across total area of 1.068 million sq. ft.,
development of this mall has gone through three phases. The first phase, in 1990, consists
of development of 300,000 sq. ft which includes 125,000 sq. ft. for shopping, 100,000 sq.
ft. for office use and 75,000 sq. ft. for other service area. In 1991, again Spencer Plaza
was constructed on the same site measuring about 10 acres. The second phase, in 1998,
consists of additional 400,000 sq. ft. and the third phase covers additional 300,000 sq. ft.
in 2003. So, Spencer Plaza has total 600,000 sq. ft. for retail area (G+1st +2nd floors) and
400,000 sq. ft. for office use from 4thto 7th floor.

Ansal Plaza, Delhi
Ansal Plaza began to function in November 1999 developed by Ansal Properties
; Infrastructure Ltd. at Khelgaon Marg, New Delhi. Its total built-up area is 250,000 sq.
ft. and total G.L.A is 170,000 sq. ft. The project is a mixed use development comprising
of retail and offices (G + 3 floors). The ground and first level of the mall include retail,
while the two subsequent upper levels are partly being used as office space and partly
retail (Taneja Amitabh – Malls of India 2011). Ansal Plaza has got a success primarily
due to its location and first-mover advantage.
When India was under British rule, during the 20th century, market was highly
unorganized. India, with a large number of populations has a great problem to provide
everyone with adequate supply of goods and services. Higher income group consumers of
the society are going for shopping in organized retail sector. After independence from
British rules India has adopted many patterns of Britishers. Purchasing from shopping
malls that is under one roof was preferred by them, and finally Indian consumers had also
started giving preference to purchase at a single time visit and for the same perfect place
to do shopping for these group consumers is “Shopping malls”.

Name of the Mall

Chapter 3 Shopping Ma

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