Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Joel Robinson

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.

Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=368000]

Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;

“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;

“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.

“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;

“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367999]

The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.

Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.

<a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;

“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;

“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.

Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.

The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.

[smartcode_project:default project_id=151233 project_image_fid=375378]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.

"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.

"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."

One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

Retail Market

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Retail sales growth has eased further at the expense of traditional major anchor tenants, according to Dexus Property Group’s latest quarterly report.
Consumers continue to limit spending on traditional retail goods in favour of retail services and dining/entertainment experiences.
Retail turnover growth eased to 2.6% for the year to August 2016.
NSW and Victoria continue to lead other states, but Queensland has been improving, having now recorded four consecutive months of increased growth.
WA is weak with mildly negative growth over the year.
<a href="/images/2016/10/28/Figure%2020.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%2020.jpg" alt="">
At a category level, ‘clothing, footwear and accessories’ and ‘cafés, restaurants and takeaway’ are currently the best performers. ‘Household goods’ growth has eased and ‘department store’ sales are contracting.
<a href="/images/2016/10/28/Figure%2021.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%2021.jpg" alt="">
There is significant development activity particularly in regional centres, as owners seek to expand their entertainment/leisure precincts to cater to new consumer preferences. The evolution of shopping centres is continuing to shift the balance from traditional anchor tenants, e.g. department stores to mini-majors/specialties.
<a href="/images/2016/10/28/Table%206.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Table%206.jpg" alt="">
Dexus noted the key themes included:
<ul>
<li>Consumer confidence has remained steady in the last few months</li>
<li>Several retailers have announced expansion plans including Costco, Harris Scarfe (13 stores with a focus on NSW) and David Jones’ high-end food offer (commencing with Market Street, Sydney)</li>
<li>The UK department store Debenhams has announced their first Australian store will be at St Collins Lane, Melbourne in September 2017</li>
<li>Consolidation of major retailers is increasing with JB Hi-Fi acquiring The Good Guys, Home Consortium purchasing Masters and Steinhoff’s planned takeover of Fantastic Holdings</li>
<li>As part of its restructure, Woolworths has announced a review of existing and planned stores, with 30 stores targeted for closure</li>
</ul>
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j.ballantyne1990-6AQqhLzZaK

Consumers favour services and entertainment rather than traditional retail goods

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With Australian retail yields near historic lows, compared with fixed interest investments and retail property around the globe, retail property in the country continues to attract investors, says Cushman and Wakefield.
The commercial real estate firms Q3 Retail Snapshot summarises its findings for the Australian economy and the retail sector.
ECONOMY
The Australian economy performed more strongly than expected in Q2 2016, expanding 2.9 percent in annual average terms. This result outperforms the Q1 outcome of 2.7 percent and is similar to the trend rate of 3 percent. 
Population growth, a slowly improving tourism sector and increased export volumes have helped to reduce the impact from declines in resource-based states. August saw a further 25 bps cut to the cash rate, to 1.50 percent, in an effort to boost lacklustre inflation. This coupled with a weaker exchange rate is providing a boost to housing and corporate activity. 
<a href="/images/2016/10/14/marketindicators-retail.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/10/14/marketindicators-retail.png" alt="">
RETAIL MARKET REVIEW 
In the year to June 2016, Moving Annual Turnover (MAT) grew 3.8 percent, a modest decline on 4.1 percent in Q1, with both quarters below the long term average of 5.2 percent. Below average economic and income growth since the GFC have contributed to sub-trend retail sales MAT growth. Sales for discretionary items remain solid but a little below average, supported by South-East Australia’s housing boom. Consumer sentiment continues to trend at neutral levels. 
<a href="/images/2016/10/14/retailsnapshot1.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/10/14/retailsnapshot1.png" alt="">
<a href="/images/2016/10/14/retailsnapshot2.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/retailsnapshot2.png" alt="">
INVESTMENT REVIEW
Robust investment volume continued in Q3 2016, with a total of $2.1 billion invested over 47 transactions. Investment volume declined quarter on quarter, but the number deals increased resulting in smaller average deal size. In line with this, activity in the quarter was focussed on smaller, neighbourhood centres whereas in the previous quarter volume was driven by larger CBD centres and portfolio deals. 
A major contribution to quarterly result was the joint venture purchase of David Jones at 65-77 Market Street, Sydney by Scentre Group and CBUS from Woolworths Holdings for $360 million at an approximate initial yield of 4.50%. This transaction was part of nearly $1 billion invested in New South Wales retail over the quarter – almost 50% of the national total. Retail yields across most centre categories compressed further as evidenced in average transaction yields. Although foreign investment activity was more muted in Q3 at $445 million, offshore capital continues to target retail assets. 
OUTLOOK 
While Australian retail yields are near historic lows, compared to fixed interest investments and retail property around the globe, Australian retail property remains relatively attractive. This has resulted in strong demand for retail assets from both local and international investors as well as limited availability of quality assets. With interest rates generally expected to remain lower for longer, we expect ongoing investor demand to remain solid leading to further, but modest yield compression. 
<a href="/images/2016/10/14/retailtransact.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/retailtransact.png" alt="">
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jonathanchancellor-7SQnKwU6yx

