centro reports 4.5% rise in sales for year...

Source: www.businessspectator.com.au

Centro reports 4.5% rise in sales for year to Sept
4:36 AM, 19 Nov 2008
By a staff reporter

Centro Properties Group has reported a 4.5 per cent increase in sales for its shopping centres in Australia to $10.8 billion for the year to September 2008, despite a slowing economy and falling consumer confidence.

The property group's results reflected shoppers had shifted their focus to cheaper products, with a 7.5 per cent increase in sales at Centro's discount department stores for the September quarter.

Sales at discount stores rose 4.6 per cent for the year to September.

In contrast, department store sales fell 1.9 per cent in the quarter, but managed to increase for the year to September with a three per cent rise.

The group's supermarkets achieved a strong seven per cent sales growth for the quarter, and 4.5 per cent growth for the year.

Specialty stores also gained, with 8.5 per cent growth for the quarter and 11.3 per cent growth for the year.

Leading Centro's management, Glenn Rufrano, said underlying retail sales remained strong for the group because its centres were focused on food and household essentials, reported The Sydney Morning Herald.

Mr Rufrano conceded that the US market was tough, with some tenants falling into bankruptcy.

"US retail sales are reflecting recessionary trends and, while sales growth in Australia has continued to be strong, we are expecting to see sales moderate," Mr Rufrano told the paper.

Disappointed investors fled Centro's stock yesterday, sending its shares to a record low of 5.8 cents.

Centro is battling to avoid being put into administration, with its managers struggling to raise money to cover debt and meet its re-financing obligations.

The group's bankers have extended Centro's debt to December 15.


Ends.

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