Shopping around: Online competition has forced industry operators to alter their tenancy mix

The Shopping Centre Operators industry has been subdued over the past five years, largely due to increases in online shopping. This has limited the ability of industry operators to increase rental yields over the period. However, construction of and upgrades to shopping centres have paved the way for increased lettable floor space, which has aided industry revenue growth. Overall, industry revenue is expected to increase at an annualised 0.6% over the five years through 2018-19, to reach $8.1 billion. This includes a forecast increase of 0.9% in the current year.The Shopping Centre Operators industry leases and manages shopping centre retail more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry growth has been subdued due to increased competition from online retailers
  • Strong population growth in Australia’s main urban areas has supported the industry
  • Operators’ reliance on anchor tenants, such as department stores, is expected to decrease
  • Industry Report - Industry Key Buyers Chapter

    The Shopping Centre Operators industry is characterised by a medium level of market share concentration, with the top four players accounting for over 40% of industry revenue. The industry's major players dominate the industry largely due to the high value of assets they manage. Over the past five years, market share concentration has risen due to increased merger activity. For example, Novion Property Group and Federation Centres merged to in June 2015 and rebranded to become Vicinity Centres in November 2015...purchase to read more.

    Additional Insights for the Shopping Centre Operators Industry

    IBISWorld has determined the most important Key Success Factors for the Shopping Centre Operators are:

  • Carrying out all necessary maintenance to keep facilities in good condition
  • Ability to effectively communicate and negotiate
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from consumer goods retailing in the Shopping Centre Operators industry impact industry performance..

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    What's in this report

    What is the Shopping Centre Operators Industry?

    The Shopping Centre Operators industry develops and manages shopping malls and other retail centres. Industry participants manage the operations of retail properties, including leasing, maintenance, rent collection and security.

    Industry Products
  • Regional shopping centres
  • Neighbourhood shopping centres
  • Subregional shopping centres
  • CBD shopping centres
  • Factory outlets and other retail centres
  • Industry Activities
  • Subregional shopping centre operation
  • Neighbourhood shopping centre operation
  • Regional shopping centre operation
  • CBD shopping centre operation
  • 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 supermarkets and grocery stores
  • Demand from consumer goods retailing
  • Demand from online shopping
  • Level of urbanisation
  • year bond rate

  • Current Performance
  • Profitability strengthens
  • Trading conditions
  • Fortifying assets
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Changing tenancy mix
  • Table: Shopping Centre Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shopping Centre Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cinemas
  • Consumer Goods Retailing
  • Supermarkets and Grocery Stores
  • Fast Food and Takeaway Food Services
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Advertising Agencies
  • Commercial Cleaning Services
  • Electricity Retailing
  • Investigation and Security Services

  • Products & Services
  • Subregional shopping centres
  • Regional shopping centres
  • Neighbourhood shopping centres
  • CBD shopping centres
  • Factory outlets and other retail centres
  • Chart: Shopping Centre Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumer goods retailers
  • Supermarkets and fresh food stores
  • Fast-food outlets, cafes and restaurants
  • Other tenants
  • Chart: Major Market Segmentation for the Shopping Centre 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 Shopping Centre Operators

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shopping Centre Operators Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Shopping Centre 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 Shopping Centre Operators Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Anchor Tenant
  • A major retailer that is a prominent tenant.
  • Neighbourhood Shopping Centres
  • Shopping centres that contain at least one supermarket, with total retail space of less than 10,000 square metres.
  • Regional Shopping Centres
  • Shopping centres that contain at least one department store. Total retail space ranges between 10,000 and 30,000 square metres.
  • Retail Reit
  • Retail real estate investment trusts that own and operate retail properties and generate revenue by leasing to retail tenants.
  • Sub-Regional Shopping Centres
  • Shopping centres that contain at least one discount department store. Total retail space ranges between 30,000 and 85,000 square metres.
  • Vacancy Rate
  • The amount of space unoccupied as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    The Shopping Centre Operators market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Shopping Centre 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 Shopping Centre 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 Shopping Centre Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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