Consumer tribes – how Gen Y, X, baby boomers shop and respond to brand marketing

Esther HanSydney Morning Herald Sunday, 15 March 2015

Please click here to download the full article.

They are demanding, love a bargain, and are "promiscuous" when it comes to brands. Now this 20-somethings group of Generation Y consumers are set to leapfrog Gen X-ers and overtake Baby Boomers as the nation's biggest spenders.

And companies are paying attention as they target their products to the shopping personas of each generation.

"In the next 10 years we'll see a down-ageing of the key demographics brands will have to sell to, like switching from 65-year-olds to 35-year-olds in a short period of time," said British trend forecaster Chris Sanderson.

"They're totally different and many brands are at risk of falling behind."

According to his research, Gen Y consumers, in their 20s and early 30s, do not feel a sense of loyalty to brands and are happy to mix luxe pieces with bargain bin finds. Digitally fluent, they want and expect brands to engage with them online.

Sportswear giant Nike was a solid example of a brand that had secured Gen Y's attention and dollars by harnessing the power of social media, well-designed apps and community.

"They understood the power of check-in and location software so users could find other people say playing basketball in their town," he said. "Using their app, you can track where and how you run. Other brands are still playing catch-up."

Among marketers, Baby Boomers, now mostly in their 60s, are being called "flat agers" because they do not want to be defined by their age. They are travel happy, meaningful spenders.

Based on that insight, Luxury brand Yves Saint Laurent played the concept of "agelessness" right when it advertised its pricey, saffron-infused Or Rouge face cream as a "renaissance treatment" rather than another anti-ageing product.

"They don't want be told they need to buy anti-ageing products. They want to be told they are beautiful just as they are," Sanderson, co-founder of The Future Laboratory, said.

Next are the "multi-tasking" Generation Jones-ers, now in their 50s, who are community-focused, cautious spenders. They prefer high-quality, sustainable products from brands with a strong back story.

"In Australia, Country Road is the obvious example, as its ads represent an Australian way of life. It's not designer and not overpriced, but there's quality," he said.

Please click here to download the full article.

Mr Sanderson considers Generation Jones as a standalone category. But some experts, such as Tony Dimasi, managing director of retail at research firm MacroPlan, groups them with the Boomers.

According to Mr Dimasi's latest research, Gen Y will spend more than Boomers by 2021, increasing their share of total retail spending to 30 per cent. Between now and 2021, Boomers' share of retail spending will drop from 31 per cent to 26 per cent.

"Affluence is largely driven by income but not entirely so. One of the reasons why Gen Y are able to spend significant amounts is because their Baby Boomer parents provide the means for them," he said.

He said Generation X, those in their late 30s to late 40s, suffers from the "Prince Charles syndrome" because they are "sandwiched" between the Boomers and the ever-demanding Gen Y.

"Although we had strong economic conditions all the way through to the GFC, the Boomers called all the shots, and they're still hanging on. The readjustment post-GFC is geared more towards Gen Y, than Gen X," he said.

Mr Sanderson labelled Gen X consumers as "stressed out," having to raise children, look after ageing parents and pay the mortgage. Plus, with rising costs, they are frustrated they cannot splash their cash as they would like.

While Gen X are the most brand loyal, they are constantly seeking value-for-money products at no-hassle stores such as Target, Big W and Aldi.

But Dee Madigan, creative director of Campaign Edge who has worked on Coca-Cola, David Jones and Unilever campaigns, said Gen X were becoming less brand loyal because they did not want to grow up.

"We don't want to be like our parents stuck on buying the same brands, we want to be the cool ones still," she said. "In that sense, Gen X is acting more like Gen Y."

But if a brand attracts Gen X, it risks losing the interest of Gen Y. For example, when Zara opened its flagship Pitt St Mall store in 2011, the General Pants store opposite put up balloons and a sign that declared: "My mum shops at Zara".

