VietNamNet Bridge – As high-end shopping malls continue to face difficulties attracting customers, some retailers are combining two business models, modern merchandising and traditional markets.

In 2013, CBRE Vietnam, a real estate service provider, predicted that bazaars would be more popular. This kind of marketplace uses both modern merchandising now followed by shopping malls and the trading mode of traditional markets.

Saigon Square in HCM City, for example, is expected to be a model that will develop strongly in the future.

After Saigon Square 1 and 2, Phan Thanh Company in early 2015 opened Saigon Square 3 on Hai Ba Trung Street in district 3 of HCM City.

Also, Taka Plaza 2 on Pham Ngoc Thach Street is expected to become operational by the end of the first quarter of 2015.

In late December 2014, Hung Vuong Square, a shopping model similar to An Dong Plaza, was opened.

In 2013, bazaars were not attractive in the eyes of investors. Saigon Square, Taka Plaza and An Dong Plaza were the only names mentioned for low- or mid-end customers.

However, the shopping landscape has changed. Some “big guys”, including Nguyen Kim and Novaland, have decided to open bazaar-like shops as well as high-end shopping centers.

As for Nguyen Kim, the home appliance distribution chain has developed four bazaar shops, Ben Thanh Boutique on Le Loi street in district 1 of HCM City, Saigon Mall in An Giang province, Saigon Mall Go Vap in HCM City and Saigon Mall in Ca Mau City.

Meanwhile, Novaland, after taking over the Lucky Palace project from Hoang Anh Gia Lai Group, decided to develop another merchandise model like An Dong Plaza instead of one initially designed by Hoang Anh Gia Lai.

Analysts noted that these retail models have many advantages. They do not require a high investment rate, while the expected occupancy rate is high, about 70-80 percent, higher than the expected rate of 50 percent for high-end shopping malls.

All the shops of 10-21 square meters at Novaland’s Lucky Palace have been sold to merchants within two to three months.

According to Novaland’s general director Phan Thanh Huy, Novaland’s shopping centerhas lured many merchants who now have kiosks at An Dong Plaza.

These merchants, whose leasing contracts will end in February 2015, decided to leave An Dong after the owners doubled the rents.

Following its initial success with the Lucky Palace project, Novaland plans to develop another project under the same mode, called RiverGate in District 4 in HCM City.

Thanh Mai