Who Said There Was A Retail Downturn As Consumers Flock To Westfoeld Shopping Centres

Despite a challenging retail environment, visits to Westfield shopping centres have continued to rise, even as Scentre Group flags growing concern around fragile consumer sentiment.

The group, which owns and operates 42 Westfield destinations across Australia and New Zealand (including 37 in Australia), reported that more than 160 million people visited its centres in 2026 to date, marking a 4.9% increase on the same period in 2025. Foot traffic momentum remains solid, with customer visits up 3.1% for the year.

Financially, the business delivered steady growth. Total business partner sales reached $7.0 billion in the March quarter, up 5.0%, while specialty sales rose 5.3%. Leasing conditions also remained strong, with 636 deals completed during the quarter and specialty re-leasing spreads averaging +3.3%. Portfolio occupancy edged higher to 99.8%, an increase of 20 basis points year-on-year.

Scentre Group, which generated approximately $2.8–$2.9 billion in annual revenue in its most recent financial year, continues to benefit from resilient retailer demand. Analysts note that leasing activity remains robust, supported by average specialty rent escalations of 5.3% in the March quarter.

During the period, the group also completed a $864 million divestment of a 19.9% stake in Westfield Sydney, reinforcing its capital management strategy.

However, management struck a cautious tone on the outlook, pointing to geopolitical uncertainty and broader economic pressures that could weigh on consumer spending in the months ahead. Despite this, the company says it remains focused on long-term value creation for both investors and communities.

Recent leasing deals underscore continued confidence from retail partners, while major projects such as the redevelopment of Westfield Bondi are progressing, with the aim of elevating the centre to a world-class retail destination.

On the market, Scentre Group shares have risen around 4% over the past 12 months, underperforming the S&P/ASX 200 Index, which gained approximately 15% over the same period.