Simon Beard

The retail sales data released for the month of May, shows Australian retail performed better than expected during the month - with WA outstripping the nation. Sales grew by +3.5% YoY in Western Australia, surpassing all States and well above the national benchmark of 1.7%. The resilience in consumer spending can be attributed to various factors including early discounting from retailers to drive discretionary spending and cost of living support flowing through to households. The underlying strength of the WA economy, coupled with the Stage 3 Tax cuts scheduled for July 2024, are anticipated to provide further support to the retail sector across 2024-25. WA's strong spending power has led to an increase in economic scale as the State attracts new retailers to diversify Perth's retail landscape. To found out more about the retail market or discuss about opportunities in WA please reach out to myself or the team. #colliersresearch #colliers #retailmarket #marketinsights Yashwini Halai Nik Potter Joanne Henderson Dean Johnston

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Freedom Furniture is quietly testing the M&A market after a 4 year turnaround effort led by former Harvey Norman CEO. The reported EBITDA of $10m on $400m revenue looks razor thin. But it's important to put this in perspective. The brand was loss making for a number of years prior to the Greenlit Brands takeover in 2020 with a significant investment in the brands future since. They've hired a new design team and changed 75% of the product range to better reflect Australian lifestyles and preferences. While also implementing a complete data overhaul, integrating customer data from its online and brick-and-mortar stores together to get a deeper understanding of its customers. And the changes are starting to show. Customer repurchase is at an all-time high and they've grown their loyalty membership by nearly 40%. The numbers are lean but there is a strong turnaround story. Plus the group is currently weighed down by the NZ division, who reported a $9m loss. The future of the brand depends on the ability for the omnichannel strategy to compete with cheaper pure online players like Temu & Amazon. Do you think consumers still need to see & touch furniture before they buy?

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🛍️ Monday Market Insights - Melbourne's & Victoria's Retail Scene 🛍️ Despite the challenges of FY24, many retailers in Australia have maintained strong profit margins, particularly in the Large Format Retail sector, with most performing better than FY19 levels. This was achieved through better gross margins and tight control over operating costs. What This Means for the LFR Market: As we move into FY25, retailers are approaching opportunities with strong balance sheets and as retail spending improves so should the appetite for expansion. Stay tuned for more insights in our upcoming posts! #RetailProperty #MarketInsights #EconomicUpdate

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🛍️ Monday Market Insights - Melbourne's & Victoria's Retail Scene 🛍️ Q2/2024 Update on retail asset classes - The CBD retail market in Melbourne is showing strong signs of recovery. With average gross face rents holding firm, Melbourne's retail spaces are attracting significant interest, particularly from luxury retailers and dining establishments. Key Highlights: -Steady Rents: Average gross face rents in Melbourne's CBD have held firm, reflecting stable demand. - Tenant Demand: Driven by luxury brands and food and beverage operators. - Investment Potential: Strong local market and significant investments in CBD precincts attract more visitors and tenants. To stay competitive in Melbourne's evolving retail landscape, stay tuned for more insights and updates in our upcoming posts! #RetailProperty #MarketInsights #EconomicUpdate

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THE GREAT AUSTRALIAN DUOPOLY Australians being manipulated by our Grocery Giants. Both Coles and Woolworths engage in a Pseudo–Market Manipulation regarding product pricing and package sizes. Look at this photo I took yesterday in Woolworths, it is very clear that the underlying price is exactly the same as the extremely visible, in RED, everyday discounted price. This beggars the question, why put an illusion of a discounted price tag on top of the normal tag (covering it up), showing exactly the same price? Then, firstly, discounted in comparison to whom, if you go to Coles either the same product has the same price or there isn’t that brand therefore a different product? Secondly, both Grocery Giants using their buying power have required packaged goods from all suppliers and manufactures to be made smaller whilst maintaining the same price. In this way the Giants maintain their margins however YOU get less food, this is happening across the board to all products. I looked at a Packet of Sakata Rice Crackers and it was so obvious as the manufacturer had removed a whole row of crackers, making the packaged product clearly shorter, smaller and oddly enough in this example, was more expensive per gram than its predecessor. It actually isn’t a secret however no one talks about it and these Giants advertising budgets are so big, the above stories are not reported very well in mainstream media or with any follow up. FOOD FOR THOUGHT…don’t you think?

