Retail sector retains confidence, sales hold in top centres

Currently the company sees a total capital investment of over R500 million in expansion projects in some of the shopping centres under its management. The extension of the Kolonnade Retail Park in Montana, Pretoria North introduces a new Virgin Active. The Greenstone shopping centre on the corner of Modderfontein and Van Riebeeck Avenue just west of Edenvale CBD is planning an extension to accommodate a major anchor tenant, which will further enhance the centre's appeal. In the Kolonnade Shopping Centre, in Pretoria there are plans to increase the size of national retailers, such as Truworths, Foschini and Checkers stores.

Value retailers weather the storm

During the recent festive season, there was a marginal increase in foot count and a reduction in discretionary spend on luxury goods, however value retailers weathered the storm better than most, while fast food turnover was up, as well as clothing, textiles and shoes, and supermarkets achieved a fair performance over the previous year. At the Boardwalk shopping centre in Richards Bay, while foot count was down, spend per capita increased. This centre also saw an increase in fast food sales over the festive season.

Along with concern about Eskom's announced tariff hikes, a key focus is on utilities management in order to contain costs wherever possible. The company is applying diligent processes and controls in order to curb costs. The increases are a major concern for property owners and tenants alike, particularly the latter who may be compelled to close their doors due to increased operating costs. Therefore, it is imperative for property owners to look at implementing measures to increase cost-effectiveness.

Using the sun

It is currently investigating the possible introduction of solar-powered advertising boards as well as solar-powered lighting, in such areas as parking, in some of the major centres managed by the company. It is also endeavouring to introduce the more energy efficient LED lighting throughout its centres, as well as water saving measures and the greening of tenant installations. However, in general there's a tendency among South Africans to still concentrate on lower cost options which are not always the greenest.

Another trend noted is that shopping centre managers are paying increasing attention to improving security measures. For some time the company has made this a priority in terms of the centres it manages and apart from the usual hi-tech equipment such as CCTV, security guards etc, it extends this even further in terms of security vehicle patrols outside centre perimeters, for example. While media reports of a spate of mall robberies in various regions of the country over the past year has focused increased attention on security, this can only be successful if shopping centre employees and all service suppliers - most importantly the security company employees, work closely together on all the preventative measures.