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BEAUTY company Deciem, touted as a Sephora alternative, has become the first major international brand to secure space on Chapel Street since 2013.
The Canadian headquartered cosmetics retailer will open its first Australian store at 513 Chapel Street in South Yarra, Melbourne.
The location is next door to Sydney-based beauty business Napoleon Perdis.
Colliers International retail leasing specialists Ben Tremellen and Cam Taranto negotiated a 5-year lease to Deciem for a 200sqm.
Deciem will pay an approximated annual rent of $230,000 or $1,150 per sqm.
"Deciem is one of the first international brands to secure space on Chapel Street since West Elm opened its Melbourne flagship store in 2013," says Tremellen.
"With the likes of international cosmetic brands such as Sephora and Amuse Cosmetics entering the Australian market within the last 12 months, we are seeing a significant trend towards cosmetic retailers securing larger format stores within premium Australian locations.
"Local beauty retailers such as Mecca, MAC and Napoleon Perdis are also in a growth phase, securing a number of new flagship locations throughout Australia."
Tremellen says there's been a significant decline in local fashion operations securing new sites in the last 12 months as they are pressed by multinationals like Uniqlo, H&M and Zara.
Fellow leasing specialist Taranto believes Australia is still an unsaturated market for international cosmetic brands, relative to overseas.
Deciem has the added point of difference of offering more boutique brands, labelling itself 'the abnormal beauty company'.
"This lack of competition has led to a large push from these international cosmetic brands," says Taranto.
"In addition, large mark-ups on cosmetics has created greater profit margins for these brands, allowing them to expand overseas.
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