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 Business News | January 2007 
New Nogales, Sonora Mall Makes Impact on Both Sides of the Border
 Suleika Acosta - KOLD News 13
The first Nogales mall opened for business in late August of last year in Nogales, Mexico. They became a direct competitor for American shopper dollars this past holiday season. The Tucson Convention and Visitors Bureau estimates we get 23 million Mexican visitors here to shop annually. They spend one-billion dollars. We talked with officials on both sides to find out the economic impact on our side.
We're told impact on this side of the border has been minimal. But for Nogales, Sonora it's a different story. The Nogales Mall is the first in the Mexican state and already, it's the premier destination for shoppers in the area.
It's an area rich in culture and history but until now, residents of Nogales, Sonora have had limited shopping opportunities.
"It's been a family dream," says commercial developer Apostolos Kyriakis.
It's a dream 25 years in the making. Kyriakis fulfilled his father's vision: a project he never got to finish, a mall for the 400,000 Nogales residents.
"To do something that is dignified for the city, for the people, for the working people, for all classes of our society," explains Kyriakis.
The Nogales Mall has only been open for just more than four months but half a million visitors have already made their way here.
Located in Southern Nogales, the $17 million dollar mall features more than 80 retail stores, everything from trendy clothing boutiques to jewelry and music stores. It's complete with a 12 screen theater, a food court and three restaurants.
For decades, these Mexican residents have crossed the border to Nogales, Arizona for shopping.
"I think it enhances the regional quality of life for all Nogalans on both sides of the border," says newly elected Nogales, Arizona mayor Ignacio Barraza.
He says the new mall has not affected the economy across the border.
"We still see a large influx of people coming from as far South as Obregon and Hermosilla doing their shopping and purchases here in Nogales, Arizona," explains Barraza.
Kyriakis says that's because only 30% of Nogales, Sonora residents cross the border to shop.
"This is more an alternative for the people who do not cross the border," says Kyriakis.
It's the largest retail center this community has ever seen and the only American names you'll find here are in the food court. All the retail stores here are Mexican-owned, mostly chains. Kyriakis says it's hard to attract big-name American retailers common in Southern Mexico's more metropolitan cities. But he believes that too will soon change.
"All of a sudden medium sized cities in Mexico are becoming attractive for all kinds of commercial stores," he says.
The Nogales Mall has already created about 350 jobs and Kyriakis believes in ten years Nogales will be filled with mainstream opportunities that will attract residents from both sides of the border.
Only 20% of spaces are empty in the mall and we're told those should be filled by this Summer. And plans are already underway for the construction of a casino inside the mall. That could be finished by Spring. |
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