"That's good Gen Y marketing. To make people say, 'that's an old person's brand," she said. "Also, brands tend to skip a generation before they're cool again, like Levis jeans. No one wants what their parents have got."

The Future Laboratory describes today's teenagers as the "visually led" Generation D, digital natives heavily influenced by their peers on well-developed social networks.

Even younger are the "phygitally active" Generation I who are so immersed in technology that they do not see it. They are also "interactive and intuitive".

Please click here to download the full article.

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About MacroPlan: MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact James Turnbull, National Head of Retail today to discuss your property research requirements.

Australia’s Big Guns: diversity and adaptability

Shopping Centre News
Tony Dimasi, Managing Director- Retail
Vol 33, Number 1 - March, 2015 In this article, Tony Dimasi charts the course of the Big Guns from their early days to the present time.  He contrasts them with their American counterpart and draws some conclusions.

Australia’s biggest and best regional centres continue to grow strongly, despite whatever headwinds have been faced by the retail sector more broadly, particularly in the post-GFC period. These iconic retail assets provide an offer which, in terms of its diversity, is unique by world standards – that in essence is their key strength, while their adaptability is another.

The current development trends evident at many of the Big Guns are once again testament to these two virtues, a feature which has underpinned the success and resilience of these centres for the past 30 years. A large number of them have recently undergone or are currently undergoing major expansions and redevelopments, which are adding the next layer in what is already a multi-layered and multi-faceted shopping and entertainment package.

Many of these centres started life with the primary objective of providing accommodation for suburban department stores during the 1960s and 1970s. Indeed, a large number of them were originally developed by the department store operators, Myer and Grace Bros, and apart from very large department stores had little else of consequence in their first incarnations.

Over the past three decades, we have witnessed their adaptability through the successive additions of new layers of customer attraction – the mass merchandise discount department stores and supermarkets which were so popular during the 1980s; the foodcourts, cinema multiplexes and then fashion specialties during the 1990s; the mini-majors and homewares stores during the early 2000s; and currently the new fast fashion global retailers, together with extensive food & beverage offers, even more specialty fashion and revamped fresh food shopping.

Facilitating this ever more diverse offer has been the continual growth in size of these assets. Over the past 20 years, the typical regional centre in Australia has increased in size by about three-quarters – from around 48,000 sq.m to 84,000 sq.m. The largest, and generally also best performed, have increased further. The average size of the Top 10 regional centres in the country has doubled in size, from around 67,000 sq.m to 134,000 sq.m (see Chart 1 below).

Australia's leading regionals

The importance of the department store was still quite evident 20 years ago, when close to 40% of floorspace in these centres was devoted to department stores. The steady fall in the department store’s fortunes is apparent in the changing composition over the past 20 years, as is the increasing diversity through the continual additions of more mini-majors and specialty stores.

It is remarkable how, over a long term period, the growth in scale of these centres in Australia has been both steady and even. Typically they are increasing in size by 30,000 – 35,000 sq.m each every decade.

Diversity of offer has therefore come in part from continual increases in size, but that diversity has also been manifest in a number of other ways.

First, there is diversity across both retail categories and market segments – even in food and groceries, for example, they have it all covered, from discount supermarkets (Aldi is represented in a number of them, something which is unheard of in comparable international assets) to artisanal fresh food specialists.

The availability of supermarkets, both large footprint, full-range supermarkets and the much smaller discount formats, plus extensive specialty fresh food offers, means that Australian consumers do not blink at the thought of doing their food & grocery shopping at a large regional centre. In fact, many of these centres achieve food turnover in the hundreds of millions.

Interestingly, revamped and extended fresh food shopping is one of the key features of the latest round of redevelopments at the various top regional centres currently underway, despite the apparent incongruity of visiting a 100,000+ sq.m regional centre for ‘convenience’ shopping.