Investor demand for Australian retail to remain solid: Cushman & Wakefield

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<img src="https://counter.theconversation.edu.au/content/63192/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Retail sales data showed growth in the sector falling flat last week, and it remains a tough time to be a retailer in Australia.
Overall, shoppers are expecting more for less, abandoning any sense of loyalty. However, there are bright sparks of success in the moribund sector that point towards what works and what doesn’t in making profits in retail.
Australia’s overall inflation, currently at historical lows, is only kept above zero by the increasing prices of services like health and education, not by retail goods. Retail staples like food, clothing and footwear are all cheaperthan this time last year. Price competition, and pressure on margins in the grocery and clothing markets is intense.
The deflation in “food and non-alcoholic beverages” prices recently reported by the ABS can be most readily explained by the Aldi effect. Aldi’s continued expansion throughout regional Australia and continued push westward to South Australia and Western Australia is playing havoc with the retail margins of both Coles and Woolworths. Both have fallen to around 4.7 percent of sales as price declines have been outstripped by operational cost efficiencies. The major challenge for both Coles and Woolworths, however, is to address the fundamental difference in their cost of doing business versus the lean operations of Aldi.
<a href="/images/2016/09/07/Screen%20Shot%202016-09-07%20at%209.05.55%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/07/Screen%20Shot%202016-09-07%20at%209.05.55%20AM.png" alt="">
Away from groceries, as the seasons turn, Australia’s bulging wardrobes continue to make room for yet more clothes and shoes. Despite this, prices are falling. In clothing and footwear, deflation is better explained by the ascendant online marketplace and consumer preferences, shopping traits and experiences.
Overall online clothing retail sales growth continues to far outstrip bricks and mortar retail, with small online retailers (sales less than A$2.5 million) seeing strong growth of more than 20 percent per annum on the back of more agile systems and shopper convenience.
<h2>Green shoots</h2>
Looking below the “sectoral” numbers to some examples of individual businesses provides some interesting evidence of these trends - both supportive and contradictory.
<h4> </h4>
Online surfwear and sportswear retailer Surfstich, for example, saw its share price savaged after it posted a massive loss on the back of a flagging acquisition strategy and management upheavals. In a closely related market, however, Kathmandu is performing relatively well, flagging higher margins and earnings to come. CEO Xavier Simonet attributes these outcomes to “product newness and careful management of promotional activity” – basically selling a more narrow range of more appreciated goods with less discounting.
Premier Investments continues to outperform. Controlled by Solomon Lew and led by the colourful former CEO of David Jones, Mark McInnes, Premier seems to have the right portfolio of products and store-based and online business strategies to maintain growth and margins. Its Smiggle business is a case in point. It sells cheap things at high prices to a demographic of adoring tweens, while the quality Peter Alexander brand works as a sales generating all-rounder in the family clothing sector.
Another somewhat bright spot seems to be Kogan – the online electronics retailer that recently listed on the ASX. It is a business that is hard to categorise. It has a portfolio of own-branded electronics, operates a channel of grey imported products from its offshore subsidiary, and is branching into services including travel. Trading at a discount to its IPO, it is fair to say the market is watching with interest rather than enthusiasm before it decides on the longevity of this idiosyncratic retailer.
One of the most resilient of retailers, Harvey Norman, also reported last week. Its result was stellar and its share price soared. Sceptics wonder, though, how much of this can be attributed the the exit of Dick Smith and the rather topsy housing market which all but the most optimistic spruiker sees at or near its zenith.
Both Premier and Kogan point to an emerging trend – innovation matters in retail more than ever. Strong growth among small online retailers is showing consumers want variety and novelty in their baskets and wardrobes rather than generic and cheap (or worse, generic and expensive). Globally, firms like Threadless (a T-shirt company whose customers design its logos) are trying new things and creating products that appeal to narrow yet loyal customer groups. In Australia, niche online retailers like Babes in the Shade are showing they have a business model that can work over time.
But innovation is both risky and expensive. More often than not supermarket trialled novelties do not last, with the same true in clothing and elsewhere. This can explain the emergence of firms like Premier Investments that combine retail smarts, relatively deep pockets and novel ideas. Premier can afford the odd disaster when balanced with successes like Smiggle.
In the future, we expect more innovation and variety and thus more turblulence in the sector. Occasional narrow-brand innovators like Noni B will succeed, but a more likely model for success will be the porfolio players. They can ride out the ups and downs of retail’s various sub-markets and sustain profitability and growth.
John Rice is professor of management, University of New England and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-rice-93120" target="_blank">here</a>.
Nigel Martin is lecturer, College of Business and Economics, Australian National University and author for The Conversation. he can be contacted <a href="https://theconversation.com/profiles/nigel-martin-117971" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Company results wrap: retail sales flat, but some retailers buck the trend

