Sales across apparel and footwear have been negative across the entire retail portfolio of Vicinity Centres.
The property management business manages over 50 shopping centres across Australia, including Chatswood Chase, QVB, Chadstone and Emporium Melbourne.
In its full year trading update today, Vicinity Centres confirmed that moving annual total (MAT) sales on apparel and footwear across its portfolio was down 1.4 per cent. The category has remained in negative territory in each half for the financial year and each quarter, with the December 2023 quarter hitting the lowest point at 2 per cent, followed by the latest June quarter where it was down 1.9 per cent.
Homewares was the most impacted category, with MAT sales down 3.3 per cent.
Jewellery has also not fared well for the year either, with overall MAT sales down 2 per cent. The category was up in the first half by 1.4 per cent, and down in the second half, with a slip of 5.4 per cent. The March quarter for jewellery was the worst, with MAT sales down 8.2 per cent.
For specialty and mini-majors stores, MAT sales were up just 1.1 per cent for the full year, which steadily fell through the year. Second half sales across the two categories were only up 0.8 per cent, with fourth quarter sales up just 0.4 per cent.
“As expected, elevated costs of living tempered retail sales growth in 2H FY24,” Vicinity Centres CEO and managing director Peter Huddle said.
“However, retailer confidence to lock in new leases remained robust, with the team negotiating more than 2,000 leasing deals over the year.”
Department store sales were down heavily compared to other store categories, recording a full-year MAT sales slump of 5 per cent. Department store sales hit the lowest point in the March quarter, down 6.3 per cent.
Meanwhile, other retail - which includes cinemas, travel agents and other entertainment - hit a massive MAT sales drop of 13.1 per cent in the December 2023 quarter. Despite this, MAT sales in the category for the full year were positive at 2 per cent.
CBDs reported the strongest growth (up 5.5 per cent), supported by continued return of international tourists, international students, and office workers, Vicinity reported.
Increased value conscious shopping, demand for athleisure and new store openings underpinned outlet sales, which were up 5.2 per cent
Discount department stores and supermarkets recorded full-year positive MAT growth of 3.5 per cent and 4.7 per cent respectively.
Vicinity also reported divergence of performance within the luxury category, however total productivity remains substantially higher, with same store luxury MAT/sqm up 45 per cent since December 2019.
Vicinity noted the immediate outlook for the retail sales environment remains uncertain, with positive medium and long-term outlook for retail property sector supported by population growth and limited new supply of retail.