International brands shaping Australian retail

International brands shaping Australian retailOn the back of Myer CEO and managing director Bernie Brookes’ statement that the Australian retail sector – in the midst of its third major revolution in years – is shifting to accommodate international players, American company Williams-Sonoma announced its further expansion on Australian shores.Speaking at Australian law firm Lander & Rogers’ recent annual Economic Briefing in Melbourne, Brookes acknowledged a more competitive marketplace amid a flurry of international brands entering the Australian marketplace. He said getting products from ‘runway to rack’ quickly is a consideration for retailers if they are to be competitive with the international brands entering the Australian marketplace, including H&M, Zara and Topshop.International brands are increasingly carving up retail market share in Australia across fashion and lifestyle, homewares and cosmetics, with traditional department stores feeling the pressure. More global brands are expected to open flagship stores in Australia’s major cities, including French cosmetics purveyor Sephora, US clothing store Forever 21, and UK brand River Island.North American homewares retailer Williams-Sonoma recently announced it would be expanding its Australian footprint, opening four new stores from its stable of brands in Sydney’s Chatswood Chase in August. Later in the year, it will do the same in Melbourne’s Chadstone Shopping Centre.The brands – Williams-Sonoma, Pottery Barn, Pottery Barn Kids and West Elm – were launched in the Australian marketplace when Williams-Sonoma opened stores in Bondi Junction in May 2013 and another West Elm store on Chapel Street in South Yarra a few months later. The brands also ship Australia-wide via their websites.”We are excited to continue our global expansion in Australia,” said Laura Alber, president and CEO of Williams-Sonoma. “When we opened our stores in Bondi Junction last year it was the first time we had showcased all four brands together. We plan to replicate this when we open stores in Chatswood Chase.”Location is a major consideration for international retailers vying for space in capital cities, and it can prove to be a challenge given major brands look for generous floor space to showcase their wares. Following the opening of H&M in Melbourne’s GPO in April this year, H&M Australia country manager Hans Andersson was reported as saying that scouting for locations in Australia took more than three and a half years.”Locations like the GPO don’t grow on trees – they are hard to get,” he said. “The first stores you open in a new market are the most important, though – they have to be the right ones. That’s so important. So we took the time to find that.”Lander & Rogers partner John Wells said that, as a result of the influx of international brands, specifically in CBD locations, there is an increasing number of retailers competing for Australian retail space, and we can expect this to continue. “Having a bricks-and-mortar presence in key CBD locations is an advertisement for the importance of traditional retailing,” he said, “where online channels are increasingly used to push sales.”Brookes agreed, adding the digital space is forcing retailers to make very significant changes to link online retail and traditional storefronts: “Once you have a bricks-and-mortar presence, such as a flagship store, you build up trust and recognition, and people are more comfortable about buying the product online,” he said.”What we are now seeing is the advent of fully integrated retailers taking pre-eminent positions in the retail market.”