The report, just released, indicated that despite a solid Christmas trading period, annual trading density growth for the year remained below inflation across all shopping centre sizes, reflecting reduced levels of consumer confidence.
Super regional shopping centres recorded trading densities 10.2% higher than the same period in 2010, contributing to a 4.9% increase for the full year. These larger centres rely on this cyclical boost to their annual trading figures more so than smaller centres, which see more consistent trading throughout the year.
South Africans' Christmas shopping habits appear to have changed compared to 2010. This time around, people made fewer visits to shopping centres in the last three months of the year, but spent up big while they were there. This is particularly evident in super regional centres, where visits per month fell by -5.9% in Q4 2011 compared to Q4 2010. Each visitor, however, spent on average 14.7% more per visit than the previous year.
According to the turnover figures, many South Africans found electronic gadgets and fancy jewellery under their trees on Christmas morning. Jewellery stores reported consistently high increases in sales across most types of shopping centres, whereas shoppers chose to make their electronics purchases in the larger centres.
Despite the apparently rosy picture, retail trading density growth has in fact contracted in real terms, with flow on effects to shopping centre tenants and owners. Rental growth has slowed, particularly in the smaller centres, with super regional rentals the only category to match inflation.
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