The trading performance of SA’s major institutionally owned malls remained positive on an inflation-adjusted basis for the year ended June 2024, according to SAPOA’s Retail Trends Report for Q2 2024.

Year-on-year growth in the index’s annualised trading density decelerated to 5.3% in current price terms off an adjusted 6.2% in the previous quarter.

The trading performance of SA’s major malls compared favourably with the broader retail sector as Stats SA’s year-to-date retail sales growth was recorded at 4.9% in current price terms (not adjusted for inflation) according to the MSCI South Africa Quarterly Retail Trading Density Index which is based on data collected from 150 retail centres that cover more than 5.9 million square meters.

The index’s trading density ended the quarter at an annualised R41 000 per square metre.

The number of shoppers visiting the country’s major malls continued to increase during Q2 2024 with an 8.3% year-on-year increase in the number of visitors per square metre meaning that foot count has been trending up, year-on-year, every month since December 2021. However, spend per head didn’t keep pace with the increased number of visitors as it decreased 2.1% year-on-year.

The vacancy rate of the malls that form part of the MSCI index was recorded at 4.4% as at the end of June 2024 – unchanged from the previous quarter and well down on the peak of 7.1% in March 2021. In June 2024, gross rentals constituted 6.8% of sales turnover – the healthiest level since 2012. Retailers’ cost of occupancy remained stable compared to Q1 2024 as sales growth continued to outpace gross rental growth.

For more detailed information on SA’s retail trends, download a free copy of the latest report here (free to SAPOA members only).

How to access SAPOA’s reports:

• Visit www.sapoa.org.za.
• Login/register on SAPOA Members
• Click on ‘Reports’
• Click on ‘Free Reports’
• Click on ‘Office Vacancy Reports’

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