Strong contributions from specialty retailers have sustained healthy sales growth in Centro managed centres.
For the year ended 31 March 2006, annual retail sales in Centro managed centres grew by 3.2% on a comparable basis, reflecting the contribution of specialty retailers up 7.1%.
Supermarkets, which comprise 46% of Centro’s $9 billion of total retail sales, continued to show steady growth, up 1.2% for the year.
Department stores and discount department stores, which combined contribute 18% of total Centro sales, recorded static growth for the period up 0.5% and 0.0% respectively.
Centro’s chief executive Andrew Scott the sustained sales growth has continued across the Australian managed portfolio indicated that rising petrol prices have not had any significant impact at Centro centres, largely due to the portfolio’s focus on convenience, non-discretionary retail spending.
“Pending income tax cuts are expected to further boost consumer spending and retailer confidence which would flow through to enhanced centre sales.” Scott concluded.
Centro’s chief operating officer Graham Terry Centro has been pro-active in identifying and adapting to changes in consumer demand and trends by introducing new retail concepts to attract shoppers.
“Centro’s successful branding of its shopping centre ‘Life precincts’ at many centres has had a positive effect on specialty sales growth,” he added.
By Kathryn O’Meara