Melbourne Australia’s retail capital

whitepaper/ july 2014

a little summary

we know it’s a big call but we’re putting it out there Melbourne is currently Australia’s retail capital.

!it’s getting it’s share of internationals (H&M, Muji, Uniqlo) for property/

financial reasons, but it’s also the city where retailers can build their branded experiences (Koko Black, Aesop).

!so here’s our pick of the Melbourne pack…

the retailoasis top 10

1. H&M 2. Emporium 3. Uniqlo 4. Koko Black 5. Muji

6. Aesop 7. Philippa’s 8. Camilla 9. Zara 10. The Waiting Room

this might be the best H&M store we’re been to. the location (Bourke St Mall) and

environment (old GPO building) make this store.

the classic (expensive looking) nature of the environment makes the cheap clothes look

even better value.

rumour has it this stores forecast of $70 million in sales will be broken and be more like

$100 million. boom!

H&M, GPO 1

the high lifealthough H&M is a discount retailer, this store would be

fitting for an high-end brand. part of that has to do with the

fact that this store mimics large luxury flagships like

Burberry’s Regent Street outlet, which have appropriated

and restored historic buildings.

it’s not about the $ we noticed that H&M making an effort to amp up it’s quality story around the clothes - using cues like calling out the fabric, that fact the garment is a unique to Australia, well as extending it’s Conscious line to this store.

although it’s not quite finished, this mall is unlike anything we’ve seen in Australia.

!beautifully designed, but more than that the selection of shops is probably the best in the

country (see Uniqlo and Muji below). !

it was a joy to walk – because it feels like it has been designed with the customer in mind.

Emporium 2

the bitcoin atmwhile we were walking the centre

we spotted a bitcoin atm being installed - turns out it’s the first in

Australia. !

there is expected to be 100 of these ATMs installed by 2015 and

an ambitious 500 globally by 2016. !

interesting move in a mall towards virtual currency.

it’s hard to go past this store. !

it’s the first in Australia for Uniqlo, and they’ve taken a design very similar to that elsewhere in

the world but made slight tweaks for the Australian market to help educate them on what

Uniqlo is. to help do this the store features point-of-sale with people from their local ambassador

program (like Australian golfer, Adam Scott).

Uniqlo, Emporium 3

make an entranceUniqlo does entrances well, even when they’re in a mall. they’ve taken over the Londsdale Street front with mannequins dressed in their clothes. !when you get inside the store, there’s no massive logo reminding you where you are…you know from everything around you which store you are entering.

navigation, explanation Uniqlo has a bit of explaining to do for the Aussie market and they’re

doing it well. they use sub-brand product labels throughout the store

to help navigate and then provide explanation on what exactly that

sub-brand is about.

Koko Black, Highpoint 4

this brand’s stores are perfect. they show that Koko know what they do – chocolate.

!instead of making their expansions into café

and coffee ‘front and centre’ (like Max Brenner), they keep this behind the

chocolate action. !

the staff are fabulous, wanting you to enjoy the experience, letting you try and taste as

you please.

know how to extend

this is a retailer who knows how to extend, without changing the meaning of their brand. this store offers corporate catering and a cafe, but all of this sits at the back of their main staple - chocolate. they aren’t confused about what business they are in.

Muji, Emporium 5Muji is the dark horse in the fleet of new

international arrivals in Australia. it’s probably the least known brand but it’s a formidable

competitor. they’ve carved-out their space in other markets – like the anti-Uniqlo – a little

darker, more about lifestyle private label, but still very Japanese.

!their stores in Chadstone and the Emporium are similar to their os versions (which are lite

versions of their Japanese concept – that has a supermarket, café, optometrist and even the

ability to buy a demountable house).

what is muji? similar to Uniqlo, Muji are doing a bit of education around what they are.

with a smaller international footprint than Uniqlo it looks like they are

having to be more explicit in how they go about this. that said they

are unashamedly Japanese, keeping their logo in Japanese throughout

the store.

