The Westfield Group is an Australian company and the largest retail property group in the world by equity market capitalisation and one of the largest entities listed on the Australian Securities Exchange.[3]
The multinational company owns and operates shopping centres in Australia, United States, New Zealand and the United Kingdom. Westfield shopping centres are typically branded with the name Westfield or Westfield Shoppingtown in their name.
Current operations
Westfield currently has interests in total assets worth A$41 billion, owning 119 shopping malls [2] in four countries - Australia, New Zealand, the United States and the United Kingdom - with over 10 million square metres of retail space. It is the world's largest retail property group by equity market capitalisation. Despite the Westfield Group's asset dimensions it is still chaired by Frank Lowy, one of its founders.[4]
Australia
Having been established in Australia, with their original premises being at Blacktown, the Westfield Group continue to operate a large number of shopping centres in Australia. The largest Westfield shopping centre is located in Westfield Doncaster in Doncaster, Melbourne in Victoria, with Westfield Parramatta in Parramatta City Sydney, New South Wales comes second and Westfield Fountain Gate in Narre Warren/Berwick comes third.
The Group Annual Report 2006 identifies the largest locations.
New Zealand
Westfield Malls are by far the most popular chain in New Zealand, with over 12 in Auckland alone. There are more throughout the country, the largest in Albany.
United States
Since entering the United States market in 1977, Westfield has aggressively acquired, renovated and expanded many mall properties in order to draw wealthier consumers from longer distances. Six weeks prior to the World Trade Center attacks it acquired the The Mall at the World Trade Center. It has also financed large advertising campaigns to increase awareness of its Westfield brand. On May 9, 2006, Westfield announced the sale of 8 centres in the United States, in an effort to divest themselves of "non-strategic assets since they no longer fit within our investment criteria nor are they in our long-term redevelopment plans".[5] Since then, the company disposed 5 centers, including four out of the remaining five "Westfield Missouri" malls, and the high end "Shops at 'Westfield' North Bridge."
United Kingdom
Westfield has an interest in 6 shopping centres in the UK. Additionally, Westfield is involved in the development of three further shopping centres.
History
The Westfield Group had origins in the western suburbs of Sydney.[11] The first development was named "Westfield Place", and opened in July 1959 in Blacktown, Sydney.[11] The name Westfield is derived from "West" related to the West-Sydney location, and "field" due to having located on subdivided farmland.[11] The centre was opened by John Saunders and Frank Lowy.[11] The company was floated on the Australian Stock Exchange in 1960 and built another five centres in New South Wales before expanding into Victoria and Queensland in 1966-67.[12] The expansion into the US was quite slow. It began with the purchase of the Trumbull Shopping Centre in Connecticut in 1977, and was followed by three centres in California, Michigan and Connecticut in 1980 and three centres in California, New Jersey and Long Island, New York in 1986.[12] In 1994 Westfield joined together with General Growth and Whitehall Real Estate to purchase 19 centres for US$1 billion. Westfield seems to form clusters of centres around particular cities or within a small number of states. They built considerable holdings on the east coast and in California before expanding in the Mid-West. By 2005, the company still only own centres in 15 US states.[12]
In the 1990s, Westfield began a major expansion across the Tasman to New Zealand, where they mostly bought existing shopping centres of the Fletchers company, progressively rebranding them. Only in 2007, with Westfield Albany, has the company opened a fully new centre in the country.[13]
Relationship with tenants
The Australian Competition and Consumer Commission has had investigated several disputes between The Westfield Group and its tenants. In 2004 the Commission found Westfield was abusing its market and commercial power in settling disputes with tenants, and forced Westfield to formally undertake to not engage in "Unconscionable conduct and intimidation" of tenants.[14]
Westfield fee structures and policies have also been criticised by retailers who operate in centres which have been taken over by the multinational company. Retailers have suggested that when centres are acquired there should be more cooperation between the new operators and existing tenants in bringing shops up to the corporate standards of The Westfield Group, and increases in rent (required to operate a shopping centre with high standards of fittings and services) should be staged with the required improvements in fittings. [15]
Relationship with competition
In 2002 a competing shopping centre was lodged to Liverpool (New South Wales) council and subsequently built. The centre would be about 3 kilometres from Westfield Liverpool (as the crow flies). In 2003 when the second stage was built, the Westfield Group allegedly sought help from the government to force its closure. For more information, see the Orange Grove affair.
