Westfield Group

The Westfield Group
	File:The Westfield Group Logo.PNG
Company type	Public (ASX:WDC)
Founded	Australia
Headquarters	Sydney, Australia
Number of employees	4,400+ staff worldwide
Parent	Scentre Group
Website	www.westfield.com

The Westfield Group is a multinational company that owns shopping centres in Australia, New Zealand, the United Kingdom, and the United States.

The company pioneered the incorporation of entertainment and dining precincts into shopping centres^{[citation needed]}.

Current operations

Westfield currently has interests in total assets worth A$41 billion, representing 121 shopping centres in four countries with over 10 million square meters of retail space. It is the world's largest retail property group by equity market capitalization, yet it is still chaired by Frank Lowy, one of its founders.^[1]

Since entering the United States market in 1977, Westfield has aggressively acquired, renovated and expanded many mall properties in order to draw wealthier consumers from longer distances. It has also financed large advertising campaigns to increase awareness of its Westfield brand.

Westfield has an interest in 6 shopping centres in the UK. Additionally, Westfield is involved in the development of two further shopping centres. It is a 50% development partner^{[citation needed]} in the £1.6b ^[2] Westfield London development in Shepherd's Bush, west London. Westfield is also currently the developer behind the troubled Broadway shopping development in Bradford after acquiring Stannifer in 2004^[3]. Of its existing centres Westfield is currently in the process of making a £310m extension and refurbishment of Derby's Eagle Centre^[4], which will see the mall rebranded "Westfield Derby" ^[5], and has plans for a £400million plan to expand and renovate Westfield Broadmarsh shopping centre in Nottingham.

Sale of centres

On May 9, 2006, Westfield announced through their webpage the sale of 8 poorly performing centres in the United States, in an effort to divest themselves of "non-strategic assets" that no longer meet their investment criteria, nor are in their long-term development plans.

Criticism

The Australian Competition and Consumer Commission has had investigated several disputes between The Westfield Group and it's tenants. In 2004 the Commission found Westfield was abusing it's market and commercial power in settling disputes with tenants, and forced Westfield to formally undertake to not engage in "Unconscionable conduct and intimidation" of tenants.^[6]

Westfield shopping centres were typically branded as Westfield Shoppingtowns, a practice that has been widely criticized in the U.S^{[citation needed]}. as taking away from the historical importance of many malls; the company discontinued the use of the "Shoppingtown" label in June 2005. Westfield Bondi Junction has been seen as having a direct impact upon local retailers along Sydney's Oxford Street, where rent for shops along the street have dropped by up to AUD100,000 per year.^[7]

Westfield fee structures and policies have also been criticised by retailers who operate in centres which have been taken over by the multinational company. Retailers have suggested that when centres are acquired there should be more cooperation between the new operators and existing tenants in bringing shops up to the corporate standards of The Westfield Group, and increases in rent (required to operate a shopping centre with high standards of fittings and services) should be staged with the required improvements in fittings.^[8]

The company has also been accused in the past of creating bogus front groups to hide behind while ruthlessly fighting competition. In New Haven, Connecticut, the front group was called “Save Our Downtown Alliance”, and in Arcadia, California, where a battle currently rages, it goes by the name “Arcadia First.”^{[citation needed]} Recently, Australia’s most respected public affairs television program reported that Westfield’s CEO was forced to apologize for a series of clandestine campaigns against corporate rivals. Their statement said: “We have been guilty of a lack of transparency and openness and that is a great matter of concern and embarrassment to the company.” And according to the Sydney Morning Herald, “Westfield has shelled out $3.5 million to settle a claim that the shopping centre owner allegedly backed the creation of bogus community action groups intent on thwarting a rival retail property development in Sydney’s west.”

In an attempt to stop a project in Renton, Washington, three separate appeals were filed May 25, 2006, against the city’s approval of a Master Plan for The Landing. The appeals were filed by Westfield’s attorney, Peter Buck of Buck and Gordon, a land use law firm in Seattle. Buck claimed to be filing the appeal on behalf of the “Alliance for South End,” but this non-profit entity was established by him on the same day, May 25. Buck was the only director listed on the incorporation papers, and in the appeal there is an admission that Westfield is a client of Buck & Gordon and is contributing to the cost of the appeal.^{[citation needed]}

Locations

Australia

Having been established in Australia, with their original premesis being at Blacktown, The Westfield Group continue to operate a large number of shopping centres in Australia.

Some of the most well known locations include: