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Leased Malls4.1.7 SWOT analysisTable 4.1.6 provides a summary of the strengths, weaknesses, opportunities and threats for CJ.Table 4.1.6 SWOT analysis, Cibubur JunctionStrengthsThe centres has a strong and appropriate tenancy mix forits customer base with a good range of internationallyrecognised retailers sought after by middle to middle-upperincome consumersThe centres contains a good lifestyle offering which reflectsthe needs of its relatively young customer base, includingfood and beverage outlets, Fitness First, cinemas andTimezoneCJ also performs well as a destination for non-discretionaryshopping, containing the second best performingHypermart in Jakarta with a high spend per customerThe lack of competition in the region targeting middle toupper income residents makes CJ the leading retaildestination amongst its target marketWeaknessesShortage of parking, particularly onweekendsThe current occupancy level, at 86.4%of NLA, is above the industry averagebut below the level for a ‘strong’ centre.In particular, the higher secondary mallsappear to be underperformingcompared with the rest of the centreOpportunitiesFurther reduce escape expenditure from the middle-upperincome residents that frequent centres closer to JakartaReduce overall vacancy by reconfiguring the mall toincrease NLA and introduce new tenants (such as anelectronics store) that “complete” the retail offer andreinforce the zoning strategyExtending the Matahari Department store by 2,000 sq.mshould also assist in improving the performance ofunderperforming secondary malls on upper levelsThe centre can increase car parking space via the use ofadjoining landSource: Jones Lang LaSalle Research and ConsultingThreatsFuture shopping centre developmentmay emerge to capitalise on thegrowing middle to middle-upper marketin the region that CJ currentlydominates4.1.8 Future outlookThere is considerable upside for the trading performance in the short to medium term at CJ. New housingestates (both existing and proposed) are increasing the pool of middle and middle to upper incomehouseholds within the centre’s trade area. Following the opening of the centre in mid 2005, which led to asignificant reduction in spending by middle to upper income residents at centres outside the trade area infavour of CJ, further opportunities exist to reduce the escape expenditure that is directed towards otherretail centres closer to Central Jakarta.The expansion of the Matahari Department store provides an opportunity to improve traffic flow in thesecondary mall on level two, one of the areas in the centre where vacancy and shopper traffic flows are stilla concern. Furthermore, it is understood that negotiations are in advanced stages with a major electronicsretailer to be located on the lower ground floor. These major new additions to the retail offer could beexpected to decrease the overall vacancy rate in the mall, improve the trading performance of associatedspecialty retailers and also provides the opportunity to further enhance the tenancy mix of the centre.F-55