The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
18
print
Print
RetailTed TabetFri 22 Jan 21

Retail Sales Fall As Vicinity Cuts Asset Values

f8ba3b76-f472-4d96-b104-c5f5ab4c4205

Retail sales retreated by 4.2 per cent in December from record-high turnover in November as Covid-19 restrictions limited household gatherings in some states and territories.

According to preliminary data published by the Australian Bureau of Statistics, falls were recorded in five of the six retail industries, led by household goods retailing which fell 9 per cent in December off the back of strong Black Friday sales in November.

Similarly, “other retailing”, department stores, and clothing, footwear and personal accessories, posted falls over the Christmas period after good gains in November.

Cafes, restaurants and takeaway food services was the only industry to rise.

Retail turnover remained 9.2 per cent higher than December 2019, suggesting that government stimulus payments and the unleashing of pent-up demand from shoppers were still driving the economy forward.

Over the December quarter, retail spending rose by 2.4 per cent, weaker than the 7 percent rise in the September quarter after the earlier Covid-19 lockdowns.

“The month-to-month data can be volatile, so we shouldn’t be disheartened by the fact retail turnover fell in December compared to November,” Australian Retailers Association chief executive Paul Zahra said.

“This is a fantastic result that’s allowed retailers to recoup some of the losses they incurred during the worst of the Covid lockdowns and restrictions in 2020, and it sets them up for a more prosperous 2021.

“Having said that, the threat of the virus remains, and even when the vaccine is rolled out we’re going to be living with Covid for some time, so some of the existing challenges will remain for retailers.”

In Victoria, retail spending fell by 7 per cent across December following a 22 per cent surge in November, while New South Wales also saw a 5 per cent fall, as localised restrictions in Sydney impacted retail turnover.

Confidence in the retail industry increased significantly from October to December—up nearly 70 per cent—the biggest increase in that period compared to all other industries, according to research house Roy Morgan.

Australia Post also reported December as its biggest month in history, with more than 52 million parcels delivered—a 20 per cent increase on the previous year.

Vicinity wipes 4pc from shopping centre values

The country’s second-largest shopping mall owner, Vicinity Centres, has cut 4 per cent—or $570 million—from the value as it comes to grips with the long term impacts of the pandemic.

The write-down now combines to an overall decline of 15 per cent across 2020 after the retail giant was battered by the sharp fall in rent collection during the initial waves of nationwide lockdowns.

Vicinity chief executive Grant Kelley said the effects of the pandemic, which continue to be felt into 2021, had resulted in Vicinity’s valuations softening.

“While we remain cautious on the impact of potential future outbreaks of Covid-19 on retail trade, and the challenges of the evolving retail environment, we are encouraged by a number of factors.

“Australia has been highly successful in containing Covid-19 outbreaks and shown that they are excited to return to their favourite retail destinations with customer visitation bouncing back strongly over the Black Friday and Christmas periods.

“Additionally, the Covid-19 recovery is expected to be further boosted by the national rollout of a vaccine which is anticipated in the first half of 2021,” Kelley said.

Major department stores and discount department stores that anchor large suburban malls continue to dial back their footprints as the increasing popularity of shopping online fundamentally alters the physical retail model.

Vicinity’s CBD assets, which include the Queen Victoria Building in Sydney and Emporium Melbourne in the southern capital, were hardest hit, with an 8.6 per cent fall in value over the last six months of 2020.

Regional shopping centres fell in value by 4.3 per cent while neighbourhood shopping centres faired better, with a loss of 1 per cent.

RetailAustraliaSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/retail-sales-drop-nationally-vicinity-slashes-values