There's another sign that the S&P/ASX 200 Index (ASX: XJO) bull run is justified. The indicator was revealed by shopping centre giant Scentre Group (ASX: SCG).
What's the good news?
The ASX 200 retail landlord released a media update today. Customer visitation at the week ending 24 May 2020 has returned to 80% of what it had been in May the year prior. The coronavirus cloud appears to be lifting.
I think that's impressive. Approximately 80% of stores are open across Australian Westfield Living Centres and 93% of stores are open across New Zealand Westfield Living Centres.
I imagine more people will want to visit shopping centres once they're back to 100% open again.
Obviously seeing that Australia's infection numbers are very low helps. But Scentre said that the safety and hygiene measures are also helping. Some of those initiatives include signage, PA announcements, availability of hand sanitiser and more frequent cleaning in-centre.
There are apparently three top things that we're looking forward to as restrictions ease: going out for a meal, spending time with loved ones and going out shopping. I think that's obviously good news for Scentre.
I'm thinking of all of the ASX retailers that sell at Scentre's locations. Some of the beneficiaries could be Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Limited (ASX: COL), JB Hi-Fi Limited (ASX: JBH), Reject Shop Ltd (ASX: TRS), Lovisa Holdings Ltd (ASX: LOV), Premier Investments Limited (ASX: PMV), Myer Holdings Ltd (ASX: MYR) and so on.
Is Scentre a buy?
The Scentre share price is up 65% since 24 March 2020. I'm not sure how much it will keep recovering. There has been a shift to online sales over the past few months. I believe the return of shoppers to shopping centres is a good sign for Scentre, other retail landlords and the wider economy.
