Victoria – A positive growth story
Australia’s retail market of late has been going through unique structural changes largely driven by the way consumers shop through omnichannel spending, and shifting household budgets.
Accordingly, retailers are searching for opportunities to secure growth and Victoria is proving to be a smart investment for the astute retailer for several fundamental reasons, including population growth, stability of government, growth in jobs, and a buoyant economy.
Victoria is the fastest growing state in Australia, and the only state sitting above the national average for population growth. In the year to June 2018, Victoria’s population surged by 138,000 to 6.4 million. and by 2051 Victoria is projected to grow to about 10 million people, of which it’s estimated 8 million will reside in Greater Melbourne.
Victoria’s rising population is also being buoyed by growth in employment, again outstripping the national average. According to the ABS, between 2011-2016 in Casey, 15,000 new houses were built and over the same time, 16,000 local jobs were created. In Melton between the same period, 8,000 new homes were built and 8,000 jobs created. In Whittlesea, 11,000 new homes were constructed and 20,000 new jobs created.
ABS Data also suggests that there were 115,300 jobs created in the top 20 Places of work in Greater Melbourne between the 2011 and 2016 Censuses.
Chris Parry of Leedwell Property said that “a handful of developers are taking advantage of Victoria’s strong economy and answering to the demand from retailers for strategically located retail accommodation. We are currently marketing a number of significant retail developments across greater Melbourne including the 25,400sqm Element Park, which is anchored by a new 16,000sqm Bunnings Warehouse in Clyde North, a 13,000sqm expansion of the hugely successful Millers Junction precinct in Altona North which will be anchored by Woolworths, and Uni Hill Factory Outlets in Bundoora is expanding by 4,500sqm with a lifestyle offering tailored to service customers in the fast growing northern corridor of Melbourne.
“We are partnering with familiar and proven developers such as MAB and Charter Hall who have a proven track record in the retail sector and understand that Victoria and Greater Melbourne make smart investing for the future.”
Big brand international and Australian retailers are also investing in Victoria.
Kaufland, which is owned by the world’s fourth largest retailer, Schwarz Group has recently descended on Melbourne as a testament to the strength of Victoria.
Last month Kaufland announced plans to invest $459 million building a 115,000 square metre distribution centre and headquarters at MAB’s Merrifield in outer Melbourne, and three stores at Epping, Dandenong and Chirnside Park in Melbourne.
Officeworks also recently chose Melbourne as its platform to launch a new hyper-format comprising a 6,500sqm store that boasts the largest office supplies store globally.