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MELBOURNE RETAIL STRATEGY 2006:2012
YEAR THREE REPORT CARD 2008:2009
A joint initiative of the City of Melbourne, the State Government of Victoria and the
Melbourne Retail Advisory Board

                         INCLUDING MID-TERM REVIEW




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Take a tram ride from the Paris end of Collins Street to Waterfront City and you’ll
pass global brands, bespoke fashion labels, striking façades and irresistible
shopfronts. The incredible diversity and quality of shopping on offer has
established the city’s position as the state’s premier retail destination. Across
Australia and the Asia–Pacific, Melbourne is synonymous with rewarding retail
experiences.

We have arrived at this point both organically and by design. As our population
grows ever more diverse, the city has worked with developers and major retailers
to transform disused city spaces. From awe inspiring to ambient, there are myriad
choices within a few blocks.
Evolution continues at pace. Docklands is entering its second decade of
development, iconic department stores are redeveloping inner city spaces and
South Wharf has completed the reinvigoration of the Yarra’s banks. Each has a
retail component. Each represents confidence in the future of Melbourne’s retail
sector.

More than 700,000 people travel into the CBD every day, a figure increasing at a
rate of 13 per cent per annum. Every shopping trip or lunch hour is enhanced by
the activities of innovative retailers. Building the excitement, Melbourne’s rolling
events program consistently gives people compelling reasons to come into town.
Council takes a long term view to retail industry development. In addition to
creating a safe, efficient and clean physical environment, we invest in a range of
incentives. The small business grant scheme helps entrepreneurs with a unique
point of difference to keep the Melbourne retail offer fresh. City research helps
industry track retail trends and, channelling expert advice, the Melbourne Retail
Advisory Board (MRAB) ensures council’s activities are relevant and effective.

Every year, the city runs targeted and seasonal marketing campaigns that make
Melbourne CBD a popular destination for Victorians and interstaters, even in the
depths of winter.

This year we announced the establishment of Enterprise Melbourne, an economic
development agency which will link commercial, government and community
activities to define Melbourne’s benefits as a tourism, business and lifestyle
centre. I look forward to building Enterprise Melbourne with members of
Melbourne’s retail industry.

We are fast achieving the vision articulated in the Retail Strategy three years ago.
I wish to acknowledge the partnership we enjoy with the Victorian Government
and with Victorian industry. In collaboration, we’re working more effectively, with
sharper focus, better intelligence and greater confidence.

It gives me pleasure to present this report. Backed by significant investment,
retail is a growth industry for our city. It has flow-on effects for tourism,
hospitality, arts and cultural groups. It is central to our attraction as a place to
call home and do business.

Robert Doyle
Lord Mayor




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The Melbourne Retail Strategy 2006:2012 continues to be a key driver for retail
development and investment within the Melbourne CBD, with a number of notable
changes to the retail landscape having taken place in the city during the last year.

The biggest CBD transformation in decades is well underway as construction
continues on both the Myer and David Jones Bourke Street stores. Costco
Wholesale has opened its first Australian retail outlet at Docklands, which
represents an initial investment in excess of $60 million and will undoubtedly
have a positive impact on visitation, retail expenditure and the overall position of
Melbourne as Australia’s retail capital.

The new Melbourne Convention and Exhibition Centre (MCEC), which opened for
business in mid 2009, is anticipated to inject around $200 million a year into
Victoria’s economy for the next 25 years and attract many hundreds of thousands
of national and international delegates. The new MCEC will deliver a substantial
boost to retail spend and presents great opportunities for retailers to leverage
conference visitation.

As this year marks the mid-point of the Melbourne Retail Strategy 2006:2012, it
is a timely opportunity to reassess the strategy’s objectives and
recommendations in light of the current economic climate. To this end, the Year
Three Report includes a mid-term review which will provide a guide for the
continued implementation of the strategy for the next three years while
acknowledging the rapid speed of change in the global retail environment. The
outcomes of the review will help to ensure that Melbourne is the Australian city
best positioned to respond and capitalise on retail opportunities into the future.

I am proud of the Victorian Government’s partnership with the City of Melbourne
and what it has delivered to date through this initiative and I look forward to
watching the city continue to transform.

The Hon Martin Pakula MP
Minister for Industry and Trade




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CONTENTS
THE MELBOURNE RETAIL STRATEGY 2006:2012 .......................................................5

PART 1—YEAR THREE REPORT CARD ..........................................................................8

RETAIL MIX .............................................................................................................................10
CITY AMBIENCE AND ACTIVATION ........................................................................................22
ARCHITECTURE AND DESIGN .................................................................................................32
RETAIL MARKETING...............................................................................................................40
TOURISM ..................................................................................................................................48
ACCESS AND AMENITY............................................................................................................52
SECTOR AND BUSINESS DEVELOPMENT ................................................................................57
INVESTMENT ATTRACTION ....................................................................................................63
INDUSTRY LIAISON..................................................................................................................67

PART 2—SUMMARY OF FINDINGS OF RETAIL STRATEGY MID-TERM
REVIEW .................................................................................................................................70

APPENDIX.................................................................................................................................87




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THE MELBOURNE RETAIL STRATEGY
2006:2012

In 2005, the City of Melbourne and the Victorian Government commissioned a
study to strategically position Melbourne’s CBD as a global retail capital and to
ensure the continued evolution of retail in Melbourne. The result was the
Melbourne Retail Strategy 2006:2012. This was developed in conjunction with
independent consultants The Future Laboratory, who conducted extensive
research into the retail environment in Melbourne and in major retail cities around
the world, including Paris, London and New York.

The Melbourne Retail Strategy 2006:2012 was the first initiative of its kind in
Australia and was developed during a period of strong retail growth, both
nationally and across greater Melbourne. At the time the strategy identified the
strengths of retailing in central Melbourne as:

 a distinctive and diverse retail offer
 a collection of intimate shopping spaces in lanes and arcades
 a thriving hospitality and events scene around retail precincts
 a strong reputation in the arts and culture
 the position of the city at the heart of Melbourne’s transport system.

The strategy highlighted the importance of developing Melbourne’s unique assets,
including its network of laneways and its vibrant street life. The strategy also
highlighted the need for the city’s retail sector to continually innovate and
respond to competitors.

It was envisaged that the Melbourne Retail Strategy would be a living document
that would be reviewed and revised over its six-year time frame. Since the
strategy’s launch in 2006, progress reports have been released for both the
200607 and the 200708 financial years, with the 200708 report including the
Docklands Retail Statement. This statement outlined opportunities, challenges
and strategies for the development of retail operations in the Docklands area.
For the 200809 report, which marks the mid-point of the Melbourne Retail
Strategy, The Future Laboratory was commissioned to produce a mid-term review
that will provide a blueprint for the continued implementation of the strategy over
its remaining three years. This review takes into account global retail trends.

Future Melbourne and Council Plan 20092013

The City of Melbourne maintains a commitment to the Melbourne Retail Strategy
2006:2012 in the context of Melbourne City Council’s goal of economic prosperity,
through maintaining a sustainable and resilient city economy.

Future Melbourne, a plan for Melbourne that was developed via public
consultation with the community, was initiated by the City of Melbourne in 2007.
It was clear from the Future Melbourne consultations that the aspiration for
Melbourne was for it to remain prosperous and to grow as a global city. The six



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goals devised through the Future Melbourne consultation process are for
Melbourne to be: a city for people; a creative city; an economically prosperous
city; a knowledge city; an eco-city; and a connected city. Council has added two
more goals to the community’s Future Melbourne plan, to ensure that Melbourne
is: a city that leads by example; and a city that manages resources well.
Council Plan 20092013 was guided by the vision outlined in Future Melbourne. It
picks up and develops the goals in Future Melbourne, including the emphasis on
building and maintaining a strong city economy. The Council Plan takes the
aspirations of Future Melbourne and presents outcomes and objectives that will
see those goals achieved. Across council’s activities there are objectives that will
benefit retailers and consumers in the city—including promoting social
connections, cultural diversity, a sense of safety, creative and innovative design
in the built environment, and increasing the flow of visitors and tourists to the
city.

