Retail

Retail sales rise 3.2 per cent amid strong retail leasing demand

20 hours ago 2 min read

Uyen Duong

Retail sales in Australia increased in the year to June, while shopping centre foot traffic and retail leasing activity also rose, according to the Retail Insights report from the Shopping Centre Council of Australia (SCCA) and Urbis. Sales growth was led by specialty retailers, up 4 per cent, and mini-major retailers. Specialty categories included fashion, food catering, jewellery and technology. Retail turnover increased by around 4 per cent in the ACT and WA, compared with around 2 per cent in Victoria and Tasmania. Shopping centre foot traffic increased 2 per cent nationally, while retail tenant occupancy reached 98.8 per cent. Demand for retail space was concentrated in food catering, apparel and retail services. Food catering accounted for 39.6 per cent of leasing transactions, followed by apparel at 19 per cent and retail services at 17.1 per cent. This reflects the increasing importance of in-centre consumption categories. Ian Shimmin, director at Urbis, said Retail Insights provides a snapshot of activity across Australian shopping centres. “Shopping centres are also more than just retail spending; they are community and economic hubs,” he said. The report also points to changes in the role of department stores as anchor tenants. Urbis analysed 70 shopping centres across six international markets and found that centres are broadening their role across shopping, dining, entertainment, wellness, services and community uses. In Australia, shopping centre owners have repurposed former department store and discount department store space for retail, entertainment, restaurants, hotels, wellness facilities and mixed-use destinations. However, mini-major retailers account for 19 per cent of occupied retail floorspace, compared with a global average of 40 per cent. Food, beverage and entertainment uses also account for a smaller share of occupied floorspace than in some overseas markets. Urbis said Australian shopping centres need to move beyond occupancy and focus on productivity by extending trade area reach, encouraging longer visits and increasing visitation frequency. “Shopping centres are a vital part of Australia’s economy and communities, supporting 1.4 million jobs, generating around $200 billion in annual retail trade and providing retail and essential services that millions of Australians rely on every day,” SCCA chair Elliott Rusanow said.