In big demand … despite internet shopping trends, retail landlords remain positive about opportunities this year. Photo: Kate Geraghty
RETAIL will be the focus in 2012, not for the latest in fashion but for what landlords and tenants are doing to boost sales and ward off the impact of the internet.
A variety of new tactics will be used to get shoppers, not just into the bricks and mortar malls but to open up their purses and wallets and part with cash.
Landlords have the advantage of being able to alter their tenancy mix, which is why there have not been many defaults, except for the RedGroup. But a majority of those stores were re-let within weeks and the same will happen when Premier Investments lets the leases lapse on its 90 stores in the coming year.
In having that flexibility, landlords such as Westfield, CFS Retail Trust and GPT have all reported sales growth in the past year.
And this growth has come at a stronger rate than their tenants, particularly the department stores.
This ability will be borne out as the landlords that have Dick Smith stores in their centres look to release the pace when those sites are closed.
This week Woolworths said it was selling the Dick Smith business and signalled the closure of about 100 stores across the country.
Some of these will be in shopping centres while others are stand-alone sites in suburban strips.
Westfield leases 31 Dick Smith stores and says it is confident of being able to re-let them as it did when the Borders chain closed last year.
Agents say other smart moves that will become prevalent this year to get people to shop will be ''designer'' collaborations with ''high street stores''.
The director of retail leasing for Knight Frank Australia, Alex Alamsyah, said labels such as Versace had teamed up with H&M and in New York late last year at the H&M store, there were long queues of people desperate to buy low cost Versace clothes that were only available in the H&M store.
''The entire Versace range was sold out in 40 minutes,'' he said.
Mr Alamsyah said in Sydney last year there was hysteria when Stella McCartney collaborated with Target stores; and this year, Target and Grazia magazine are joining forces to create a limited edition collection. Another move is to focus on the lucrative children's fashion market.
While a bulk of items are bought at discount department stores, new parents, god parents, grandparents and doting friends are all willing to splash out on children's clothes.
To grab a share of this market, the private retailer Peter Lew opened another store in his SEED & Co chain late last year.
He has taken a lease at the refurbished 182 Pitt Street Mall, next to Zara and will offer SEED Children's wear, which is part of his Seed, Seed Femme and Thurley stable of modern brands.
Mr Alamsyah, who was the agent for the new SEED store, said children's retail is an area that will undergo a radical change, as it is one sector that is being overtaken by the internet.
''Gucci is opening a children's boutique in New York - don't you think it's a smart move? Less material for the same price?'' Mr Alamsyah said. ''Stella McCartney is also opening her first Stella Kids flagship store in London.
''Kids' fashion is a growing market. Their customers are also growing with it, from baby to toddler to preschool, the cycle of shopping continues.''