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Scentre Group today announced its results for the six months to 30 June 2016, with Funds From Operations (FFO) of $617 million.
The profit represents 11.61 cents per security and distribution of 10.65 cents per security, keeping them on track to deliver its full year forecast FFO growth.
The full year forecast FFO growth was around 3 percent, with forecast FFO of 23.25 cents per security and forecast distribution of 21.3 cents per security.
“We are pleased with these half year results which reflect the benefits of focussing on the highest quality shopping centres in Australia and New Zealand," said Scentre Group CEO Peter Allen.
"Our portfolio is well positioned to continue to deliver long term growth”.
Comparable net property income increase 2.6 percent for the six months, driven primarily by contracted rent increases.
“Our shopping centres continue to experience strong demand from retailers, demonstrating the benefits of the high sales productivity across the portfolio” Peter said. 
Scentre Group announced earlier this month that it had purchased the David Jones Market Street building in Sydney's CBD with Cbus Property.
When completed, Scentre Group will own the redeveloped retail site, adding an additional 10,00 sqm of luxury retail space.
“Having completed the acquisition of the adjacent David Jones building, we have the unique opportunity to expand Westfield Sydney, which has the highest specialty sales productivity in Australia, reinforcing the precinct as Sydney’s luxury retail destination” Peter said.
During the half, the Group commenced $605 million of developments including projects at Westfield Chermside, Queensland, Westfield North Lakes, Queensland and Westfield Whitford City, Western Australia. 
The Group owns and operates interests in 40 Westfield shopping centres, including 16 of the top 25 performing centres in Australia, and has assets under management of $43.3 billion.  
Scentre Group has a strong balance sheet with gearing of 33.7% at 30 June 2016. 
 
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Scentre Group announce six month profit of $617 million

