Countries: Australia
Westfield Managing Director Australia, Steven Lowy, told the Property Council of Australia's International Shopping Centre Conference today that last year's debate into fair trading and the recent review into shop trading hours in South Australia both highlighted the need for a stronger voice for shopping centres in the public debate.
"The fact is that shopping centres are a major contributor to the economic and social life of the community," Mr Lowy said.
"In Australia the top 20 shopping centres are turning over $7.2 billion a year. Those centres are major employers supporting thousands of workers and their families. More than 51% of people aged between 15 and 19 who are in paid work are working in retail - so it's a vital training ground.
"And all of this activity has a significant multiplier effect with every $1 spent in retail generating another $1.77 for the larger economy in areas like manufacturing and distribution.
"The listed property trust industry is worth $21.2 billion in Australia - and retail property trusts are a third of that. There are thousands of Australians with a direct investment in retail property trusts and millions who have an indirect stake through their super funds. That's the impact we have and the story we need to tell."
Mr Lowy said it was disappointing that the South Australian branch of the Property Council of Australia was unable to support the deregulation of trading hours - a national PCA policy supported by shopping centres. He said members in the local branch were well served by the current situation of deregulated trading in the CBD and restricted trading everywhere else.
"It is myopic to perceive this as a simple argument between the CBD and small retailers on one hand and their competitors in the suburbs on the other, because that ignores the larger forces at work in the economy," Mr Lowy said.
The emergence of new media and channels of distribution make a mockery of attempts to regulate retail via trading hours. Already consumers can bypass Adelaide retailers completely by using the internet to buy certain goods. And that contributes nothing to the South Australian economy.
"We need a shopping centre industry body that is strategic, proactive, well resourced, well funded and well organised that can take our case to the people who make the decisions that impact so critically on our businesses."
Mr Lowy said issues like fair trading and deregulation of trading hours both increased the focus on the relationship between shopping centre managers and retailers who rent space from them.
"As business gets more competitive, I believe the fine incremental improvements that define our competitive edge will come out of management," Mr Lowy said.
"For three years now Westfield has been developing a multi-faceted retailer relations program. It focuses on education, improving the skill base of our retailers and our staff, and on consultation, working one-on-one with retailers and categories of retailers to help build their businesses.
"We are working to improve the quality of Australian retailing - and that's where our energies should be.
"We have to loosen our minds from the restrictions of short sighted debates, and get them working creatively on the big challenges of the future."
Westfield Group