Lockdown workouts, puppies and home renos fuel growth for big box retailers

Traditional big box Harvey Norman, the Good Guys and Fantastic Furniture continued to expand, and the popularity of “fur babies” meant Petbarn and PETstock opened more sites. Being stuck at home led people to buy vacuum cleaners from Godfreys.

Loading

Deep End Services managing director Justin Ganly said Australian homemaker centre tenancy profiles were becoming more diverse and less reliant on the traditional pillars of electrical and furniture.

“Categories such as homewares, auto parts and accessories, trade supplies and other tenants, which include gyms, medical and cafes, are all continuing to occupy higher proportions of floor space,” Ganly said.

The sector is a large employer, with more than 500,000 jobs directly and indirectly, and the directory shows a record number of 337 Australian and New Zealand homemaker centres, with 5.7 million square metres of floor space.

Loading

A recent CBRE report shows institutional buyers accounted for 55 per cent of Australia’s large-format retail acquisitions in 2022, compared with just 29 per cent of purchasing activity in 2021. Ongoing buyer interest is expected to be fuelled by housing demand, projected rental growth and a limited supply pipeline.

Notable recent transactions in the sector included the $282 million acquisition of Sydney’s Crossroads Homemaker Centre by LaSalle Investment Management, Ashe Morgan’s $78.9 million purchase of Homemaker Prospect in Sydney, and the $265 million sale of Homeworld Helensvale in south-east Queensland to interests associated with Taiwanese-backed developer Shayher Group.