Best Practices in Business & Economic Development Latest Issue November 2024

Sheraton Mall – Christ Church, Barbados

written by BVC November 26, 2024

Sheraton Mall

Building Barbados

Highlighting the power of community investment, sustainability, and a visionary approach to growth.

Sheraton Mall, Barbados’s largest commercial center, wasn’t always the thriving hub of retail and entertainment that it is today. Situated on the southern coast, it now boasts over 250,000 square feet of shopping, dining, and leisure space, drawing both local patrons and curious tourists. But as Scott Oran, Sheraton Mall’s managing director, explains, the journey to success was far from straightforward.

“What’s the difference between a dreamer and a visionary?” Oran asks, pausing for a moment. He quickly answers his question: “A dreamer thinks up different scenarios but doesn’t necessarily carry them through. A visionary understands a target market, develops a plan, and gets there.” Sheraton Mall, for the husband and wife team, Scott and Sharon Oran, is the culmination of vision, not just a dream.

Originally constructed in 1989, Sheraton Mall was a bold experiment when the mall concept was foreign to Barbadians. “Nobody knew about a mall, no one thought about out-of-town shopping,” Oran reflects. The property was a former industrial site that once housed Intel, which shuttered its operations in the region as Silicon Valley outpaced the Caribbean in the tech boom of the 1980s. Oran’s father was part of a group that saw an opportunity in the abandoned space. “Within 18 months, we developed a project plan to convert it into about 35 stores over 90,000 square feet.

For the first three years, Sheraton Mall struggled to gain momentum. With only 50% occupancy, Oran and his team were forced to get creative. “The plan was simple: if we couldn’t get the big stores to come in, we’d open our own businesses,” he says matter-of-factly. The mall management team pivoted from leasing space to actively running retail ventures. This decision turned the tide, and by 1993, Sheraton Mall had achieved full occupancy.

Building for the Future: Sustainability and Smart Design

Scott and Sharon Oran

Sheraton Mall’s evolution hasn’t been solely about attracting more tenants. As Oran recounts, the mall’s architecture and operational footprint have been designed with practical constraints and forward-thinking sustainability.

“The overall architecture is an interior mall concept,” he explains, noting that the design stems from the original structure’s limitations. “Because of the way the building was constructed, we were constrained in how we could expand.” With a layout that offered a natural fit for a controlled environment, Sheraton Mall was set up with roughly six to eight entrances, all under tight management control. “Essentially, when one door opens, the whole mall opens,” he says, highlighting the synergy between tenant needs and the central management team.

However, expanding the mall wasn’t just about adding more space—it required considering the climate, environment, and the mall’s impact on both. Conscious of the long-term implications of maintaining a building in the Caribbean, Oran’s team has meticulously incorporated sustainable practices wherever possible. “The building we currently occupy is over 50 years old,” he points out. Despite its age, ongoing upgrades and maintenance have kept the structure in excellent condition.

One major initiative has been renewable energy. “We have about 1.25 megawatts of solar power,” Oran reveals. The photovoltaic panels, which adorn the various rooftops created by years of expansions, are tied back into the electrical grid, helping to offset the mall’s energy consumption. “Given our geographic location, we’re very fortunate to have an abundance of sunlight,” he adds, noting that the payback period on their solar investment is typically less than four years—a clear incentive to continue expanding the mall’s renewable energy capacity.

Resilience Through Crisis: Investing in Relationships

When the world shut down during the COVID-19 pandemic, Sheraton Mall faced the same overwhelming challenges that upended economies across the globe. For Oran, the focus during that tumultuous time was not just about keeping the lights on—it was about sustaining the relationships that had taken years to build.

“More than half of our stores have been with us for over a decade,” he explains. That longevity, he notes, isn’t by accident. “The relationships we build with our tenants are a priority.” That focus on partnerships shaped the mall’s response when the pandemic brought the world to a halt. Like many places, Barbados was hit hard—especially given its reliance on tourism. “We had a very visionary government, thank God, to help us and guide us through,” Oran acknowledges.

“We didn’t wait for tenants to come to us,” Oran says, recalling the early days of the pandemic. “We immediately put protocols in place to reduce rent—not just defer it but reduce it.” This decision wasn’t just generous; it was strategic. For the first 18 months of the pandemic, the mall voluntarily cut its revenue in half, providing tenants an average 50% discount on rent. In cases where the government mandated complete shutdowns, tenants received a 100% reduction in rent for those periods.

Despite the economic strain, the strategy worked. “Over that period, we lost only two tenants,” Oran notes. Even then, he clarified, those closures were due to personal reasons, not financial ones tied to the pandemic. For Oran, this was proof that the mall’s investment in its tenants—through supportive policies and strong relationships—had paid off.

Beyond Retail: Community and Economic Ripple Effects

While Sheraton Mall has become a cornerstone of Barbados’ retail sector, Oran clarifies that its impact extends beyond shopping. From the beginning, the mall’s leadership has operated with a sense of corporate responsibility that isn’t just about profit margins but about uplifting the community it serves.

