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Shops close down at Keetmans shopping mall

EDGARS Active is the latest retailer to close its doors at the Old Mutual Shopping Centre at Keetmanshoop.

An employee, who preferred anonymity, said the shop’s mother company Edcon was closing all Edgars Active chains countrywide, and thus did not renew the retail space’s leasing agreement with Old Mutual.

According to the employee, the staff were not retrenched, and will be accommodated at other Edcon retail chains.

Edgars Active Keetmanshoop branch manager Chriselda Vries declined to comment, saying she was not at liberty to speak to the media.

About three weeks ago, Retailability, a South Africa-based group comprising retail brands like Legit, Beaver Canoe and Style, closed its Style chain at this shopping complex.

The Foschini Group (TFG) store The Fix, which rents retail space at the shopping complex, will also shut its doors at the end of this week, workers told The Namibian.

understands that the chain store forks outs N$33 000 a month for renting retail space measuring 220 square metres at the shopping complex.

TFG representative Simoni Ward, based in South Africa and to whom was referred, did not reply to questions regarding the shop closure emailed to her.

Speculation at the town suggests that high rentals for retail space at the shopping complex was ‘killing’ the tenants, resulting in them closing their shops.

Residents to whom spoke also expressed concern over retailers closing shop at the shopping complex, leaving more open retail spaces.

“It is not good for the town’s economy if businesses are pulling out of the shopping complex,” Jan Coetzee said.

The Keetmanshoop municipality’s chief executive officer, Desmond Basson said he believes the shop closures are indicative of the economic slowdown in the country, compounded by the lay-offs of workers at the Neckartal Dam site due to the completion of the project.

“The lay-offs have diminished buying power locally”, he stressed.

The council’s top administrator said the general rate of letting commercial space ranges from N$38 per square metre for office space to N$150 per square metre for retail space.

“The municipality tries to create a conducive environment to attract and retain businesses in town. However, we cannot ignore the economic realities at play in the country,” he observed.The N$92 million retail centre was supposed to have been officially opened on 1 November 2013, but the official opening was postponed to 15 December that year because the construction work was behind schedule.

The mall boasts of a 10 000 square metres of letting space, of which 95% is for retail and the remaining 5% for office.

But JHI Properties Namibia, which is responsible for handling the shopping complex’s retail and office leases on behalf of Old Mutual, rejected speculation that high rent was forcing tenants out of the shopping complex.

“We are open to negotiating for lower rentals. Our rental agreements are not cast in stone,” the company’s property manager, Michelle Kapia, said.

She added that TFG informed her company that it was closing shop because it is culling its The Fix brand in Namibia.

Kapia said Retailability cited the economic, non-viability of running two Style outlets at the town, and therefore decided to close the retail chain at the shopping complex.

She was not aware that Edgars Active had also closed shop, noting “according to my knowledge, they are still in a contractual lease agreement with Old Mutual”. Retailability’s regional manager in Namibia, Corrie Barnard, yesterday stated that the closure of the Style store at the shopping complex had nothing to do with rental fees.

“It was not economically viable to have two stores at the town. Therefore, we decided the move the retail chain that had been closed, to the Rosh Pinah mining town” she added.

“Our other chain stores Legit and Beaver Canoe are still doing business at the shopping complex,” Barnard noted.

According to her, staff members of the closed Style shop were not laid off, but accommodated at other Style stores.

The Mohegan Spur Steak Ranch at the shopping complex also closed shop almost a year ago.

Old Mutual yesterday said consideration the tough economic circumstances currently prevailing in our country, this has an eroding impact on consumer spending resulting in many retail shops having a hard time keeping head above water.

“Furthermore, although we felt the impact of some major retailers that are closing down in a number of shopping centres throughout Namibia, we also have a number of new brands setting up shop at the Keetmanshoop Centre,” the company said in an emailed response.

However, Old Mutual also said that Spurs is expected to open under new management soon.

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