The Council Plan commits the City of Melbourne to work with the business
community to ensure that Melbourne is an economically prosperous city.
Objectives within this goal include furthering the concept of the 24-hour city,
building the capacity of small to medium sized enterprises, and supporting
international conferences and events.

Mid-term review
The Melbourne Retail Strategy 2006:2012 helped to define Melbourne’s distinct
and diverse retail character, encouraged new retail investment and
developments, promoted cultural connectedness and elucidated the concept of
authentic Melbourne experiences and local narratives.

In common with other global cities, Melbourne has experienced a period of
increased investment, retail growth and an explosion of retail-led creativity over
the past three years. The city has become more desirable in many respects: as a
residential locale, as a business hub, as a media focal point, as a shopping
destination or, more broadly, as an exciting frisson of creative enterprise that
spans retail, arts, food, beverage and design.

However, the global and local retail landscape has changed significantly since the
launch of the retail strategy in 2006. Melbourne will need to continually evolve its
retail offer to remain relevant in the minds and hearts of the modern consumer.

Looking to the future, ‘convergence’ probably best sums up the prevailing
approach to retail for cities such as Los Angeles, Seoul, London, Singapore, Paris,
Cape Town, Berlin and Melbourne. Whether it’s online with offline, real with
virtual, or shopping with working and lifestyle, today’s consumers expect a city
that focuses on culture and ‘liveability’—they demand a retail offering that fits
neatly into all spheres of their lives.

The Future Laboratory’s mid-term review sets out in clear terms the actions that
Melbourne should undertake to capitalise on its enviable position as Australia’s
leading retail city. The report’s major focus points include:

 integrating technology into the city retail offering
 encouraging experiential retail and leveraging its media potential
 redefining and aggressively pursuing innovative retail


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 facilitating activity that fuses business with leisure
 creating more pleasurable and user-friendly shopping experiences
 fortifying and promoting distinctive cultural and historical qualities
 leveraging the relationship between retail and other cultural pursuits.

Part 2 of this document provides more information about the mid-term review
and a detailed summary of review findings.

Melbourne Retail Advisory Board (MRAB)

The Melbourne Retail Strategy has been overseen by the Melbourne Retail
Advisory Board (MRAB) since 2006. The board has represented major
stakeholders and service providers in the retail space in the city. The City of
Melbourne and the Victorian Government (represented by the Department of
Innovation, Industry and Regional Development—DIIRD) as partners in the
strategy, have been fortunate to be joined on the MRAB by eminent and emerging
retailers and members with substantial experience in building and operating retail
spaces and related services in the city.

The first MRAB completed its three-year term on 30 June 2009. The Melbourne
City Council then formed a successor MRAB to continue to oversee the Melbourne
Retail Strategy and to advise on the further development of a strong retail sector
in the city’s economy.

In accordance with the resolution taken on 9 June 2009 by the Melbourne City
Council’s Knowledge and Prosperous City Committee, the MRAB from 2009 will
include representation from DIIRD, the City of Melbourne, the Australian
Retailers’ Association, prominent city retailers, small and medium-sized retail
enterprises, representatives of related industry sectors such as property
development and events, and co-opted members with expertise and experience in
advising on retail development.




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MELBOURNE RETAIL ADVISORY BOARD


PART 1—YEAR THREE REPORT CARD

Message from Chair, Roger Nelson

This publication marks the third year of the 2006:2012 Melbourne Retail Strategy
for Melbourne. This year also marks the changing of the Melbourne Retail
Advisory Board, and as Chair I would like to extend my thanks to the City of
Melbourne and the Victorian Government for their support as well as to my fellow
board members for the efforts they have undertaken so far to oversee the
strategy.

This strategy is a significant advance in understanding the life and culture of our
city. Retail activities and all the things to do with ‘exchange’ are central to the life
of healthy cities. Melbourne is a shining example of the link between a vibrant city
life and a strong retail industry. Indeed, this has been central to Melbourne’s
renaissance over the last decade. The retail strategy, of course, is a key plank in
this, but it is its coupling with other significant strategies to do with tourism,
urban design and events that make it so powerful.

The collective consciousness of Melbourne is one where the city is well loved, well
liked and well used. And the fact that retail plays such a central role in the
perception, life and energy of the city makes it an especially challenging and
exciting area—but there is more to be done.

Retail is also dynamic, changing and influenced by so many things to do with
consumer confidence and the economy in general. Unique, interesting,
characterful, strong and powerful retail enterprises that bond with the city
demonstrate what the strategy is all about; that is, to continue to build a strong
and relevant retail industry that is inexorably linked to the positive view of
Melbourne as a place and underpins civic health for the long term.

The last three years have been about building the strategy’s foundations and then
making strong and powerful connections between the parties that fundamentally
influence how retail occurs. Retailers, the city, government agencies, the
investment and property industry and, finally, the public all bind together to make
the city strong.
The work in the next three years will consolidate this and build on Melbourne’s
strengths as a city of innovation, a city of character and a city that continues to
be well loved and well used. There are, of course, challenges with this, as the
city’s infrastructure needs to be adjusted to support its increased popularity and
use.

And while the strategy’s lifespan is to conclude in 2012, indeed the legacy of this
work will carry on for several decades.




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So, as the past Chair of the Melbourne Retail Advisory Board, I thank and
congratulate all of the participants, but mostly I congratulate Melbourne.
Roger Nelson
Chair, Melbourne Retail
Advisory Board 2006:2009

Members of the Melbourne Retail Advisory Board to 30 June 2009

 Australian Retailers Association Victoria
 City of Melbourne
 Crown Limited
 David Jones
 Docklands Chamber of Commerce
 e.g.etal
 Grocon
 Harrolds
 Melbourne Central/GPT Pty Ltd
 Metlink
 Myer
 NH Architecture
 QV Property Management
 The State Government of Victoria

Co opt Members of the Melbourne Retail Advisory Board

 ISPT Pty Ltd
 The Australian Centre for Retail Studies
 The Property Council of Australia




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RETAIL MIX

Retail opportunities are widely spread throughout the city. Almost all
blocks have 200m2 or more of retail space. The greatest concentration
of retailing is in the two blocks on either side of the Bourke Street Mall,
which each have more than 60,000m2 of retail space.

               The Bourke Street Mall is a focal point of Melbourne’s retail sector with
               81,000 visitors passing through each day. London’s Regent Street has
               55,000 pedestrians per day (2004 data, Melbourne statistics collected
               November; City of Melbourne Annual Report 2005–06).

Objective: Introduce a specific retail business monitor to regularly benchmark the
health of the city’s retail economy.

The Melbourne retail monitor

The City of Melbourne and the Victorian Government developed a city-specific
retail monitor in conjunction with CB Richard Ellis. The monitor now covers retail
tenancies in Melbourne’s retail core, Docklands, Spencer Street and Southbank,
and it monitors vacancy rates, churn and property yields.

The monitor indicates that retail in the CBD has been resilient in the global
economic downturn, with rents being maintained and vacancy rates increasing
only slightly in 2008 and 2009.

