{"id":835164,"date":"2025-08-15T13:30:40","date_gmt":"2025-08-15T11:30:40","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=835164"},"modified":"2025-08-15T13:30:45","modified_gmt":"2025-08-15T11:30:45","slug":"big-changes-for-major-retailers-at-shopping-malls-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/835164\/big-changes-for-major-retailers-at-shopping-malls-in-south-africa\/","title":{"rendered":"Big changes for major retailers at shopping malls in South Africa"},"content":{"rendered":"\n

Resilient REIT’s latest results show that ubiquitous shoppoing mall brands like Edgars, Ster-Kinekor and Woolworths are significantly restructuring their operations and retail strategies in South Africa.<\/p>\n\n\n\n

Resilient REIT is one of South Africa\u2019s largest mall owners, with a market cap of R23 billion. <\/p>\n\n\n\n

It owns Boardwalk Inkwazi and Galleria Mall in KZN, Mall of the North in Limpopo, Secunda Mall in Mpumalanga, Jubilee Mall in Gauteng and many more.\u00a0<\/p>\n\n\n\n

Its South African portfolio recorded like-for-like comparable net property income growth of 8.6% in the first half of 2025, and increased its interim dividend by 12.2% to 245.72 cents per share. <\/p>\n\n\n\n

Regarding its pipeline, the group announced a 12,000 sqm extension to Irene Village Mall, which will accommodate Checkers Hyper and Dis-Chem. <\/p>\n\n\n\n

This will complement the group\u2019s new mall in Klerksdorp, The Village, which has a Checkers store of 3,233 sqm as its anchor. After opening in March 2025, the mall is trading well. <\/p>\n\n\n\n

Its Tzaneen Lifestyle Centre in Limpopo will also see a 22,000 sqm extension, which will see the Checkers expanded feature a new generational Pick n Pay grocer and introduce a Dis-Chem. <\/p>\n\n\n\n

However, the results also highlight the struggles faced by three mall icons in Woolworths, Edgars, and Ster-Kinekor. <\/p>\n\n\n\n

The group’s results detail changes for these brands at multiple shopping destinations in its portfolio, aligning with strategy shifts recorded by other REITs and the groups themselves.<\/p>\n\n\n\n

This includes closures and the scaling back of certain store models\u2014often making way for competitors and new risers.<\/p>\n\n\n\n

\n\n\n\n

Ster-Kinekor <\/strong><\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

Resilient noted that its KZN portfolio saw subdued performance following targeted tenanting activities at Boardwalk Inkwazi and Galleria Mall.<\/p>\n\n\n\n

This included the conversion of the premises previously occupied by Ster-Kinekor at Boardwalk Inkwazi to expand the fashion offerings at the mall. <\/p>\n\n\n\n

The Ster-Kinekor was closed in 2024 as per the group\u2019s restructure. Although the cinema chain planned to cut nine theatres at the time, only the Boardwalk and Greenstone, Gauteng locations were affected.\u00a0<\/p>\n\n\n\n

Ster-Kinekor <\/a>has been closing cinemas across South Africa following a problematic few years.\u00a0<\/p>\n\n\n\n

The Covid-19 pandemic ended movie-going for an extended period, while streaming changed consumer habits. Eskom\u2019s load shedding also interrupted operations, and the Hollywood writers\u2019 strike halted new releases.\u00a0<\/p>\n\n\n\n

This prompted a Section 189 process in 2023, raising fears of mass retrenchments. Although the numbers were better than expected, 60 employees still lost their jobs. <\/p>\n\n\n\n

However, further site closures have hit Cavendish in Cape Town, Gateway in Durban and Bedford Square<\/a>, Johannesburg in 2025. <\/p>\n\n\n\n

Ster-Kinekor remains optimistic about its prospects and plans to open four new locations in 2025. It is also exploring new uses for its cinema spaces, such as axe-throwing and rage rooms. <\/p>\n\n\n\n

\n\n\n\n

Edgars<\/strong> <\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

Resilient noted that vacancies stood at 2.3% in June 2025, which should partly improve once it finds a replacement for Edgars at Jubilee Mall <\/p>\n\n\n\n

It also noted that progress is being made to downsize Edgards and rightsize several other national retailers at Secunda Mall.\u00a0<\/p>\n\n\n\n

Completion is expected in Q3 2026 for the Edgars stores, with similar resizings happening at other malls. <\/a><\/p>\n\n\n\n

Another REIT, Hyprop, recently noted that Edgars downsized its store in Canal Walk, South Africa\u2019s largest mall, from 11,000 sqm to 5,400 sqm.<\/p>\n\n\n\n

Hyprop said that Edgars is performing well in the new downsized footprint, which includes a \u201cworld-class fragrance and cosmetics offering.\u201d<\/p>\n\n\n\n

Growthpoint Properties also noted that Edgars at Alberton City, Northgate Mall, and Kolonnade Shopping Mall reduced space. <\/p>\n\n\n\n

Growthpoint added that it expects further Edgars reductions at Walmer Park Shopping Centre, Paarl Mall and Vaal Mall, while it will exit the Keywest Shopping Centre.<\/p>\n\n\n\n

This aligns with Edgars’ turnaround strategy as the retail icon recovers from nearly two decades of financial headwinds. <\/p>\n\n\n\n

Edcon entered the business rescue and was saved by Retailability in September 2020, which has reduced the group\u2019s overall bloated store footprint.<\/p>\n\n\n\n

\n\n\n\n

Woolworths <\/strong><\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

Resilent\u2019s results also showed that turnover at Circus Triangle in Mtatha was negatively impacted by the closure of the \u201ctextiles only\u201d Woolworths. A Boxer will take over these premises. <\/p>\n\n\n\n

Despite the strong performance of its food business, Woolworths Fashion, Beauty and Home (FBH) has consistently pulled the group downwards. <\/p>\n\n\n\n

In a trading statement for the 2025 financial year,<\/a> the group said that it is optimising its space efficiency. The overall net trading space of FBH reduced 2.3% period-on-period. <\/p>\n\n\n\n

There are some silver linings as its turnover and concession sales increased by 4.7% and 5.1% on a comparable-store basis, while trading momentum improved. <\/p>\n\n\n\n

\u201cOur Beauty business continues to gain market share, delivering excellent growth of 14.7% over the period and reaffirming Woolies as the Beauty shopping destination in South Africa,\u201d it said. <\/p>\n\n\n\n

Food sales continue to be a strong space for the group, which saw sales increase 9.2%, excluding Absolute Pets. <\/p>\n\n\n\n

Woolworths’ strength in its food business could be seen in Resilient\u2019s results, with the current Food Lover\u2019s Market in Tzaneen being redeveloped to accommodate a 1,500 sqm Woolworths Food store. <\/p>\n","protected":false},"excerpt":{"rendered":"

Woolworths, Ster-Kinekor and Edgars have all closed stores at malls owned by Resilient REIT. <\/p>\n","protected":false},"author":95,"featured_media":835179,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[4711,12043,15005,23380,7038,949],"class_list":["post-835164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-edgars","tag-growthpoint","tag-hyprop","tag-resilient-reit","tag-ster-kinekor","tag-woolworths"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835164","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=835164"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835164\/revisions"}],"predecessor-version":[{"id":835180,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835164\/revisions\/835180"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/835179"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=835164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=835164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=835164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}