Scentre alerts to changes in retail

RETAILERS who fail to meet the demands of modern consumers will “fall away” as the industry evolves, according to the chief executive of shopping centre landlord Scentre.

Peter Allen says the retail sector is changing at an accelerating pace, fuelled by digital technology.

“We are seeing that those retailers with a compelling offer across all formats are growing their business at a faster rate than others,” Mr Allen said yesterday, speaking at Scentre’s annual meeting.

“This has put additional pressure on retailers who do not understand or cannot deliver to their customer needs.”

Mr Allen said Scentre, which owns the Westfieldbranded shopping centres across Australia and New Zealand, is determined to put the best operators in its properties.

“Last year, we leased 1258 stores to new merchants, introducing 289 new retail brands that we haven’t done business with previously,” he said.

“Consumer’s tastes are changing and we must continue to meet this change to stay relevant. There’s no doubt the industry’s evolution will continue, as those brands that no longer perform or are relevant will fall away.”