Effects Of Location, Infrastructure And Developer’S Strategic Planning On Tenants’ Preference Of Shopping Malls In Kenya: A Case Of Two Rivers Mall, Nairobi

Abstract

This study’s main objective was to investigate the effects of location, infrastructure and developer’s strategic planning on preference of shopping malls with a focus on Two Rivers shopping mall in Nairobi county. The literature review provides overall insight into prior studies that specifically emphasize on factors influencing tenants /retailer’s preference of shopping malls. A case study research design was applied. As for the data, it was collected through an interview guide. This data collected was scrutinized and interpreted using content analysis to allow for in-depth analysis. The study established that location is a major determinant of mall preference by tenants as it is considered to have great influence on the catchment population, accessibility and visibility of the shopping malls. The study also established that all aspects of infrastructure such as roads ,pedestrian walkways , power ,water and sewage , networking and parking play an essential role on choice of malls by tenants .It was however evident that infrastructure is very capital intensive and therefore require proper planning and implementation in order to achieve a competitive edge over other shopping malls .The study further established that strategic planning by developers is a critical pillar in the preference of shopping malls as it ensures sustainability is the highly competitive and dynamic retail environment through development of strategies that ensure the shopping malls attain and retain market leadership in both the short and long term .The study also established that developers who have given critical consideration into the location , infrastructure and strategic planning in the development of shopping malls have a higher bargaining power when negotiating for commercial terms with prospective tenants .The general conclusion to the study is that tenants prefer a shopping mall that is located within the desired catchment , has access to reliable and sufficient infrastructure and is strategically planned in a manner that will position the mall to become the desired retail destination. The study concludes that with a better understanding of the effects of location, infrastructure and strategic planning on tenants’ mall preference, shopping mall developers can have a better understanding of the critical considerations in mall planning and development to ensure their malls are attractive to prospective tenants. The research findings from this research study have impactful consequences as they will support mall developers in proper development planning to increase attractiveness to tenants and enable the government and other stakeholders in developing policies that will ensure shopping mall developers develop competitive malls that will attract tenants and position Kenya as the preferred retail destination in Africa.