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Thread: Lowy bails out of Westfield.

  1. #1
    Senior Member Yelta's Avatar
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    Lowy bails out of Westfield.

    Are shopping centers about to go the way of the dinosaurs? Frank Lowy seems to think so.

    When I read of the sale my first thought was, another nail in the coffin, Lowy is not noted for making bad calls.

    I was staggered earlier this year when in the US at the virtually deserted shopping centers and department stores.


    https://thenewdaily.com.au/money/pro...d-sold-french/

  2. #2
    Senior Member Rocky's Avatar
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    I guess you would have to think that the new owners are betting against the demise of the 'Shopping Centre'.

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    Doubt it, lots of things people believe would be gone but they are still here, shopping malls offer experiences and that will keep them going in my opinion.

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    Senior Member Barry O'Speedwagon's Avatar
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    I don't think there's any doubt that the return on shopping malls (as a percentage of the original investment in them) is falling and will continue to fall. This affects their market value, but it's not as if they are making losses....they're just over capitalised and making very poor returns on the book value of assets. Eventually they'll be bought by someone at a price on which you can make a normal return.

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    Quote Originally Posted by Rocky View Post
    I guess you would have to think that the new owners are betting against the demise of the 'Shopping Centre'.
    I had to pop up to Westfield Bondi Junction yesterday and it was packed to the rafters.

    The next big opportunity for these centres is for destination charging of EVís.

    They have hundreds of car spaces where people leave their car for a couple of hours. Perfect setup for car charging. Centre takes a 25% margin on the charging fees.

    They are the petrol stations of the future.

  6. #6
    Senior Member Yelta's Avatar
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    Basically I'm talking about the (Amazon factor) well and truly established in the US, yet to be felt here.

    Not only Amazon of course, there are now so many excellent specialist companies offering similar online experiences to the big A.

    These are the type of headlines we are seeing in the US, I very much doubt we in Australia will escape the onslaught.

    I suspect it will take a whole lot more than charging EV's and nostalgia to halt the process, even in Cupertino (home of the new Apple empire) Tesla and similar vehicles are a rarity.

    "What in the World Is Causing the Retail Meltdown of 2017?"

    "From rural strip-malls to Manhattan’s avenues, it has been a disastrous two years for retail.
    There have been nine retail bankruptcies in 2017—as many as all of 2016. J.C. Penney, RadioShack, Macy’s, and Sears have each announced more than 100 store closures. Sports Authority has liquidated, and Payless has filed for bankruptcy. Last week, several apparel companies’ stocks hit new multi-year lows, including Lululemon, Urban Outfitters, and American Eagle, and Ralph Lauren announced that it is closing its flagship Polo store on Fifth Avenue, one of several brands to abandon that iconic thoroughfare."

    https://www.theatlantic.com/business...f-2017/522384/
    Last edited by Yelta; 16th December 2017 at 01:03 PM. Reason: spelling
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  7. #7
    Senior Member Rocky's Avatar
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    Where I live, the big Malls still look healthy - chockers with people - but maybe the issue is how many of them are actually buying there, as opposed to inspecting the product they intend to buy on the net.
    This is a frequent complaint from retailers.
    If the price is in any way comparable, I will always try to buy 'in-store' however in Regional centres, there is often no inventory held and the item is not available to inspect and has to be ordered in any case.
    Dimal and chippy like this.

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