Vicinity Centre Bouncing Back After The Pandemic
Vicinity Centre is an Australia-based real estate and investment venture specializing in the asset acquisition, development, and operation of shopping centers. Their headquarters is based in the largest shopping center in the country Chadstone Shopping Centre.
While Vicinity shopping centers carry their own names, most sport the swirling red ribbon in their logos to identify with the Vicinity Centre group. With over 60 shopping centers and thousands of staff and personnel, the organization’s economy has taken quite a blow during the pandemic.
Challenges of the Pandemic
Grant Kelley was in charge as Vicinity’s CEO when the pandemic hit. He became the top man of Vicinity Centre in 2018, roughly 2 years before the first case of Covid was detected on Australian soil.
The public sector has acted instantly and purposely to prevent further damage to the country’s safety. Despite their best efforts, the economy experienced a halt in 2020.
The retail and recreation businesses had taken a solid hit. It is expected to see a significant drop in sales when restrictions were at their highest. Households prioritized savings and only purchased necessities. Shopping was done mostly through non-contact delivery channels in fear of contracting the virus.
Post-Pandemic Recovery
When the restrictions began to ease, Australians began to take out their saving for consumption. While the foot traffic in retail centers is not yet up to par with the pre-pandemic statistics, there is a steady incline in mall visitors.
A notable increase in the amount of spending per visit compared to pre-pandemic figures was observed. One probable reason could be that while consumers are willing and excited to go back to their pre-pandemic routines, they still choose to make travel less frequent as a precaution.
Aside from Australian households, tourists and international students are now contributing greatly to keeping the movement in retail centers. Opening the borders after the pandemic has brought in consumers to meet what retail centers have to offer.
Changes in Management
Grant Kelley did an excellent job in maintaining Vicinity’s strong financial position through the pandemic and during the past couple of years. After 5 years of service, he decided to retire and endorsed his duties to acting CEO Peter Huddle. Huddle is another stand-out in retail and mixed-use property developments who joined the management team in 2019.
Continuous Efforts
There are continuing efforts for creative campaigns to encourage consumer engagement. The recent collaboration with local musicians for their Spotlight Series has promoted human interaction along with other campaigns. It is important to go beyond the business aspect and reach out to consumers.
Seeing the need for adjustments during times of necessity, they are keen on integrating changes in Australians’ way of work and play into their future endeavors. Listening to what the consumers want gives shoppers one more reason to visit their shopping centers.
In addition to existing investments, they are also exploring new avenues for mixed-used assets. Smaller-scaled developments are being considered for modernization projects. The further diversification of Vicinity’s portfolio in assets and development is one way towards better sustainability.
