It's impressive to see that for some International retailers, Melbourne (if not Australia) provides some of their strongest turnover figures. It's clear that the lower AUD is boosting tourist spending power for luxury goods. And I suspect International brands have more control over their inventory costs around the world, unlike our local brands that may have to pass through the impact of a lower AUD on their inventory purchasing to consumers more quickly (not that pricing of luxury goods is as price sensitive). Overall a strong luxury retail sector in Melbourne hopefully filters down to all retailers, at least in Collins Street!
Since the start of 2014, 18 international retailers have committed to secure a foothold on Collins Street in Melbourne’s CBD. A new CBRE research report analysing Melbourne’s changing retail landscape highlights a spike in the number of luxury retailers entering the market in 2014 and early 2015. “The number of retailers flocking to Collins Street is evidence of its growing appeal on the international stage, with Melbourne regarded highly in the global fashion rankings,” said CBRE Melbourne retail services senior manager, Zelman Ainsworth. “This retail demand is on the back of impressive turnover figures being reported by the existing international brands on Collins Street. In some cases, Melbourne is achieving the highest turnovers globally.” The recent influx of luxury brands include Hermes, Dior, Longchamp, Gucci, Dolce&Gabbana, Ermenegildo Zegna, Coach, TAG and Christian Louboutin.