Mixed results for retailers along promenade

Few shoppers are taking the stairs to the upper level to shop, retailers say.

While thousands of people stroll along the shops lining Jumeirah Beach Residence, few are taking the stairs to the upper level to shop, retailers say, forcing stores to relocate or shut down. The 1.7km stretch of retail shops called The Walk, at the foot of the Dubai residential development, has become a bustling hub since it opened last year, but shop and restaurant owners on the upper floor, called the plaza level, say they are not reaping the benefits. While officials say some of the shops are simply not a good fit, retailers blame a lack of promotion, poor signage, tall stairs and few elevators. Keith Flanagan, the general manager for Al Ghurair Retail, which manages brands such as Springfields, says it plans to close its store because of dwindling sales. "Every single retailer, whether they're selling gold, telephones, you name it, no one on the plaza level is even remotely content," Mr Flanagan says. "We're all very unhappy. A number of people have left and a number of people who signed have never started their shops, which compounded the problem." On the ground, it is the opposite tale. The patios are packed with customers and there is a steady stream of couples, families pushing strollers and tourists along The Walk. Paul Cafe at Jumeirah Beach Residence is one of the brand's two best-performing stores in the country, with about 1,450 customers daily, says Rudy Haddad, the brand's food and beverage operations manager in the UAE. "It's a non-stop operation from 8.30 in the morning to 1am. People are coming in, and in, and in, all the time," he says, adding that sales have steadily grown by 25 to 30 per cent daily since it opened. Haiyan Mujarkech, the chief executive of Dubai Retail, which manages The Walk, says roughly 10,000 to 14,000 people stroll through the outdoor shopping complex daily. "It has changed the way people think about shopping," he says. "It's a nice day out in the sun instead of being in a closed shopping mall." But Jamal Chaeito, the general manager and part owner of Duo restaurant, says his location on the plaza level sees about 150 to 200 customers on a Friday or Saturday. "That is below the average amount you need to survive and pay your rent, and pay your overhead," he says. Sales have exceeded expectations on the ground level of The Walk, but the plaza's stores have not kept pace, says Mr Mujarkech. "It has been a challenge trying to take people up the level and introduce them to that shopping experience," he says. "I don't know, it's people's nature. They like to go in a straight line." Mr Mujarkech says they plan to introduce more entertainment activities and marketing programmes. More than 2,000 signs have been put up, he says, and they are adding digital maps. But, Mr Mujarkech says some stores are doing poorly because of the wrong merchandise or a lack of promotion. "There are some businesses that were wrong from the beginning to be in that environment," Mr Mujarkech says. "And there are some businesses that didn't do enough." Mr Mujarkech said he has spoken with struggling retailers and offered to find a solution. "We were responsive enough to say, 'What is your pain, and what is it we can do?'." But one retailer, who did not want to be named, closed three of its clothing stores and said at least 52 others have done the same. Mr Flanagan said the original plans for the development - which has a capacity of 305 shops - included an outdoor market on the plaza level and live performances, but that has yet to happen. "Unless something substantial happens, we're closing," Mr Flanagan said. The Walk opened its "Covent Garden" in January, where small retailers sell their wares from temporary booths, on the ground level. Mr Chaeito said it is in the process of signing a new lease to relocate his Italian restaurant to the ground level, a costly move. Part of the problem stems from a design flaw, he said, as the walls surrounding the upper level block out visitors. "The traffic is there," he said. "It's a beautiful place, a beautiful location, but all the action is down on the lower floor." Mr Mujarkech said The Walk was a work in progress, and drawing the crowds was the first step. "Now the people are at The Walk are very happy there, and eventually they will start to wander and to want to explore the space and see what else it offers." [e-mail]