<html><body>
<img src="https://counter.theconversation.edu.au/content/63317/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Supermarkets have moved quickly to capitalise on a growth of inner city dwellers with smaller houses but some retailers like Walmart, Tesco, Morrisons and even Woolworths are back peddling due to the risks.
With the rise of smaller one and two bedroom apartments with smaller kitchens and an abundance of restaurants, bistros and cafes that amass inner-city streets, consumers are accordingly purchasing groceries more frequently, up to three times per week and in smaller volumes.
Convenience store growth, online grocery sales and the aggressive expansion of discounters like Aldi, have progressively changed shopping behaviour, encouraging regular top-up shopping rather than weekly one-stop shops. As a result, the big four UK grocery retailers now run more convenience stores like Tesco Express, Tesco Metro, Sainsbury’s Local and M Local, than full-line supermarkets. Woolworths have also dipped their toe cautiously into the convenience market.
<h2>The challenge of convenience</h2>
While the convenience market proposes opportunities for large supermarkets, it also presents risks. The attractiveness of lower build, fit out and leasing costs associated with opening smaller store formats, is weighed against less space and accordingly, less range. Misreading the needs of the local market and getting that range wrong, will negatively impact on sales.
The costs associated with running convenience are significantly higher than large format supermarkets. Wage costs in convenience stores can hover above 13 percent, whereas a full-line supermarket can run on less 9% wages to sales. Waste, shrinkage and other operating expenses are inflated as a result of lower sales.
Competition is ferocious. While a supermarket may compete with another neighbouring supermarket, supermarket run convenience stores may find themselves in direct competition with local delicatessens, bakeries, butcheries, news agencies, all vying for the best locations and customers’ dollar.
<h2>Eating themselves alive</h2>
There are no switching costs in grocery retailing and shoppers today are not mortgaged to any food retailer. This lack of shopper loyalty has driven UK supermarkets to ultimately cannibalise their own sales by rushing to open smaller format stores.
By opening convenience stores on high streets, transit hubs and inner-city areas, the supermarkets have encouraged consumers to shop more frequently for groceries, rather than doing the one big weekly shop.
Today, shoppers now pop into the convenience store to purchase their evening meal on the way home from work, shop in a supermarket for non-perishable foods and then drop into a discounter like Aldi for a bargains. While a move into convenience and smaller store formats make sense, supermarkets should be aware of the risks ever present.
<h2>Abandoning the small store strategy</h2>
In response to an aggressive rollout of small format stores and the protracted price wars, Tesco announced it would review its fleet of stores. It closed 43, 18 of which were Tesco Express convenience stores and 12 smaller Tesco Metro urban stores. Similarly, UK grocery chain Morrisons also moved to closed around 10 convenience stores.
In the US, Walmart announced the closure [over 100 Walmart Express stores] [https://blog.walmart.com/business/20160115/doug-mcmillon-answers-questions-about-sharpened-focus-on-stores], citing a return to the big retail store format.
Here in Australia, four Woolworths metro stores are targeted for closure with the renewal of leases of a further five stores in jeopardy.
It appears Woolworths CEO Brad Banducci has taken a leaf out of the play bookof Morrisons' Chairman Andy Higginson’s , who said he now wants Morrisons to focus on its supermarkets. Banducci’s briefing to the market illustrated a returned focus on Woolworths’ core business of supermarkets and liquor.
The strategy involved slashing ranges of tiered private label products, closing under performing stores, [increasing productivity and cutting costs.] [https://www.smh.com.au/business/retail/woolworths-ceo-brad-banducci-unveils-growth-aspirations-20160606-gpctce.html]. It’s a smart strategy indeed that will lead to a leaner, meaner, agile Woolworths in the years ahead.
Gary Mortimer is associate professor, Queensland University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gary-mortimer-1322" target="_blank">here</a>.
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Big retailers are realising the risk of moving into convenience stores

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GUEST OBSERVER
Pop-up shops may have started as a way to derive temporary rent from opportunistic tenants. But today the concept is a permanent fixture in many retail management strategies.
Demand for pop-up spaces from retailers is strong, given the lower risk and minimal capital required compared with a standard lease. 
For new or incubator retailers, the appeal is obvious: minimising costs is important for any business starting out.
Established retailers are increasingly using pop-up stores to test new concepts and experiment with new approaches.
But what about the benefits to landlords?
Pop-ups have always been around as temporary income generators for vacant tenancies. The rationale was that income, albeit short term, and activation is better than a hoarding that screams unwanted space.
This strategy was predicated by the ultimate objective of securing a long term tenant.
However, given demand for these spaces, select centres can actually dedicate a high value space to a pop-up or revolving retail concept instead of looking for a permanent tenant.
It’s a valid strategy if all the pieces fit. When executed well, pop-ups can drive a sense of urgency in purchasing behaviour and inject life into the centre. 
Pop-up retailers that build brand buzz take care of the marketing leg work and can amplify the centre’s reach. Short term sales can be more productive and monthly rentals above market, even with some downtime.
Of course there are challenges, including high labour intensity to curate, downtime risk and the valuation impact of not having a permanent lease in place.
The key to success is in the execution. First, the tenancy must be appealing. A pop-up is no solution for a plagued tenancy.
It should use flexible, movable fixtures that can be stored, with clever signage solutions that can be changed cost effectively. A flexible lighting solution is essential.
Landlords could consider partnering with someone who can curate the space in line with guiding principles. Urban market operators often have ties to incubator retailers.
A branding concept could be considered for the space, with engaging marketing helping to fill the space during downtime, giving people a reason to use it.
It’s also important to see the commitment through. If a landlord commits to a pop-up or revolving retail concept for a tenancy, they must frequently swap the offer. If a particular retailer is performing well, convert them to a permanent deal elsewhere in the centre, as was the case with Doughnut Time at Central Park Mall in Sydney.
Doughnut Time launched to the Sydney market via a 15sqm pop up at Central Park and, having successfully tested the market and delivered very strong sales, has now been converted to a high value 400 sqm permanent tenancy.
The new Doughnut Time tenancy will also showcase Alfredo’s, another new brand to the Sydney market. Alfredo’s is a hip pizza concept out of Brisbane by Doughnut Time founder Damien Griffiths. 
The new tenancy, incorporating the two strong concepts, will be open by October 2016. It’s a prime example of the flow-on benefits of a well-executed pop-up retail strategy.
Pop-ups can add real value to a retail centre and provide for a better customer experience. If you can accept or mitigate the challenges, then the concept of a permanent revolving retail tenancy can be an exciting and profitable one. 
Felicity Armstrong is retail asset manager, Frasers Property Australia and can be contacted <a href="https://www.frasersproperty.com.au" target="_blank">here</a>.
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Pop-up and revolving retail: here to stay