The inclusion of supermarkets in these centres, and the willingness of Australian consumers to embrace the supermarket as an integral part of the centre, has helped to create a baseline trading strength, and to generate enormous volumes of dependable, regular footfall traffic.

In fashion shopping, diversity of offer comes in the coverage from lower end mass merchandise (discount department stores, lower end specialty apparel stores, mini-majors) through to premium specialty fashion labels, which are extensively represented in almost all major regional centres. Luxury designers, such as Prada, Louis Vuitton, Gucci, Chanel, Tiffany & Co and others also get a look in at the right locations. Not too many centres contain luxury brands of this calibre, of course, but a number certainly do, and more will do so in the near future.

Again, in typical super-regionals elsewhere, particularly in the United States, the discounters are generally not represented, as centres of this nature are deemed to be the provenance of department stores and generally higher end apparel and homewares shopping.

Between food and fashion they cover everything else – homewares, household goods, retail services, and of course entertainment. The cinema multiplex has been the mainstay of the entertainment offer, but has been increasingly supplemented with ever improving food & beverage, a trend which is set to explode in coming years.

Diversity of offer also comes by way of the sheer number of retailers provided. It is quite typical for an Australian super-regional centre to contain 100 – 150 more shops than its counterpart in the US, even though the US centre might have substantially greater floorspace. The differences lie, first, in the propensity of major US regional centres to be much more department store dependent (many containing 3, 4 or even 5 such stores) as well as the much smaller average specialty store size for Australian centres as compared with the US centres.

Thus, a centre such as Chadstone in Australia contains about 150,000 sq.m and accommodates close to 500 retail shops, whereas South Coast Plaza in Costa Mesa in the US, one of the very best super-regionals in that country, contains about 250,000 sq.m but only around 300 individual shops.

Their adaptability has been readily evident both in terms of what they provide and what they look like i.e. the environment that they offer. First and foremost their focus has been on retail mix, and ensuring that whatever is new and hot in retailing is included in their list of attractions. In that way, they have become the natural home for pretty much every significant retail innovation as it has arrived in Australia, the most recent being the new fast fashion global brands.

Increasingly, they are also adapting physically, from an environment which originally was an enclosed box with its back to the rest of the world, to one which is becoming a much more welcoming neighbour to the surrounding world, with town squares/piazzas, street facing restaurants, and more mixed-use development.

With the benefit of hindsight, all of this might appear obvious, perhaps even straightforward. However, the planning and execution of strategies to maintain these assets at the pinnacle of the retail hierarchy have been painstaking, and the need for continual renovation and revitalisation has been paramount. The efforts that have been devoted to achieve these objectives cannot be understated.

The rewards have, in the great majority of cases, reflected those efforts. It is well known that, on a productivity basis (i.e. dollars per sq.m of floorspace) Australian regional centres exceed the trading levels of their international peers, and by a fair margin.

Not in every case of course – there are many examples globally of highly successful centres, which trade at levels similar to or higher than those recorded by Australia’s best. But as an asset class, Australia’s Big Guns stand apart, even on a global basis.

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About the author:

Tony Dimasi Managing Director – Retail E: dimasi@macroplan.com.auTony Dimasi is MacroPlan's Managing Director – Retail.  Since 1982 Tony has undertaken independent research on behalf of retailers, shopping centre owners and managers, property developers, government and statutory authorities, as well as a wide range of other clients. The research includes both supply and demand analysis, as well as extensive customer research, investigating customer behaviour, motivations and preferences with regard to shopping and activity centre uses. Tony has worked across all parts of Australia and New Zealand, and has provided advice in relation to virtually every significant activity centre location in both countries. The range of projects has included BD properties, super regional centres, regional and sub-regional centres, district and neighbourhood centres, homemaker retail facilities, freestanding stores, and all other retail formats, as well as commercial and industrial precincts.
About MacroPlan: MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact Tony Dimasi, Managing Director – Retail today to discuss your property research requirements.

