Westfield boss Frank Lowy has chaired his last AGM as full-time head of the company he founded more than 50 years ago.
TICKY FULLERTON, PRESENTER: Westfield boss Frank Lowy has chaired his last annual general meeting as full-time head of the company he founded more than 50 years ago.Although he'll remain a non-executive chairman, Mr Lowy is handing over the running of Westfield to two of his sons, Peter and Steven.
Despite all the challenges facing the retail sector, the Lowys have delivered an upbeat outlook for the year ahead.
Andrew Robertson reports.
ANDREW ROBERTSON, REPORTER: As Westfield's shareholders arrived for their company's annual general meeting, outside cleaners who work in Westfield shopping centres were protesting against a price war in their industry which they say has led to low wages and poor conditions.
LOUISE TARRANT, NATIONAL SECRETARY, UNITED VOICE: We think there's a mutual interest here for cleaners and the company to get this right. There's a really important piece, it's about public enjoyment of shopping centres, it's about safety, it's about the business risks of the company.
ANDREW ROBERTSON: Inside the Sydney Town Hall, Westfield directors were taking their places as their leader prepared to publicly confirm he was ending his time as one of the longest-serving and most successful chief executives in Australian corporate history.
FRANK LOWY, EXEC. CHAIRMAN, WESTFIELD: In my case, I wanted to make this change at the time of my choosing, which was also the right time for the company.
ANDREW ROBERTSON: Peter and Steven Lowy will take over the full-time running of Westfield at a difficult time for the bricks-and-mortar retail sector in the face of the rising challenge from the internet. Frank Lowy conceded the web is a serious threat, but also an opportunity.
FRANK LOWY: And you will have noted that we entered this business recently, and if that business grows as much as is anticipated, we'll be able to take part and have a share in that business.
ANDREW ROBERTSON: After the meeting, Steven Lowy elaborated on his father's comments.
STEVEN LOWY, GROUP MD, WESTFIELD: What's also goes missing is the use of the internet for the use of searching for shopping, and the overwhelming use of the internet is actually to search online and to buy in physical stores. Westfield has embraced this immensely.
ANDREW ROBERTSON: Westfield remains sufficiently confident in physical retailing to be looking at global expansion outside its existing markets of Australia, New Zealand, Great Britain and the United States, but it's keeping its cards close to its chest.
FRANK LOWY: It would be premature for me at this stage to give the timing, the location and/or the amounts.
ANDREW ROBERTSON: Retailers around the world are also grappling with sluggish economies. The biggest is the United States, where Westfield is becoming increasingly optimistic.
PETER LOWY, GROUP MD, WESTFIELD: If you have a look at the sales and the sales my dad reported today, the retail industry is recovering, the economy is recovering. And as I have said on a number of occasions, there's large amounts of capital out there globally looking for a home in real estate and especially in the regional mall business.
ANDREW ROBERTSON: Outside Westfield, Frank Lowy's other passion is football, where he was the leader of Australia's failed bid for the 2022 World Cup. He's been closely watching the growing push for football's governing body to investigate the awarding of that tournament to Qatar.
FRANK LOWY: I expected a level playing field. We didn't get it. But I think that the last word has not been heard about that subject yet.
ANDREW ROBERTSON: So do you think the process was corrupt?
FRANK LOWY: I have no evidence that I can say that it was corrupt. But I think there are a lot of questions about the process.
ANDREW ROBERTSON: Questions all Australian sports fans want answered.
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