As South Africa’s retail sector continues its slow but steady rebound, shopping malls are undergoing a quiet transformation, forcing landlords to rethink the fundamentals: foot traffic, tenant mix, and the evolving definition of value, to drive consistent retail recovery.
Despite global headlines predicting the end of brick-and-mortar retail, our country's mall culture has proven otherwise.
In fact, statistics tell us that retail trade sales rose by 3.7% in Q2 2025 compared to the same period in 2024. While this is great news for landlords and retailers alike, there is a noticeable shift in what's driving that resilience.
Malls are no longer relying solely on legacy anchors or traditional retail formats to stay relevant.
Today, the malls that are thriving are those that have embraced a new kind of anchor tenant; brands that offer affordability, convenience, and broad appeal across diverse income groups. And increasingly, these tenants are not the traditional department stores or fashion chains of the past, but agile, category-specific retailers, coming to the party with a strong value proposition.
Value retail is the new anchor
One of the most notable shifts in tenant strategy has been the rise of value-focused retailers as key traffic drivers. These brands, often operating in categories like homeware, hardware, stationery, and lifestyle goods, are filling a gap left by mid-market fashion and department stores.
Jamie Williams, head of business development at MR.DIY South Africa, notes that this shift is a delicate balancing act of value and relevance. "We're seeing a strong demand from consumers across all LSM groups for affordable, everyday essentials," he explains.
"Even higher-income shoppers are looking for value, not cheapness, as they become more conscious about smart spending. This is changing how landlords think about tenancy. They're starting to prioritise retailers that offer consistent footfall and broad appeal, rather than just prestige."
MR.DIY, a global brand with over 5,000 stores across Asia and Europe, entered the South African market in 2025 with a mall-first strategy. Its first three stores, in Menlyn Park, Irene Village Mall, and Boardwalk Richards Bay, were deliberately positioned in high-traffic centres to build brand visibility and consumer trust.
Williams explains that this top-down approach is about more than just footfall.
“Being in a super-regional mall gives you credibility. It opens doors with other landlords and helps consumers understand what the brand is about. From there, you can expand into suburban and rural areas with a stronger foundation.”
Landlords are rethinking partnerships
For mall owners, the appeal of these new tenants goes beyond the monthly rent payment. Value-led retailers often bring a differentiated product mix, high SKU counts, and a broad customer base. They also tend to drive repeat visits and longer dwell times, key metrics in a post-pandemic retail environment.
Williams says the response from landlords has been overwhelmingly positive. “Once they see the store in action, they get it. We’ve had a surge in interest from landlords who are looking to refresh their tenant mix and bring something new to their centres.”
This trend reflects a broader shift in how malls are curated. Rather than relying on a handful of large anchors, many centres are now building ecosystems of smaller, high-performing tenants that collectively drive traffic and sales.
The winning trifecta of location, logistics, and local relevance
While mall partnerships are central to the rollout strategy, location is still at the core of everything, with retailers prioritising visibility, accessibility, and proximity to transport nodes. In Richards Bay, for example, MR.DIY's store is located near a taxi rank and train station, ensuring a steady stream of foot traffic from commuters and local shoppers alike.
Adaptability is also key. As retailers gather data from early store performance, they’re adjusting product mixes to suit local demographics. Stores near universities may carry more stationery and tech accessories, while coastal locations might lean into seasonal goods and homeware.
This localisation, however, must be supported by a resilient distribution chain. Williams notes that MR.DIY’s warehouse in Johannesburg allows for rapid replenishment and agile stock management, both critical considerations in a market where consumer preferences can shift quickly.
Retail recovery is a shared opportunity
South Africa’s retail recovery is far from complete. High unemployment, rising living costs, and load shedding continue to weigh on consumer confidence. But there are green shoots, and they’re growing in the spaces where landlords and retailers are working together to meet evolving needs.
The rise of value-led, convenience-focused tenants is a signal of where the market is heading. For mall owners, it’s an opportunity to future-proof their centres. For retailers, it’s a chance to build brand equity in a market that still values the in-person shopping experience.
And for consumers, it's a welcome return to retail that still feels accessible, relevant, and easy on those hard-earned rands.
