The Bilu center outlet site near Rehovot, owned by Ofer Malls, is planning to expand its area by 50% at a cost of NIS 500 million, sources inform "Globes." The additional space is projected to total 30,000 square meters on three floors: one 10,000-square meter commercial floor and two other commerce-supporting floors totaling 20,000 square meters. Three parking floors will also be built, plus other work, such as taking down a high tension wire.
According to Menachem Meodi, general manager of the site, the new part will be built in five years. Work on the urban building plan will take place in the next three years, and construction work will follow in the two subsequent years.
Meodi added that the group had been discussing with international sports chain Decathlon, which recently opened its first branch in Israel in Rishon Lezion, the establishment of another branch, to cover 3,000 square meters, in the Bilu center. Also planned in the center are an Office Depot branch, convenience stores, and restaurant businesses.
According to Meodi, the two commerce-supporting floors will contain a branch of the Holmes Place fitness clubs chain, in addition to offices and branches of banks and health funds.
Furthermore, as part of the understandings reached with the District Planning and Building Commission, a transportation terminal will be built on a six-dunam (1.5-acre) part of the site in coordination with the Ministry of Transport, making the site an important transportation artery and increasing the number of visitors there.
Meodi is pessimistic about the future of commercial centers in the coming years, saying that only those able to differentiate themselves will survive. He comments, "All the construction and building arising next to neighborhood centers will have a negative impact on some of the malls. When there are neighborhood centers with a minimarket, there's no need for a shopping mall. I expect the neighborhood centers to prosper."
He also give a gloomy forecast for medium-sized Israeli fashion chains, saying, "As more international chains enter, the medium-sized Israeli chains will be wiped out and closed down, or they will be acquired in order to use their locations in the shopping malls." He cited the example of the acquisition of two failing chains, Dan Cassidi and Nina, by Fox-Wizel Ltd. (TASE: FOX) CEO Harel Wizel, who put his two brands, Yanga and Children's Place, in their places.
Ofer Malls is known for its refusal to introduce ecommerce, and Moshe Rosenblum, its CEO, has up until now opposed opening a website for the group. Meodi says in this context, "I believe that in another five years, ecommerce will take away 20% of the shopping malls' business, which is very significant, compared with the current situation, in which the proportion is only 7%. Malls able to establish a customer base that will be allowed to make online purchases will be able to make up for the business lost to the Internet, and I believe Ofer Malls will have its own website, because it will be unable to stay out of this game."
Published by Globes [online], Israel Business News - www.globes-online.com - on October 26, 2017
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