Solid 2015 ending by Olav Thon’s shopping centers

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Key figures for 2015 reveals a good year for Norwegian and Swedish shopping centers in Olav Thon Group, where border trade is still considerable. Weakened Norwegian economy have little impact turnover.

Olav Thon Group including its subsidiaries Amfi Drift AS owns or manages 96 shopping centers in Norway. Of these, 69 full / part-owned and managed 27. The group operated in 2015 8 of the 10 largest shopping centers in Norway.

Total sales in Norway was  62 535 million NOK, + 4.1 percent, an increase of 2,453 million in 2014. Adjusted for extensions, estimated increase in comparable areas to be appx 3.3 percent.

Mall sales have  developed positively. This year, it appears that the weather affects sales performance. The bad summer weather in large parts of the country gave very high increases in July. August had much nice weather and gave in contrary the year’s weakest monthly sales statistics.

Trade in December (Christmas shopping) increased by 2.1 percent. The figures were weak for the early part of December, after a very good ending to November, with Black Friday. Last week before Christmas and after Christmas had consistently good increases.

Norwegian economy throughout the year weakened considerably as a result of the strong drop in oil prices. Unemployment is rising and most people are more unsure of his future finances. Norwegian retail has in spite of this not been particularly affected.

”From earlier periods of weak Norwegian economy and uncertainty, we have not seen weakness in the retail sector. We therefore forecast a good development for us in the Norwegian retail also in 2016,” says Tron Harald Bjerke, executive Property director.

Norway 7 biggest mall is owned and managed by Olav Thon Gruppen

Malls and turnovers 2015 NOK, incl.VAT

  1. Sandvika Storsenter, 3.269 million.
  2. Lagunen Storsenter, 3.131 million.
  3. Strømmen Storsenter, 3.032 million.
  4. Amfi Moa, 2.778 million.
  5. Sørlandssenteret, 2.375 million.
  6. Kvadrat, 2.301 million.
  7. Storo Storsenter, 2.228 million.

Strømmen Storsenter reached a turnover of 3,000 million for the first time.

 

”We see that Amfi Mandal, Amfi Eidsvoll and Amfi Voss had good numbers in 2015 after extensions completed in 2014. We have planned several major expansions and new construction at our centers in 2016. Jessheim Storsenter, Lagune Storsenter and Amfi Kanebogen at Harstad are the largest projects,” says Bjerke optimistic

The Swedish shopping centers generated sales totaling 11,241 million SEK., An increase of 469 million.  Charlottenberg Shopping Center achieved for the first time a turnover of 2,000 million SEK.

Border trade centers has increased by a total of 6.0%.

The Norwegian krone has weakened considerably during the year and resulted in cross-border shopping flattened  towards the end of the year. Nevertheless, border trade significantly and there are still considerable differences in prices in most product groups.

First half of the year also saw other benefits.

”Drop in oil prices affects us modestly and first half was marked by good sales growth at shopping centers and the group’s rental income. In relation to the first half of last year we have had an interest rate reduction of 0.7 percentage points that also contribute to the profit growth,” said CFO Arne B. Sperre.