Large Format Retailers to Expand their Footprint in WA

Large Format Retail (LFR) has been one of the big winners in the commercial sector.

Although largely shut off from the rest of the country during this period and dubbed the ‘hermit kingdom’, the Western Australian Large Format Retail market is developing.

With limited travel, an increase in interstate web offering delivery times and an uncertainty of lockdown reprieves, Western Australians turned their focus back toward the benefits of Large Format Retailers in the State.

Due to this, LFR sectors in WA experienced unprecedented spending growth, in particular the LFR driving force of household goods, which nationally sits at levels 23% higher than before the pandemic. [i]

Australians made Large Format Retailer sales figures go through the roof, particularly during the pandemic when people were cooped up at home and willing to spend.

As a result, there has been a rapid increase in retailers pressing to expand their businesses, creating a wave of competition in WA’s market.

While established locations of Osborne Park and Joondalup continue to pique interest, even more retailers have been adapting to WA’s urban sprawl and regional growth, making the most of the current market.

Executive Director of Realmark Commercial, Mike Rowe, explains this LFR locational spread offers a range of exciting opportunities for retailers.

“There have been a few high-profile retailers looking to develop in places like Casuarina, Baldivis and Outer-Midland, which is a shift away from WA’s typical LFR locations,” Mr Rowe said.

“As the metropolitan areas of Perth continue to expand and catchment areas begin to intersect, an opportunity for retailers to grow their businesses in Perth’s new LFR markets now presents itself,” he said.

Director of Retail Sales and Leasing at Realmark Commercial, Michael Richardson agrees, and says the State presents exciting prospects for Large Format Retailers to expand their businesses.

“Australia does not have a high-density population, but is experiencing urban sprawl, with WA as a prime example of this,” Mr Richardson said.

“We will continue to push out to metropolitan fringe locations such as Butler or Two Rocks, and further expansions in the southwest of the State or up by the Midwest.

“We’ve witnessed the struggles and frustration of international and even domestic shipping throughout the pandemic, and as we continue to migrate further out across the State, even some of the biggest players have and will struggle with the logistics and the distance,” he said.

Mr Richardson believes Australians will continue to utilise everything our country has to offer and predicts more location growth in the sector across the State for many years to come.

“We’re very lucky to live in this country, and the opportunities that come with it, and I believe Australians will continue to embrace the further LFR developments expected to come as they enjoy the ability to buy local with reduced costs and delays.”

With over 30 years of experience in the commercial property market, Realmark Commercial’s dedicated team of industry professionals have experience working with both Landlords and tenants across Australia in identifying location for expansion.

Always ready to pick up the phone or get on a plane when an opportunity presents itself, Realmark Commercial have expanded their expertise to service the nation’s continually changing and growing property market.

 

[i] https://www.jll.com.au/content/dam/jll-com/documents/pdf/research/apac/australia/jll-australian-retail-market-overview-1q22.pdf