The company, founded in 2005 as a specialist in mall income generation, has closely monitored the changes and challenges involved with commercialisation over recent years. With revenue streams potentially plateauing, it has developed a number of innovative ideas to deliver increased mall revenue for its shopping centre clients.

Managing director Frank Whiting says: "With the high street marketplace likely to become more unpredictable, and for the foreseeable future a possible sustained downturn in turnover and a resultant increase in voids, non-core income will become more important in sustaining yields and maintaining the asset value of the centres."

Whiting, an ex-shopping centre manager, believes non-core income needs to be managed as an integral part of a centre's business plan. He says:"Standards are extremely important and still require addressing across the board, but when you look at the revenue received, it is beholden on us to educate and assist in the development of casual mall traders, encouraging them to think more like permanent retailers, guaranteeing the standard prior to their arrival."

To ensure its clients' malls are not littered with casual traders operating from pasting tables, aggressive sales people or poor merchandising, EFM has a client trader liaison officer to help traders understand and develop their presentation skills and improve sales techniques, so that they strengthen their business and in turn strengthen their standards and their offer, benefiting everyone.

EFM also understands that RMUs are just one aspect of mall commercialisation and Whiting believes brand alliance, such as product launches and car promotions, provides not only an alternative stream of revenue but also enhances the profile of the scheme. In addition, vending machines, ATMs, children's rides and poster sites add a great deal of value to a centre, enhancing areas such as car park entrances which otherwise are unable to provide an income stream. However, Whiting believes that as with traders, operators such as Coca Cola should be persuaded to pay for the space on which they operate rather than pay on a percentage per unit sold basis, which is at best an unpredictable form of income.

In anticipation of a predictable income stream, EFM Mall Trading has developed an idea for a system it is currently testing whereby it leases or rents the entire mall from the landlord, which turns the mall area into a demise with serious value attached - in some cases, Whiting says, exceeding that paid by incumbent traders and contracts. With this service comes a full consultancy to engage with local enforcement authorities and fire and building control and to increase the provision of mall trading areas in under-utilised centres. There is also a consultancy on the use of mall space, whether it be casual, RMU-based or semi-permanent, to maximise income generation and visual impact.

"There are exciting times ahead for mall commercialisation," says Whiting, "and inevitably, with all the possible development opportunities, problems and possible threats are also generated. One of the most significant challenges we face in the future is the ever-present spectre of additional occupancy costs."

Challenges ahead

Whiting says it is likely that as non-core income develops further, attempts will be made to make the mall areas liable to further occupancy costs, based on each identified revenue pitch.

Saturation is another issue which could affect the future development of the industry. As smaller traders and agencies are pushed out by rising costs, the pressure to increase the provision on each centre will become more intense, says Whiting. He adds that this needs to be monitored to ensure shopping centres don't end up with a market hall on the mall, or overdevelopment of sites and no one to fill them.

EFM Mall Trading has developed a number of solutions to counteract market saturation. It is working with independent traders to ensure their businesses change with industry requirements and flourish in an increasingly demanding market.

"Effective auditing is important too," says Whiting. "We offer a free consultation to shopping centres, whether current clients or not, and carry out an audit of all space to ensure they are maximising space, but more importantly minimising risk of overdevelopment."

Proactive marketing is also a key element in future development. EFM Mall Trading is currently developing a service that involves members of its team working locally at centres to assist in maximising local activity, brand alliances and in-centre opportunities.

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