- In August, same open store sales reached 66% compared to the same period the year before, without including supermarkets.
- Strong growth in food delivery was observed in the period, in addition to the Click & Collect purchase pickup, pick-up and drive-through services for online purchases, as well as through last mile platforms.
- EBITDA for the quarter was CLP 1.688 billion, down 97% from the previous year, impacted by the partial closure of its operation due to the pandemic.
Santiago, 26 August 2020 – Mallplaza has made progress in a gradual and flexible opening of businesses and services, reaching an average of 35% of its GLA operating on 30 June and 40% in August, during which time its tenants’ sales have been strengthened. Thus, in August a positive trend in visitor flows and sales was observed after the opening of stores in Mallplaza Egaña, Mallplaza Los Dominicos and Mallplaza Alameda in Santiago.
Open leasable area in the 2nd quarter was 25% of the total, causing a 72% drop in revenues compared to the previous year. Regarding its sales costs, they remained similar to the 2nd quarter of 2019, considering savings in operating expenses and higher costs in other expenses and insurance. On the other hand, its administrative expenses were higher than during the same period in 2019, due to increased provisions for accounts receivable due to extended deadlines for collecting from tenants, partially offset by lower reorganization expenses, efficiencies and reduced marketing activities. This had an impact on the EBITDA for the quarter, which was CLP 1.688 billion, while profits were CLP -16.98 billion.
The company has maintained its AA+ rating stable from its three risk rating agencies.
Regarding current operations, 40% of Plaza SA’s leasable area is in operation. “We currently have about 1,200 stores open at our urban centers, showing a positive trend in visitor flows and with open same store sales of 66% compared to the previous year, excluding supermarkets. We have placed special emphasis on firing up the kitchens in our urban centers, with over 280 of them operating in the three countries and 300,000 orders per month,” explained Corporate Manager of Administration and Finance Pablo Cortés.
Different purchase pickup services have been enabled in its Omnichannel Ecosystem, such as Click & Collect, pick-up and drive -through for online purchases. Campaigns and alliances with last mile platforms have enhanced the promotion of its tenants’ brands. In addition, an alliance was implemented with Marketplace Linio to offer its tenants new sales alternatives.
Support for tenants
Significant support plans were developed for tenants during the quarter. In Chile, rent collection was suspended for those businesses that were prevented from opening to the public. In Colombia and Peru, and those able to operate in Chile, their rents were reduced according to the impact of the pandemic. In addition, flexibility measures have been considered in the opening, operation and payment terms.
Mallplaza arrives in Bogota
Mallplaza acquired the Calima Shopping Center in August, along with agreeing to open the first IKEA store in Colombia in 2023. This shopping center is in the heart of Bogota, in an area with high potential for economic and commercial development and connected to the city’s main access roads and public transportation. This shopping center’s incorporation into the company is part of its strategic plan to enhance its presence and positioning in Colombia. Mallplaza’s commercial proposition in Calima considers a Home center home improvement store, a Cinépolis cinema complex, and an Hipermercado Éxito, important retail brands, dining, entertainment and mixed use. The Company will incorporate digital and omnichannel solutions that improve the experience for its tenants and visitors.
This incorporation is part of its strategic plan to enhance its presence and positioning in this country, adding 66,000 m2 of GLA to the company and making it its fourth urban center in Colombia. This brings Mallplaza’s leasable area in this market to 190,000 m2, including the shopping centers it operates in the cities of Barranquilla, Cartagena and Manizales.
