We Upgrade Scentre Group's Moat Rating and Lift Fair Value Estimate to AUD 3.80 on Coverage Transfer

In the face of rising threat from e-commerce, Scentre Group’s tenant mix is evolving. The worst affected of all is department stores, which now account for less than 18% of the group's total retail floorspace, versus 21% a decade ago. Over time, Scentre has been replacing shrinking department stores with experience-based retail that can only be consumed on site. Scentre also focuses on creating reasons for customers to visit and stay for longer. Examples include themed events featuring Disney characters and live music. These moves ensure Westfield centers continue to draw immense foot traffic, amid structural online headwinds.