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Understanding the large format retail (LFR) landscape means recognising that the next booming regional growth corridor is actually Kyneton Central. Kyneton’s above-average LFR spending base and strong population growth prospects demonstrate its catchment is outperforming the regional VIC average across nearly every LFR category—including home décor, hardware and garden, and other large format retail. This is a prime opportunity for retailers to establish a foothold in a market poised for exponential growth. The development is already anchored by commitments from Bunnings, a multi-national QSR offering, and three (3) other national large format retailers. Kyneton Central is actually on track to become the region’s premier homemaker hub, driven by its strategic location, vibrant community, and robust infrastructure. These elements collectively position it as a key player in the regional economic landscape. Marked Property is collaborating with Goldfields Group to maximise the commercial potential of Stage 1 in this thoughtfully master-planned retail and commercial precinct. Ranging from 352m² to 2,000m², these tenancies offer high-profile facades, large signage zones, generous shopfronts, and are supported by 431 car spaces, ensuring a seamless and impactful customer experience. With permits already approved, construction on Stage 1 of Kyneton Central is set to begin in Q2, 2025. There are limited number of LFR tenancies available. If you're looking for an opportunity to expand your large format retail footprint, now is the time to act. Contact me via [email protected]. #development #largeformatretail #leasing #project

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The WOOLIES and COLES PRICE-GOUGING scandal might become an even BIGGER STORY Were brands that have become household names in Australia aware of the pricing plans? There’s more than just the scalps of Australia’s two biggest retailers on the line if the Australian Competition and Consumer Commission (ACCC) proves Woolworths and Coles deliberately misled their customers on the pricing of more than 500 popular products for more than a year. The two supermarket chains are business giants. On Monday Woolworths had a market value of $42.3 billion, while Coles was valued at nearly $25 billion. What the ACCC is alleging is simply a form of price gouging. “The ACCC alleges that the supermarkets offered certain products at a regular price for at least 180 days. They then increased the price of the product by at least 15% for a relatively short period of time, and subsequently placed it onto their ‘Prices Dropped’ or ‘Down Down’ program,” the commission explained in its release on Monday. “The ACCC alleges the display of the Prices Dropped and Down Down tickets was misleading, as the price of the products was in fact higher than or the same as the regular price at which the supermarket had previously offered the products for sale.” The commission’s claims sound and read very much like price gouging, but also like an allegation of fraudulent behaviour on the part of the companies. There is another problem for the two retailers (and potentially for the ACCC if it doesn’t win its action), in that the statement on Monday lists a large number of branded products among the 511 allegedly implicated in the fake discounts. At Woolies these included Arnott’s Tim Tams, Kellogg’s cereal, Oreo cookies, Nicorette patches and Uncle Tobys muesli bars. At Coles these included Cadbury chocolates, Bega cheese, Rexona deodorant and Colgate toothpaste. You have to wonder how some of the most powerful consumer goods companies in the world feel about their products being used in the alleged schemes of the two retailers.

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Melbourne Central has become an "Enigma" for major retail centres across CBD's of Australia. Despite a 40%- 50% decrease in footfall in Melbourne's CBD due to remote work, Melbourne Central is thriving, with an expected 40 million+ annual visitors this year. "Melbourne Central continued its remarkable recovery and now exceeds pre-pandemic retail sales performance". "Strong leasing demand, including being a favourite for first-to-market retailers, means the centre is now fully leased to pre-pandemic occupancy." https://lnkd.in/d55hgdz4 This success proves my skill set in major urban projects and my understanding of potential markets, such as the one I initiated. As part of my project involvement, I retained the architects and engineers, briefed them on planning and design requirements, assisted in bid preparation, and exited successfully on the consortia's decision to limit equity and take on a high debt ratio. The project's total floor area was 263,435 sqm, costing $1.5bn, completed in 1991. Fast-forward to last year, in 2023, the project's annual visitation was around 36 million. Over $9bn in new development has been catalyzed, including the recent $1.5bn redevelopment of the adjoining Myer Centre. Melbourne Central has evolved from a place of convenience for CBD workers to a must-visit tourism attraction offering unique experiences such as Monopoly Dreams. It has successfully linked all of Melbourne's transport infrastructure and completed the retail spine through the city. Melbourne Central has established itself as one of the city's most significant tourist attractions and continues revitalizing a previously run-down section. Check out the link to learn how Melbourne Central has become a shopping destination for many despite the pandemic's impact. https://lnkd.in/d55hgdz4 #MelbourneCentral #Enigma #thriving #footfall

