Westfield says department store industry consolidating in US

SYDNEY - The consolidation of the department store industry is proving to be a big problem in the United States, a Westfield senior executive says.

Westfield's worldwide investments currently total A$450 million ($496.63 million) and its penetration has been most apparent in the highly-competitive North American market.

Westfield USA group managing director Peter Lowy today said the company would be spending more than A$1.5 billion of its own capital in Los Angeles over the next four to five years.

"The biggest issue that we probably face is the consolidation of the department store industry and we do have to do re-development," Mr Lowy told Nine's Business Sunday.

"That's particularly in the US."

"There were probably eight or ten department stores that we used to deal with, now there's probably five or six that we can deal with."

Mr Lowy said this number would continue to decrease.

"For us and for the consumer, the US mall industry has lost parts of its business to other forms of retail lifestyle centres, and power centre strips over the last 10 or 15 years," he said.

"We need to win back those customers so we need to give them the retailers that they're looking for."

Westfield currently has A$45 billion worth of assets worldwide.

- AAP