Opportunity abounds for international retailers

Opportunity abounds for international retailersWhile major international retail brands continue their expansion into Australia, a number of local retail markets remain relatively untapped, according to JLL’s Destination Retail 2016 report.Of the top 10 international apparel, cosmetics and homewares retailers actively expanding into Australian shopping centres, JLL estimates that they have collectively leased close to 100 stores, spanning approximately 130,000 sqm – an area the size of Westfield Bondi Junction.JLL’s research manager, Jenny Dong, says saturation across the Asia Pacific is encouraging retailers to set their sights on Australian shores.”We have seen numerous new entrants in the Australian market over the past five years and we expect this trend to continue,” she says. The research report ranks 140 cities according to their appeal to cross-border retailers, and classifies Sydney and Melbourne as ‘mature retail cities’, ranking 61 and 63 respectively. Mature retail cities are characterised by strong domestic sales and domestic brands, stable growth outlooks and an affluent consumer base. Other mature retail cities include Miami, Honolulu, Barcelona and Frankfurt, behind ‘global retail cities’, such as London, Hong Kong and New York.According to Cameron Taudevi, JLL’s head of retailer representation in Australia, the availability of suitable large format sites has delayed the entry of many major international retailers into the Australian market.However, significant redevelopment works around the country are providing new opportunities for international retailers to expand their store networks, he says.Taudevi points to redevelopments at Pacific Fair on the Gold Coast, and Pacific Werribee and St Collins Lane in Melbourne, which have each secured a suite of international brands, including H&M, UNIQLO, Tiffany & Co and TAG Heuer.”International retailers are gradually moving into regional shopping centres in suburban Sydney and Melbourne locations, but have yet to gain a significant presence in other markets,” Taudevin explains.”There remains plenty of opportunities for these retailers to secure quality retail space in each of our capital cities, particularly in the broader, relatively untapped Brisbane, Perth and Adelaide markets.”Download JLL’s Destination Retail 2016 report.