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"Region’s deal for Cooleman Court was struck at slightly above the mall’s December 31 book value of $73 million but incorporates the expected valuation gain from the expansion of the Woolworths supermarket within the centre, which is due to be completed by Christmas. The mall had a peak value of $76.5 million at the end of December 2021. Known by locals as “Coolo”, the 10,469 sq m neighbourhood mall in Weston, 12.5 km south-west of the Canberra CBD, is anchored by Woolworths and Aldi supermarkets, and includes a Reject Shop, Best & Less and 33 specialty tenants. Region Group acquired Cooleman Court on an initial yield of 5.5 per cent, but with the potential to lift that return to 5.8 per cent through leasing vacant space in the mall. Region’s portfolio trades on an average cap rate of just over 6 per cent." Read more here: https://lnkd.in/gM6F2GzS

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🛍️ Monday Market Insights - Melbourne's & Victoria's Retail Scene 🛍️ The household goods sector, which had recently corrected after record sales post the pandemic, has turned a corner. Sales in furniture, electronics, and hardware hit a low in May 2023 but have since rebounded. Growth is expected to be more normalised and in the low single digits for FY25. What This Means for the LFR market: As sales recover, retailers in home goods and furnishings can expect renewed demand from consumers. Stay tuned for more insights in our upcoming posts! #RetailProperty #MarketInsights #EconomicUpdate #LargeFormatRetail

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The Australian Bureau of Statistics (ABS) has released the latest Retail Trade figures today, showing that Western Australia (WA) continues to significantly outperform the rest of the nation. Retail turnover (seasonally adjusted) in WA grew by 4.54% for the year ending September 2024, compared with just 2.32% nationally. The strongest-performing sectors in WA, as defined by the ABS, over the same period were ‘Household Goods’ and ‘Other Goods,’ both increasing by 6.5% year-on-year, and ‘Cafés, Restaurants, etc.,’ which grew by 4.0% YoY. Retail turnover growth is a helpful statistic for showing revenue growth, including the effects of inflation. However, for understanding genuine demand growth, real retail turnover growth is more insightful, as it removes the effects of inflation. In Western Australia, real retail turnover (seasonally adjusted) grew by 2.07% for the year ending September 2024, while nationally, real retail turnover (seasonally adjusted) only grew by 0.2% over the same period. Real retail turnover growth in WA was ten times greater than National real retail turnover growth for the year ending in September 2024. Cygnet West Imran Mohiuddin John Del Dosso Ian Mickle Ahmad Ibrahimi Clare Jones Ddembe K. Jacquee Kelsey Triona O' Shaughnessy Matt Bryder Jessica Dunn Jodie Hawthorne Property Council WA

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The new reality is that it's more expensive to rent, even a unit, than it is to buy, in most suburbs in Australia. Whilst it may cost more to own than rent, owning is the way to create long term growth. It's easier to get $100,000 of capital growth than it is to save $100,000. If you are thinking about buying then get in touch to make this happen sooner. In this rising property market your delays are costing you. Your delay will mean a higher purchase price when you do decide to buy. Let me help you. #buyersagent

