Australian Homemaker Centres Lead Globally

Developers, architects and retailers of homemaker centres in Australia are amongst the best in the world.

Recently on the Overseas Study Tour, 40 LFRA members visited and explored Large Format Retail (LFR) sites and homemaker centres across Almhult in Sweden, Copenhagen and London. Tour members spoke to centre managers and learnt about the history, processes, and marketing campaigns behind each retail destination.

The main comparisons made between the European and Australian sites included accessibility, design, store layout and fitouts, daily operations, tenant mix and foot traffic. And Australian LFR and homemaker centres excelled in all aspects.

“Australian large format centres, at least the newer ones, are often superior to the international counterparts which we visited,” said David Krolikowski, Principal Solicitor, KHQ Lawyers.

This superior quality is reflected in the growing success of the sector. Large Format Retail has grown exponentially over the years and now comprises approximately 35% of all retail floor space in Australia. The industry comprises of a massive 25.1% or $81.7 billion per annum of all retail sales in Australia as of the financial year ending 30 June 2019.

The strength of brick and mortar in Australia is supported by efficient road networks, increase in car ownership and extensive free parking availability.

In 2019 there were over 14.5 million cars registered in Australia, an increase of 1.2% on the previous year. Whereas in London over 40% of residents live without a car.

With congestion, efficient public transport and other reasons why Londoners opt not to have a car, Large Format Retailers were forced to find a solution to minimise the barrier of entry for people to buy instore. Home delivery services are a popular option but do not provide the product instantly to the customer.

A lack of parking is also an issue at hardware and home improvement stores Bauhaus and Stark City 24-7 in Copenhagen. This is surprising as hardware stores are expected to have extensive parking to accommodate for both tradespeople and amateur home renovators. Parking shortage hinders accessibility, and this influences other measurements including footfall and basket size.

Stark City 24-7 has the appeal of an all-hours hardware store, but its outdated design and confined store layout made the store feel cramped and unappealing.  Whereas in Australia, shoppers feel comfortable in Bunnings Warehouse stores with its spacious layout, central spine and clear chalkboard signage.

The difference in Australian and European store design standards was also noted by many Tour members.

“Finishes and standard of the homemaker centres we visited were well below the finishes in Australia,” commented Jeff Klopper, Managing Director of Vend Property.

On the third day of the Overseas Study Tour, LFRA members explored a complex of LFR stores in Gentofte, 10km from Copenhagen. Brands included JYSK (furniture and bedding), Maxi Zoo (pet) and El Giganten (electronics).

Unlike Australia LFR centres, this complex was uninviting and uninspiring. It was a concrete and metal jungle with exposed grey metal bars, grey concrete ramps, grey footpaths and grey corrugated walls. The stores were on the upper level, which is unusual as store entrances are conventionally on ground level. This was likely planned to accommodate a parking lot directly underneath.

Another example is popular shopping complex The Lexicon in Bracknell, which is an hour’s drive from London. Although it has a contemporary mix of tenants and regularly hosts innovative and family-friendly marketing events, the main concern was that it is an open-air complex. This could be an issue on rainy days or during England’s harsh winter months.

Tour members learnt a lot of tips, trends and ideas from their European peers. And they also learnt that Australian Large Format Retail and homemaker centres are amongst the best in the world, and to continue to discover new ways to take planning, design and service to the next level.

 

This article is a part of a 10-segment series covering the 2019 LFRA Overseas Study Tour.