Shopping centres have splashed out millions on refurbishments to fight against online shopping — but they’ve made a crucial error.
Over the past few years, the likes of Westfield, Mirvac and Vicinity have invested millions of dollars converting their tired old food courts into hipster “dining precincts”, while shifting to an “e-commerce resilient” store mix.
Most worryingly for Australian shopping centre operators, when consumers were asked what they wanted most, dining and services were way down the list compared with in Asia. The one thing Aussies want more than anything? Parking. “All these landlords have been investing in entertainment, leisure, dining precincts, that’s underwritten 90 per cent of the big developments retail landlords have done. The data here is saying less of a focus on dining and entertainment than what the landlords perhaps think. The landlords are less focused on the lower-return the customer is asking for which is carparking.”
UBS said its findings suggested landlords should focus more heavily on cutting up underperforming department stores and discount department stores to boost variety and services while spending more on parking to improve access. In Australia, 93 per cent of respondents were aware of Amazon, 22 per cent had purchased an item and around 40 per cent said they were planning to. Importantly, whenever Amazon enters a country it leads to more people shopping online generally.
“They’re expensive places to be, I think that’s sometimes forgotten. you’re playing catch-up. All the tenants are saying, ‘We’re paying a lot in rent, what’s happening with foot traffic?’”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hakeem Al-Araibi 'happy to be safe' after becoming Australian citizen'I'm an Aussie now,' the footballer told reporters after the ceremony in Melbourne on Tuesday.
Read more »
Refugee footballer becomes Aussie citizenFootballer Hakeem Al-Araibi feels he is finally safe after he was welcomed as an Australian citizen at a ceremony in Melbourne.
Read more »
Legend's harsh reality for new Aussie starAustralian batting legend Mike Hussey says Ashton Turner remains only an outside chance for a World Cup spot. 9WWOS Cricket
Read more »
Aussie rider's bizarre MotoGP retirementAustralia's Jack Miller forced to retire from Qatar GP in bizarre circumstances. 9WWOS MotoGP
Read more »
Ricciardo’s massive pay rise revealedF1 star Daniel Ricciardo may have moved to the “best of the rest” with his Renault move but the Aussie has moved into the big boys in terms of remuneration.
Read more »
Rural Aussie town lobbies for more mental health services after suicidesCommunity members in the central Queensland town of Emerald are calling on the Federal Government to add more mental health services in the area after an increasing rate of youth suicides.
Read more »
Bad news for illegal downloaders: Aussie anti-piracy breakthroughThe days of illegally downloading and streaming content could soon be over thanks to an anti-piracy breakthrough from an Australian video tech firm. 9News
Read more »
Aussie star Joel Edgerton reckons he’s bluffed his way through HollywoodJoel Edgerton is in the middle of a revelation about suffering from the social experience dubbed “impostor syndrome” when the cramped propeller plane we’re on begins to shake.
Read more »
Sad reality in basketball star's Aussie upbringingBasketball star Liz Cambage opens up on growing up coloured in Australia 9WWOS
Read more »
The Beauty Diary: Genius bargain buy from $20 million Aussie brandSometimes we get so focused on taking care of our faces, that we forget about the skin on the other 90 per cent of our bodies.
Read more »
The $5 moisturiser behind an Aussie family’s fortuneWhen Zvonko Jordanov started his own tiny cosmetics company with just $10,000, he never imagined it would become a global smash hit.
Read more »