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🛍️ Monday Market Insights - Victoria's Retail Scene The big news from last week was the Australian Federal Budget 2024-25! Here are some key takeaways that could impact the commercial real estate sector, particularly large format retail spaces: Key Takeaways: 🏢 Build-to-Rent Boost: Significant incentives are now in place to stimulate building activities, including a more favourable tax regime for build-to-rent projects. This is a potential opportunity for occupiers looking for space in Melbourne’s city fringe and densely populated suburbs as these developments could open up ground floor space. ⚡ Energy Efficiency Incentives: The new budget supports investments in energy efficiency with tax write-offs for investments up to $20,000. This is a win for developers, with more pressure coming from sophisticated, corporate and listed retailers looking to satisfy their ESG requirements and achieve NetZero targets, developers can take advantage of the tax write-off and get an edge over other opportunities in the market. ✍ Continued Asset Write-Offs: The extension of the $20,000 instant asset write-off for small businesses until June 2025 will help ease cash flow pressures and encourage investments in business infrastructure. 💰 Stage 3 Tax Cuts: The Stage 3 tax cuts (as well as Government assistance with the cost-of-living pressures) will assist in easing the pressure and on the household wallet and in turn flow back through to retail spending. This will subsequently flow through to retailer returns and confidence to expand. 🏠 A Focus on Housing: With a substantial $32 billion worth of investment into housing programs, if coupled with a boost to the number of workers available to build them it could flow through to a significant amount of new housing starts which will waterfall through to Household Goods sales. #RealEstate #CommercialProperty #AustralianBudget2024 #InvestmentOpportunities #PropertyDevelopment

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𝗘𝗻𝘀𝘂𝗿𝗲 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝘀 𝗥𝗲𝗮𝗱𝘆 𝗳𝗼𝗿 𝗦𝗮𝗹𝗲 TABAK Business Sales was established in 2001 to specialise in the sale of small to medium ($300K to $10M) sized New Zealand businesses. During this time, the motivation factors for owners to sell their businesses has generally remained the same – Retirement, Divorce, Health, Death or wanting a change in lifestyle. Whatever the reason for selling you need to ensure that your business is ready for sale as you are not always given a warning or time to get it in the best possible shape. In the situations mentioned above, the business owners do not necessarily intend to sell but can find themselves ill prepared for sale. In the ideal world, we like to work with business owners for a period of time to assist with the preparation of their business for sale. This can include making sure their financials exclude any personal items which have become blended in with the business expenses over time, and making sure customers contracts, leases, health & safety and employments contracts are all current and up to date. In some ways it is a bit like selling a house or a car. To get the best sale price you make sure that it is presented in the best possible way i.e. neat and tidy with a little bit of maintenance where necessary. If the situation allows, business owners should start talking with their professional advisors and a business broker well before listing their business for sale. I have personally worked with a business owner for 6 years before they decided they were ready to go to the market. When it was taken to the market the business was in the best shape possible. In a recent survey, the average time for all businesses (industry wide) listed for sale in New Zealand was 6 months, so the sales process from start to finish is not necessarily a quick one. If you are a business owner, make sure that your business is in good shape so that if the unthinkable does happen your business is ready for sale. If you are thinking of selling your business or need a current business appraisal, contact our experienced team at Tabak today. - 𝘗𝘢𝘶𝘭 𝘉𝘳𝘭𝘫𝘦𝘷𝘪𝘤𝘩 - 𝘋𝘪𝘳𝘦𝘤𝘵𝘰𝘳 𝘛𝘢𝘣𝘢𝘬 𝘉𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘚𝘢𝘭𝘦𝘴 𝘛𝘢𝘶𝘳𝘢𝘯𝘨𝘢 𝗧𝗮𝗯𝗮𝗸. 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗻𝗴 𝗦𝗲𝗿𝗶𝗼𝘂𝘀 𝗕𝘂𝘆𝗲𝗿𝘀 𝘄𝗶𝘁𝗵 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀. www.tabak.co.nz E. [email protected] P. 07 578 6329 #tabak #tabakbusinesssales #tabakbusinesssalestauranga #tabakbusinesssalesbayofplenty #tabakbusinesssalesbop #businesssalestauranga #businesssales #businesssalesbayofplenty #businesssalesbop #smallbusiness #smallbusinesstauranga #smallbusinessbop #smallbusinessbayofplenty #tauranga #tauranganz

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Australian retail sales 👆🏽by 1.3 per cent to $35.7 billion in April, according to Australian Bureau of Statistics (ABS) data. The highest year-on-year growth was in the ‘other retailing’ category, which includes cosmetics, sports and recreational goods, up by 4.7 per cent. Food sales emerged with the second highest growth of 1.9 per cent, along with cafes, restaurants and takeaway. For more information please clink on the link. #australian #retail #sales #pineproperty

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