Arabian Centres targets 95% occupancy over next 2 years, launches 3-point digital strategy

Logo of Arabian Centres Co.

Arabian Centres Co. (ACC) targets to reach an occupancy rate of 95% in its malls over the next 12 to 24 months, compared with 92.9% currently.

Commenting on its financial results for the fiscal year ended March 2021, the Tadawul-listed firm said it has been targeting to build "shopping destinations" since its inception over 15 years. However, the company changed its strategy to provide "lifestyle destinations" by introducing new components.

The tenant mix previously concentrated on retail stores, comprising 90% of total stores, but this has gradually changed. The percentage of retail stores will reduce to 60% over the coming period, replaced with three main segments: food and beverages, entertainment, and services.

The mall operator aims to increase the time spent by customers in the malls from 90 minutes to three and a half hours by introducing new activities.

In addition, the company's digital strategy will focus on three main pillars; e-commerce, loyalty program, and consumer finance.

ACC will offer e-commerce through the VogaCloset platform, which will be fully activated over the next two years. The firm is also on track to begin the loyalty program in the fourth quarter of 2021. Meanwhile, consumer financing will likely be launched in 2022.

The company posted a net profit after Zakat and tax of SAR 486.7 million for FY 2020/21, a decline of 24%, compared to SAR 642.6 million in the year-earlier period.