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During the past 12 months and despite the limited conditions of economic exchange, the property group JHI services has remained high occupancy rates in commercial properties under management, with vacancies below an average of four percent.

Johan Engelbrecht, Director, Management and JHI, Which manages more than 170 malls nationally, with an area of nearly two million square meters, said: “Trading the density of JHI run centers are strategically driven to ensure that tenants placed right in their favorite place, size, layout and design, and also taking into account consumer behavior and spending, we are able to proactively manage the employment potential of the time.

Although we have not seen an increase in Requests for information and commercial spaces that we are confident this trend will change over the next six months, “he says.

“There is no doubt that we have seen some recovery in retail sales for the year ended December 2010. Most of South Africa’s major retailers have reported on their December 2010 sales and the news has been predominantly positive, with percentage increases mainly in double figures. The November 2010 retail sales figures nationally were 6.1 percent up year-on-year (according to the SA Council of Shopping Centres Economic Overview dated January 2011).

Over the latter half of 2010 the increase in consumer spending, coupled with the increase in consumer confidence – mainly due to household borrowing gradually returning, with low interest rates and inflation – indicates that perhaps the worst is really over. In general, the major shopping centres under JHI management have achieved a positive growth year-on-year for the period ending December 2010.”

Engelbrecht says retail categories in essentials/durable goods and services still seem to outperform luxury items, although the gap is closing. Retailers ie hardware, paint and glass, specialising in supplying the building and construction sector remain under pressure and there has been an average performance from specialised food and beverages. Conversely, CFTA (clothing, textiles, footwear and accessories), pharmaceuticals, medical goods, toiletries and household goods have performed very well.

He adds: “Our outlook for the retail sector in 2011 remains positive. We will definitely see sustained growth in sales from retailers in established markets and nodes.  Factors impacting on the retail sector include changes in public transport systems, such as the introduction of the Gautrain and toll roads in Gauteng, which will have a significant effect on retail nodes in the future. Such factors have always had a substantial impact on retail nodes, as seen in previous years – with increased pedestrian and commuting nodes established by consumers residing in traditional townships.

Accessibility to major retail nodes will primarily be driven by the consumers’ choice of what will be the most affordable way to reach his/her shopping destination, and ultimately this could impact on the current profile of shoppers frequenting shopping centres.”

Engelbrecht notes that South Africa is following the trends abroad, such as that experienced in the UK where the biggest growth has been achieved in a store format, which is a key priority for food and food products.

“We recognized this shift in consumer behavior overall the time savings and convenience of a critic in today’s hectic lifestyle and have developed a strategy for growth around the cities adjacent to the market value of the community shopping center is to focus on the consumers of South Africa and the proposal to deal with Massmart and Wal-Mart could be an incentive for positive change in the dynamics of. Our retail market, “he says.

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