 Rents: Retail rents per square metre in the city ‘super-prime’ retail areas,
  which centre on the Bourke Street Mall, have increased since 2005, and now
  average nearly $6,000m2. CBD prime rents have also increased over the past
  four years, and at mid-2009 averaged nearly $3,000m2. Secondary retail space
  rents have been quite stable, at around $1,200m2.
 Vacancy rates: Street frontage retail vacancy rates in the city averaged 2.7
  per cent in the March quarter of 2009, compared to just less than 1.5 per cent
  in the March quarter of 2006, at the height of the consumption boom of the
  mid-2000s. The retail vacancy rates were slightly higher in lanes and arcades
  than on main streets in the first quarter of 2009, averaging 4.1 per cent, and
  in shopping centres within the city (3.3 per cent).
 Retail mix:
     The diversity of Melbourne’s retail offer has increased over recent years.
      Clothing retailing is the most common form of retailing in the city, taking 29
      per cent of retail space, followed by food retailing (15 per cent of floor
      space), entertainment (10 per cent), department stores and personal
      services (each with 9 per cent of retail floor space), recreation (8 per cent)
      and homewares (6 per cent). Supermarkets now occupy 3 per cent of retail
      floor space.
     While the main street frontages have more clothing retail than any other
      single form of tenancy, the laneways and arcades provide plentiful
      opportunities for diversity. Food and clothing retail have equal shares of the


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      tenancies in these areas of the city, with 30 per cent each of the core retail
      space, but also accommodate personal and other services (at around 20 per
      cent of the retail offer in lanes and arcades).

Melbourne CBD retail and attraction trend analysis

There has generally been an upward trend in Victorian retail trade (seasonally
adjusted) that is driven by increases in Victoria’s population and incomes. The
Melbourne retail attraction analysis commissioned in 2008 has shown the strength
of the CBD, Southbank and Docklands retailing in relation to the remainder of
metropolitan Melbourne. Some of the major findings of the Melbourne retail
attraction analysis include the following:

 in the seven years up to and including 2009 there has been a substantial
  upgrade in the city’s retail offer
 in this time frame, around 250,000m2 of retail floor space has been created or
  refurbished—about 157,000m² in the CBD and 120,000m² in Docklands and
  Southbank
 Docklands is increasingly playing an important role, with much of the more
  recent retail investment taking place in this precinct
 much of the Docklands retail development is targeted at the metropolitan-wide
  market or the leisure shopping market
 Victoria Harbour is the exception in Docklands, targeting ‘local’ workers and
  residents with convenience shopping—a full-line supermarket, pharmacies,
  newsagents, bakers, dry cleaners, and other retailers fulfilling everyday needs
 between 1996 and 2006 the retail turnover of the CBD has increased by 18.6
  per cent overall—however, that increase has not occurred uniformly across all
  categories of retailing
 retail turnover in the CBD has increased most dramatically in the ‘supermarket’
  category (+941.2 per cent), but this was from a very small base in 1996 and
  reflects the matching population increase for the CBD—in terms of workers and
  residents and is particularly affected by the tertiary student market
 vacancies in the CBD core retail precinct street frontage locations are at a very
  low level, remaining below 1 per cent for the past two years.

The retail attraction analysis included anecdotal evidence collated from interviews
with retailers. Many felt that new and refurbished centres were increasing interest
in the central city area. Respondents also pointed to the growth in city
employment and high-income residents as being positive for the future of
retailing.

Property Watch

Another City of Melbourne research project, Property Watch provides a regular
update of industry views of the property market and market outlooks in the City
of Melbourne.

Property Watch provides research and industry information on office, retail and
residential property markets. Property Watch is unique, drawing together industry
views and detailed research data into a single publication and presenting current
and short-term prospects for key sectors of Melbourne’s property market.




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Forecasts in rental price movements, investment yields, vacancy rates, and
supply/demand trends make it a valuable resource. The March 2009 findings
revealed that while growth had been relatively strong over the three market
segments, it was expected to remain static overall for 2009, with modest
increases expected in 2010 and 2011.
 Office: Both office rents and office yields increased to the end of the fourth
  quarter, 2008. While vacancy rates for the CBD have increased slightly in the
  six months to January 2009, Docklands has seen an opposite trend with
  vacancy rates decreasing from 10 per cent to 3.9 per cent in the same period.
 Retail: The peaks of previous markets are unlikely to be repeated in the tough
  economic times expected through 2009 and into 2010. However, strong tenant
  demand for well located retail property in the core is likely to keep vacancies
  low and allow rental growth to continue.
 Residential: The fundamentals underlying the Melbourne residential property
  market are extremely robust. Melbourne is one of the more affordable
  residential markets in Australia. Demand for rental properties continued to
  outstrip supply in 2008, pushing rents up and keeping vacancy rates at record
  lows. Continued under-supply of new dwellings should ensure vacancy rates
  remain low and put pressure on rents.

              Although retail spending growth slowed in Victoria during 2008, to just
              under 5 per cent, Victoria fared well compared with other states.
              Forecasts for slower growth in 2009—rising by just 4 per cent—are
              expected to be replaced with better prospects for 2010, with a
              forecast of sales growth reaching 10 per cent by early 2011 (Property
              Watch, March 2009).

Pedestrian monitor

Since January 2006, the City of Melbourne has monitored pedestrian movements
using people counting sensors and systems capable of collecting time series data
in multiple locations across the city centre. There are now 18 sensors operating in
the CBD, Southbank and Docklands. The pedestrian data continues to be
incorporated into the Melbourne retail monitor and the Melbourne retail and
attraction trend analysis.
The total number of weekday users grew by 4.1 per cent between 2004 and
2008, from 530,000 to 552,000.

CLUE
CLUE is the City of Melbourne’s Census of Land Use and Employment. CLUE is
available free of charge. However, customised data can be ordered and tailored to
meet individual needs. CLUE offers detailed information on economic activity
within the municipality of Melbourne:

 industry structure and type
 floor space type and use
 employment type and status
 building information
 venue and capacity measures


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 spatial distribution.

Research is conducted biennially, covering the entire municipality. The latest
report, CLUE 2008, was released in June 2009. Some of the major findings in that
report include:

 overall employment in the two years to 2008 increased by 14 per cent
  (compared to 5.2 per cent for metropolitan Melbourne)
 of the 50,000 new jobs represented in this increase, around 30,000 were full
  time
 this increase in jobs between 2006 and 2008 included a 7 per cent increase in
  retail jobs across the City of Melbourne, and 26 per cent increase in food and
  beverage services jobs
 in the two years to 2008, built floor space increased by 9 per cent—at the
  same time vacancy rates have declined to their lowest levels since 1997
 the number of business locations and apartments in the City of Melbourne
  have also increased substantially over the past two years
 there is 807,000m2 of combined retail/entertainment space in the municipality,
  occupied by 3,317 businesses, employing nearly 25,000 people
 since 2002, floor space used for retailing has increased by 18 per cent—
  demand from city workers, residents, students and visitors has more than kept
  pace with the additional retail stock.

Objective: Develop and maintain the integrity of retail mix throughout the city.

Business listings database

The City of Melbourne’s business listings database enables organisations to
communicate with business stakeholders by category and location. Businesses in
Melbourne can opt to receive promotional material from the City of Melbourne, as
well as take advantage of a comprehensive free listing on the relaunched That’s
Melbourne website.

The Business listings database also streamlines the way in which the City of
Melbourne keeps in touch with city businesses about municipal elections and
other opportunities to participate in the running of the city and take part in
consultations about changes affecting retailers.

Small Business Grants program
The City of Melbourne’s Small Business Grants (SBG) program provides grants of
up to $30,000 to innovative small businesses located or locating within the City of
Melbourne. The grants seek to encourage and support new, creative and different
business activities and projects that will contribute to a thriving and competitive
business environment within the city. Historically the grants have been critical to
the establishment of some of the city’s retail success stories. In addition, the City
of Melbourne’s business development activities seek to encourage more city-
based Melbourne businesses to engage and expand their international activities.

