High street fashion heroes pose a threat to Aussie retail favourites

Melbourne's retail fashion landscape is going through a major revolution, with shoppers taking to the new retailers in droves.  

By BARBARA LEGASPI  

Shopaholics were out in force at the weekend in Melbourne, ready to queue for hours to get into H&M's flagship Australian store.

One of the world's biggest fashion retailers, the Swedish chain opened at Melbourne’s GPO, in Bourke St, on Saturday after weeks of hype.

The grand opening is just the beginning of a high street fashion takeover of Melbourne’s CBD, with  Emporium Melbourne due to open its doors on April 16.

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It is a major challenge to the dominance of  David Jones and Myer, amid discussions of a merger between the retail giants.

Eager shopper Stephanie Turzi waited more than 40 minutes to enter into the fashion mecca, with some shoppers waiting up to four hours on opening day.

“I first noticed [H&M] overseas and I like that it is really good clothes at affordable prices,” she said.

“I think it will be good for the fashion industry, we needed some new brands in Melbourne.”

The 5000 square metre outlet will stock men's, women's and children's apparel and home wares. The Australian online store has also been launched.

Retail consultant Brian Walker told Guardian Australia H&M “will have more of an impact than other fashion stores”.

“It’s very challenging for Myer and David Jones because the domination of department stores in this country is changing dramatically.

“Australian retailers used to look to places like H&M and Zara to copy them, frankly, and sell them at high mark-ups.”

The Emporium’s $1.6 billion complex promises to be a seven-level haven for keen shoppers, with eagerly awaited retailers Japan’s Uniqlo, Victoria’s Secret, Carla Zampatti, sass & bide, Scanlan & Theodore and Willow among the 225 stores.

The Emporium will link Bourke St’s David Jones and Myer to Melbourne’s GPO and Melbourne Central.

Britain’s Marks & Spencer, America’s Pottery Barn and Abercrombie & Fitch are other high street fashion retailers looking to expand into the Australian market. 

The final product awaits – the vision for Emporium . Source: Emporium Melbourne

Retail on the rise

The retail industry generally appears to be on the mend, with statistics released by the Australian Bureau of Statistics showing that clothing, footwear and accessory sales rose 0.1 per cent in February 2014, seasonally adjusted. Overall, retail sales grew by 0.2 per cent in February, seasonally adjusted.

But with department stores sales showing a sales slump of 4.7 per cent, 2014 looks to be a tough year for retail giants David Jones and Myer as competition increases from the major overseas retailers. 

Australian Retailers Association executive director, Russell Zimmermann told The Guardian local brands such as Kookai, Portmans and Country Road had helped to solidify Australia’s future high street fashion.

“Over the next five years I believe Australia will stand very proudly against the major cities of New York, Tokyo and Europe with a retail environment that is as good, if not better,” he said.