This article is from the Australian Property Journal archive
CASHED up Queenslanders are attracting high end department stores with David Jones unveiling plans to open at the Sunshine Plaza.
David Jones has entered into a binding agreement Lend Lease’s Australian Prime Property Fund and the GPT Group, to open a new 14,000 sqm store targeted to open by 2012 as part of a proposed redevelopment of Sunshine Plaza.
David Jones has been granted a 20-year lease with an option to renew for a further 10 years.
David Jones’ chief executive Mark McInnes said the Sunshine Coast is a market that the department store is not currently represented in with the closest store being in Chermside which is approximately 90kms away.
“We have for some time recognised that Queensland in particular the Sunshine Coast, is a market which represents enormous growth potential for our company and in which department stores are under-represented,” he added.
According to general manager of retail development and procurement Antony Karp, the Sunshine Coast is a high value location for David Jones.
“The region is currently serviced by only one department store which means there is enormous potential for a new department store entrant such as David Jones. The Sunshine Coast has an attractive demographic profile with 55% growth in the number of households earning more than $88,000 pa between 2001 and 2006.
“The Sunshine Coast’s high population and income growth means that the total Department Store Type Merchandise market is expected to double over the next 10 years, increasing from $1.3 billion to $2.5 billion by 2016,” Karp continued.
The Sunshine Plaza David Jones store is expected to significantly exceed the David Jones minimum new store benchmarks set out in the FY09-FY12 Strategic Plan, namely sales of $40 million pa and a store contribution of at least $5 million pa by Year two. The store is expected to generate sales of $50-$60 million over time.
The cost of constructing and fitting out the new department store will be shared by APPF and GPT Group, suppliers and David Jones.
Last month, Myer unveiled plans for three new department stores in the state at Mt Gravatt, Robina and Mackay. This is in addition to the mooted Townsville in 2011 and Northlakes department store which will open next month.
The Mackay store is expected to open in 2011 at Lend Lease’s Caneland Central. The Mt Gravatt store will open at Westfield’s Garden City, whilst the Robina Store will be at the QIC Real Estate owned Robina Town Centre – both expected to open in 2010.
Australian Property Journal