There were two rounds of grants for small businesses in 2008. The six retail
recipients during 2008 are featured in the panel below.




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    Small Business Grants retailing recipients, 2008
    Craft Victoria

    Craft Victoria is an outstanding supplier of contemporary craft and design and is the
    peak body in the craft and design scene in Victoria. Craft Victoria provides professional
    development for those members interested in establishing a retail-quality business. It
    also fosters creativity, experimentation and professionalism in contemporary craft and
    design. The organisation sells and exhibits members’ work at its 31 Flinders Lane
    address but wishes to extend its retail operations by opening up e-business options.
    Using a Small Business Grant, Craft Victoria is upgrading its current manual paper-
    based sales system to a computerised system, and developing an online facility.

    Hear Now

    Hear Now is an independent music store specialising in electronica, helping to further
    the vibrant music club and bar scene in Melbourne. This cult music store sells both new
    and pre-loved vinyl. The shop is an ‘above awning’ hidden treasure that has become a
    favourite destination for electronic/dance music fans and DJs. With the help of a Small
    Business Grant, the four DJs who own and operate Hear Now plan to expand the
    organisation’s role to become an independent touring and booking agency for
    international and Australian DJs. Hear Now is located at 2 Somerset Place, in the heart
    of the bar and club scene of which it is such a major part.

    Kimono House

    Kimono House is a niche retailer of new and vintage Japanese textiles, kimonos and
    accessories. A Small Business Grant was sought to expand the range of activities
    offered to incorporate a range of specific and targeted craft workshops and cultural
    classes in Japanese art, crafts and culture. The classes can be custom-designed to suit
    school or other groups and can be delivered either onsite or at an offsite location to
    suit clients.

    The owner of Kimono House didn’t want a traditional shopfront, rather she wanted to
    reflect more closely the Japanese ‘adventure’ of exploring a laneway and discovering
    the wonderful treasures to be found there. The location of Kimono House in Room 7,
    2nd Floor, 37 Swanston Street is perfect for those who also enjoy the wonders of
    discovery.

    Design Institute of Australia

    The Design Institute of Australia is Australia’s professional membership organisation for
    designers and design businesses. As ‘the voice of professional design’, the Design
    Institute, based at Level 1, 175 Collins Street, applied for a Small Business Grant to aid
    in establishing an exhibition and education space. The Design Institute offers members
    a unique and dynamic space for expressing culture and identity to promote the
    contribution and significance of design in everyday lives. The design practices covered
    by the organisation include over 20 different disciplines and range from automotive,
    product, interior, graphic and jewellery design to multimedia, textiles, fashion and
    many more.




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    Thread Den

    Thread Den is a sewing lounge combined with a retail store specialising in local
    established and emerging designer clothing. There is workspace for hire as well as
    workshops for those who want to learn the basics or improve their existing skills. With
    the aid of a Small Business Grant this unusual establishment has been able to expand
    to provide a second room equipped with top-quality industrial sewing machines and to
    offer more classes to enthusiastic patrons. The drop-in workspace is located at 16 Errol
    Street, North Melbourne (upstairs via Webb Lane) and is available for hire. Classes
    range from the basics of how to thread a machine through to the complex tasks of
    creating unique designs or altering vintage clothing—and everything in between.

    Tiffins Pty Ltd

    Tiffins brings to Melbourne the first Indian hot food lunch delivery service. A concept
    that is decades old in Mumbai has been brought to workers in the CBD to offer them a
    low cost, nutritious alternative to other take away foods. The meals are low in fat and
    salt, contain no MSG and are cooked fresh daily using only premium ingredients.
    Lunches are ordered online the day before required from menus posted on the
    company’s website. The food is then delivered fresh and hot direct to the customer’s
    office by energy-efficient tricycle in time for lunch. The food is stored in special
    compartmentalised, insulated—and reusable—containers. The operation reduces
    wastage with its reusable containers and plan-ahead ordering system. The recent Small
    Business Grant will enable Tiffins to install a fully integrated electronic order tracking
    system, further eliminating waste and also minimising order errors.

Objective: Ensure the city’s retail offer remains diverse, authentic and continually
evolves.

The Lord Mayor’s Commendations

As a non-competitive recognition program, the Lord Mayor’s Commendations are
designed to create a fraternity among city businesses and build positive synergies
between small business proprietors and the City of Melbourne. The Lord Mayor’s
Commendations demonstrate the City of Melbourne’s commitment to, and
encouragement of, independent small businesses and build a lasting archival
record of Melbourne’s independent business proprietors. The commendations
have a simple and unique criterion for qualification—business longevity.
Therefore, the awards encourage young or new proprietors to develop long-term
goals for their city businesses.

Since the program began in 2005, more than 200 small business proprietors and
seven generational family businesses—representing the retail, wholesale, finance,
hospitality, manufacturing, health and service industries—have received
commendations. Fifteen of the commendations have been Platinum for
proprietors operating in the municipality for longer than 50 years.




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    Commendation recipients, 2008
    Generational Family Business Awards

    By the very nature of this recognition program, it should be no surprise that some of
    Melbourne’s most notable retailers have been the recipients of Generational Family
    Business Commendations. Henry Bucks, the iconic menswear store, operating at two
    locations in Collins Street, is now a fifth generation family company that can date its
    origins to 1890.
    The Michaels Building, on the corner of Lonsdale and Elizabeth streets, was built by
    Emanuel Michael in 1916. He commenced trading as a pawnbroker and gunsmith and
    in 1928 Harold Michael also opened a pharmacy in the building. A fascination for
    photography by a subsequent family member resulted in Michaels—Camera, Video &
    Digital store when the pharmacy closed in 1976.

    Other prominent recipients in 2008 were the Amott family, Amott Quality Meats, Queen
    Victoria Market; the Stanisich family, M&A Designs, Queen Victoria Market; the
    Simpson family, WB Simpson & Son, Real Estate, North Melbourne; and two jewellery
    families: Abrecht Jewellers and J Bird & Son, who have recently established a
    partnership together at their Collins Street location.

    Other commendation categories

    There are four other categories:

     Platinum recipients for 50+ years as a small business proprietor. In 2008 there
      were three Platinum commendations: Ross Amott of Amott Quality Meats; Jorg
      Schelling of City Snippers (a hairdressing enterprise); and Kevin Stanisich of M&A
      Designs.

     Gold recipients for 40+ years as a small business proprietor. In 2008 there were
      two Gold commendations: Annette Stanisich of M&A Designs; and Herbert
      Wiesboeck of LW Designers (a wholesale / manufacturing jewellery business).

     Silver recipients for 25+ years as a small business proprietor. In 2008 there were
      nine commendations: recipients included retail, wholesale, manufacturing and
      service industries.

     Bronze recipients for 10+ years as a small business proprietor. In 2008 there were
      37 commendations: recipients included retail, wholesale, manufacturing, hospitality,
      health services, travel and tourism, and service industries.

Review of City of Melbourne’s street trading strategy

Council’s Engineering Services (Street Trading Unit) is undertaking a review of
the Street Trading Strategy to meet the future needs of the city balanced with
community values and expectations. The review process will hinge on community
engagement and consultation with key stakeholders.

The management and development of street trading throughout the city is guided
by policies such as Council’s ‘Street Trading Strategy’, ‘Outdoor Café Guide’,
‘Busking Code of Conduct’, ‘Horse-Drawn Carriages Code of Conduct’ and
‘Spruiking Code of Conduct’. These policies provide the guiding principles,




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decision-making criteria and administrative guidelines for the effective
management of street trading in public places.
These policies are relevant to guiding mutually beneficial decision making that
influences the direction and development of street activities within the
municipality. Council understands that the success of outcomes is important to
the quality and vitality of street life and recognises the role City of Melbourne
plays in engaging with the community to help support the future growth of street
activities in locations that are appropriate for such uses.
Council’s vision is to enhance street vibrancy and add diversity to the City of
Melbourne by encouraging sustainable and responsible uses in public spaces,
while ensuring these activities are carried out safely and with minimal negative
impact on other city stakeholders.

