Agile Hammerson, a prominent owner and operator of retail centers in Europe, is staging a remarkable comeback as it witnesses a significant reduction in losses and an upturn in adjusted earnings. This positive shift in the company’s financial performance can be attributed to its increased agility, resilience, and focus on city centers, leaving behind the challenges posed by the pandemic.
In 2022, Hammerson managed to narrow its losses to £164 million, a notable improvement compared to the previous year’s figure of £429 million. This progress can primarily be attributed to a revaluation deficit of £282 million. Moreover, the company’s adjusted earnings soared by an impressive 60%, amounting to £105 million, predominantly due to reduced costs and a strong recovery in footfall and sales within its value retail division.
One of the company’s most noteworthy achievements lies in its improved footfall. Throughout the January-December 2022 period, footfall experienced an 11-percentage point increase, ultimately reaching 90% of pre-pandemic levels by the end of the year. Hammerson’s property portfolio witnessed a year-on-year surge of 39% in footfall, with the UK, France, and Ireland experiencing growth rates of 41%, 36%, and 35%, respectively.
Encouragingly, positive footfall and sales trends have persisted into the first few months of 2023. While footfall is still below 2019 levels, sales remain 3% higher than the pre-pandemic era. This indicates that consumer behavior and purchasing habits continue to exhibit a strong momentum in the initial months of this year.
Rita-Rose Gagné, the CEO of Hammerson, expressed her satisfaction with the company’s progress, highlighting its ability to navigate a volatile economic and market environment. Gagné confidently affirmed that Hammerson has gained strong momentum and is well-positioned to deliver another year of robust adjusted earnings and cash flow in 2023.
With its renewed emphasis on city centers and its demonstrated resilience throughout the pandemic, Hammerson is poised to regain its position as a leading player in the retail industry. The company’s positive financial performance and ongoing recovery in footfall and sales serve as clear indications that it is heading in the right direction. As consumer confidence continues to grow, Hammerson’s agile and strategic approach will undoubtedly contribute to its success in the years to come.
Useful links:
– For more information on Hammerson and its operations, visit their official website: Hammerson Official Website.
– To delve deeper into the retail industry and stay updated on the latest trends, explore Retail Dive: Retail Dive.
