Pearl Point brand regains its lustre

KUALA LUMPUR: The consumer sector is set to undergo a cooling-off period, perhaps over the next 12 months, with the implementation of the expanded sales and service tax (SST) tomorrow, as well as the subsidy rationalisation of the RON95 fuel.

However, domestic consumption and spending will continue, albeit on a reduced level, said AikBee Group managing director Datuk Seri Tan Aik Kiong.

AikBee Group is the owner and manager of the Pearl Point cluster of properties on Old Klang Road, including the four-star Pearl Kuala Lumpur Hotel, Pearl Point Condominium, and Pearl Point Shopping Mall, in addition to the relatively newer Pearl Suria Condominium and Pearl Shopping Gallery (PSG).

Anyone familiar with the Pearl Point premises would have noticed that shopper and tenant traffic have improved significantly since the movement control lockdowns ended for good in late 2021.

Tan sat down with StarBiz to share the factors that brought about the positive changes. “As you know, Pearl Point Shopping Mall (PPSM) has been in operation since the early 1990’s, approximately 30 years ago.

“There have been many other neighbourhood malls in the area, some discontinued, making us realise that we would either suffer the same fate, or do better by injecting new energy and elements into the mall,” he said.

While PPSM has never faced the threat of being closed down, unlike its neighbour Central Plaza which used to house Q-Mart and Yaohan, footfall has always been moderate especially since old anchor tenant Pasaraya Hiong Kong vacated the mall.

The turning point for the better apparently came in 2017, when Jaya Grocer became the mall’s anchor tenant at its then new wing PSG, but AikBee Group was not satisfied, and began to put in place plans to improve traffic even further.

Tan revealed that the group invested RM50mil in 2019 to renovate and refurbish PPSM, at that time considered the “older wing” of the mall after PSG began operations in 2016.

PPSM and PSG are connected by an elevated pedestrian overpass, similar to IGB Bhd’s Mid Valley and Gardens Mall roughly four kms away.

“As everyone is aware by now, nobody foresaw the lockdowns happening, and when they occurred in 2020 and 2021, that was by far our biggest challenge because it meant that our renovations were pushed back several times,” he reminisced.

Once refurbishments were finally completed in 2023, Tan said the company was facing a new challenge in finding tenants to fill at least 90% of the 300,000 sq ft of lettable area.

“Thankfully, the strong support from the local community meant that Jaya Grocer was doing very well, so in 2023, we invited them to take up tenancy in the new-look PPSM, giving them another 40% more space than before.

“Even though they are on the first floor, as opposed to many of their other branches that are usually located on lower floors, their business remains strong,” he observed.

On the other hand, having invested heavily in remaking PPSM, Tan realised the group needed to upgrade its class of shoppers too, from the low middle and middle class to the upper middle class bracket.

“What kind of shoppers do we want to attract? This will lead us to get the right anchor and mini anchor tenants,” he remarked, before pointing out that the mall did already have a base of solid tenants such as Poh Kong Holdings Bhd, as well as well-known publisher and stationery retailer Popular Holdings.

AikBee Group began making its move to bring in more tenants, and soon chains such as Ben’s Independent Grocer and MR DIY Group (M) Bhd began taking up space at the mall, as did popular eateries and cafes such as McDonald’s, Ippudo, Mixue and Omega, in addition to names who have been there longer like StarBucks, A&W and Nando’s.

But how did Tan attract these sought-after brands to occupy PPSM and PSG?

He acknowledged that many of them were friendly connections who were attracted by the traffic improvement, while others were favourable referrals.

“That said, it was a double-edged sword. Being known associates with some of these big-name tenants presented its own challenge, because ultimately, they still needed to make money.

“Imagine, we see our tenants on a monthly basis. If we know them personally, and if for some reason their stores are not doing well with us, it could jeopardise the relationship,” he said.

To prevent such a situation from occurring, tenants need good business to continue renting, and as landlords, AikBee Group has to play its part well, especially in terms of managing the mall to ensure a clean and safe environment.

This, he said, will instill confidence in tenants and shoppers, but it is still insufficient. He noted: “We also realise we need enough marketing activities such as events, campaigns, rebates or other forms of perks and benefits to sustain, if not improve further, our footfall.”

This strategy ties in properly with its future plans. To make it work, he said the group first needed to identify its most important tenants that form the essential components of PPSM and PSG.

“Having enhanced the ‘hardware’, which is the physical refurbishing of the premises, we are now focusing on the ‘software’ part, that is improving technology according to current trends for the creation of membership applications so that our shoppers and hotel guests are aware of our running campaigns and rewards,” he emphasised.

Looking beyond Pearl Point, Tan said he is often asked if he would be taking over other malls. “Although we do prefer acquisitions to building up from scratch, there are no immediate targets for now and we are focusing on our Pearl properties,” he added.