A hub for emerging artists

Successful cities can find that, as rents increase, there are no longer enough
affordable spaces to house emerging artists and their wares. As a result, city
centres can lose diversity and creativity.

A new retail opportunity that has just been completed at Northbank Place will
cater for artists who want to work and exhibit in the city via a complex of small
studios, providing them with a shopfront presence. The overall development
incorporates office space, residential apartments, parking and, at ground level, a
substantial range of retail space across the entire site, including facing Batman
Park and the Yarra River. It is envisaged that an artists’ hub along the Batman
Park frontage will be available for artists of all types.
Northbank Place occupies the site along Flinders Street, from King to Spencer
streets, adjacent to the Melbourne Aquarium. It is the latest venture that will
open up the west end of Melbourne, encouraging pedestrians to stroll between
the many venues now located in this prime position along the river and
connecting with Docklands. Until the Northbank Place development, shops on the
river’s north side were separated from the waterfront by a maze of tram tracks,
train underpasses and parked cars.

This latest addition to Melbourne’s vibrant and rapidly growing retail environment
will be offering a unique opportunity to Melbourne’s arts community. It is
envisaged that, among the diverse range of occupants, artists of all types,
including potters, painters, photographers, jewellery makers, milliners, landscape
designers, architects and others, will combine in a mix that will include wine bars
and cafés. The spaces being offered will be entirely flexible and available at very
realistic, affordable rates, encouraging an active and vibrant river frontage.

Objective: Cultivate new and unique retail experiences that will add to the city’s
existing offer.

Melbourne is fortunate to have two highly successful and well developed fashion
festivals. The Melbourne Spring Fashion Week (MSFW), usually held in early
September, is a major lead in to the busy Spring Racing Carnival, which is quickly
followed by the most important Christmas retail period. The other event is the
L’Oréal Melbourne Fashion Festival (LMFF), usually held in March.




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Both these events present enormous opportunities for Melbourne retailers to add
to and develop their offerings to the thousands of visitors attracted to the city.
The retail-focused components of both festivals are outlined at relevant points in
this report, including here and in later sections on industry development.

Design Victoria
Design Victoria and the City of Melbourne presented the seminar ‘New Retail:
Location is everything—or is it?’ during the 2008 Melbourne Spring Fashion Week
(MSFW). Because retail is about the hunt for new opportunities, which often
involves developing ideas that are removed from traditional ones, the seminar
posed the questions and explored the themes: Where are the opportunities? What
is the new experience? What are the innovations? What impacts on success?
The seminar was directed at anyone who was incorporating design into their
business model: fashion designers, retail space developers, web designers and
brand designers being among the mix of 150 participants.

Because of the success of this event, the City of Melbourne has formalised its
relationship with Design Victoria and at the 2009 MSFW offered four breakfast
seminars to fill the niche market that exists for information for retail businesses.
RMIT School of Architecture and Design and MSFW

In September 2008, in collaboration with the City of Melbourne, RMIT Fashion
students held two highly successful fashion parades. The parades showcased the
work of 36, fourth year students at the Town Hall. The parades were a sell-out,
each one attracting more than 2,000 people. The event was such a success that it
was held again in 2009. To coincide, Metlink conducted a competition for students
to design the Metlink Ambassador uniforms.

L’Oréal Melbourne Fashion Festival (LMFF)

The L’Oréal Melbourne Fashion Festival (LMFF) is one of the most important
annual events for the Australian fashion industry. It brings together retailers,
designers, manufacturers and other fashion industry participants. In 2009, LMFF
attracted record attendances of almost 370,000 and is estimated to have directly
generated visitor expenditure of $8.6 million in the City of Melbourne over the
eight-day festival period (LMFF Economic Impact Assessment, June 2009).

LMFF’s aim is to nurture growth within the Australian fashion industry and in 2009
demonstrated this support by providing nine fashion design graduates from RMIT
Fashion with a platform to present their collections. With a strong publicity
campaign, access to national media and fashion leaders, LMFF created a stand-
alone forum that promoted the next generation of fashion brilliance. A high
quality fashion runway was incorporated into the official program. The showcase
provided a much needed promotional opportunity for RMIT Fashion graduates.

The LMFF Designer Forum, one of the festival’s newest initiatives, marked an
innovative phase in supporting the growth of the Australian fashion industry. The
2009 LMFF Designer Forum offered insights into how Australian designers can
gain international success. Pippa Holt from UK Vogue and Yasmin Sewell from
Liberty in London were joined by local designer Megan Park. Together they
addressed the key steps towards establishing a label within a competitive global
environment, as well as the opportunities and pitfalls of international expansion.



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Fashion Incubator Melbourne Central (FIMC)

The City of Melbourne contributes to the growth and promotion of Australian
fashion and design by assisting organisations such as the Fashion Incubator
Melbourne Central (FIMC). FIMC is a not-for-profit organisation that provides
emerging independent designers with the necessary resources to build skills and
business knowledge for success, while retaining creative freedom. It is the first of
its kind in Australia and is one of only five in the world. Located on Level 2
Melbourne Central, FIMC offers both a retail environment and working space for
young designers to create, manufacture, exhibit and sell their designs.

FIMC also has two additional smaller retail outlets within Melbourne Central that
provide designers with the opportunity to stand alone and sell their collections in
their own retail space.

Vertical retailing

Vertical retailing includes above awning as well as basement retailing. There has
been strong growth in vertical retailing in central Melbourne during the last few
years.

Curtin House at 252 Swanston Street is now home to several above awning
retailers, including fashion, books, food and entertainment. Another venue that
has become a focal point for above awning retail is Nicholas House at 37
Swanston Street. This building, accessed via the stunning Cathedral Arcade,
contains a unique combination of boutique retailers as well as artists’ studios and
office tenants.

For another ‘take’ on above awning retailing, Mag Nation has occupied the whole
building at its Elizabeth Street store with its launch of The Third Floor retail space.

Recipients of this year’s Small Business Grants are also above awning retailers.
Among them are Hear Now, at 2 Somerset Place, and Thread Den, at 16 Errol
Street, North Melbourne (upstairs via Webb Lane).

Bespoke retailing

Specially made or customised retailing is alive and thriving in the City of
Melbourne—from the sublime to the avant-garde.

High end men’s retailer Harrolds offers a complete made-to-measure service—
perhaps the ultimate indulgence. Harrolds can design and create items for
individuals using the extensive selection of luxurious fabrics, buttons and lining
silks stored at their Collins Street boutique.

Bookbinders Design, located at the Galleria with a shopfront on Elizabeth Street,
is a Swedish specialist retailer of paper products in the form of beautifully bound
notebooks, diaries, photo albums, binders and folders. The store also stocks a
practical range of storage boxes covered in vibrantly coloured fabric. A TailorMade
service is available for those who wish to add a very personal touch to their
journal, photo album or storage box.

The avant-garde are catered for at the Sticky Institute, located below Flinders
Street in the Degraves Subway. The shop stocks 500 or so zines at any one time
from all over Australia. It is the only retail outlet of its type in Australia. The most




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avid zine fans can have their own publications stocked in this unique retail
environment.

               ‘… the shop [is] an ideal venue to retail zines—cheaply made
               independent publications within an “underground” print culture, made
               for small audiences and in small print runs [that] are rarely catered for
               in the commercial retail sector’ (Sticky Institute website,
               www.stickyinstitute.com, accessed on 21 August 2009).

