{"id":778385,"date":"2024-06-24T08:36:56","date_gmt":"2024-06-24T06:36:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=778385"},"modified":"2024-06-24T08:37:01","modified_gmt":"2024-06-24T06:37:01","slug":"major-pain-for-shopping-malls-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/778385\/major-pain-for-shopping-malls-in-south-africa\/","title":{"rendered":"Major pain for shopping malls in South Africa"},"content":{"rendered":"\n<p>Trading density for prime retail space in South Africa has dropped, even if the Western Cape has been relatively unscathed.<\/p>\n\n\n\n<p>According to the Clur Shopping Centre Index, trading density levels dropped further in Q1 2024, even if the rate of contraction was more muted than the final half of 2023. <\/p>\n\n\n\n<p>The industry-standard index interprets performance at over 100 centres and 140 merchandising categories across South Africa and Nambia. <\/p>\n\n\n\n<p>\u201cThe Q1 2024 national Clur Index for all centres closed at 4.4% y\/y growth. This represents a <strong>contraction of 0.6% relative to 2023\u2019s 5% y\/y growth<\/strong>,&#8221; said Belinda Clur, MD of Clur International.<\/p>\n\n\n\n<p>The national index has underperformed the inflation rate since November 2023.<\/p>\n\n\n\n<p>Overall, super-regional centres\u2014100,000+ sqm plus\u2014showed the highest trading density for Q1 2024 at R49,066\/sqm, followed by community and smaller centres\u2014those below 25,000 sqm\u2014at R42,386\/sqm.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"lYbTvswq67\"><a href=\"https:\/\/businesstech.co.za\/news\/property\/770680\/the-10-biggest-shopping-malls-in-south-africa\/\">The 10 biggest shopping malls in South Africa &#8211; with trouble for number one<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;The 10 biggest shopping malls in South Africa &#8211; with trouble for number one&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/property\/770680\/the-10-biggest-shopping-malls-in-south-africa\/embed\/#?secret=DHotgkWBTn#?secret=lYbTvswq67\" data-secret=\"lYbTvswq67\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>\u201cThis reflects top strength at the two size extremes of shopping centres and may be linked to identity,\u201d said Clur. <\/p>\n\n\n\n<p>\u201cIt is much easier to have a specific identity when one is very large or very small. Super regionals have a natural gravitas and identity defined by destination shopping and entertainment. Whereas the smaller centres have the strength of a natural intimacy and convenience appeal.&#8221;<\/p>\n\n\n\n<p>&#8220;Mid-sized centres should capitalise on the current consumer position by embracing a lifestyle stance, with a focus on balance, health, wellness and zen-seeking.\u201d<\/p>\n\n\n\n<p>In Q1 2024, larger super regional and regional centres had the highest growth rates of 5.4% and 4.7%, respectively, with the former bettering March 2024\u2019s CPI by 0.1%. <\/p>\n\n\n\n<p>Regional centres were resilient over the period, registering a minor contraction in trading density levels compared to 2023. <\/p>\n\n\n\n<p>Small regional centres expanded over the quarter from 3% to 3.5% y\/y growth.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic.png\"><img loading=\"lazy\" decoding=\"async\" width=\"765\" height=\"1024\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-765x1024.png\" alt=\"\" class=\"wp-image-778390\" style=\"width:753px;height:auto\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-765x1024.png 765w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-224x300.png 224w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-768x1027.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-1148x1536.png 1148w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-National-Index-Infographic-1531x2048.png 1531w\" sizes=\"auto, (max-width: 765px) 100vw, 765px\" \/><\/a><\/figure><\/div>\n\n\n<p>According to the Q1 2024 provincial indexes, the Western Cape and KwaZulu Natal showed the highest annualised trading densities of R45,460\/sqm and R42,676\/sqm, respectively. <\/p>\n\n\n\n<p>Both outperformed the national Clur All Centres Index, which closed at R41,163\/sqm. <\/p>\n\n\n\n<p>Gauteng, on the other hand, underperformed the national Clur Index at R40,348\/sqm.<\/p>\n\n\n\n<p>\u201cGrowth rates for the first quarter tell a different story, with the Western Cape showing the highest y\/y growth of 8.2% and Gauteng at 5.9%, both outperforming CPI by 2.9% and 0.6%, respectively,&#8221; said Clur. <\/p>\n\n\n\n<p>&#8220;KwaZulu Natal, though, shows negative y\/y growth of -2.4%, under-performing CPI by 7.7%.&#8221;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic.png\"><img loading=\"lazy\" decoding=\"async\" width=\"819\" height=\"1024\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-819x1024.png\" alt=\"\" class=\"wp-image-778391\" style=\"width:741px;height:auto\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-819x1024.png 819w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-240x300.png 240w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-768x960.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-1229x1536.png 1229w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Q12024-Clur-Index-Provincial-Infographic-1638x2048.png 1638w\" sizes=\"auto, (max-width: 819px) 100vw, 819px\" \/><\/a><\/figure><\/div>\n\n\n<p class=\"has-medium-font-size\"><strong>Shopping season<\/strong><\/p>\n\n\n\n<p>Clur said that the provincial indices give a granular understanding of provincial performance given their differing personalities and dynamics, including their seasonality, semigration, stay-cations, civil unrest and other economic issues.<\/p>\n\n\n\n<p>Notably, all three provinces saw a stronger December 2023 trading month than November 2023, aligning with the broader national picture. <\/p>\n\n\n\n<p>The highest December 2023 trading density was in KwaZulu Natal at  R72,748\/sqm, even if its growth rate of 1.5% under-performed CPI by 3.6%. The province, however, has consistently been the top performer for the December period. <\/p>\n\n\n\n<p>\u201cThis illustrates the economic importance of the December summer holiday season to KwaZulu Natal and its impact on retail trade there,\u201d said Clur.<\/p>\n\n\n\n<p>The Western Cape&#8217;s and Gauteng\u2019s December 2023 trading densities were R72,601\/sqm and R62,148\/sqm respectively. Both provinces had a 9.4% y\/y growth rate, outperforming that month\u2019s CPI by 4.3%.<\/p>\n\n\n\n<p>\u201cKwaZulu Natal and Gauteng are most aligned to the overall national trend, which saw a 2023 shift away from a combined November and December festive season toward a December-only defined festive season. <\/p>\n\n\n\n<p>&#8220;In contrast, the Western Cape still shows resilience in its November trading position and a stronger pattern supporting a combined November and December festive season.&#8221; <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/778275\/dark-clouds-for-middle-class-and-rich-south-africans\/\">Dark clouds for middle-class and rich South Africans<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shopping centres in South Africa have taken a hit, with customers waiting longer to purchase gifts for their families. <\/p>\n","protected":false},"author":95,"featured_media":648767,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[19607,26],"class_list":["post-778385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-clur-international","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=778385"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778385\/revisions"}],"predecessor-version":[{"id":778404,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/778385\/revisions\/778404"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/648767"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=778385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=778385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=778385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}