After a number of false starts, the Super Brand Mall has declared itself open for business. The opening, which was originally scheduled for autumn last year, finally was last Friday. The country's biggest shopping mall has at last made its debut.

The opening ceremony was attended by Mayor Chen Liangyu and President of the Privy Council and Thai statesman General Prem Tinsulanonda. Folk singers from around the country were invited to add their voices to the celebration.

Based on investment plans of the Thai Charoen Pokphand Group, the idea of building the mall was first raised a decade ago, but was delayed by the Asian financial crisis.

The mall, supported by an investment of US$450 million, boasts an area of over 241,000 sqm, with 10 floors above the ground and three below. Having already absorbed US$335 million, the mall will provide over 1,000 domestic and foreign-brand retail outlets, including 50 top fashion brands, a large-scale jewellery area, Lotus Supermarket, Internet cafe and 13 cinemas.

Super-supermarket

About 85 per cent of its rentable space has already been leased according to Thanakorn Seriburi, chairman of Shanghai Kinghill Ltd (SKL), a wholly-owned subsidiary of the Thai conglomerate.

However, observation suggests that far less that 85 per cent of the rentable space was occupied on the first day of business.

Fewer than 10 stores were in business on the first floor, which was supposed to accommodate 50 world-class fashion brands.

The second to fourth floors, which accommodate less prestigious brands, were busier. About 60 per cent of the business area there was in operation.

Perhaps surprisingly, the fifth floor, which is dedicated to restaurants of various kinds, seemed to be doing good business. The Thai Food Mart attracted large numbers of customers. The upper floors were almost empty. The cinema complex, which will have 13 screens, is still being decorated according to a staff member. He said he didn't have any idea of when it would open.

It seems most of the consumer interest is focused upon the Lotus Supermarket, underground. Most of the customers strolling around the mall were carrying several Lotus shopping bags. It seems like a super-supermarket instead of a super-brand mall, joked one shopper, He.

The new Lotus Supercentre at the mall has clocked up daily sales of over a million yuan (US$120,000) during the opening according to the mall's statistics.

Isolated location

Located near Pudong Shangri-La Hotel in Lujiazui, the mall is a little isolated when compared with Huaihai Lu or Nanjing Lu.

"Lujiazui is the new image of the city. Almost all tourists come to visit the area," said Somkit Tan, president of the Super Brand Mall. "So compared with the traditional Nanjing Lu and Huaihai Lu shopping areas, the mall will be more international."

The mall will draw customers from the 15 million local residents and millions of tourists, according to Tan.

But the choice of location raises questions from local experts.

"Honestly speaking, I am not optimistic about the location," said Zhu Lianqing, director of the Commerce Research Centre of the Shanghai Academy of Social Science.

"Lujiazui is a financial zone without any large retailing or residential areas nearby. A shopping mall needs a commercial environment to help produce an interactive effect," Zhu said. "A solitary commercial centre can find it is difficult to attract consumers."

Zhu mentioned some successful shopping centres such as Pacific Department Store in Xujiahui and the Westgate Mall on Nanjing Xilu, both of which are located in flourishing commercial areas comprising several large scale shops.

"A shopping mall needs a period of time to grow, so we can't make a definite conclusion this early on," Zhu said. "Generally speaking, the first two or three years prove to be the key period for a mall."

The group predicts that the mall will turn a profit after seven years. Seriburi predicted that the mall could ultimately earn US$40 million annually.

Local media are speculating that by the end of September the mall will be wholly sold to Zhou Zhengyi, said to be the richest man in Shanghai.

According to the 21st Century Economic Herald, an insider said Zhou would be prepared to spend US$500 million to buy the mall, with negotiations completed by September 21.

But Zhou has denied that he has the resources for such a deal. The mall has also denied that it is seeking a new owner.

Still, new investment is expected to push forward the development of the mall, said Seriburi. "Some Thai companies are showing an interest in investing in the mall," he said.

"If a suitable partner is interested, we will certainly consider co-operation," Seriburi added.

But he stressed that the mall's business would continue even without such funding. "We have sufficient cash flow," he said.

The mall is currently supported by bank loans of more than US$200 million, including US$163 million in loans from the Shanghai Branch of the Industrial and Commercial Bank of China, topped up by some Thai banks.

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