Objective: Evolve the city’s distinctive retail enclaves that highlight the city’s
diverse offer.

Docklands precinct

Melbourne’s Docklands is developing into a vibrant waterfront shopping precinct.
The Docklands Retail Statement, published in 2008, identifies that it will take
time to establish the commercial viability of retail activity and that the precinct as
a whole will benefit as retail sub-precincts emerge. Docklands Chamber of
Commerce is part of the District Precinct Program to support business owners.
During 2008–09, activities included a Women’s Business Breakfast and a briefing
from the Australian Centre for Retail Studies on retail trends.
During 2009 VicUrban, the agency responsible for planning and development of
the area, produced a strategy to activate vacant retail space with interim uses.
Arts, culture, community and semi-commercial activities will be supported to
occupy spaces. The strategy will generate visual interest and activity and, over
the long term, highlight the retail opportunities in the precinct.

Collins Street and high end retail
The totally repositioned façade of the redeveloped Grand Hyatt hotel on Collins
Street offers a new luxury retail precinct housing Emporio Armani, Bulgari and
Paspaley Pearls. Louis Vuitton has continued its dominance of Collins and Russell
streets with a complete refurbishment and the Prada flagship store, modelled on
the Milan store, opened in mid-2009. This continued renewal will ensure that
Collins Street remains at the forefront of desirability in terms of retail
destinations.

The Melbourne cultural precincts strategy

The Melbourne cultural precincts plan is jointly funded by the City of Melbourne
and the Victorian Government. The cultural precincts plan outlines the delivery of
a 10-year strategic development plan for Chinatown, the Lonsdale Street Greek
precinct and Lygon Street.
The current focus of the capital investment component of the cultural precincts
plan is to provide each precinct with distinguishing physical features that will
contribute to the distinct ‘sense of place’ at the heart of each precinct. The sense
of place in these cultural precincts is also a product of the collective memory of
the communities that have created them, so the next step in the cultural
precincts plan is to record and present the stories of the people who have made
and used these special places.

The Tianjin entry poles project is the first completed project within the cultural
precincts enhancement fund. On Wednesday 13 May 2009, the Lord Mayor and


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Victorian Premier unveiled a new gateway at Tianjin Garden, known as the Tianjin
entry poles, featuring a striking contemporary lighting design. The Tianjin entry
poles at the corner of Spring and Little Bourke streets (top of Chinatown) provide
a magnificent addition to the city.

The following works are planned for the city’s popular cultural precincts during
2009:

Chinatown (Little Bourke Street, Melbourne)

 A new catenary lighting system between Exhibition and Russell streets to
  include unique Chinese lanterns and down lights to enhance the character of
  Chinatown and improve lighting levels.
 Refurbishment of existing Chinese gateways (arches), including new colour
  schemes, iconography and lighting.
 Improvements at the Tianjin Garden, including the installation of two bronze
  lions (a gift from our Chinese sister city, Tianjin), and pergola upgrading.

Greek precinct (Lonsdale Street, Melbourne)

 Installation of new Greek-themed glass screens around outdoor eating areas.
 A new Greek precinct gateway with catenary lighting installed above the
  intersection of Lonsdale Street and Russell Street.

Italian precinct (Lygon Street, Carlton)

 Installation of a performance stage, new pergolas, trees and a bocce court at
  Piazza Italia, encouraging more community activity in the area.
 An additional central path, circular seating and tree planting at Argyle Square
  South.




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CITY AMBIENCE AND ACTIVATION

More people than ever are living, walking and working in the city.
Between 2006 and 2008, average daily pedestrian counts increased on
weekdays and at the weekends. The attractions of the city in 2008 that
helped activate the streets included laneway art commissions,
additional major events and improvements to shopping precincts.

Objective: Create a nationally recognised shopping festival that will attract
visitors from across Australia.

The City of Melbourne has commenced research on a shopping festival in the city
to build on the success of Melbourne Spring Fashion Week (MSFW). There is
scope to make better use of the events and festivals in the city that open it up to
large numbers of visitors to showcase the city’s retail and hospitality offer—
particularly those close to event venues. Coordination of the retail and hospitality
offer to complement festivals and events would build on the city’s offer to
customers in a different way to the traditional sale periods.

Planning for such an event will draw on overseas experience of using cultural
festivals to highlight the diverse offer of central city areas as well as the expertise
of Melbourne retailers in uniting retail promotions and special events.

Objective: Facilitate greater integration of Melbourne’s events calendar and the
retail offer.

Expansion of events into the public domain

The City of Melbourne continues to encourage events to extend beyond ticketed
venues and into the public domain in streets, bars, restaurants and galleries to
increase city visitation and experience.

              ‘Melbourne is an unusual city in that it has a relatively fixed calendar of
              events throughout the year, including major events such as the
              Australian Open and Melbourne Cup, various festivals and the football
              season. Other cities operate more on a shifting calendar and hence
              are more moment-by-moment. The City of Melbourne should be able
              to help consumers and businesses optimise their activities around these
              events.’

              Jason Murray, CEO, Just Group, June 2009

Major events continue to be televised at Live Sites such as Federation Square and
Waterfront City to engage the community and drive visitation. In 2008 these
events included, among many others, the 2008 Toyota AFL Grand Final in
September, the Melbourne Cup Carnival in November and Carols by Candlelight in
December.




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Other events held in Melbourne that add to a calendar that sees something
significant happening on our streets and at our main venues throughout the
entire year include:

 Melbourne Spring Fashion Week
 Chinese New Year celebrations
 Moomba
 the Melbourne Food and Wine Festival
 L’Oréal Melbourne Fashion Festival (LMFF)
 the AFL grand final parade
 Christmas tree lighting in the city square
 the Myer Christmas parade
 Santa’s Grand Arrival sponsored by David Jones
 New Years Eve celebrations at various locations around the city
 the official welcome to international students.

The City of Melbourne also supports all Victorian Major Events Corporation
sponsored happenings. These include experiences such as the National Gallery of
Victoria’s ‘Winter Masterpieces’ series, which has been running for seven years,
as well as major theatre events such as ‘Wicked’. The City of Melbourne provides
a range of ways for promoting these events throughout the city.

    Melbourne Spring Fashion Week snapshot
    Melbourne Spring Fashion Week (MSFW), City of Melbourne’s largest fashion event
    targeted at the clothing consumer, was conducted for the 14th year in 2008. Highlights
    of MSFW in 2008 included:

     international catwalk rising star Sally Graham was the face of MSFW for 2008

     QV hosted a free public event in QV Square with runway shows
     Silk Road was the venue for the MSFW opening night party

     MSFW showcased Melbourne’s key designers, retailers and venues to over 20,000
      visitors
     at the Melbourne Town Hall, MSFW fashion followers had the chance to see 26 of
      Australia’s hottest designers at four official evening parades and 36 of Melbourne’s
      newest talent at the RMIT ‘Mixed Tape’ parades
     the city was abuzz with events from the Town Hall to Docklands, North Melbourne
      and Carlton—visitors were treated to an array of exhibitions, markets, parties, tours,
      discussions, movies and workshops that had something for everyone.

Melbourne Spring Fashion Week (MSFW)
Melbourne Spring Fashion Week (MSFW) is one of the largest and most popular
consumer fashion events in Australia, attracting more than 30,000 people across
a week of fashion celebrations. Owned and delivered by the City of Melbourne,
MSFW celebrates the arrival of spring/summer collections in-store and heralds the
arrival of the Spring Racing Carnival.




