Westfield centres ramp up security as shoppers return

Westfield shopping centres around the country have beefed up security after the horror Bondi Junction stabbings and in response to recent government public safety alerts as they seek to lure shoppers with a greater mix of tenants to counter the cost-of-living crunch.

Scentre – the nation’s largest retail landlord with its $34.3 billion Westfield malls across Australia and New Zealand – said it had “materially” increased the visibility of its security staff following April’s knife attacks at Westfield Bondi Junction and the government’s raising of the National Terrorism Threat Level to probable earlier this month.

Scentre chief executive Elliott Rusanow at Westfield Bondi Junction.Credit: Rhett Wyman

“Scentre Group continues to operate its 42 Westfield destinations with increased levels of security and is working closely with police, authorities, government and industry on community safety initiatives,” Scentre boss Elliott Rusanow said as he presented its earnings on Wednesday.

“We have been running a higher level of security in terms of more staff in high-viz vests, and [are] continuing to work closely with the police where our centres are located.”

On April 13, a busy Saturday afternoon, six people were fatally stabbed at the Bondi Junction shopping centre by a 40-year-old man, with many more lives affected by the violence.

Rusanow said the company continued to provide financial and non-financial support to the injured victims and their families.

He thanked the community’s support “during this difficult period,” which he said has encouraged visitors to return to its shopping centres.

About 320 million people have been to a Westfield shopping mall so far this year, 1.9 per cent – or 6 million – more than at the same time last year.

For the six months to June 30, the ASX-listed company posted funds from operations of $568 million, a rise of 2 per cent. Statutory profit rose to $404 million, compared to $149 million in the prior year, as it booked lower adjustments to its property valuations.

Tenant mix refreshed

As part of its shift to become more resilient to cost-of-living pressures, Westfield has revved up the mix of tenants to offer more “online-shopping proof” retailers, such as entertainment venues, in-house dining attractions and lifestyle offerings.

At Bondi Junction, the company is replacing the David Jones food court area with a flagship Virgin Active fitness concept club and a new rebel rCX store. It also plans to turn the former Fitness First gym on Level 6 into an entertainment and lifestyle precinct.

An artist’s impression of the proposed redevelopment of Westfield Eastgardens.Credit: Scentre Group

“We have pursued a strategy whereby our malls are not as correlated to the month-to-month retail sales and not as reliant on macroeconomic fluctuations,” Rusanow said.

The best-performing sectors in terms of sales growth were health and beauty, which rose 4.9 per cent; leisure and sports, which gained 6.8 per cent and food retail, which saw sales rise 7.8 per cent during the June half.

Reflecting the crunch in discretionary spending, department store sales growth fell 3.1 per cent, while footwear, apparel, and jewellery tenants also struggled.

Scentre has a $4 billion pipeline of planned retail developments, including projects such as the refurbishment of Westfield Eastgardens in Sydney’s eastern suburbs. During the period, it started reconfiguring department store space at Bondi Junction and Westfield Burwood in Sydney, and Westfield Southland in Melbourne.

The group declared an interim dividend of 8.6¢, payable on August 30.

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