CBRE's How Global is the Business of Retail report highlights 2014 data that shows many global retail brands still saw Australia as an attractive market for their international expansion into the Asia Pacific region. Whilst new players into the market bring competitive challenges for the locals, they still generate excitement that hopefully also brings foot traffic for all retailers. And it shows that physical stores are important to the brand experience, even if these retailers have already had an online presence.
Melbourne and Sydney remain the hottest cities in Australia for new retail entrants, ranking equal 39th with 12 new entrants, followed by Brisbane in 45th position with 11 new entrants. Stephen McNabb, CBRE’s head of research for Australia, said overall the analysis paints a favourable outlook for retail space demand. “Australia is attracting its fair share of new retail entrants, in line with, if not higher, than our global economic weighting,” he said. Leif Olson, head of retail brokerage leasing, Australia, said “We have been fielding an unprecedented number of enquiries from international brands seeking to establish a foothold in Australia and gain an understanding of this market. CBRE has held national tours with a number of high profile retailers in recent months and are working on their roll out plans through Australia and NZ.”