[PRO] Westfield Marion

[pushbutton]

That's really weird how the tile is scratched like that in a 'T' formation. Doesn't look accidental, but I can't imagine why they'd do it.

[Ben]

The floor has been ruined either side of the new tiles for a lot of the mall. They haven't touched it in about a month, so not sure if there is now a dispute between construction company and Westfield.

[Dvious]

I also noticed that when walking out the other night, the old tiling has been stained by the new tiles. Hope they work it out.

[Ben]

Adelaide's first Universal Store is to open where Australian Geographic recently closed after 15 years. It's similar to Globalize and Live.

Thereare a lot of vacant tenacies that have been there for some time.

Mcdonalds express closed near woolworths and has been vacant for 2 months as have the 2 tenancies near Esprit and Sportsgirl. Kids central closed near Myer and has been temporarily turned into a "kids activity centre". Southcoast lighting has closed and no signs of future tenants. Oxfam closed and has been replaced by a "pop up" store called Blossom. All in all this would be the lowest vacancy rate the centre has seen since 1997 even more since the retial collapse of Colorado group a couple years ago.

[Allkai]

Adelaide's first Universal Store is to open where Australian Geographic recently closed after 15 years. It's similar to Globalize and Live.

The story we got told from AG staff a couple of months ago, was that at the end of their lease, the centre was pressuring them into re-locating to a worse location, for a comparatively unreasonable rent.

At that stage they didnt know if they were accepting that, or closing up.....

[Ben]

That doesn't sound like Westfield....

It's a shame because I often forgot about the store being there because of it's poor design and the stupid fake tree out the front. If they had of renovated it since opening it and making it a much more customer friendly entrence, it could have made it more viable to stay open. Adelaide has just 2 stores now (Myer Centre and Elizabeth) while the other states have many more (QLD, NSW, Vic all 10+ and expanding).

I honestly think if they renovated that store if would have been more profitable.

Bevilles is also having a closing down sale. Outback Jacks has closed down.That leaves about 10 empty stores. I can't see the redevelopment going ahead unless they target a new category that they don't already have (i.e more upmarket stores).

They seem to be quite slack at this centre in particular, in all areas from the redevelopment of the Myer - David Jones mall. This was simply new flooring. It has been 5 months since commencement and it is not complete, nor looks close to being complete. The rest of the centre has mish mash of floors and new tenancies are not being opened. I doubt it is due to lack of demand as I heard there was a massive waiting list, so why are these stores lying vacant for so long (some have been vacant since Christmas)?

[neoballmon]

I really used to love the Nat Geo store as a child. Still enjoyed the occasional visit over the last few years. It's a shame to see it go.

. I doubt it is due to lack of demand as I heard there was a massive waiting list, so why are these stores lying vacant for so long (some have been vacant since Christmas)?

Although there might be a long waiting list, vacancies nasty just not be what the tenant is after. A store may be the perfect size near one of the supermarkets, but their store might fit in better by Myer and David Jones, which could have vacant stores that are too small or large. I'd imagine this would be a very regular issue..

[Ben]

Peter Jackson opened in the new upmarket mall on Thursday.

Terry White Chemists are moving across the road and will close in July. The rent Westfield were asking was too high. They are really starting to hurt themselves by forcing all these decent retailers out.

[JamesXander]

An article came out the other day saying that new commerical rent contracts are about 5% less than last year. However Westfield are notorious for never reducing rent.


I've been saying it for nearly two years now, but there is a bubble occurring in retail, or more to the point in the commerical retail rental market. Margins are lower, sales growth for franchises & small business haven't been growing at a rate to keep up with wages, rents, super & taxes. The only two areas a retailer can move is in pushing for lower wholesale prices & less rent.

Over the years the wholesalers have been squeezed. Commerical properties time is coming. The retail glory days are over

That's not to say that some retailers aren't doing well. Those who sell their own product, or a unique product have done well. With the high margins they can afford the fancy shop fit out & prominent location. But the majority of retailers are just resellers. In those cases competition and lower consumer spending has killed them since the GFC.

[Ben]

Telechoice and Vodafone kiosks have closed.

[pushbutton]

If Westfield starts to feel the squeeze (and I'm actually hoping they will) they will have two main options to remain viable.

1. Reduce rents to more sensible and fair levels (stop being so greedy)
2. Start being a bit imaginative and encouraging businesses other than retail and restaurants into their centres with a focus on family entertainment attractions, as has been very successfully done in the UK and USA and throughout Asia.

I would ideally like to see them do both.

[[Shuz]]

Westfield reduce rents? Hah. More chance of Abbott legalising gay marriage before that happens!

[JamesXander]

here is a good example of what I am saying

http://www.news.com.au/business/compani ... 6648105884


Myer posting a .5% rise in sales over the corresponding period. But factor in inflation, increased rents, wages, super & ofcourse elecricity and that sales rise is not enough, that means that 1 year ago they were performing at a better rate than they are now, despite selling less. Unless ofcourse they have squeezed their wholesalers but thats been going on for nearly 5 years now (yes the GFC was nearly 5 years ago, crazy!). Its just not sustainable, just like the titantic heading towards the ice berg, its not going to end well for the the majority (unless your a high margin specialized retailer, in which case cheaper rent for you yay!)

[Ben]

Chocolateria San Churro is opening in the former Outback Jacks location near TGI Fridays.

I saw a group of 20 suits with various westfield folders walking around today. Wonder if they were discussing expension plans as they were stnding at the location of the proposed new mall entrance where bowland is.

[Ben]

Adelaide's first BONDS store will open in the Myer mall in September.

Lonsdale which only recently opened has closed to make way for universal store. This will be a massive store, also taking over the space of Australian geographic.

Ergo cafe has recently opened where Mcdonalds express was. Terry White will close at the end of July.