4 trends that will change the retail market in Western Sydney by 2020

Western Sydney retail is in a state of transformation, bringing with it new prospects for the region.

Here are 4 top trends leading the way to change.

1. International brand expansion

As international brands enter the Australian market, they typically make a beeline to Australia’s CBDs. Establishing flag ship stores, building consumer awareness and looking towards the largest spending demographics is their primary focus. However, as these brands become more established in Australia, we can expect greater interest in Australia’s regions, particularly Western Sydney. Major international retailers have already seen the potential in regional centres – Aldi and Zara to name but two who aren’t afraid to expand into the regions.

With 1 in 10 of Australia’s population living in Western Sydney and rapid growth expected as we approach 2020, don’t be surprised to see the big international retailers setting up shop there.

2. Growth in Western Sydney regional hubs

Western Sydney has long been a key location for retailers. Behind every shop front is a critical supply chain and logistics structure. Major warehouse and distribution centres for NSW and beyond continue to be based in Western Sydney and this trend is set to continue. Ikea’s $150 million investment in an enormous multi-purpose distribution centre in Marsden Park is just one example of the types of investments we can expect to see from retailers.

3. Head office relocation

And it’s not just warehouses and distribution centres. What about head offices?  Woolworths led the way 10 years ago, moving from its overcrowded and expensive Town Hall head office to a brand new purpose built head office in Bella Vista. Other businesses have since followed, with the Norwest Business Park now a thriving centre for major businesses. As CBD real estate costs continue to rise, transport links improve and the talent of Australia’s work force moves out west, the attraction for retailers to move their head office to the Western Sydney area is likely to grow.

4. Localised stores and products

Over recent years, many regional shopping malls and strips have slowly become run down, a symptom of declining foot traffic and lack of investment. Consumers had been attracted away from shopping locally by heading to sparkly new malls in more central locations. But this is changing. The power increasingly lies with the consumer. And the consumer wants to be able to shop more conveniently, in less time, have access to more products, pick up the products at their convenience and, of course, pay less for them.

What does this mean? We can expect to see a growth in smaller footprint stores across the Western Sydney region; more innovative store designs; and products and experiences designed by people living in Western Sydney. And with the many distribution centres based in the region, retailers will look to take full advantage to provide products to residents in Western Sydney faster and with  enhanced convenience.

The retail landscape in Western Sydney is changing, bringing great opportunities for retailers and consumers alike.


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