By Esther Fung | The Wall Street Journal
Westfield Corp. recognized more than a decade ago that the long-term outlook for shopping centers was rough. So it changed course.
Since 2004 the Australia-based landlord has slashed its portfolio of shopping centers in half, to 33 from 66, including most of its malls in the Midwestern U.S. where sales growth has disappointed. Instead, it has focused on flagship assets such as the gleaming white mall it operates at New York’s World Trade Center.
The culling also freed up Westfield to make strategic shifts. It is dipping its toes into apartment buildings, organizing concerts and other events, and developing mobile apps to engage with consumers.
“In the past, mall landlords could rely on their tenants to drive traffic to their centers,” said Romney Jacob, president at consulting company Threadsight. Now, landlords have to provide more than just bland boxes containing stores and restaurants, she said.