Food Glorious Food

Shopping Centre News
Vol 32, Number 5, 2014 There is a quiet revolution occurring in Australia’s shopping centres, and the result is mouth-watering. This revolution has been underway for some time, perhaps in the past more in the form of evolution, but is now gathering momentum at a very rapid rate.

Most recently, I noticed this only a week or so ago while walking through the freshly expanded and redeveloped Westfield Garden City at Mt Gravatt in Brisbane. I was struck by a combination of food and beverage outlets that included:

  • a new ‘town square’ restaurant precinct, which offers more than a dozen restaurants, built around a resort style water feature;
  • more than 50 foodcourt/take-away food outlets throughout the centre, including two substantial foodcourt precincts; and
  • numerous other cafés strategically positioned throughout the malls.

In total, I counted more than 75 food and beverage outlets at the redeveloped centre, including a recently added, and very busy, Asian style hawker centre (8 Street) which itself contains about 15 small, authentic hawker food stalls.

It is no exaggeration to describe the provision of food and beverage options at Westfield Garden City as quite staggering.

But Westfield Garden City is not alone. The very recently expanded Westfield Miranda in southern Sydney similarly provides a hugely extended range of food and beverage options, including a new, street facing restaurant precinct, while redevelopments of other major regional centres, including Macquarie Centre in Sydney, just recently opened, and Eastland in Melbourne, which is underway, will also deliver vastly improved and extended F&B offers.

Other major centre redevelopments, imminent but yet to get underway, will also provide broadly similar numbers of F&B alternatives, i.e. in the order of 70 – 80, and in some instances, even more.

Chadstone Shopping Centre in Melbourne has long been at the forefront, with more than 80 food and beverage outlets available within the centre at last count, and with the next round of redevelopment at the centre, now underway, set to push the envelope further.

These new provisions are almost double the levels which were generally provided at Australia’s major regional centres only a few years back, and span an enormously wide range of eating and drinking establishments. No longer is it just one substantial foodcourt, with 8 – 12 small outlets and communal seating, plus a dozen or so other cafés and the occasional restaurant scattered throughout the centre.

Now, we can expect to choose from a much larger foodcourt, sometimes two, with popular new offers including Mexican, Vietnamese, Malaysian, street food, dude food and an ever expanding range of Asian alternatives such as Korean and Taiwanese. Often, a more upmarket café court with a similarly wide range of options, plus, increasingly, a restaurant precinct, round out the total offer. The restaurant precinct can provide casual family style options such as Grill’d, Pancake Parlour, yum cha, Groove Train and dumplings galore, as well as more smart/upmarket options, such as the Mediterranean Bar & Grill at Westfield Garden City.

And let’s not forget chocolate – who would want to forget chocolate – where the pioneering Max Brenner now also has as companions San Churro, Koko Black, Theobrama, Ganache, Chokolait, Lindt Café, and many smaller groups/independents. The coffee options are similarly broad, and continually expanding.

Clearly, something is afoot. The chart below, showing how Australians have changed their retail spending habits over the past two decades, is a useful pointer to what is happening, and why.

Key retail categories

Since 1994, supermarkets have continued on their merry way, dominating the fresh food category, pushing ahead with ever better offers, and winning more and more customers. That is the most obvious trend in Australian retail expenditure over the past 20 years, and has become even more pronounced in the post-GFC period. The redevelopments of Australia’s major centres are also tuned into this factor, and recent fresh food hall openings, such as at Macquarie Centre in Sydney a few months ago, provide the latest in large, beautifully presented new supermarket offers, with an extensive range of supporting specialty fresh food plus some F&B options dispersed throughout the mix, all in an attractive, convenient environment. Customers are able, and encouraged, to both have a meal or a snack as well as buying all the food, groceries and packaged liquor that they could possibly need.