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Held traditionally during the first week of September, this event is a celebration of
fashion, design and shopping, embracing the joy, colour and excitement of the
warmer seasons ahead. Melbourne truly comes alive during MSFW with a solid
program of events, including official designer parades, luncheons, workshops,
exhibitions, parties and more.
2008 key facts

 Twenty official events including: eight official evening parades; one media
  launch; one opening party, one style cruise; seven corporate hospitality
  functions; two RMIT evening parades
 Nine City of Melbourne partner events including: five after parties; one Design
  Victoria Business Seminar; Flemington Spring Fashion Lunch; Decjuba Girls
  Day Out Fashion Marquee; Mercedes-Benz Melbourne Fashion Parade and
  Cocktail Party
 A hundred retail/business events—all accessible to the public
 Fifty-eight city businesses involved (not including contractors, suppliers and
  other ancillary service providers)
 Thirty-seven Australian designers featured in official and City of Melbourne
  partner events
 Five major national and metropolitan media partners: The Age; marie claire;
  Michi Girl; FashionTrend; Fox FM
 Total visitation to MSFW is estimated at 36,192 including: 9,952 people at the
  official evening parades and an estimated attendance at affiliated
  retail/business events of 25,578
L’Oréal Fashion Festival POP UP presented by the Herald Sun and City of
Melbourne

The L’Oréal Melbourne Fashion Festival (LMFF) also integrates use of the public
domain into its events program, to bring fabulous fashion to the public. The LMFF
POP UP series of shows presented by the Herald Sun and City of Melbourne in
Melbourne’s public spaces is an amazing concept that has been embraced by
leading Australian fashion brands.

In the Autumn 2009 festival a state-of-the-art inflatable infrastructure popped up
at different iconic Melbourne locations across the festival week at hot spot retail
and high traffic destinations, including Southern Cross Station, Federation Square
and the City Square. Thousands of passers-by were able to get their fashion fix as
uber cool models strutted the slick catwalks while live DJs mixed the sounds.
Other Melbourne events

Events at Docklands

The events held at Docklands to complement those on offer in the CBD increased
again during the 2008–09 period. Throughout the last few years the City of
Melbourne has been active in building an events program in Docklands. Because
Docklands provides a harbour and waterfront very close to the CBD, it is the City
of Melbourne’s intention to promote this feature to support the marketing of the
precinct and drive traffic to the area.




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New events that received funding through the city’s Event Partnership Program
(EPP) included Dragon Boats, Victoria Harbour School’s Sailing Championships,
the Melbourne International Boat Show and Melbourne on Canvas. Similarly,
Events Melbourne has worked with the organisers of Skandia Geelong Week to
develop a world class ‘invitation only’ sailing regatta staged out of Docklands in
January. The City of Melbourne provided assistance to Victoria Police in their
delivery of the Community Safety Day in October 2008 and supported the Lincoln
Mercury Car Club display as well as the 2009 BMX Games.
Another event recently introduced at Docklands was a series of designer markets
at NewQuay Docklands for the 2008–09 spring summer season. Held on the first
Sunday of every month, commencing in September, the markets ran until April
2009.

Following the city’s winter theme of illumination, the City of Melbourne staged
Ignite@Docklands over a three-weekend period to celebrate the coming winter
months. Ignite@Docklands involved many local and international artists in
specialised fire and light shows that were performed around Docklands. ‘Suits of
Light’ (businessmen dressed head to foot in flashing lights), a travelling ‘merry-
go-round’ transporting performers along the promenade, shadow puppetry, and a
flame-fuelled Pyrophone Juggernaut emitting light and music were just a few of
the many entertainments on offer free of charge to visitors to Docklands in late
May and early June 2009.

    Docklands: Event snapshot
    Docklands’ retail offer has become better known to Melburnians through a focus on
    events in the Docklands throughout 2008–09, including:

     the City of Melbourne’s New Years Eve fireworks show in the Docklands

     holding 20 per cent of the city’s Summer Fun in the City program in the precinct

     locating the L’Oréal Melbourne Fashion Festival and elements of the Melbourne
      Food and Wine Festival and Australia Day in Docklands
     event partnership support to new activities in Docklands including Dragon Boats,
      the Melbourne International Boat Show and Melbourne on Canvas

     holding the new City of Melbourne Ignite winter festival during May and June
     holding a major public art event each year in Docklands, which in 2008 was
      Contempora.

Objective: Develop a varied, year round events calendar to stimulate visitation to
the city and retail core.

Multi-dimensional events calendar

The City of Melbourne uses a multi-dimensional events calendar to track events
occurring in the city throughout the year. The calendar is updated regularly, and
provides an overview of peak and down times, as well as information on event
location, timing, spaces activated, place management zones, event objectives and
the community supported. The most recent information can be accessed at
www.melbourne.vic.gov.au/events.



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The chart below presents just a snapshot of the events that took place during the
period from July 2008 to June 2009, to show the diversity of events on offer to
visitors to the City of Melbourne. Many events are recurring, some are one-off;
however, they all encourage people to spend time in and around the city.

2008–09 calendar

July                            Aug                               Sept

ARIA Hall of Fame               Asian Food Festival               Melbourne Fringe Festival
Melbourne Open Day              Festival of Indonesia             Spring into Shape
Olympic Dream Run/Walk          Human Race 10km Run               AFL Grand Final Parade and Live
Melbourne on Canvas             National Science Week               Site City Activation Program

The State of Design 2008        The Melbourne Writers’ Festival   Australian Wadaiko Festival

Melbourne International Film    Melbourne Day                     Royal Melbourne Show
 Festival                       Taste of Melbourne                Melbourne Spring Fashion Week

                                Melbourne Awards                  Olympic Welcome Home
                                                                    Celebration
                                                                  National Science Week

Oct                             Nov                               Dec

Melbourne Fringe Festival       Polish Festival                   New Year’s Eve fireworks
Spring into Shape               Spring into Shape                 Christmas—Advent Calendar
Spring Open Day—Royal Botanic   Myer Christmas Parade/            Docklands Cup (Dragon Boats)
  Gardens                        Windows Launch                   AFI Awards
Melbourne International Arts    Christmas—Santa’s Grand           Homeless World Cup
 Festival                         Arrival
                                                                  Boxing Day Test (cricket)
Diwali Festival of Lights       Australian Lebanese Festival
                                                                  Australasian DanceSport
Melbourne Marathon              Australasian World Music Expo       Championship
Jayco Herald Sun Tour           Eureka Tower Charity Challenge    Vision Australia’s Carols by
Around the Bay in a Day         Walk Against Warming                Candlelight + Live Sites
  (bike ride)                   Melbourne Cup Carnival City
Victorian Seniors Festival       Activation Program
Get Into (Melbourne) Art        Thessaloniki Festival
Melbourne City Romp             Lygon Street Festa
Docklands Community Safety
 Day
Get Active Melbourne 2008




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Jan                               Feb                                  Mar

Summer Fun in the City            Summer Fun in the City               L’Oréal Melbourne Fashion
Australia Day                     Chinese New Year                       Festival

Midsumma                          International Boat and Lifestyle     Melbourne Food and Wine
                                    Show                                Festival
Australian Open City Activation
  Program                         Unity Fun Run                        Melbourne International Dragon
                                                                        Boat Festival
Tianjin Dancing Kite Festival     Movie Extra Tropfest
                                                                       Formula 1 Australian Grand Prix
Skandia Docklands Invitational    St Jerome’s Laneway Festival
                                                                         Activation Program + Live
Hawkers Bazaar Crown Casino       Victoria Harbour Schools Sailing       Sites
  Chinese New Year                  Series
                                                                       Turkish Pazar Festival
Melbourne International Boat      Melbourne Summer Cycle
                                                                       Moomba Waterfest
 Show                             Sustainable Living Festival
                                                                       Antipodes Glendi Festival
Osaka Twilight Festival           Russian Community Festival
                                                                       Opera in the Market (Queen
                                  Sidney Myer Music Bowl 50th           Victoria Market)
                                    Anniversary Festival

Apr                               May                                  Jun

ANZAC Day                         Ignite@Docklands                     Ignite@Docklands
Dutch Orange Day                  Melbourne Italian Festival           Melbourne Italian Festival
Herald Sun/Citylink Run for the   Buddha’s Day and Multicultural       Good Food and Wine Show
  Kids                              Festival                           Run Melbourne 2009 (The Age)
Melbourne International Flower    Mothers’ Day Classic                 ARU Rugby Union Test Match
 and Garden Show                                                         and City Activation Program
Way of the Cross                                                       Melbourne International
Melbourne International                                                 Animation Festival
 Comedy Festival
Melbourne International Jazz
 Festival


Objective: Encourage the integration of retail and arts to enhance the retail
experience and create repeat visitation.