“Community is one of the core components of what we do,” he says. This awareness of social responsibility didn’t start with the pandemic, but COVID-19 certainly amplified it. During the height of the crisis, Sheraton Mall partnered with other businesses to create emergency funds for individuals left vulnerable by the sudden disappearance of tourism. “We collaborated with others to support those in need, especially families impacted by the loss of income,” Oran shares. Even today, those efforts continue. “We prepare food hampers weekly for indigent families, with lists provided by government agencies. It’s become a regular part of our operations.”

Oran points out that this sense of duty isn’t just about charity—it’s about understanding how interconnected the local economy is. “We have 120 stores in the mall, employing nearly 700 people,” he explains. But those numbers don’t tell the whole story. Oran’s team conducted a survey a few years ago to evaluate the “trickle-down” effect of the mall’s operations. “When you factor in the suppliers, distributors, and the customers these businesses serve, the numbers become staggering,” he says. “A single business entity like Sheraton Mall can influence the economic benefits of society. It’s quite amazing.”

Tony Yam – Owner of Luk Yeung

Expanding Horizons: A New Vision for Sustainable Development

Sheraton Mall’s success has paved the way for an even larger and more ambitious project that blends retail with healthcare and sustainability. What began as a modest search for land has evolved into a groundbreaking development representing a significant step forward for the Oran family and Barbados.

“The project wasn’t something we initially planned,” Oran admits. “Back in 2010, we were just looking for an acre of land for our hardware store, Do It Best.” But amid that search, an opportunity presented itself. “We were told about eight acres that had been slated for a private hospital but were now available for sale.” The unexpected find led Oran and his team to reimagine their goals. “We recognized that some of the larger businesses in Barbados were interested in having big footprints in the area, so we decided to take the plunge.”

After years of planning, they designed a big-box development comprising seven buildings in conjunction with architects. The project’s design has been driven by the needs of the tenants, many of whom Oran’s team worked closely with from the outset. “We knew a lot about the tenant profiles we were catering to,” he explains, “so the buildings have been designed with their specific needs in mind.”

A key differentiator for this development is its substantial healthcare component. Of the 270,000 square feet, nearly half—approximately 130,000 square feet—will be dedicated to healthcare facilities. “We’re starting with an urgent care center already under construction,” Oran explains, “and we expect to add a tertiary care facility, which will be the last two buildings, set to begin later this year.” With a completion date targeted for January 2026, the healthcare facilities will address a critical gap on the island.

Building Through Challenges: Labor, Supply Chain, and Timely Execution

For any significant development project, labor and supply chain concerns loom large—particularly in a post-pandemic world. But as Oran explains, Sheraton Mall’s latest venture, W Plaza (wplazawelches.com), has managed to sidestep many challenges plaguing construction projects globally. Through local expertise, careful planning, and fortuitous timing, the project has remained on course despite the obstacles.

“In terms of labor and technical resources, everything has been local,” he says confidently. With its $80 million price tag, W Plaza is a significant regional undertaking and a local triumph. “All of our consultants—engineers, architects, project managers—have been from local professional companies that do an amazing job.” And while the contractor is based in Barbados, the workforce has been drawn from across the Caribbean. “I can’t say they’re all Bajans,” Oran clarifies, “but certainly they’re from the region.” The movement of skilled labor between the islands has been essential in maintaining the momentum of the build.

Supply chain issues, however, have been a constant concern throughout. “Coming out of COVID, the supply chain has been an ongoing concern. It’s gotten better, but it’s still there,” Oran notes. The project has had to deal with delays in sourcing key materials—particularly electrical components and structural steel—most of which had to be ordered from outside Barbados. Yet the team was proactive, securing long-lead items well in advance to avoid setbacks.

Rooted in Local Investment: Prioritizing Homegrown Growth

Sheraton Mall’s success and the latest development project tied to it aren’t just stories of business acumen—they are also about how deeply rooted the facility is in the local community. For Oran, this community focus has been a guiding principle, shaping decisions far beyond the balance sheet.

“There’s always a balance,” he says thoughtfully. “On one hand, you could go to a foreign entity and cut costs significantly. Conversely, you can rely on your local network, which will cost a bit more.” The choice is clear for him and the rest of the leadership team. “Our strategy has always been to use what’s available locally, as long as we can rely on it.” It’s a practice that speaks to a larger belief in the power of local investment. While some materials and expertise may inevitably need to be imported—mainly when the quality or availability within Barbados is limited—the preference is always to invest in the island’s people and businesses whenever possible.

At the heart of Scott and Sharon Oran’s vision is a deep understanding of how interconnected the island’s economic well-being is with its social stability. By sourcing locally, providing opportunities for local businesses, and investing in the people who make up the island’s fabric, Sheraton Mall and its associated developments have become more than just commercial ventures—they are cornerstones of a sustainable future for Barbados, building resilience through thoughtful, community-centered growth.