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Retailers need to integrate technology, digitial and physical spaces, says Scentre Group CEO

Retailers need to integrate technology, digital and physical spaces in order to capture growth in the future, said the chief executive of Australian retail landlord Scentre Group.

Peter Allen told CNBC's "Street Signs" that creating this integration was key for retailers in the long term.

"By owning and operating the better shopping centers, we believe that retailers will take fewer locations in the physical space and larger locations in the more productive spaces," Allen said.

Brendon Thorne | Bloomberg | Getty Images

The ASX-listed property company Tuesday reported a 6.6 percent year-on-year rise in net profit for the first-half of 2016.

Funds from operations came in at A$617 million ($471 million) for the first half, a 2.07 percent increase on-year. Scentre Group also added that it was on track to hit its 3 percent growth target for the full year.

Scentre Group operates and owns 40 Westfield shopping malls in Australia and New Zealand.

CORRECTION: The article has been updated to reflect the increase in funds from operations on an annual basis.

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