This article is from the Australian Property Journal archive
FRENCH sporting retailer Decathlon has confirmed the location of its next Australian store, with an outlet to open in Melbourne’s eastern suburb of Box Hill by the end of November.
After opening its online store down under in 2016, its maiden physical store started trading in December in Sydney’s Tempe, and another will open in Parramatta later this year.
The Box Hill site, at 249 Middleborough Road, will encompass a similar size to the 3,800 sqm maiden offering and operate in its typical warehouse-style format.
Decathlon, known for its wide range and discount prices, is aiming to open four to five stores over the next two years in Australia, with each employing up to 100 people. It currently has more than 1,100 stores in more than 30 countries around the world.
Major retailers to have started operations and opened stores in Australia in recent years include Amazon, based at a Dandenong South warehouse of some 24,000 sqm, shopping centre Costco, set to be joined by German giant Kaufland, and fashion houses H&M and Uniqlo.
Kaufland, a major rival to German compatriot Aldi, has just picked up a 3.5-hectare site Chirnside Park, in Melbourne’s east, for $16.5 million. In October, it paid $25 million for Adelaide’s Le Cornu site, and earlier last year bought a former Bunnings site in Dandenong South for $16.4 million.
The increased competition and move to online retailing has shaken up the Australian retail landscape and seen major department stores Myer and David Jones suffer, and Specialty Fashion Group announced the closure of more than 300 stores and Retail Food Group of 200, although analysts UBS have said that could end up totalling 400-plus.
A report by SV Partners said 1,500 retailers are at risk of “imminent collapse”, suggesting an 3% increase of at-risk retailers over the previous 12 months, on top of a string of notable brands going into administration that has included Oroton Group, Topshop, Marcs, David Lawrence, and Pumpkin Patch.
“Victoria’s retail sector plays a crucial role in the economy, employing 365,000 people. Victorian retail trade grew by 4.5% in 2017, faster than any other state, with turnover reaching $79.2 billion and accounting for a quarter of national retail turnover,” a statement released yesterday by the Victorian Government said.
“Melbourne has been named the sporting capital of the decade, so it is only fitting that the world’s biggest sporting retailer is now setting up here,” Victorian Minister for Trade and Investment, Philip Dalidakis said.
“This significant investment by the Decathlon will create hundreds of local jobs and give consumers more choice when they are shopping for sporting goods.”
Decathlon Australia chief executive, Olivier Robinet, said, “Decathlon is excited to become part of the Victorian community and we will be drawing on local businesses for supply services and actively supporting the communities we operate in.”
Australian Property Journal
