THE influence of international brands and organisations on the Sydney retail market will take another step up in 2017.
Location IQ director, Greg Malempre said stores such as H&M, Zara, TopShop and Apple offer growth levels for retail landlords and the consumer, as well as trading productivity at levels well above Myer and David Jones in suburban malls.
Speaking at the Australian Property Institute’s Sydney Property Market Outlook event last week, he said the next big change would by the introduction of Amazon fulfilment and distribution centres to the country, expected from later this year.
Currently, Amazon is estimated to sell between $500 million to $750 million of goods into Australia from their websites.
To put into perspective of the opportunity Australia presents from Amazon, Malempre said at the moment, online retail sales in Australia currently tally around $22 billion online, of which 20% or $4 billion is to overseas retailers and 80% of the trade is to domestic retailers.
“Of that $4 billion, Amazon accounts for $500-$750 million.
“It is predicted by Citigroup, that the forecast for Amazon if they came to Australia – could do sales of $4 billion within five years,” Malempre said.
“So that is four Westfield Bondi Junctions,” he pointed out.
Australian Property Journal