Retail Property Operators in Australia Industry Market Research Report Now Updated by IBISWorld

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Online retailing and an oversupply of available retail property are just two challenges facing retail property operators. For this reason, industry research firm IBISWorld has updated its report on the Retail Property Operators industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Poor consumer confidence, competition from online retailers and a glut of retail property challenge the industry

Poor consumer confidence, fierce competition from online shopping and an oversupply of retail property are the challenges currently facing the Retail Property Operators industry in Australia. IBISWorld industry analyst Tim Stephen states “the retail property market showed signs of improvement in 2010-11 after a soft period during the downturn in the Australian economy.” However, retail conditions faltered in late 2011-12 as global economic uncertainty weighed on consumer spending. This has continued into 2012-13 with industry revenue estimated to rise 0.9%. While occupancy is good, due to leasing incentives and low rental prices, property values are flat. IBISWorld estimates revenue for the Retail Property Operators industry will decline slightly over the five years through 2012-13, at a compound annual rate of 0.1% to reach $30.0 billion.

According to Stephen, “the main problem currently facing the industry is low demand resulting from weak consumer confidence. This is leading to low retail sales, which subsequently results in low demand for retail space.” Operators have dropped prices and offered incentives, such as rent-free periods, but anchor tenants such as department stores have begun decreasing their demand for space. To keep occupancy rates up, retail operators are expected to forego short-term profit. These effects have been accentuated by a growing proportion of consumers buying goods online. Problems for the Retail Property Operators industry will continue into the early part of the next five years. However, as the economy slowly rebounds, retail spending will rise as deleveraged consumers benefit from higher disposable incomes and more stable economic conditions. The oversupply of retail space is expected to persist well into the period, but will correct earlier if the economy recovers ahead of current forecasts.

The Retail Property Operators industry consists major players Westfield Group and CFS Retail Property Trust and of individual investors, property syndicates and smaller property groups and trusts. This indicates that the market is not dominated by any individual company, but is rather driven by many different players. Market share concentration levels had been slowly increasing up to 2007-08. However, the global financial crisis negative affected the market. Concentration is expected to grow over the next five years as more retailers look to take risky property assets off their balance sheets in favour of renting. While overall industry concentration is low, in the shopping centre property segment it is much higher. This is unsurprising given the large investment required to develop and manage a shopping centre. Between the big Australian real estate investment trusts, competition is fierce. Some specialise in retail property, while others invest in commercial property, and others commercial and industrial. For more information, visit IBISWorld’s Retail Property Operators report in Australia industry page.

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IBISWorld industry Report Key Topics

The industry is made up of companies engaged in the leasing of retail property.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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