URW reports strong footfall in global destinations as Westfield preps to reopen

Shopping centre operator Unibail-Rodamco-Westfield (URW) has said that it’s seen “strong progress” at its reopened destinations across Europe, with footfall “generally above levels the group anticipated”.

Sixty-five of the firm’s 90 shopping centres have now been allowed to reopen as restrictions in their respective countries begin to ease. The remainder of its locations are set to open by 8 June in Spain and 15 June in London.

By that date, URW expects to have 87 percent of its shopping centres reopened - that represents around 80 percent by book value.

“While trading of bars, restaurants and cinemas is still restricted in many locations, URW’s centres have seen footfall returning progressively following re-opening and generally above levels the group anticipated,” the company said.

In Germany and Austria, URW’s destinations have been open since late April-early May, with footfall above 80 percent of the prior year. That number has been roughly the same for its locations in the Czech Republic over the past three weeks.

In France, where its centres have been reopened since 11 May, footfall is now above 60 percent of the prior-year level, with footfall at shopping centre Rennes Alma reaching 90 percent. UWR expects to begin seeing an increase of the usual “walkthrough” visitors since the country’s restrictions on public transport were lifted on 2 June. In the Paris region, which reopened later on 29 and 30 May, footfall on Saturday May 30 was “encouraging” at around 65 percent compared to last year.

URW reports 'very encouraging' footfall

The company added that, while it is yet to receive formal sales reporting, its tenants “have generally seen higher conversion rates and basket sizes than expected, with visitors returning for specific shopping objectives, resulting in a better anticipated sales impact relative to footfall.”

That's encouraging news for Westfield London which is preparing to reopen in just under two weeks.

“While of course things are not yet back to normal, it is very encouraging to see so many of the group’s centres able to trade again, while utilizing all appropriate and required measures to ensure the health and safety of our visitors, tenants and employees,” said URW group CEO Christophe Cuvillier in a statement.

“Health & beauty, sports, home equipment and children’s clothing are believed to be among the best performing segments. The recovery in footfall in markets such as Austria, Germany and the Czech Republic to now around 80 percent of pre-crisis levels, as well as the good initial performance of the recently reopened large French assets, provides strong reassurance, especially considering that significant restrictions still apply on major footfall drivers such as restaurants and cinemas, and that most governments have encouraged companies and employees to continue to favour homeworking.”

Photo credit: Unibail-Rodamco-Westfield