As another overseas retailer, this time the French cosmetic giant Sephora, prepares to open its first store in Sydney, Australian retailers are being warned to expect more international competition.
Fashionistas have been waxing lyrical about Swedish super chain H&M's latest collaboration, this time with New York designer Alexander Wang.
Retail analysts will be interested, too, because the collection of gym gear and form-fitting dresses in silky synthetics debuted in Australia ahead of anywhere else on 6 November.
It is the kind of clever marketing that Australian retail chains should brace for, if they have not already, say business analysts.
The foreign invasion has so far mostly targeted the clothing sector. But cosmetics, books and stationary are under attack, too, said market researcher Barry Urquhart.
"Overseas firms have seen the profits to be made in Australia when the economy is lacklustre in their traditional markets," said Mr Urquhart.
"Unlike established Australian chains, [foreign chains] don't have huge overheads and can move very quickly to get product on their shelves."
"Many shoppers discovered them on European trips, so they have huge appeal for flagship malls because they are an incentive to travel to a shopping centre," he says.
"Therefore, they can negotiate good rent deals, down to 13% of their turnover. Existing fashion retailers pay up to 28%." H&M's entry into Australia followed closely on the heels of fashion chains Top Shop and Zara, opening stores in Melbourne and Sydney this year. Japanese fashion chain Uniqlo has also opened here.
"Older department stores are trying to find their relevance," said Mr Urquhart. "In the 1960s, the 23 department chains [in Australia] were a destination."
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Australians read a lot and they like hardback books”
Barry Urquhart
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Now, he said, there are only two, serving as "the last shopping resort if we can't find something elsewhere".
But international entrants may experience the same issues that beset local players, warns Australian Retailers Association spokesman Russell Zimmerman.
"International retailers coming to Australia may be unaware of the high cost of doing business," said Mr Zimmerman.
"In the UK or US, stores don't pay double time to their workers on Sundays [as happens here]. It hampers Australian retailers. Energy bills and insurance are also higher, which is reflected in prices."
Mr Zimmerman said the sector welcomes retailers such as H&M because they encourage shoppers to try out new malls, and while they are "eating into other people's pie", they increase the size of the market that everyone can share.
Fashionistas have been waxing lyrical about Swedish super chain H&M's latest collaboration, this time with New York designer Alexander Wang.
Retail analysts will be interested, too, because the collection of gym gear and form-fitting dresses in silky synthetics debuted in Australia ahead of anywhere else on 6 November.
It is the kind of clever marketing that Australian retail chains should brace for, if they have not already, say business analysts.
The foreign invasion has so far mostly targeted the clothing sector. But cosmetics, books and stationary are under attack, too, said market researcher Barry Urquhart.
"Overseas firms have seen the profits to be made in Australia when the economy is lacklustre in their traditional markets," said Mr Urquhart.
"Unlike established Australian chains, [foreign chains] don't have huge overheads and can move very quickly to get product on their shelves."
"Many shoppers discovered them on European trips, so they have huge appeal for flagship malls because they are an incentive to travel to a shopping centre," he says.
"Therefore, they can negotiate good rent deals, down to 13% of their turnover. Existing fashion retailers pay up to 28%." H&M's entry into Australia followed closely on the heels of fashion chains Top Shop and Zara, opening stores in Melbourne and Sydney this year. Japanese fashion chain Uniqlo has also opened here.
"Older department stores are trying to find their relevance," said Mr Urquhart. "In the 1960s, the 23 department chains [in Australia] were a destination."
Continue reading the main story
“
Start Quote
Australians read a lot and they like hardback books”
Barry Urquhart
Market researcher
Now, he said, there are only two, serving as "the last shopping resort if we can't find something elsewhere".
But international entrants may experience the same issues that beset local players, warns Australian Retailers Association spokesman Russell Zimmerman.
"International retailers coming to Australia may be unaware of the high cost of doing business," said Mr Zimmerman.
"In the UK or US, stores don't pay double time to their workers on Sundays [as happens here]. It hampers Australian retailers. Energy bills and insurance are also higher, which is reflected in prices."
Mr Zimmerman said the sector welcomes retailers such as H&M because they encourage shoppers to try out new malls, and while they are "eating into other people's pie", they increase the size of the market that everyone can share.