- \n
- Edgars\u2019<\/strong> space has been reduced by 4,500 square meters and will be reduced by another 3,000 square meters.<\/li>\n<\/ul>\n\n\n\n
- \n
- Game<\/strong> has closed one store, and the space has been reduced by 9,000 square meters.<\/li>\n<\/ul>\n\n\n\n
- \n
- Ster Kinekor\u2019s<\/strong> cinemas will be reduced from six to two in the next financial year.<\/li>\n<\/ul>\n\n\n\n
Redefine Properties said the 10,000 square meters it is taking back from Pick n Pay will optimise space in its shopping malls and increase trading density.<\/p>\n\n\n\n
Pick n Pay has been a drag on many shopping malls where it is the anchor tenant as it does not drive as much foot traffic as Checkers.<\/p>\n\n\n\n
It also aligns with Pick n Pay\u2019s strategy to reduce its retail footprint and modernise its stores requiring less space.<\/p>\n\n\n\n
The company added that the space taken back from Edgers has already been relet at a higher gross market rent (GMR).<\/p>\n\n\n\n
The same happened with Game, where the 9,900 square meters taken back from the retailer has been relet at a better rate.<\/p>\n\n\n\n
It highlighted Mall of the South, where it used space taken from Game and let it to Shoprite and other value-focussed retailers.<\/p>\n\n\n\n
This helped the company to improve its trading margin from 81% to 85% and trading density from R29,900 per square metre to R34,800 per square metre.<\/p>\n\n\n\n
It explained that closing Ster Kinekor cinemas is mitigating rental income risk as the additional space has already been relet.<\/p>\n\n\n\n
Online shopping affecting shopping malls and retail behaviour<\/strong><\/h2>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Small-street-mall-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nRedefine Properties highlighted in its Capital Markets Day presentation that online retail presents opportunities and risks to shopping centres.<\/p>\n\n\n\n
It said online apparel sales account for 4.5% of the South African retail market and that 60% of the sales are through omnichannel retailers.<\/p>\n\n\n\n
Many online sales, including footwear, are much lower in South Africa than in developed markets like the United States and the United Kingdom.<\/p>\n\n\n\n
\u201cPure online sales, at 1.9%, is still a small percentage of the total market,\u201d Redefine Properties said. However, it is set to grow significantly.<\/p>\n\n\n\n
The company believes omnichannel offerings will dominate online sales in South Africa, where people search online and buy in-store.<\/p>\n\n\n\n
\u201cOnline essential services will continue to grow due to new stores by grocers and pharmacies,\u201d the property owner said.<\/p>\n\n\n\n
To adjust to the changing market conditions, Redefine Properties said it is important to ensure stores are the right size and that the right merchandise is offered.<\/p>\n\n\n\n
It is focused on attracting omnichannel retailers to its shopping centres to capitalise on the growth in online shopping.<\/p>\n\n\n\n
It is also improving its tenant mix by attracting \u201cexperienced-based retailers\u201d to its properties.<\/p>\n\n\n\n
\n\n\n\n
- Ster Kinekor\u2019s<\/strong> cinemas will be reduced from six to two in the next financial year.<\/li>\n<\/ul>\n\n\n\n
- Game<\/strong> has closed one store, and the space has been reduced by 9,000 square meters.<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Small-street-mall.jpg\")
<\/a><\/figure>\n\n\n\n