Global retailers choose Australia

April 19, 2012
The Age

NEARLY a third of the world’s largest retailers have a home in Australia and more are on their way, particularly as the redevelopment of shopping centres has helped to create flagship stores.

Underpinning the decision to move here is the fact that, while the internet is rising in importance, a majority of consumers still want to browse in a traditional mall.

According to the latest Australian Shopping Intent Report from AMP Capital Shopping Centres, shoppers are basing purchasing decisions on a combination of online and traditional mediums.

The report is based on a study of spending habits across 19 categories, based on interviews with more than 1000 Australian shoppers. It found consumers were demanding the ability to shop both online and in a physical store.

The report’s author, retail specialist Michael Bergdahl, has described consumers as ”omni-channel” shoppers, who roam retail stores while checking competitors’ prices on smartphones.

The medium with the highest level of influence on shopper purchases remains the colour catalogue, which was preferred by more than a third (37 per cent) of respondents. Mr Bergdahl said this was apparent even among younger shoppers, with 28 per cent of 18 to 24-year-olds and 30 per cent of 25- to 34-year-olds nominating the catalogue as their first preference.

But bricks and mortar are still relevant, according to property agent CBRE’s regional director of retail services, Joshua Loudoun.

He said the latest Westfield centre in Sydney’s CBD had provided new space for flagship stores, which in turn attracted other retailers.

In CBRE’s fifth ”How Global is the Business of Retail?” survey, Australia ranked 30th of the 73 countries examined for international retailer presence, attracting 28.8 per cent of all retailers included in the study. This was up from 27.3 per cent the previous year.

Mr Loudoun said Melbourne led the capital cities in Australia, with 25.6 per cent of retailers present, followed by Sydney (24.3 per cent) and Perth (13.6 per cent). ”Australia is in the top 10 of markets that north American retailers target, and although historically we rarely featured on the radar of the major international retailers, more recently they’ve seen strong sales in their Australian stores,” Mr Loudoun said.

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