Food and beverage sales, including all take-away food plus cafés and restaurants, have not increased at quite the same rates as fresh food sales, but have certainly increased very rapidly, and again, particularly in the post-GFC period.

Against that, the two key non-food categories – department stores/discount department stores and apparel/footwear retailers – have had to scrap hard for every little bit of growth. Whereas both of those categories were almost as important in total sales terms as the F&B category in 1994, they are each now worth roughly half the value of that category.

The retail food and beverage market is now worth close to $40 billion (not including pubs and clubs, which are not classified as retail), compared with around $18 billion for the department stores and discount department stores category in combination, and about $21 billion for other apparel and footwear retailers. So, it should be no surprise that our major centres have woken up to the potential which lies in keeping customers well fed and spoilt with dining options.

The trends that we are seeing are therefore both soundly based and to be expected, indeed arguably a little late in coming. In the past, when the F&B category was much less important, the traditional foodcourt tended to be a place of respite for harried parents looking to pacify the kids, for a short period of time, before either heading home or continuing the shopping. It was unusual for customers to think of a major shopping centre destination when considering a meal out, particularly of an evening.

However, the current and imminent redevelopments are seeking to turn that kind of thinking on its head. To some degree, we are seeing some parallels with the transformation in fashion shopping which occurred in the early 1990s, when the focus of serious fashion shopping largely transferred from the CBDs and ‘posh’ high streets (Double Bay, Oxford Street, Burke Road Camberwell, Chapel Street Prahran, etc) to the major regional centres.

While the numbers alone provide good enough reasons for this renewed focus on F&B, there are other, softer but also very important benefits which will flow from the strategy. One is increased dwell time within the centre, particularly outside traditional shopping hours, as the new restaurant precincts become dining and leisure destinations in their own right. A second is the additional excitement which naturally attaches to great dining offers, driven by the rapidly increasing interest in food generally throughout Australian society.

How far the success which regional shopping centres enjoyed in winning the fashion business can translate to the food and beverage business remains to be seen, and there have been some stumbles in the past. No doubt there will be more learnings over the next few years about what does or does not work in a shopping centre environment, or indeed how to shape that environment, and the approaches will be fine-tuned as a result.

However, early signs are very positive, and really there is no reason why the environment which can be created at Australia’s best shopping centres, and the levels of amenity and convenience which can be provided for those seeking a meal out and related entertainment, cannot meet the challenge. In any case, there is already a very willing and hungry market to be served, since these major centres are typically attracting in excess of 15 million customers annually.

There is a renewed enthusiasm around the next wave of redevelopments in Australia’s major centres, and new environments are being created which are once again successfully piquing the interest of a consumer who had become somewhat jaded with the perceived sameness of many shopping centre offers and bruised by the financial battering of the GFC.

Recent developments once again serve to demonstrate both the need to regularly inject excitement into our shopping centre environments, and the ability of Australian shopping centres to meet this need.

Stay up to date with the latest from Shopping Centre News at: http://shoppingcentrenews.com.au/ 

Westfield Garden City2 Westfield Garden City3

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About MacroPlan: MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact James Turnbull, National Head of Retail today to discuss your property research requirements.

The real state of Australian Retailing

Shopping Centre News Tony Dimasi Vol 32, Number 1, 2014 - 2014 Big Guns

It's a few years now from the beginning of the GFC.  Retail across the globe has been battered but in Australia, although many retailers have been doing it tough, conditions are not as bad as elsewhere.  

Tony Dimasi looks at the state of the shopping centre industry since the GFC and more importantly, looks where the Big Guns are going in the future.

This is the first of a regular column by Tony Dimasi - exclusive to SCN.

It is now a touch over five years since the US Government allowed the investment bank Lehman Brothers to go bankrupt, on 15 September 2008. That was the date when the global financial crisis came to a head, and arguably the date of its official commencement.

It is worth asking at this point, what has happened to the Australian retail sector, and in particular to Australian shopping centres, in this 5-year period, and what is the real state of retailing in this country?

