Southeast Asia’s first premium outlet mall opened Sunday, a joint venture between the US’ Simon Group and the local Genting Group.
Less than an hour’s drive from downtown Singapore (albeit across the Malaysian border), the Johor Premium Outlets features 80 stores initially with another 50 scheduled for phase two of the development. The owners are projecting 3 million shoppers will visit the new mall within the first year.
The 173,000sqft GLA centre is in the border city of Johor Baru, close to Senai Airport and three hours’ drive from Kuala Lumpur. It was offocially opened by Malaysia’s Prime Minister YAB Dato’ Seri Mohd Najib Bin Tun Hj Abdul Razak.
Simon, the largest US-based retail real estate owner, developer and manager, operates 70 Premium Outlet Centers worldwide, 57 of them in the US, one in Puerto Rico, eight in Japan, two in South Korea, one in Mexico and now one in Malaysia.
Initial Johor Baru tenants include Adidas, Armani, Brooks Brothers, Burberry, Canali, Coach, Esprit, Ermenegildo Zegna, Gap, Guess, Lacoste, Michael Kors, Nike, Oroton, Ralph Lauren, Royal Selangor, Salvatore Ferragamo, Swiss Watch Gallery, Timberland, Tommy Hilfiger and Tumi, offering up to 65 per cent of regular retail prices for end of line products.
Simon is clearly hoping Singaporeans’ thirst for both brands and shopping will complement Malaysian consumers’ more bargain-oriented shopping style creating a destination for both, along with tourists from the broader southeast Asian region.
The brands will no doubt welcome the arrival of a clearance channel for end of line goods. Its location across the border will provide sufficient inconvenience to time-pressed Singaporean shoppers to protect mainline sales whereas an outlet centre located within the city state might have encouraged some cannibalisation.
According to Najib, Genting Simon Group plans to expand the project adding a waterpark, a convention and exhibition centre and a 2000 room hotel in the vicinity.
Singapore travel agencies are already establishing group tour packages to facilitate easy access to the new mall.
