Vacancy Rates Down, Flagships Up, Melbourne’s Had A Massive Retail Glow-Up

Melbourne's retail game is (back) alive, with an influx of international traders rushing to the CBD amid vacancy rates dropping to a new low.

Mere moments after a much-hyped, multi-storey Mecca opened in Bourke Street Mall, comes a four-storey retail behemoth—Rodd & Gunn— built into a separate wing of the same heritage-listed building.

More on Melbourne CBD? Here's our recommendations for the CBD's best bars, restaurants, and your guide to Flinders Lane, which has seen a slew of new openings this year.

The refined New Zealand brand has chosen its global flagship for the former David Jones Men’s site—fusing fashion and hospo. Couched in the grand retail edifice are also The Cellar Caffetteria and Cocktail Laboratory, The Lodge Dining Room and a Member’s Bar.

But where does this confidence come from—as we witness flagship entities join a plethora of businesses descending on Melbourne?

The most recent City of Melbourne Shopfront Audit shows Melbourne hit its lowest vacancy rate since 2020—with almost 85 per cent of shopfronts filled. The Audit reveals nearly 140 businesses received some form of support from the City of Melbourne over the past two years.

"Melbourne has once again set the benchmark, recording another year of declining shopfront vacancy rates—reinforcing its reputation as a great place to do business," Lord Mayor Nick Reece says.

"A CBD retail vacancy rate of just 7.8 per cent is remarkable for a city of our size and global standing. Behind that number is the drive and resilience of business owners (and) their hardworking teams."

"We're proud to welcome more global, national and local businesses into Melbourne's thriving retail scene, as we work together towards the city's most successful Christmas trading period yet."

It seems a heap of retailers, designers, creators and companies are itching to make a go of bricks and mortar, hyping up the city with optimism and hope. Here’s what you might have missed if you haven't been into the CBD recently:

FASHION

Image Credit: CAMILLA | Supplied

Celebrating a triumphant return to the city is designer Camilla Franks, who from this month welcomes lovers of glam and style to her lavish, vibrant and bedazzled CAMILLA boutique at Melbourne Emporium. The immersive space is trimmed with bespoke wallpapers, mosaic floors and custom-made lampshades.

“To bring CAMILLA back to this haven of creativity is a dream come true. I’m so excited for our CAMILLA collective to experience this magical new space and soak up all the style and creativity that draws people to this shopping paradise.”

Eighteen months ago, jewellery line By Charlotte had one location further north, in Paddington. By the end of the year, it will have set up a flagship store at Melbourne Emporium and have a total of 13 outlets in three states.

“Jewellery is such a deeply personal purchase, and people want to feel, see and connect with it first-hand,” says founder Charlotte Blakeney.

Online sales are strong, so Melbourne bricks and mortar makes sense to the flourishing business.

“The love we’ve received for our boutiques so far has been beyond anything I could have dreamed of, and it gives us so much confidence in continuing this journey. Opening in Melbourne feels so right.”

Bargain hunters are about to see a multi-storey TK Maxx unleashed on Bourke Street from mid-October. Think weekly drops of street and designer wear, crockery, scented candles and a mind-blowing selection of Halloween merch.

Image Credit: Tigerlily | Supplied

Iconic label Tigerlily has been lovingly reawakened for a new generation (after falling into administration early last year), delighting fans of its beachwear and resort wear designs. After being scooped up by the same group that owns Seafolly, Tigerlily—marking 25 years since inception—is now on Myer department store racks, in the heart of the city.

Tigerlily general manager Prue Slocombe says, “We were actually really blown away when we started working on the brand as to how loyal and how passionate the customer base is.”

Image Credit: Christian Kimber | Supplied

Menswear designer Christian Kimber marks one year since opening, choosing its central location to connect with city workers, residents and those looking for a made-to-measure experience.

Kimber notes that city trading brings a unique set of challenges. “We have to work harder to create a moment of calm and connection, so people feel welcomed rather than hurried.”

Twelve months on, Kimber and partner Ren continue to carry a potent optimism. ‘We’ve seen a real desire return for experiences that feel personal and tangible. People are seeking out quality, craft and authenticity.”

The imposing Uniqlo store at Melbourne Emporium shut up shop in early July, but only temporarily. Its enormous space is under extensive renovation, with the revamped site due to open later in the year. It’s a massive investment in a refreshed store layout with plans to have some Aussie firsts included in the update.

Since opening the first store in 2014, UNIQLO Australia CEO Fuminori Adachi says, “We’ve opened 40 stores nation-wide, thanks to great support. We are thrilled to provide our Melbourne customers with a world class environment and experience in our new Emporium store."

FUN

Pop Mart continues to titillate collectors of all things adorable, with queues often forming outside its city store doors—depending on what limited edition item is being dangled. There are many suburban Pop Mart outposts but the new-this-year CBD store instantaneously became a must-visit for avid consumers. And if you're still hunting Labubus, here's our picks where to find them.

Hundreds of JD Sports outlets are dotted around the world, but only mid-year did the British retailer’s (established in 1981) Aussie flagship store appear in the re-generated Bourke Street Mall. It’s jam-packed with sneakers, of course, trackies, caps, hoodies and so on.

Melbourne Central has locked it in first, as Hoyts introduces SCREENX. What is that? Using multiple projectors, film lovers’ peripheral vision is filled with panoramic 270-degree visuals extended onto cinema walls with enhanced high-quality sound for that fully immersive vibe. It all starts next month at TRON: Ares screenings.

FOOD

The famed Ikkoryu Fukuoka Ramen in Russell Street shut its doors for three months for a basement space spruce-up, re-opening this week. Stunning hand-painted scenes, including a 13-metre mural by artist Junko Azukawa, and adorable figurines (four suitcases worth) they got from coin machines during a recent Japan sojourn have been added.

“We’re optimistic about our future because we are cooking authentic Tonkutsu ramen [takes 18 hours to prepare the broth and more than two hours to make 100 noodle portions] which is very rare in Melbourne.”

Image Credit: Cherry Pie | Supplied

Tarius McArthur, pumping out home-made pies made from his grandma’s recipes at markets and wholesaling to cafes, has taken the plunge with an American-style dessert pie shop in the Docklands.

At Cherry Pie, the biggest seller is—no surprise—cherry pies. Second biggest is key lime pie. Third on the list is pumpkin pie. “Australians often say they’ve always heard of [pumpkin pie] and wanted to try.”

Tarius feels, “there is both a hopeful consumer outlook that things are better but at the same time, people are more cautious with spending due to the rising cost of living.”

There’s a challenge in offering quality products at affordable prices, he admits. “Sometimes I have to bite the bullet and increase prices. The satisfying part is that our customers keep coming back for more.”

For more Melbourne city news, head this way.

Main image credit: Rodd & Gunn | Supplied