Greece malls to see 10% drop in sales

Greek property developer Lamda expects its three shopping malls to suffer a 10% drop in revenue this year as austerity policies hit consumers, although sales are holding up better than in the overall retailing market, its chief executive said on Tuesday.
"This year's numbers (shopping mall revenues) are expected to be above 700 mln euros, 10% down compared to last year," Odisseas Athanassiou told Reuters in a telephone interview.
"The visitor numbers are very good … but per capita spending is down due to the crisis," he said.
Consumers in recession-hit Greece are cutting back on spending after the country imposed austerity measures to shore up public finances as part of a 110 mln-euro EU/IMF bailout.
Lamda, which operates shopping malls, offices and residential complexes in the Balkans, receives a cut from the malls' sales with malls accounting for almost all its recurring operating earnings (EBITDA) and about two thirds of its real estate portfolio.
Lamda's flagship shopping centre, The Mall in Athens, will generate about 350 mln euros in revenues this year, attracting about 12.5 mln visitors, Athanassiou said.
Meanwhile its northern Greek shopping mall Mediterranean Cosmos is expected to have sales of about 200 mln euros while its newest, upmarket Golden Hall centre in Athens is seen making sales of about 155-160 mln euros, he said.
He reiterated that Lamda's recurring earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to be unchanged from last year's 42 mln euros.
Lamda's shares, which closed trading on Tuesday little changed at 4 euros, have fallen 48% since the start of the year, underperforming a 35% decline in the Athens bourse's main market index.
But Lamda's shopping malls have fared better than other clothing and footwear retailers, partly because they offer a variety of products under one roof, Athanassiou said.
Revenues at The Mall fell 9% in the first nine months of the year as the number of visitors declined by 5%, partly due to public transport problems, Athanassiou said. But Golden Hall posted a sales increase of about 6% as it appealed to more consumers, he said.
"We judge our performance by how the market fares," Athanassiou said.
Greek retail sales posted their deepest slump in a almost a year in August, according to the statistics service ELSTAT, with apparel and footwear dropping an annual 15.5%.
But as high-street shops shut down many consumers don't enjoy shopping in half-empty streets and are attracted instead to the malls, which are still fully-occupied, Athanassiou said.
Nevertheless Christmas sales will be crucial as always. "The last quarter is very important in the annual revenues … This quarter the impact of the (austerity) measures taken is evident … it's hard to make any predictions."