Aesop, Emporium /Chadstone

6

we all know Aesop - it’s beautiful. we visited their Chadstone and newer Emporium store

and both are outstanding. !

from the entrance through to the customer experience, the brand has it pretty well nailed -

even when each store is slightly different.

when we visited we were served tea, while the sales staff spoke about product - making it a

place that doesn’t just look good, but has function too (something that often gets lost

when retailers focus on high design).

getting you in!across their stores, Aesop very

cleverly have their product to try at the door. it’s a nice touch to get

people to come instore, especially when displaying beauty products can

often be a whole lot less exciting than clothes or shoes. it makes it less intimidating for customers as

they can try without the pressure of a sales assistant.

!

Philippa’s, Armadale 7

this store was opened in 1994 by it’s namesake owner Philippa Grogan. it ’s not just a bakery

but a providore and cafe (and book seller). what we love about this store (aside from the

smell of bread) is the level of transparency they display (all done with a bit of attitude). to the point where you can do cooking classes at

the store to learn about how their products (which are resold at deli’s and stores around

the country ) are made. clever.

most times when retailers do pos, it gets very serious and rational. at Philippa’s this is not the case. their

pos is written on large pieces of butchers paper and a chalkboard which can be updated easily (and

obviously inexpensively). what’s written there has attitude, it’s fun

and open.

say it with attitude

Camilla, Emporium8Camilla has a strong aesthetic to her clothing

and this shines through to the store environment - which looks a lot like you’re

entering a moroccan bazaar. it’s a space that complements and almost enhances the clothes. it gives them context, if you’re unfamiliar with

the brand. !

we think this is a great example of how to take the creative direction of a product and expand

it to an environment (making sure the two aren’t divorced).

there are some stores that try to please everyone - they don’t want to offend and so they actually end

up in being forgotten. that is not the case with Camilla, she knows

the brand she is creating and who she is creating it for (which isn’t

the everywomen): "i design for confident, glamorous women who

enjoy a little bit of crazy”.

own it

Zara Zara, Highpoint9

we all know Zara (and it’s parent company Inditex) know how to run a store. we visited

their highpoint store and we though this was a great example of how they are increasing basket - with some clever merchandising

around the change rooms and clear navigation to kids and men.

!although their stores are fairly standard (seen

one, seen them all) its the small details like ranging that should be noted. here the range was definitely a little more upscale with less

urban wear than the Sydney’s Pitt Street Mall store (or at least it felt that way).

we thought this was pretty clever. on the entry to the change rooms at Zara, there’s a range of simple

clothes to add to the collection you’re trying on. i

!t’s a simple tactic to help increase

basket.

up-selling

Zara The Waiting Room, Emporium

10

for those who know the New York institution An Earnest Cut and Sew this store reminded us a lot of it. however, this is in fact the first retail outlet for Swedish fashion importer So

Agency. It stocks cult brand Dr Denim’s full range, as well as some cool accessories like like

ties and beard oil - it’s a hipsters dream. !

it’s a beautifully pulled-together concept and shows the value a store environment can have

on value perceptions (the $99 jeans in here look like amazing value).

!

industrial design

this is a store that’s all about craftsmanship expressed through reference to early industrial shop keeping/ manufacturing (thus making it similar to An Ernest Cut and Sew). this is pulled off from the way the staff are dressed to the typography on the front of the shop.

the takeaway environment is the product

the two aren’t separable to the customer, when they buy the product they are buying the place they purchased it in too. the environment has the ability to cheapen or make a product

look better value.

find the (natural) up-sell opportunity when you know how customers shop a store, you’ll know where they are open to up-sell

suggestions (where it won’t feel forced by the sales assistant).

complementary product is not core know how extensions into adjacent categories complement what you do and where they

belong in the store, without taking over the core offer.

you don’t need a big logo to make a big entrance the whole store should reflect the brand. If you take the logo away if should feel like it is the

brand - logo is just the sign-off.

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practice…we connect retailers with consumers.

Get in contact with us: enquire@retailoasis.com

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