Shopping centres boost economy

THE Property Council’s retail arm, the Shopping Centre Council of Australia, has released the results of a detailed study into the contribution of the WA shopping centre industry to the WA economy.

The key findings of the study are:

• There are 126 shopping centres in WA comprising four regional centres, 26 discount department store (DDS)-based centres and 96 supermarkets

• More than three-quarters of the centres are located in metropolitan Perth, with a further 11 per cent in south west WA and 12 per cent in the rest of the state

• The 126 centres in WA contain 1.3 million square metres of floorspace. About 16 per cent of this floorspace is in regional centres, 45 per cent is in DDS-based centres and 39 per cent is in supermarket centres.

• Since most of the larger centres are in metropolitan Perth, the Perth share of shopping centre floorspace is 83 per cent with south west WA having 8 per cent and 9 per cent of shopping floorspace respectively

• WA shopping centres recorded an estimated annual turnover in 1998 of $5.5 billion. The share turnover generated by each centre type was almost same as the respective share of floorspace for that type

• The central administration of shopping centres includes general administrative staff, cleaners, security guards and maintenance. In WA, shopping centres central administration provides employment for about 1,900 people. About 21 per cent are employed in regional centres with 36 per cent employed in DDS centres and 43 per cent in supermarket-based centres

• The shops in shopping centres, including both major and specialty retailers, employed 46,300 people

• Total employment in WA shopping centres – both central administration and shop employment – shows 48,300 people are employed in WA shopping centres. Of those, 16 per cent are employed in regional centres, 47 per cent in DDS centres and 37 per cent in supermarket centres

• Wages, salaries and supplements paid to administration staff totalled $42.6 million in 1998 while a further $852 million was paid to shop staff. In total, an estimated $894 million in wages and supplements was paid to shopping centre employees. Of that amount, an estimated 15 per cent was paid to employees in regional centres, 46 per cent to employees in DDS centres and 38 per cent to employees in supermarket centres

• The gross operating surplus generated by WA’s shopping centre industry is estimated to be $670 million for 1998

• The capital value of WA shopping centres is estimated to be $3.1 billion. A further $400 million is expected to be invested in the industry over the next five years

• Approximately 4,200 specialty shops are provided in WA’s shopping centres. Of these, 13 per cent are located in regional centres, 41 per cent in DDS centres and 46 per cent in supermarket centres

• In total, 53 per cent of specialty shops are estimated to be owned and operated by separate traders, a further 6 per cent are franchises while 9 per cent and 33 per cent are owned and operated by state chains and national chains respectively

• The WA shopping centre industry accounts for 42 per cent of retail sales, 38 per cent of retail employment and 43 per cent of retail sector gross state product

• The industry contributes 5.4 per cent of WA employment and 3 per cent of WA gross state product.