Well operated: Industry revenue has grown despite competition from online shopping

Strong investor demand for retail property has boosted capital values over the past five years, driving revenue growth in the Retail Property Operators industry. However, retail property operators have been battling many of the same problems as the retail sector. Fluctuating consumer sentiment, competition from online retailers and an oversupply of retail property have been among the key challenges. While vacancy rates have improved over the five years through 2017-18, this is expected to be due to the increasing use of long-term leasing agreements.Industry revenue is expected to increase at an annualised 6.0% over the five years through 2017-18, to reach $22.8 billion. However, this includes a decline of 13.9% in the current year as demand from retail trade declines slightly...read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 13-18
6.0%
Forecast Growth 18-23
Profit
Employment
56,267
Businesses
42,376
Market Share of Companies

Industry Threats & Opportunities

  • Increasing demand from overseas investors has contributed to the industry's expansion
  • Many retailers have gone out of business, creating occupancy issues for some industry players
  • Consumer sentiment will remain a critical issue for retailers over the next five years
  • Industry Report - Industry Analysis Chapter

    Revenue for the Retail Property Operators industry has grown strongly over the past five years, due to rising investor activity. Demand from overseas investors, including sovereign wealth funds, domestic superannuation funds and other institutional investors, has contributed to a flurry of transactional activity. Overall, rents for retailers have trended upwards over the period, further assisting revenue growth. However, some retailers have struggled to pay increased rents, due to fluctuating consumer sentiment contributing to mixed retail sales. This trend has restricted occupancy rates for some retail property operators, particularly over the past two years. This trend is also expected to contribute to industry revenue declining over the two years through 2017-18. Ind...purchase to read more.

    Additional Insights for the Retail Property Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Retail Property Operators Industry are

  • Financial structure of the company
  • Management of a high quality assets portfolio
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Demand from retail trade and Consumer sentiment index in the Retail Property Operators industry impact industry performance..

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    What's in this report

    What is the Retail Property Operators Industry?

    Industry operators primarily engage in leasing retail property.

    Industry Products
  • Shopping centre operation
  • Bulky goods retailer operation
  • Food-service establishment and hospitality venue operation
  • Other retail property operation
  • Industry Activities
  • Retail property renting or leasing (as owner or leaseholder)
  • Retail building renting or leasing (as owner or leaseholder)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from retail trade
  • Consumer sentiment index
  • Business confidence index
  • Cash rate
  • Demand from online shopping

  • Current Performance
  • Investor activity
  • Retail sector woes
  • Location is everything
  • Foreign retail influx
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply
  • Retail conditions
  • Table: Retail Property Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Retail Property Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Accommodation and Food Services
  • Consumer Goods Retailing
  • Finance
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Air Conditioning and Heating Services
  • Commercial Cleaning Services
  • Electrical Services
  • Painting and Decorating Services
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • Shopping centre operation
  • Food-service establishment and hospitality venue operation
  • Bulky goods retailer operation
  • Other retail property operation
  • Chart: Retail Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food retailers
  • Consumer goods retailers
  • Food-service establishments
  • Heavy-duty product retailers
  • Other retailers
  • Household goods retailers
  • Hospitality venues
  • Chart: Major Market Segmentation for the Retail Property Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Retail Property Operators

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Retail Property Operators Industry

  • Industry Globalization
    Scentre Group,
  • Table: Scentre Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Retail Property Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Retail Property Operators Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    A-Reit
  • Stands for Australian real estate investment trust. A trust, which is usually listed on the ASX, that holds a portfolio of real estate, allowing investors to buy units in the trust.
  • Anchor Tenant
  • A retail tenant that brings business to a shopping centre. They are typically the largest and most popular store in the centre.
  • Non-Core Assets
  • Assets not required for the long-term operation of the business. They are likely to be sold and mainly comprise high-risk properties.
  • Vacancy Rate
  • The amount of space unoccupied as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Retail Property Operators market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Retail Property Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Retail Property Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Retail Property Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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