New Zealand retailers warned to ‘utilise space’ from Australian stores

  • Property
  • February 15, 2017
  • Courtney Devereux
New Zealand retailers warned to ‘utilise space’ from Australian stores

Retailers around New Zealand are being forced to use bigger spaces to create a ‘presence’ of their brand in stores to combat the loss of foot traffic due to online shopping growth.

Colliers International's head of retail in Australia, Michael Bate, said the retail industry there had been "heavily concentrated and characterised by fierce competition between online shopping".

Now the retail industry is undergoing "an unprecedented period of disruption" as they try to meet the changing demands of consumers and a slew of new competitors based online.

Department stores are now savvier with their space, and embarking upon multi-channel strategies to appeal to changing consumer needs. 

"This is opening up our retail industry to new players, and providing our consumers with an increased choice." Bate said.

“With the influx of online shopping it is crucial that stores utilise the face they can have a physical presence, and to use that as much a they can to their advantage.” Said Bate

New Zealand’s savvy consumers know these global brands, making their move into the market an easy one.

Similar comments have been made, where major fashion brands like Zara, H&M and Top Shop are said to be taking their time finding the right locations. All three shops are two-stories with a distinct feel to each one.

David Jones has said its move to Wellington was largely motivated by the right property becoming available: Kirkcaldie & Stains' historic building on the city's "golden mile".

And with an already bumper year of spending up 6.7 per cent, International brands will continue to trickle in as the spaces provided create an opportunity that online buying tends to fall short on.  

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