WA shopping centres need upgrades: report

Western Australia's shopping centres have more than 19 per cent higher productivity compared to the national average, but property consultant Urbis has warned shopping centres in the west are falling behind those in the eastern states because of less investment and centre growth.

A national retail report by Urbis has found WA's major suburban shopping centres (with department stores) achieved turnover productivity 23 per cent greater than the national average, and medium-sized centres (anchored by Big W, Target or Kmart) achieved turnover productivity 19 per cent greater than the national average.

Turnover productivity is measured by turnover on a per-square-metre basis. 

Urbis economics and market research director Jeff Armstrong said while the WA market was continuing to grow strongly, there was a need for shopping centres to expand to meet market demand.

"There is a lot of unmet demand in Perth that can be capitalised on by expansion of the major shopping centres," Mr Armstrong told Business News.

"Delivering exceptional and diverse customer experiences are the main areas of focus for successful centres today. Shoppers in Australia are responding very well to the international retailers who have recently entered the market and to good quality shopping environments.

"Food and beverages is one of the growth categories in shopping centres and the improved dining options are having positive spin offs on the rest of the centre because people who stay in the centre longer, spend more."

Business News previously reported that retail owners including Westfield, Perron Group and AMP Capital will spend more than $1.5 billion to refurbish and expand a number of Perth major shopping centres in the next decade.

Westfield has earmarked $192 million for Whitford City, AMP will spend $400 million on Garden City in Booragoon and $105 million at Ocean Keys in Clarkson, Lend Lease is spending $208 million to extend Lakeside Joondalup, and Perron Group is redeveloping Cockburn Gateway.

Mr Armstrong said customers in WA were more reliant on online shopping because they did not have the same level of access to international fashion brands and refurbished retail environments as consumers in other states.

He said WA's previous regulation of capping floor space at centres had hampered centres' ability to grow and attract more customers.

The report found the average amount of leasable floor space in a WA major suburban shopping centre is 20 per cent smaller than the national average.

Mr Armstrong said despite smaller centres and less focus on enhancing shopping experiences, there was a strong retail market in Perth.

He said this was demonstrated by Perth shoppers embracing Sunday trading and Perth centres outperforming centres in the eastern states.

Retail trade in Perth grew by 6.5 per cent in the financial year ended June 2013, compared to the national average growth of 2.5 per cent.

The Urbis report found travel agents, hairdressers and cafes and restaurants were the best performing retailers nationwide while online sales has caused the most disturbance to brick and mortar stores selling books, music and games, and film processing services.