Shopping Centre

Consolidation to continue, says KS

Published:  01 January, 2005

King Sturge has predicted further retail consolidations during the year ahead.

The firm also says retail parks will continue to perform well, despite land being in short supply, while shopping centre owners will focus on branding and reconfiguring existing centres to achieve portfolio performance.

Head of in-town retail Charles Miller said he believed there would be overall retail sales growth in 2005 but added that the increasing pressure on profitability would remain.

He said prime stock levels would remain low while international retailers like H&M and Zara would continue their acquisition programmes.

Miller predicted shopping centre rental growth would drop from 3.5 to 2.8 per cent, while total retail property returns for shopping centres would be down from 17.9 to 9.9 per cent.