Location images
|
|
|
|
|
|
|
|
|
|
Westfield Doncaster, Melbourne
This content has an uncertain copyright status and is pending deletion. You can comment on its removal.
|
|
|
|
|
|
|
|
Boxing Day Shopping at Westfield Mall, London.
|
Boxing Day Shopping at Westfield Mall, London.
|
See also
References
- ^ Retail Biz
- ^ Westfield Group Annual Report 2007
- ^ Westfield Group - Company Overview
- ^ Carolyn Cummins, Commercial Property Editor (2004-09-24). "Frank Lowy gives himself a $1.3m pay rise". The Sydney Morning Herald. http://www.smh.com.au/articles/2004/09/23/1095651469397.html. Retrieved 2006-11-28.
- ^ Westfield Group (2006-05-09). "Westfield Group Announces Transactions With Centro Properties Group and Somera Capital Management". Press release. http://westfield.com/corporate/newsroom/announcements/2006/2006509_35905.html. Retrieved 2006-12-05.
- ^ "Property Portfolio - London". Westfield Group. 2008-07-18. http://westfield.com/corporate/property-portfolio/united-kingdom/london.html. Retrieved 2008-07-18.
- ^ Westfield Group (2006-09-18). "A New Icon in UK Retail: "Westfield London"" (PDF). Press release. http://westfield.holler.co.uk/pdfs/press/Westfield%20Launch.pdf. Retrieved 2006-11-30.
- ^ Westfield Group (2006-06-13). "Westfield to control 100% of Stratford City, Major East London Regeneration Project". Press release. http://www.westfield.com/corporate/newsroom/announcements/2006/2006613_51376.html. Retrieved 2006-12-04.
- ^ Kilner, Will (2006-09-29). "Broadway construction "will start in New Year"". Bradford Telegraph and Argus. http://devel.thetelegraphandargus.co.uk/regeneration/rebirth/rebirthnews/display.var.945584.0.broadway_construction_will_start_in_new_year.php. Retrieved 2006-12-04.
- ^ Walsh, David (2006-11-30). "The Eagle is Grounded". Derby Evening Telegraph. http://www.thisisderbyshire.co.uk/displayNode.jsp?nodeId=131596&command=displayContent&sourceNode=124371&contentPK=16075900&folderPk=55129&pNodeId=124522. Retrieved 2006-11-30.
- ^ a b c d "westfield/corporate" (PDF). Westfield History - Chapter One - 1956–1960 Westfield Stirs p.14. http://westfield.com/corporate/pdf/history/chapter1.pdf. Retrieved 2007-01-05.
- ^ a b c André Sammartino & Frances Van Ruth (2007), 'The Westfield Group’, in Dick, H. & Merrett, D. (eds.), The Internationalisation Strategies of Small-Country Firms: The Australian Experience of Globalisation, Edward Elgar: Cheltenham, UK, pp.308-318.
- ^ Countdown under way for Albany supermall rollout - New Zealand Herald, Thursday 23 August 2007
- ^ Anthony Hughes (2004-06-18). "Westfield promises not to bully". The Sydney Morning Herald. http://www.smh.com.au/articles/2004/06/17/1087245042519.html. Retrieved 2006-12-04.
- ^ "Westfield fees 'force business closure'". ABC News Online. 2006-09-30. http://www.abc.net.au/news/newsitems/200609/s1752672.htm. Retrieved 2006-11-28.
External links
|
Business in Australia |
|
| Institutions |
|
|
|
| Business associations |
|
|
| Major companies |
|
|
| Corporate controversies and collapses |
|
|
| Notable individuals |
|
|
