City retailers see green shoots of post-pandemic recovery

It is the group’s third global flagship to open this year, following openings in New York’s Meatpacking District and London’s Regent Street. It was leased by Alex Alamsyah, the partner and head of retail leasing at Knight Frank Australia.

First launched in September 2019 on Milan’s Montenapoleone, Bally Haus offers an “experiential environment” with a multi-functional format that hosts cultural programs, including film screenings, panel discussions and exhibitions.

In Sydney, the store will offer the signature Bally leather-crafted bags and accessories featured along the side walls on oak displays, while a carved, organic table houses a local evergreen tree.

CBRE head of logistics and retail research Kate Bailey said the fluctuating vacancy rates during the last 18 months has meant many retailers will look to capitalise on market conditions and potential softer rents, either expecting to renew current leases, at 43 per cent or to renegotiate lease opportunities at 57 per cent.

“Some retailers looking to make a move to new locations are also driven to do so based on their requirements for larger space, which will support their need to house dedicated click-and-collect orders or more product displays,” Ms Bailey said.

The rise in omnichannel retail is also expected to continue as consumers embrace online shopping with gusto.

Half of retailers agree e-commerce has improved their sales but that comes at the expense of customer engagement, with 74 per cent saying traditional bricks-and-mortar is more effective.

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“The sentiment is positive towards physical retail space still playing a key and valuable role, with a primary focus on customer experience,” Mr Olson said.

“We’ve seen an interesting mix of new omnichannel strategies among our clients, for example Accent Group has optimised their last mile delivery strategy to consumers through its bricks and mortar stores.”

He said brands that have historically started as online businesses, such as All Birds and Warby Parker are moving into bricks and mortar, which is a trend we anticipate continuing.