Scentre CEO Not Concerned By Myer Collapse
Scentre Group CEO, Peter Allen, has revealed he’s not concerned by the potential collapse of department store giant, Myer, affirming the shopping centre group has other “alternatives” for the space.
Allen’s comments came from the annual Macquarie Connection conference, where he revealed Scentre is “comfortable either way“, and has plans to reconfigure Myer’s existing retail space.
Mr Allen referenced Scentre’s actions after the closure of Myer’s Hurstville store. The shopping centre group converted Myer’s space into six separate retail stores, including a new JB Hi-Fi outlet.
He also referenced the rising commercial value of Myer’s retail space, affirming the new Hurstville tenants are selling over $100 million, versus the department store’s $21 million.
Despite this, Allen hopes the department store giant will rebound and perform strongly.
Scentre is reportedly confident in its ability to reconfigure its store mix should Myer collapse, ensuring customers numbers remain consistent.
Mr Allen forecasts the amount of retail space per capita in Australia to drop over time, as retailers begin to prioritse “few but larger stores“.
He also warned against retailers hoping for rent reductions, affirming it is in Scentre’s best interests tenants remain commercially viable.