FEATURE ARTICLE RETAILING IN AUSTRALIA THE FUTURE OF BRICKS & MORTAR RETAILING IN AUSTRALIA www.buggreport.com.au
The Future of Bricks & Mortar Retailing in Australia It’s fair to say that Bricks and Mortar retailing has been experiencing a significant transformation here in Australia over the past 5 years. The combination of a changing shopper demographic and behaviour, cost of living challenges and the onslaught of online platforms such as Temu and Shein have significantly impacted the fashion space and consumer products in general. It is reported that some 70% of the population have purchased from these retailers in the past 12 months.
Bugg studies retail on a weekly basis, both from a Shopping Centre
The large shopping centre outlets such as Chadstone in Victoria continues
perspective and free-standing retailers. It’s clear that a growing number of
to grow and is home to hundreds of global brands. It also offers a
retailers have not moved with the times. A good example of this was Jeans
destination where shoppers can experience world class presentation
West which was around in the 80’s offering fashion relevant for the time.
including food, entertainment, fashion and there is now a hotel located in
As time has moved on the consumer who shopped in these outlets is in
the precinct to attract consumers who plan a trip to experience the centre.
their 60’s and the younger demographic has moved on to fast fashion. Clever operators such as Peter Alexander, Cotton On, Apple, Mecca and Additionally, Ally Fashion was also liquidated recently and was victim to
Sephora (Beauty/Cosmetics space) all offer a shopping experience which
changed shopping patterns, increased operational costs and increased
complements their products. Cotton On also provides the consumer with
international competition.
good ambience a trend forward product offer.
Brands such as Millers and Noni B have also disappeared as they became
Gentle Monster is a South Korean luxury eyewear brand known for its
irrelevant in a changing market.
avant-garde designs and unique retail experiences. They are also known for their limited-run collections and experimental approach to fashion.
Interestingly we have seen KMart, who operate in the mass market
They have just entered the Australian market and have aggressive plans
segment, take significant steps forward as they develop their own ANKO
for expansion.
brand. It is reported that 85% of their current SKU count is ANKO based. It’s also reported that they are approaching 10 billion dollars of turnover from their 300 stores. Clearly, they have found a formula which is being embraced by Australian consumers. Interestingly the LEGO brand has 22 AG LEGO Certified Stores in Australia and New Zealand. These stores are part of a larger network of official LEGO stores worldwide, but only a select few are in Australia and New Zealand. AG LEGO Certified Stores operates these stores in partnership with the LEGO Group, Alquemie Group. These stores provide a high level of experiential activities and attract significant foot traffic. In terms of retailers who have failed to keep up with the times, there is a long list over the past 10 years including: Ed Harry, Dimmey’s, Roger David, Oroton, Dick Smith, Masters, Homart, Retail Adventures, Colorado.
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EDITION 50 — MAY 2025