Johan Engelbrecht, Director retail management for JHI Properties, who manages over 2.2 million sqm of retail space in Southern Africa across some 240 shopping centres, continues:

“The trend towards discounted goods or those which offer the best value for money is increasingly evident, particularly as consumers demonstrate a willingness and growing ability to manage debt, which is positive - as is the fact that interest rates have held stable at historically low levels. And although discretionary spend is still under pressure, the retail categories of household goods, textiles, pharmaceutical and apparel remain well supported,” says Engelbrecht.

He says however, in selective nodes and in exclusive environments where there is a sustainable flow of consumers and continued spend - such as in the redeveloped, prime-located Sandton City, situated within easy reach of the Gautrain - retail sales are performing well.

“Despite the fact that retailers also have to contend with the pressures of rising operational and utility costs, coupled with affordability of space, through pro-active management we have managed to keep vacancy levels at regional shopping centres managed by JHI Properties very low - at below four percent, while sales turnover of these centres increased on average by seven percent over the past year to date,” he says.

“Through ongoing attention to the specific needs of retail tenants and ensuring the right tenants are placed in preferred position, size, layout and design, and taking into account the tenant mix in regard to consumer spend and behaviour, we have seen these shopping centres consistently achieve good sales. We are also constantly exploring energy saving methods in order to curb costs, applying our minds to inverter approaches to energy supply, as well as additional water storage tanks.
 
“Further positive news is that we are seeing renewed capital investment in retail. The extension of Greenstone Shopping Centre near Edenvale CBD in Gauteng has been successfully completed, with approximately 6 400sqm fully let and opened in December 2011. Driven to a large extent by the launch of a new Edgars store, which has proven a major drawcard for shoppers, and coupled with the re-mix and relocation of stores, this project has paid off and the centre is performing well.”

Engelbrecht says currently a substantial revamp is planned for the Kolonnade Mall in Montana, Pretoria North. “This upgrade will create an environment which will support the very loyal market which has shopped there for the past 25 years and attract new shoppers, as well as serve to extend the centre to create larger areas for leading retailers.”

Engelbrecht adds that JHI Properties aims to significantly grow its retail business unit over the next few years. “Through consistent performance we are looking to increase our portfolio of managed retail centres, including elsewhere in Africa.  In addition, and with a view to further growth we recently opened an office in East London as we believe there is considerable potential growth in the stretch from Mthatha through to Port Elizabeth,” he says.