I ask that question against the background of many conflicting and arguably contradictory signals which are out there, and have been out there, for some time.

While most people would agree, I think, that generally the past five years have been fairly tough for the Australian retail sector, there is a wide diversion of opinion on the overall health of the sector, and particularly the health of shopping centres.

Chart-1On the negative side, the various failures of retail chains, and consequent closures of stores, have been well reported over recent years, while the woes of Australia’s department stores continue, with no obvious ending in sight. Online sales continue to grow at around 20% per year, while the struggles of the bricks and mortar discretionary retail sector generally, and the fashion sector in particular, also continue. Retail rents have also been flat, and in some instances have declined, over the past few years.

Chart-2

Amongst the positives, we continue to see very strong growth in food retailing of all sorts (supermarkets, specialty food and catered food); there is a large number of global retailers which have recently entered, or are about to enter, Australia; we are witnessing greatly increasing global investment in Australian shopping centres; a number of recent asset sales have shown bullish cap rates; and a massive redevelopment pipeline, especially for Australia’s major regional centres, is now evident.

Chart-3

It is also no secret that the leasing environment for retail space has proven very challenging over recent years.

Excluding department stores, the retail sector in Australia, and indeed Australian shopping centres, have therefore been resilient in the post-GFC period, even if the rates of growth achieved have been a shadow of the heights reached for about a decade and a half before 2008. However, this relatively sound overall performance has been of little comfort to those various retailers which have gone out of business, and probably also to many of the REITs which have struggled to generate income growth, let alone get new retail developments off the ground. Chart-4

 Results over the past few months, both from the ABS Retail Turnover Series and from the Monthly Retail Benchmarks produced by MacroPlan, have been more encouraging. Growth has been returning to a range of 3% – 4%, and there are now reasonable expectations that 2014 could see growth in the range of 4% – 5%.

The Australian retail sector has suffered a buffeting, but remains in very sound condition, and appears well positioned to rebound, slowly but steadily. However, to leave it at that would mean not addressing a couple of very significant changes, which are more nebulous in nature but which I believe neither retailers nor retail developers can afford to ignore. Those factors are the far reaching extent of change that has been occurring, and will continue to occur, in consumer behaviours, and also the speed of change, in both demand and supply factors.

Keeping the attention span of shoppers is becoming harder and harder, and winning and retaining their trust is harder still. We all now know that the combination of new technologies and new lifestyles has impacted greatly on consumer behaviours, and that power to decide when to shop, where to shop and what to buy is now very much in the hands of the consumer. The clever retailers understand that, and are working within those constraints to reinforce those consumer behaviours in ways which benefit them as retailers. Those not so savvy are generally being left behind.

Even with regard to basic supermarket shopping, which has leaked only minimally to online to this point, the smartphone has already had enormous impacts. At present, for example, smartphones are used for making lists, finding recipes, checking reviews, and finding best prices and value, even for grocery shopping.

For the future, apps are being developed that will potentially attach sensors to:

  • test food for allergens, organic qualities, etc.
  • test whether fruit is ripe
  • test for foodborne bacteria.

The generational evolution of the Australian consumer is also likely to have far-reaching consequences even for something as basic as supermarket shopping. In the past, most shopping, including supermarket shopping, has basically been driven by baby boomers, who offered retailers loyalty and consistency in exchange for value and reasonable service. But the influence of baby boomers will steadily decrease over the next decade, with the less conformist, more demanding, and less loyal Gen Ys and Gen Zs increasing substantially. Their behaviours are sometimes paradoxical – in many aspects they are very price driven, however, there are instances when they will make exceptions for price, if a particular brand grabs their attention and becomes an important part of their peer group interactions.

Chart-5

All of these changes have far reaching implications, and many of them explode on the scene and move quickly through the system, rather than being gradual and steady agents of change, as tended to be the case in the past.

