Amazon not all doom
Retail can still thrive with giant
THE Amazon tsunami forecast to smash into the southeast Queensland retail sector is not all doom and gloom, with quality retail centres — including Pacific Fair on the Gold Coast — set to survive and possibly thrive.
According to an M3 Property Strategists report, the instore retail decline caused by online competition will not be uniform across Australia.
M3 Property Queensland research manager Casey Robinson said the expansion of Amazon in the Australian retail market would affect property values over time, but “we expect that there will be a large divergence in the performance of different retail properties”.
“A retail centre’s performance will increasingly reflect economic growth, demographic composition and competition in the catchment area; management and preparedness of the centre; and the performance of anchor tenants,” she said.
The US online retail giant, which test launched its Amazon Marketplace in Australia yesterday, has leased a warehouse in Melbourne’s southeast and there are rumours it has another one in western Sydney.
Amazon will establish a distribution centre in southeast Queensland, with the company increasing staffing levels.
While Brisbane, Ipswich, Logan and Moreton Bay have been mooted, the location of the distribution hub is yet to be confirmed.
Ms Robinson said numerous retail centres in southeast Queensland were expected to continue doing well, citing reports is “consumer destinations” with leisure and dining offerings such as Brisbane’s Westfield Chermside and James St, and the Gold Coast’s Pacific Fair.
Tourist hubs such as the Gold Coast’s Cavill Mall are tipped to continue to trade well too. Regional retail centres and convenience centres in population growth precincts, especially with an older demographic, are also expected to hold back the Amazon online tide.
However, Ms Robinson said retail centres that may come under pressure included those with oversupplied catchments or weak demographics, and those with owners who were not willing to adjust to the structural change occurring.