Scentre dines out on food, tech
THE company that owns Westfield shopping centres in Australia has reported rising sales as higher spending on food and tech offsets weak turnover at department stores.
Scentre says its total moving average turnover – a measurement of revenue – rose 1.6 per cent in the nine months to September compared with the same period last year. But it came as like-for-like sales, which strips out the impact of shops opening and closing, tumbled 6.7 per cent at department stores.
Sales at discount department stores slipped 0.6 per cent over the same time frame.
In its third-quarter trading update yesterday, Scentre confirmed its forecast for growth in funds from operations of about 4.25 per cent for the full year. It also affirmed its forecast distribution of 21.73c for each of its securities.
The figures come amid a growing focus on the health of the retail sector, and follow Myer’s move last week to downgrade sales targets and warn of more store closures.
Many shopping centre landlords have been overhauling their centres to focus on eateries and experiences ahead of US online retail behemoth Amazon’s arrival.
Scentre reported like-forlike sales growth of 1.3 per cent in its food dining category, while food retail sales jumped 3.8 per cent.
Fashion retail dropped 0.2 per cent, although tech and appliances rose 6.5 per cent.