So what does all this mean for Australia’s major shopping centres, the Big Guns?

First, their resilience in the post-GFC period, and confidence about their future growth prospects, have underpinned substantial and growing investment in these centres by offshore groups. Groups such as Abu Dhabi Investment Corporation, Canada Pension Plan Investment Board, and South Korea’s National Pension Service have all made significant investments in Big Guns in Australia over the past year or so. Second, the many international retailers which have recently entered Australia or are about to do so are seeking the best of the Big Guns in which to locate, along with capital city CBDs. Third, the development pipeline for major renovations and expansions to many of Australia’s biggest and best shopping centres is huge, reflecting both an element of pent-up demand and a desire to take these centres to the next level. This new round of development will add more global retailers, more and better dining, more cutting-edge stores, with a focus on design excellence and the renewal and re-emphasis of sense of place which the best of the Big Guns have always delivered in spades.

Chart-6

And therein lies the secret – taking them to the next level. If the history of shopping centre development in Australia has taught us anything, it should be that capturing the imagination of the customer has always been key to success. This has been achieved in different ways at different stages, because the levels of customer expectation and sophistication have continually changed. In the past, it has been easier to achieve than it is today, not only for all of the reasons that I have set out above, but also because there are many more prosaic demands on the household dollar today – the increasing costs of housing, utilities, education, transport and other necessities of life.

Chart-7

Yet, when centres get it right, the rewards are enormous. We are now in the early stages of witnessing a number of Australia’s Big Guns getting it right for the next phase of growth, and riding the wave of success that will undoubtedly come with that.

About the author:

Tony Dimasi
Managing Director – Retail E: dimasi@macroplan.com.au
Tony Dimasi is MacroPlan’s Managing Director – Retail.  Since 1982 Tony has undertaken independent research on behalf of retailers, shopping centre owners and managers, property developers, government and statutory authorities, as well as a wide range of other clients. The research includes both supply and demand analysis, as well as extensive customer research, investigating customer behaviour, motivations and preferences with regard to shopping and activity centre uses. Tony has worked across all parts of Australia and New Zealand, and has provided advice in relation to virtually every significant activity centre location in both countries. The range of projects has included BD properties, super regional centres, regional and sub-regional centres, district and neighbourhood centres, homemaker retail facilities, freestanding stores, and all other retail formats, as well as commercial and industrial precincts.
About MacroPlan:MacroPlan's experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact Jason Anderson, Chief Economist today to discuss your property research requirements.

 

 

 

 

Space considerations at forefront of Myer minds - MacroPlan in the press

Australian Financial ReviewRobert Harley Thursday, 27 March 2014

Myer’s lease negotiations are very different to those in the past, said chief executive, Bernie Brookes.

“The discussion starts with the assumption that we don’t need that space,” he told a Sydney forum organised by global fund manager, TIAA Henderson Real Estate.

Myer has handed back space, and gained concessions, particularly on performance rents. But it is also opening new stores, in Perth’s Joondalup, Mount Gravatt in Brisbane, Darwin, and Greenhills south of Sydney.

In fact Mr Brookes said Australia would still have around 100 department stores in several years’ time and then perhaps even more department store space.

Please click here to download the full Australian Financial Review article.

Bernie Brookes

Bernie Brookes says department stores aren’t going away. Photo: Louis Porter

Unique Challenges Tony Dimasi, the managing director of Macroplan and a veteran shopping centre analyst, said that online purchases would rise from 6 to 10 to 12 per cent of total product turnover.

In the physical world, that would require around 3 million square metres of retail space.

Australia has around 50 million sqm, rising to 65 million sqm,” he said. “Online retailing will certainly take the edge of growth, but it is not the alarmist scenario.”

Please click here to download the full Australian Financial Review article.

MacroPlan MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact Tony Dimasi, Managing Director - Retail  today to discuss your retail property research requirements.