After years of strong consumer confidence and a positive outlook, the Australian economy is starting to falter under dropping house prices and a shaky economic outlook. There is even enough concern in the Australian economy that some banks are predicting a rate cut rather than rate rises that were predicted to occur this year. All in all it seems like Australian is in for a rough ride over the next few years.
Australian retail has been relatively strong over the last couple of years, but it remains to be seen whether it can maintain it’s good performance. Australia is less exposed to issues with bricks and mortar stores than other countries because Australian shopping centers usually have a key supermarket store which attracts shoppers to the centers. With a low uptake in online supermarket shopping in Australia, shopping centers should still be filled with discretionary spenders.
Australia shopping malls are considered some of the most resilient in the world as they are less reliant on Fashion retailers and specialty stores. There worth and strong value has been able to continue to attract new retailers into the premises.
International retailers are now playing a bigger part in the retail space in Australia with huge multinationals such as Zara and H&M taking up residence in shopping centers. Many of the Australian retailers that once struggled with a bricks and mortars store are now focusing their attention online where low overheads and social media is allowing them to thrive. One such store is Kivari who are popular online with their fashion offers. Use a Kivari discount code to save on your purchase.
With the economy slowing it remains to see if Australian shopping malls will be able to stand strong during this tough time.