The Westfield group has revealed a 0.7 per cent fall in sales for the first quarter of the 2011 financial year to $21.5 billion.
The report on the Australian Securities Exchange identified the cinema and department store sectors suffered the biggest loss in sales, with drops of 18.2 and 11 per cent respectively over the three months to March 31, 2011.
Discount department stores and general retail also saw declines, 3.7 and 3.4 per cent respectively, but fashion was up 0.8 per cent, along with footwear which experienced a 4.8 per cent rise. Jewellery sales also increased by 1.5 per cent overall, but retail services topped the list with a 5.1 per cent hike in sales.
Despite the slight sales drop overall, the group initiated a string of developments, valued at $490 million, at its centres in the three months to March 31, 2011, including a $320 million redevelopment of its Fountain Gate shopping centre, to create room for Myer and 122 new speciality retailers. The shopping centre giant also commenced $170 million worth of smaller projects in the US and the UK, as well as Australia, during the quarter.
Westfield expects to start on approximately $750 million to $1 billion of new developments this year, and is undertaking pre development activity on about $10 billion of future development opportunities. This includes the Chermside, Mt Gravatt and North Lakes complexes in Queensland, Macquarie, Tuggerah and Miranda centres in New South Wales, and Marion and Tea Tree Plaza in South Australia.
As reported in Ragtrader.com.au, Westfield also recently launched a national marketing campaign to promote its online shopping mall which launched in November 2010. The group also announced a raft of changes to its board of directors in March, including the decision of company co-founder Frank Lowy to exit the role of executive chairman and have his two sons, Peter and Steven Lowy, take over as joint CEOs.