Strip Center: Projects Added Amidst Falling Consumer Prices

Specifically, strip centers are a commercial model that arrived in Mendoza about ten years ago and are increasing in number as the urban area expands. For this reason, the greatest growth in these types of businesses tends to occur in the more remote departments with the greatest population growth.

The construction sector emphasized that the format has potential, but those currently in the planning or development phase are "moving slowly" or "progressing very slowly." The reasons are diverse, as the current decline in consumption is compounded by the current crossroads in the construction industry, with rising costs and prices that are not being updated.

For this reason, in the virtual absence of credit, most private projects are self-sustaining. Hence the slow pace of development. On the other hand, various municipalities have noted this situation and commented that new or innovative spaces have opened, but they are unable to rent most of them due to the sales situation and the bleak outlook.

Jimena Gómez Piovano, PhD in Architecture and head of the Urban Design II program at the UNCuyo School of Architecture , explained that strip centers are a solution or response to a demand that arises in low-density cities. She added that they are spaces where access to basic services or amenities is more remote. In general, these are places with diverse offerings and a minimal number of stores where people can purchase everyday goods or access key services without having to travel to the city center.

Construction of a strip center on the Carrefour property in Guaymallén

Daniel Caballero

"For this reason, they also tend to appear around the growth of gated communities where businesses of any kind cannot be established," Gómez Piovano noted. These local businesses, on the other hand, are tied to the concept of " no parking, no business ." This is the idea that parking is key to the success and survival of businesses, since most people arrive there by car. They are ideal for Mendoza residents who want to park "in front of" their businesses and are often overwhelmed by the ever-increasing traffic in the access areas and the rapid growth of some areas.

For this reason, the ability to leave the car when shopping is crucial and one of the distinguishing features of this model. This is also because it is increasingly common to build retail businesses underneath apartments or duplexes, which, while providing a convenient solution, are not the same. The urban planning specialist expressed that strip centers are a solution that improves the sustainability of cities. This is because it is not necessary to travel far to meet daily needs for goods and services.

Dalmiro Barbeito, president of the Chamber of Independent Builders of Mendoza (Cecim) , commented that the urban planning concept of Mendoza and the country has been changing for several years. "More and more people are moving to the West or to other more remote areas, so the strip center concept has been very useful in providing services to these areas that didn't have them," he emphasized. This change in the model has also led to a relatively more even distribution of investment. "Perhaps before it was better to build more in cities, but now people are looking for underdeveloped spaces or those with emerging populations," Barbeito noted.

Architect Gómez Piovano commented that the strip center model has become more established over the last ten or fifteen years. Generally speaking, these types of spaces feature local businesses such as butcher shops, grocery stores or small supermarkets, bookstores, hair salons, bakeries, etc. They also tend to have significant areas dedicated to food, and depending on the size, a cafeteria is a classic. However, breweries, restaurants, hot dogs, and similar businesses are increasingly becoming more prevalent.

Lomas Medical Center: a new proposal just 10 minutes from Downtown

For some time now, a special characteristic has begun to unify most strip centers in Mendoza . While many previously had banks, ATMs, and even municipal offices, today most have a clinic or doctor's office and a gym. Santiago Laugero, president of the Economic Federation of Mendoza (FEM) , explained that the existence of the gym and medical center is in line with the strip 's goal of providing local services.

“Health-related spaces—for both the healthy and the sick—always have a place because they are important draws,” Laugero emphasized . The builder and real estate developer also explained that clinics, gyms, English language institutes, and similar establishments ensure a certain flow of people. This way, those who come to the strip for any of these activities take advantage of the time and space to carry out procedures or make purchases.

"Many people take advantage of the opportunity to buy pasta, lunch for the day, or a Sunday barbecue," Laugero explained. It's also common for groups to get together before or after the activity for a coffee or to share a meal at lunch or dinner. For this reason, both gyms—weight training gyms are currently in fashion, but there are all kinds—and health centers are the most common trend in Mendoza.

Santiago Laugero has a project in the Las Cañas area of Guaymallén, where he has already begun construction on two towers with apartments, offices, and retail space. He also has experience with strip centers , as his company manages Terramalva in Luján de Cuyo. With 18 retail spaces, this space near the fire station traffic circle in that department not only has restaurants, a bookstore, an ice cream parlor, a medical center, a gym, and even a nursery. While the location is well-established and features well-known brands, it has not escaped the general decline in sales.

