The moving annual total (MAT) sales in apparel across Stockland town centres hit $418 million for the full year 2023.
This is down 2.1% compared to the prior corresponding period, and down 5.2% in the first half of FY24 compared to the first half of FY23.
Apparel is the second hardest hit category, just ahead of homewares which saw an 8.9% drop in sales for the first half of FY24 compared to the same time in FY23.
This is despite total comparable MAT sales across all categories growing by 5.4% from the prior year, and up 2.8% on the same half last year.
Stockland CEO of investment management Kylie O’Connor said the company’s town centres delivered a resilient operational and financial performance.
“As expected, increasing cost-of-living pressures have led to a slowing of sales growth in discretionary categories,” O’Connor said. “Sales growth for the essentials categories to which our portfolio is heavily skewed is tracking in line with inflation, supporting positive releasing spreads and sustainable occupancy costs across our portfolio.
“Over the period, we have continued to reshape and optimise the portfolio, with around $380 million of non-core Town Centre disposals.”
The valuation of the Town Centre portfolio declined by $43 million, or 0.8%, with market rent growth largely offsetting 27 basis points of cap rate softening.
Apparel and jewellery is the largest category sold through Stockland town centres, with a market share of 19.4%. This is followed by specialty food and catering (13.9%), other retail (13.7%) and mini-majors (12.6%).