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Recently released figures by the Australian Bureau of Statistics (ABS) show mixed results for the diverse retail trade categories, with non-discretionary retail such as supermarket and grocery stores the standout performer showing year-on-year growth of 4.9%, the strongest result since December 2014 and well above the 2.3% recorded in the previous corresponding period.

Retail Highlights;
• Recently published valuations show yield drift which is expected to continue resulting in an increase in centre divestments.
• Neighbourhood Shopping Centres have been buoyed by the above-mentioned growth in nondiscretionary spending.
• Alternatively, landlords are executing value-adding strategies such as the activation of previously underutilised space, tenancy remixing, ‘precincting’ and rolling out capital expenditure programs.
• Studies previously published by Urbis show a clear differential in sales performance between centres that have been refurbished within the last 4 years and those that have not.
• CBD Retail – In the year to February 2019, clothing and footwear retailing recorded strong growth of 3.9%
• Notably German hypermarket Kaufland has obtained planning approval for its first three stores in Victoria, with another 20+ stores in the pipeline nationwide.

There has been a record number of Neighbourhood Shopping Centres for sale in Perth with transaction volumes expected to increase as owners of ‘at risk centres ‘seek to divest ahead of further anticipated yield softening. There continues to be excellent investor demand for non-discretionary, convenience-based centres in well located metropolitan locations.

For more information, contact Andrew Woodley-Page on 0438 939 869 or andrewwp@axiacp.com.au