"The context of low inflation and lower purchasing power means that purchases are very measured," Laugero emphasized. Thus, while strip malls offer everyday options, retailers are currently losing out to large stores. Beyond the data published by Scentia on declining consumption , supermarkets are currently running very aggressive promotions with banks and credit card companies. Benefits that SMEs generally cannot afford include discounts or interest-free installments, which further impacts retailer profitability.

"Since March, there has been a decline in sales, although there has been an upturn due to the July holidays," emphasized the president of the FEM, who warned that the improvement has not surpassed the previous holidays. Along the same lines, Yamilia Meljim, Secretary of Economic Development for the City of Mendoza, commented that most merchants are concerned about the complex situation. "Whether they operate in the future will depend on market saturation," observed Jimena Gómez Piovano. Currently, the recessionary context is not the most helpful, but the format is an option that still has much to offer.

Clothing, price drops.jpg

While some strip malls are bustling, others are failing to take off. Some even have several empty spaces, deserted upper floors, or are frequently changing lines and brands. Strip centers have grown most in remote areas, as this is where the population has grown the most, especially near gated communities.

However, the most populated areas have also seen significant growth under this modality. "When developers consider projects of this type, we look to add value to the area and also to ensure a certain number of people arrive to make the business profitable," Laugero explained. For this reason, it's not ideal to build strip centers in areas that already have shopping malls or shopping centers nearby.

In the city of Mendoza —where the downtown area is the main shopping destination for residents—Meljim mentioned several locations that could be associated with this format. One is located on Suipacha and Olascoaga in the sixth section, where a café has already opened, and the official opening of 14 new locations is expected within a month.

Nearby, the Procrear apartments on the railroad grounds have spawned a series of venues both within this neighborhood and on the surrounding streets, especially along Tiburcio Benegas. On the food front, there's the Mercado Moreno, while downtown could consider the Patio Maristas. "Actually, for us, these spaces fall under the gallery format, but they could also be strip centers ," Meljim clarified.

Guaymallén , the province's most populated department, has seen significant growth in this format. Ricardo Camps, Director of Works, Planning, and Cadastre for this commune, detailed the main formal requests the Municipality has for the strip center sector. He added that among the most dynamic areas are Las Cañas, El Sauce, and Rodeo de la Cruz. While the former is already quite populated, it still has significant room to grow within the ABC1 segment and with the help of the Mendoza Country Club and surrounding developments.

The other two are less developed, but there are also increasing numbers of private neighborhoods and similar buildings. In general, in Guaymallén , progress has been made on a new strip behind La Barraca, which will add local businesses, more restaurants, and the possible relocation of the clinic that operates there. Along Las Cañas and Uspallata streets is the Laugero strip, which has already begun construction, so the Strip is still a long way off. Nearby, there will also be a new commercial project on the corner of Elpidio González and Las Cañas streets.

In the eastern part of Guaymallén, El Sauce, there are two new strip malls. One is Sol City Center and the other is specifically for wholesalers. Meanwhile, across from Novamarket, construction has begun on a new space on the Carrerfour lot, where the karting track used to be. There, the Kristich company plans to open a strip center by the end of the year with around 40 stores and brands that have already signed up, such as Central de Bebidas, La Popular pizzeria, Cerveza Patagonia, and Banco Macro.

The Arizu Winery building in Godoy Cruz has been restored. Photo: Ignacio Blanco / Los Andes

Flavio Kristich had previously stated that this fourth strip project owned by the company will also feature a gym, the Lorenzo Automotores dealership, and a hardware store, among other amenities. This location will share the beach with the hypermarket. Meanwhile, in the Rodeo de la Cruz area—with the help of Giménez Rilli—another strip is planned to be added to Cortaderas, which will be called Paseo Comercial Milagros.

In Godoy Cruz, there are various spaces using this format, but they are more conventional models given that almost all of its areas are highly urban. In the latter, construction began on a shopping mall with 12 stores in Chuquisaca and Segundo Sombra, as well as the Arizu Master Plan. There, the project called "Infrastructure, Urbanization, and Architecture of the Former Arizu Winery" plans a commercial and residential development. This land has a total area of almost two and a half hectares.

Maipú reported that there are 10 authorized strip malls. According to the potential authorizations, five more projects are currently being evaluated: one in the Luzuriaga area, two in the West Zone, and two in the East Zone. Meanwhile, in Luján , they stated that four new projects are in the pipeline, but did not specify their locations.