Liberty Two Degrees CEO: Malls will look different in the future but won’t go away

Amelia Beattie, CEO of Liberty Two Degrees, recently spoke with CNBC Africa to discuss the company's performance in the midst of a challenging year for the retail sector. Despite a 56.6% decline in headline earnings for the year ended 31 December 2020 and a 12% decrease in revenue, Beattie remains optimistic about the company's ability to weather the storm. She highlighted the resilience of the company in delivering a 100% distribution to shareholders amidst a difficult operating environment. The year proved to be a tumultuous one for Liberty Two Degrees, with Beattie detailing the four quarters that defined their experience. The year began on a positive note, only to be swiftly followed by an immediate lockdown that significantly impacted footfall and turnover in the second quarter. However, there were signs of recovery in the latter part of the year, with tenants gradually emerging from the challenges faced earlier. In terms of the performance of different sectors within the retail space, Beattie noted that groceries and luxury brands fared relatively well compared to other segments. Groceries experienced a 13% growth, while luxury brands saw an impressive 27.7% increase in growth. Beattie acknowledged the struggles faced by certain sectors, such as restaurants and hospitality, which continue to grapple with the absence of international travel and restrictions on dining. Despite these challenges, Beattie reaffirmed the company's commitment to supporting tenants through various initiatives, including providing additional trading space, implementing promotional campaigns, and offering rent relief. Addressing the question of the future of malls in a post-pandemic world, Beattie emphasized the need for flexibility and innovation in adapting to changing consumer preferences. While some have raised concerns about the future viability of malls, Beattie remains optimistic about the role of super regional malls in capturing consumer spend and offering a diverse range of experiential offerings. She highlighted the importance of creating unique and engaging environments within malls, including exploring new formats and micro-environments that cater to evolving customer needs. Despite acknowledging the need for malls to evolve and adapt, Beattie firmly stated that malls are not going away. The company remains focused on reshaping the mall experience to meet the demands of modern consumers and create spaces that are vibrant and relevant in the years to come. In conclusion, Beattie's insights shed light on the challenges and opportunities facing the retail sector and provide a glimpse into the future of malls as they navigate a rapidly changing landscape.