RETAIL property sales are at unsustainably high levels which have outstripped wage growth, says Hegney Property Valuations director Gavin Hegney.
The June KPMG Consumer Behav-iour Monitor revealed that shopper preference for shopping centres had fallen while strip shopping was becoming increasingly popular.
Mr Hegney said shopping centre owners favoured franchises as they were viewed as being stable, low-risk tenants.
“The shops inside are becoming increasingly generic and there are very few points of difference between one shopping complex and the next,” he said. “These megaplexes almost need to be flipped inside out.
“A trend is emerging towards a return to strip shopping as it offers some individuality – which shoppers are prepared to pay for.
“They’ll be under a lot of pressure to succeed and will need to contend with the Internet cutting into sales.
“But Internet shopping will also eventually plateau.
“It is an ideal medium for selling CDs, books and other entertainment but shoppers will always still want to see some items and actually feel it before they decide to purchase,” he said.
