Westfield London plans rent rises as sales continue to grow at malls

 
Elizabeth Fournier
RETAILERS at the Shepherd’s Bush branch of London mall Westfield are facing rent rises, after its owner posted strong sales growth for the first six months of 2013.

Sales at Westfield London rose 1.9 per cent in the six months to the end of June, while sales at Westfield Stratford City – its east London cousin – grew 7.3 per cent.

“The retailers at Westfield London have had five years of trading now, they’ve been doing very well, and now it’s time for the rents to catch up to the sales revenue,” Peter Lowy, co-chief executive of the Sydney-based parent company, told Bloomberg yesterday.

The two London malls saw particularly good sales at their leisure facilities, with revenues from the casino, bowling alleys, cinemas and gyms rising 14.4 per cent year on year.

Fashion sales grew 9.2 per cent, while restaurant and cafe sales rose by five per cent.

“Westfield is currently in the planning stages of a further £3bn plus of regeneration projects over the next five years in the UK and Europe with the expansion of Westfield London and new developments at Croydon, Milan and Bradford,” said Michael Gutman, managing director in Europe.