Real Estate Investor Magazine South Africa July 2016 | Seite 36

RETAIL

Shopping Centre

Management

Retail Trend Collisions need Manager Focus
BY BELINDA CLUR

C

onflicting and contrasting economic and retail
trends now emerging require careful crafting
from the shopping centre perspective and it is
going to be extremely important to correctly interpret
the language of the consumer and blend these trends
successfully in the current and anticipated economic
climate.
IMF SA growth forecasts show a significant trend
collision with the rest of the world, with slow but
higher growth is expected globally but SA is counter
this, showing further contraction relative to 2015.
The retail sector has shown considerable stamina
amidst the broader economic slowdown over the
last year. The Clur Retail Risk Indicator, part of
Retail Live, an interpretive early warning system for
shopping centres with 2m square metres of coverage,
showed a reduction in shopping centre risk over
2015 as mall space worked harder, driven by better
use of space and most notably the impact of strategic
tenant mix, sizing and product mix to correct underperforming space dynamics.
The significant improvement in the Clur Retail
Risk Indicator over the 2015 year was confirmed
by December 2015 trading results, as measured
by Retail Live. Preliminary January and February
2016 Retail Live results further support this trend

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JULY 2016 SA Real Estate Investor

of risk reduction. Thus shopping centre managers
and retailers are adapting to fast changing consumer
dynamics. Supporting the risk reduction findings,
annualized trading density year on year growth
for December of 5.9% across the Retail Live mall
universe outpaced the 2015 consumer price index
(CPI) by 1.3%. Retail Live statistics also indicated
that December 2015 spend per head grew by 6% year
on year, outperforming December CPI by 0.8%.
Latest Retail Live findings show that attention
needs to be focused on conflicting trends to remain
competitive, drive spend and manage risk. With
mounting pressure on the consumer pocket, these
include the need for value for money, but simultaneous
extreme consumer sophistication and fussiness
regarding quality of product/ ingredients, creativity
of concept, presentation, beauty, comfort and luxury.
Against the backdrop of severe modern technology
use and ultra advancements, there is a clear need to
return to basics of village/ community life, nostalgia
and old traditional values.
In a fast paced world defined by constant immediate
gratification and long working hours, we also see a
need for sustainability, relaxation and wellness.
Of particular importance is clear brand identity
and integrity and providing super convenience to
www.reimag.co.za