Sandton City’s luxury sector continues to thrive, with high-end brand performance in the mall steadily on the rise despite a challenging economic climate.
According to landlord Liberty Two Degree (L2D) CEO Amelia Beattie, the luxury goods sector at the centre has grown from contributing 12.5% of turnover in 2019 to 19.1% in 2024, despite occupying only 3.6% of the gross lettable area.
The luxury sector has faced challenges globally, with some brands undergoing changes in executive and creative leadership. Sandton City has consolidated its luxury goods into a designated area dubbed the “Diamond Walk”.
The Diamond Walk, which opened in 2015 and was a first-of-its-kind offering in SA, had seen few tenant casualties, Beattie said. The mall continued to engage new entrants with more new tenants expected in the next two years.
While the sector was small when compared with international standards, it was a big money-spinner for the mall, with lesser brands having faced some headwinds, she said.
The luxury market abroad has been affected by several factors, including regulatory changes in the UK, increased social consciousness and government action against “wealth flaunting” in China.
Sandton City leads among SA’s three biggest purveyors of luxury goods, with the other two the V&A Waterfront in Cape Town and Oceans Mall in Umhlanga.
Though short-term growth was stabilising in the sector, it remained a strong performer within L2D’s portfolio, Beattie said.
L2D, which co-owns Sandton City, was delisted and became part of the Standard Bank Group after its subsidiary Liberty finalised the buyout of minority shareholders in L2D in November 2023. L2D’s assets are predominantly retail focused and include Eastgate, Nelson Mandela Square, Melrose Arch, Liberty Promenade Shopping Centre, Liberty Midlands Mall and Botshabelo Mall.
Beattie said Sandton City had recently introduced high-end brand Maxhosa, while Bally would open shop in November. A potential expansion of the Diamond Walk was also being considered.
Sandton City features a number of flagship stores, some of which are grouped according to what they sell. These include Under Armour, Puma, New Balance, Skechers, Burnt and The North Face. The trend of aggregating tenants was in line with the theme shared by Standard Bank’s head of behavioural science and innovation, Shalia Naidoo, who said scattering shops around made it more difficult for customers to find a specific tenant.
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