Are Services the new food courts?
The advent of the super neighbourhood shopping centre
The Australian shopping centre landscape is changing rapidly as the rise of online services continues to literally eat into the traditional markets of many centres.
An alternative to the continuing expansion of food courts lies in the booming services sector such as finance, travel, beauty and health – a strategy that has proved highly successful and created a new class of “super” neighbourhood.
When Comac was appointed as Leasing agents for Abacus' $50 million redesign of the Lutwyche Shopping Centre in Brisbane they analysed the national spending averages for Regional Centres and found 59% of the retail spending is on food, liquor, groceries and food catering.
Cafes and restaurants in particular have increased their presence in the last decade to 14% but in many instances it is not the solution for medium sized centres.
“The new point of difference for Lutwyche has been the reinforcement of the Food, Liquor and Groceries categories and the creation of the “services precinct” to capitalise on the growing boom in personalised businesses.
The “food precinct” concept was created – the previously struggling food court was relocated, reinvented and reduced to just five food businesses with a strong local flavour to add authenticity.
We expanded the community services component to draw people into the centre. Existing Commonwealth and Westpac Banks and Australia Post have been underpinned by other services including finance, health beauty and travel.
The final layer will be to reintroduce value add fresh food retailers that provide an alternative offer from the three supermarkets. Artisans that set themselves apart from the improving offer being delivered by the majors,” Mr Haddrick said.
He said the focus on health (such as optical and dental) and removal of fashion is very unusual for a centre of this size but it is working very well.
Comac continues to monitor other services that are expanding included audiology, laser treatment, plastic surgery and beauty such as day spas that are evolving into shopping centre ready services to cater for the boom in personal consumer demand.
Click here to see Lutwyche Shopping Centre tenants http://www.lutwychecity.com.au/finder.php
Click here for details on the region and ownerships https://brisbanedevelopment.com/major-refurbishment-planned-for-lutwyche-city/
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