Luxury Retailers Targeting Melbourne
Following the purchase of Harbour Town, AsheMorgan has been keeping an eye on the continually changing retail environment of Melbourne. One key observation is that the number of luxury retailers opening or expanding their store network across Melbourne’s CBD increased substantially in 2014 and early 2015.
The growth in high-end retail is supported by rising levels of international visitors to Melbourne who have a greater tendency to purchase luxury items than domestic visitors. Australians are, however, becoming wealthier and this generally supports an increased level of spending on high-end products as well.
A number of redevelopments across the CBD are rejuvenating the city, making Melbourne a highly attractive retail destination – something that AsheMorgan hopes to replicate in its offer down within the Docklands precinct. Melbourne is likely to continue to see a growing number of foreign brand entrants and expansion plans rolled out over the next few years, with luxury brands targeting prime locations in the CBD and its surrounds. The entrance of foreign brands is, and will continue to be, a trigger for change within Melbourne’s retail landscape, and amid a tighter vacancy market, rents are likely to rise further.
Successful sales of their flagship stores and low vacancy in the CBD strips will see affordable luxury brands make their way to shopping locations surrounding the CBD including Harbour Town and into more regional shopping centres such as Chadstone. Redevelopment and extensions of existing regional shopping centres will be better equipped to cater for foreign brands who demand concept designs and flagship stores.