The Australia and New Zealand retail landscapes are undergoing considerable change. An acceleration of international brand entry to the region, particularly in the past three years, has driven rents up in CBD markets, asset enhancements in regional shopping centres and activated new retail precincts.
Strong preference for international brands, food and beverage and “retail-tainment” from the younger demographic is supporting this change, as is the increase in tourists arrivals, particularly from China. Chinese tourists not only spend more per visit, but have a higher appetite for goods “purchased to take home”, as opposed to western tourists.
Sales productivity of some international brands in Australia and New Zealand is among the highest in the world, and coupled with low international brand penetration rates, make this region highly attractive. Change through new brands, products and retail concepts has enhanced the overall shopping experience and is expected to draw consumers back to physical stores. The current strength of international brand entry is expected to continue, at least in the short to medium term.