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A standalone retail and residential property in Melbourne’s north-west suburb of Kensington has fetched $1.225 million at auction.
The 513 Macaulay Road asset sold $125,000 over the vendor’s reserve to a Melbourne-based investor.
Selling agent, Teska Carson’s Anthony Choi said the “property was located in a tightly held strip with a low vacancy rate in an area earmarked for intensive urban revitalisation under the Arden-Macaulay structure plan”.
Located in the retail strip between Bellair and Epsom streets, the property comprises a solid brick shop and dwelling of 136 square metres on a 103 square metre site zoned Commercial 1. The retail and upstairs components have the potential to be accessed separately, thus the opportunity for separate tenancies.
Evans said Kensington was a sought-after suburb with demand driving a gentrification process.
“The property is well placed to benefit from the inevitable growth in capital values as demand for city fringe property increases,’’ he said.
The property was sold with vacant possession by a private investor.
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Shop and dwelling in Melbourne's Kensington fetches $1.225 million at auction

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A brand new 7-Eleven service station in Byford in Perth’s south eastern residential corridor is on the market.
The site at 76 Abernethy Road benefits from a strong tenancy profile, with a 15-year lease to national retailer, 7-Eleven Stores Pty Ltd, plus options until 2056. 
The property earns a net annual income of about $310,000. 
The sale is being handled by CBRE’s Ben Younger and Kate Foley on behalf of Emmett Property via an offers to purchase campaign closing July 1.  
Foley said the property’s location in the high-growth area of Byford would be a major selling draw card.
“The property is positioned to benefit from ongoing growth in the Byford area, supported by the new Byford Village Shopping Centre, which is due for completion in 2017,” Foley said. 
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New 7-Eleven service station in Perth’s Byford up for sale 

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Ray White Commercial have sold a freehold fruit shop investment to a developer in the acclaimed Heathmont shopping precinct for $900,000.
Previously traded for $150,000 in 1993 and located in Melbourne's east, the property at <a href="https://www.realcommercial.com.au/property-retail-vic-heathmont-501944590" target="_blank">178 Canterbury Road</a> has had the same tenant for 18 years.
It was sold under the hammer by Ray White Commercial Victoria Nunawading Director Brett Diston on behalf of a private owner for a yield of 2.8 per cent.
Diston said the retail site attracted strong interest with more than 100 people attending the auction.
“There was keen competition between three bidders for this property which has a long term tenant on a 5 + 5 year lease,” he said.
“The net rent from the approximately 94 sqm building on a 165 sqm site is approximately $26,000 per annum plus outgoings and GST.”
He said the major selling points were the site's outstanding exposure and rear access in a proven retail strip in Melbourne's east. 
“The site sits within the prominent Heathmont Village shopping precinct on busy Canterbury Road among a number of cafes, restaurants, Heathmont IGA and other retail and specialty stores.”
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Thriving fruit shop sold for $900,000 at Heathmont

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A fully refurbished South Yarra retail building has fetched $3.2 million under the hammer through Fitzroys, reflecting a 4.3 percent yield.
It was sold with a new 5x5x5 year lease to Melbourne's iconic sweet retailer Burch and Purchese.
it returns $140,400 per annum, plus outgoings and GST.
The substantial brick building of 300sqm sits on a 238sqm site with rear access via Daly Street and Forrest Hill.
The <a href="https://www.realcommercial.com.au/property-retail-vic-south+yarra-501944766" target="_blank">two-storey Chapel Street</a> property received over 80 enquiries and a four party strong bidding through Fitzroys agents Chris Kombi and Chris James along side John Camilleri of Killen Thomas
Kombi said the site presented a rare investment opportunity in a high growth location with future value add.
“This is an enormously successful location with a huge catchment of over 4,000 residents and workers immediately surrounding the property, further enhanced by the growing number of residential projects currently under construction, including Royal Como, Gisele, 661 Chapel Street, W South Yarra, Wil &amp; Co and many more.” 
He said the surge in medium and high density development and the resultant population explosion has had a hugely beneficial impact on South Yarra’s famously dynamic retail and hospitality precinct. 
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