Gateway's 38% leap leads sales growth in Old Mutual Mall portfolio

Posted On Wednesday, 25 January 2006 02:00 Published by
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Sales at Gateway Theatre of Shopping, Umhlanga, a flagship in Old Mutual’s retail property portfolio, leapt by 38% in 2005

Sales at Gateway Theatre of Shopping, Umhlanga, a flagship in Old Mutual’s retail property portfolio, leapt by 38% in 2005,  well ahead of estimates of the increase nationally in retail sales for the year.

Sales growth across the major centres in the portfolio in 2005 was 16%, a gain on the 13% increase in 2004, says Ben Kodisang, managing director of Old Mutual Properties.

The portfolio also includes Menlyn Park Shopping Centre, Pretoria; Cavendish Square, Cape Town; The Zone @ Rosebank, Johannesburg; Riverside Mall, Nelspruit; Vincent Park Shopping Centre, East London; Cascades, Pietermaritzburg; and Bayside Centre, Cape Town.. 

“The portfolio performance for 2005 extends the record of consistent real growth in our low inflation environment. It shows retailers at the centres are enjoying buoyant trading that is ahead of national yardsticks, “says Kodisang.

“Gateway’s impressive showing follows a successful 2004, when sales by its retailers increased by 24,7% after an expansion and opening of  stores by major chains.”

Turnover for the year improved by 17% at Riverside Mall, the Nelspruit centre where a R150 million expansion was completed in October, and by 16% at Vincent Park, the East London centre where a R100 million redevelopment and new mall is due to be completed in 2007.  Next best were Bayside (up 15%) and Cavendish Square which had 11% growth off a high base.

Kodisang says December trading across the portfolio was 20% up on 2004.

“The greatest sales growth for the month, in percentage terms, was shown by Riverside Mall. The mall increased December sales by 42%, reflecting the success of the expansion.  December sales at Gateway grew by 27% and by 28% at Cascades, the convenience lifestyle centre in Pietermaritzburg. “

The largest increase in spend per head for 2005 – 52% - was at Cascades, where Woolworths joined other national retailers in Checkers, Clicks, Milady and CNA during the year. Other significant increases in spend per head were achieved by Menlyn Park (up 19%),  Gateway (15%), and Bayside ( 14%).

Kodisang says the largest number of visitors to any centre was achieved by Gateway which has a broad appeal because of its retailer mix and entertainment offering.  The 2005 foot count was 21 million, 19% up on 2004, and included 2,9 million in December, a 10% gain.

“Other good gains in foot count were achieved by Riverside Mall, up 7% for the year, and Vincent Park, up by 8%.”

More than 14 million vehicles parked in the top four centres in the portfolio during 2005, says Kodisang.

“Of those, 6,6 million parked at Menlyn Park Shopping Centre, Pretoria, followed by 4 million at Gateway, a 21% increase on 2004,  with The Zone @ Rosebank, Johannesburg  and Cavendish Square, Cape Town, accounting for the rest. “

Publisher: Old Mutual Properties
Source: Old Mutual Properties

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