AUSSIES SPENDING UP ON HOUSEHOLD GOODS

Written on the 28 May 2015

AUSSIES SPENDING UP ON HOUSEHOLD GOODS

CONSUMER spending on household goods is booming, signalling positive conditions for large format retail according to research by Colliers International.

The household goods sector saw the most growth of all retail categories, with an eight per cent lift in the twelve months to March this year.

Sales volume growth also increased by 11.3 per cent over 2014 the strongest annual growth rate for the category in more than 10 years.

Colliers International head of retail Michael Bate says favourable economic conditions has encouraged Australians to spend up.

"With low interest rates and a strong housing market, Australians are investing more in their castles," Bate says.

"This is great news for our large format retail sector, which is enjoying favourable conditions as hardware, garden supplies, electrical goods and furniture are all back in vogue."

Rentals in the large format retail sector have remained stable in the past six months, with select markets starting to experience some upside in rents.

The pipeline of new supply within the large format sector has been dominated by the hardware category.

Colliers says strong growth in the sector has been driven by rising house prices and consolidated by a lift in housing supply and transactions, and is also reflected in the recent strong performance by retailer Bunnings.

Director of research Nora Farren says overall the retail sector has a fairly bright outlook.

"The number of shopping centres currently under redevelopment, about to commence construction and in the planning phase has increased markedly," Farren says.

"The pace of supply is now anticipated to be above long-term average levels over the next few years."

Major institutional owners currently have more than $10.5 billion worth of retail development in the pipeline, across about 95 projects. The regional shopping centre sector will account for roughly $7.8 billion of the forecast supply.

"As a percentage of total stock by sector, we expect the supply of regional shopping centre floor space to provide additions equivalent to around 10 per cent of the existing market over the next three years," Farren says.

"Moving forward we expect that supply additions will largely be absorbed by growth in retail sales turnover."

Retail sales in 2015 are expected to continue to grow steadily at similar rates to 2014.


Latest News

VIDEO INTERVIEW: TAKING ON THE TELCO GIANTS AND HOW TO COMPETE AGAINST HEAVYWEIGHTS LIKE TELSTRA

THEY'RE one of only four licenced mobile carriers in Australia, and Pivotel Group is taking on the likes of te...

COMMUNITY LAWYERS ON FUNDING CRISIS: BUDGET WAS A DECENT START, BUT MORE NEEDS TO BE DONE

While the Federal Budget may have reversed its initial plans to cut funding from community legal services nationwi...

DREAMWORLD UNDER 'REVIEW' BY OWNERS ARDENT LEISURE AS ACTIVIST INVESTORS PUSH FOR BOARD POSITIONS

DREAMWORLD owner Ardent Leisure (ASX: AAD) is considering the future of the theme park which may be redeveloped or so...

MAKE WAY FOR THE 'PANTSCRAPER', A TWIN TOWER SET TO CHANGE MELBOURNE'S CITYSCAPE

MELBOURNE'S skyline is about to transform following the construction of a $1 billion luxury high-rise in the city...

Related News

COMMUNITY LAWYERS ON FUNDING CRISIS: BUDGET WAS A DECENT START, BUT MORE NEEDS TO BE DONE

While the Federal Budget may have reversed its initial plans to cut funding from community legal services nationwi...

REGIONAL BANKS HIT OUT AT RATING CUT AND WARN BIG FOUR WILL BENEFIT

REGIONAL banks have hit out at a downgrade on their credit ratings, warning that it will increase their wholesale fun...

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter