Australia’s second-largest retail landlord has reported that sales in its shopping malls across the country have risen by 13 per cent in the first three months of 2023.

Across the 60 malls owned by Vicinity Centres, sales in specialty stores were up 17.7 per cent, spending on luxury handbags and accessories, was up 17.2 per cent, while footwear sales jumped 18.9 per cent.

Department store spending was up 8.3 per cent.

“It was particularly encouraging to see the positive momentum in CBD visitations during the quarter, which underpinned a 37.2 per cent uplift in CBD sales and in fact, our CBD portfolio was a key contributor to our overall portfolio sales performance,” said Vicinity’s CEO Peter Huddle.

“The Australian retail sector has once again demonstrated its resilience in the face of rising household costs and heightening near-term macroeconomic uncertainty.”

The company completed 249 leasing deals during the quarter.

Looking ahead, Huddle did note the “ongoing escalation of household living costs and the potential for consumption to soften”, but added that “with a flexible balance sheet and strong credit metrics, Vicinity remains well positioned to navigate market uncertainty and at the same time, invest in its growth agenda.”