There are three reasons why we’re about to recommend you sell your holding in Westfield Retail Trust, and only one concerns valuation. Whilst it’s satisfying that the security price has risen 46% since we upgraded it to outright buy on 09 Aug 11 (Buy – $2.30), the fact is that conventional retail is a business undergoing a fundamental shift, for the worse.
Take a trip down Pitt St Mall in Sydney and you may not get that impression. Compared to three years ago, the area is transformed. Westfield Sydney glistens and gleams, bursting with new international retailers like Zara, Gucci, Prada and Gap.