Melbourne arts strategy
The City of Melbourne has an active and vibrant arts strategy and is dedicated to
promoting, encouraging and growing Melbourne’s arts community.

The 2009 Arts Grant Program supported around 120 projects with funding of $1.3
million to encourage a diverse range of innovative arts projects and events
virtually every day of the year. Eighty per cent of these were new projects
involving hundreds of artists and around 50 per cent of this activity was free to
the public.

More than $2 million of ongoing support was provided for recurrent arts festivals
and programs that form an annual calendar of arts highlights for Melbourne.
These included the Melbourne International Arts Festival, the Melbourne
International Comedy Festival, the Melbourne International Film Festival, Fringe
Festival, Melbourne Queer Film Festival, Melbourne Writers’ Festival, along with
local festivals and much much more.




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Laneways Art is a highly popular element of the Public Art Program aimed at
transforming our lanes into exciting and evocative art spaces. Designed to fade,
the artworks cheer up the city landscape during the cold winter months. For the
2008–09 period there were several striking installation.

Added to the extensive collection of public art, from heritage to contemporary,
that can be seen across the CBD, Southbank and Docklands, the arts strategy
also maintained programs at the City Gallery, the Melbourne Conversations
series, Indigenous Arts programs, Community Cultural Development and free
music at the Melbourne Town Hall.

                ‘Melbourne is so incredibly supportive of the arts compared to New
                York—that artists can afford good studio spaces and are, for the most
                part, celebrated, is amazing and integral to how a city thrives.’

                Elizabeth Carey Smith, Imaginary Alphabets (Hot Spots 09, Vol 4, City of
                Melbourne, p. 52)

There were also specific programs for children at Artplay (near Federation
Square, along Birrarung Marr) and the innovative Arts House program conducted
at two venues: North Melbourne Town Hall and Meat Market. The development of
Signal, Melbourne’s new cultural space for young people aged 13 to 18 located at
Northbank, is progressing well and is scheduled to open in 2009.

Two other highlights from the past year where arts have contributed to repeat
visitation include:

 Blak Nite Cinema—Melbourne’s first outdoor Indigenous film event in Treasury
  Gardens—screened Indigenous feature and short films over two evenings in
  March including Bastardy by Amiel Courtin-Wilson and Lionel by Eddie Martin,
  attended by more than 5,000 people
 ‘Maxims of Behaviour’ by Alexander Knox, a seasonal light-based artwork for
  Melbourne illuminating the cityscape during the winter months, located at
  Royal Mail House on the corner of Bourke and Swanston streets.

    Laneway installations 2008
    Organisation for Future Good Steps

    Where: Niagara Lane (between Lonsdale and Little Bourke streets, and Elizabeth and
    Queen streets)

    What: Organisation for Future Good Steps was a sculptural intervention, veiled as
    architecture. It was a non-functional staircase, a steel structure connecting two
    buildings in narrow Niagara Lane. It was elevated from the ground and had no clear
    beginning or end. The staircase was missing several steps, railings and landings. Parts
    of the structure appeared broken or disconnected from other absent structures. In
    stark, vivid white, the staircase did not lead to doorways or windows. Instead, it
    appeared wedged, as though a consequence of some apparition, a site of drama.




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    As it Appears

    Where: A small alley north of 22 McKillop Street (between Bourke and Little Collins
    streets, and Elizabeth and Queen streets)
    What: The city is a place that is alive and constantly changing. Each building has its
    own lifespan. As it grows, it deteriorates, fades and warps. However, in this small alley
    something wasn’t quite right. There was a slow warping or anomaly that was not
    initially noticeable—the building appeared to be breathing … An ambiguous respiratory
    process was at play, pushing out from the surface of the wall while embedded into the
    social fabric of the city. The organic nature of the bulge reflected processes of building
    and change within the city while at the same time humanising our experience of that
    process.

    The Speed of Sound

    Where: Union Lane (between Bourke and Little Collins streets, and Swanston and
    Elizabeth streets)

    What: The Speed of Sound installation drew from both an ancient Chinese bell
    design—Nau Bells—used in pre-Han dynasty court music, and bells that are set along a
    path to the Golden Mount Temple in Bangkok, which people ring as they encounter
    each bell. In the spirit of this tranquil moment the bells served to alert people to the
    sonic qualities of the path along which they travelled, and their own presence upon
    that path. A laneway is a fissure within which the residue of city sounds fall and come
    to rest. As people walked down Union Lane, each bell marked their journey through an
    otherwise silent world.

    Welcome to Cocker Alley

    Where: Cocker Alley (off Flinders Lane, between Swanston and Elizabeth streets)

    What: A magical, golden pipe structure crawled over the back of the Nicholas Building
    like a vine growing towards light. The imitation pipes reflected lines in nature and were
    part of a simple exploration of beauty. The network of pipes was invested with a sense
    of value through the embellishment of their surfaces with gold leaf. As the city bustled
    below, the golden ladder led upwards, encouraging a passing glance to evolve into a
    visual escape leading up to the sky.

Arts, events and happenings

Situated among the mix of retailing options at Victoria Harbour, an artist has
taken up residence in one of the shops in Merchant Street. While she creates her
imaginative pieces, passers-by are able to observe her at work.

The new retail opportunity just completed at Northbank Place will cater for artists
with the provision of small studios facing the Yarra River. Northbank Place
occupies the site along Flinders Street, from King to Spencer streets, adjacent to
the Melbourne Aquarium. This latest addition to Melbourne’s vibrant and rapidly
growing retail environment will offer a unique opportunity to Melbourne’s arts
community, with entirely flexible spaces available at realistic, affordable rates.

Victoria Harbour also supports a Young Artists Initiative. First held in 2008, it was
so popular and successful that it occurred again in 2009 combined with
Contempora and became a stand alone exhibition. It was extended for a further


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four weeks by popular demand. Nine emerging artists from the Victorian College
of the Arts, University of Melbourne held an exhibition of seven works that
reflected the context of Docklands as a redeveloped working port. The 2010
exhibition has already been confirmed.

              The Contempora Sculpture Award & Festival of Public Arts, proudly
              sponsored by the City of Melbourne and VicUrban, is a prestigious
              Australian arts event staged each year along the waterfront areas of
              the rapidly expanding Melbourne Docklands precinct (Contempora
              website, www.contempora2.com.au, accessed on 29 June 2009).

The Urban Art Program recently provided the community with a photographic
billboard installed on Tower 1 at 60 Lorimer Street, Yarra’s Edge precinct. The
artwork provides passing motorists with a moment of inspiration. A new
Australian photographic image will be installed every 12 months. The current
image is by photographer Narelle Autio from her series ‘Not of This Earth’. The
image, Untitled #15, was taken by Autio as she hung upside down through the
guard rails of Sydney’s iconic Harbour Bridge and photographed the parklands
below.
The L’Oréal Melbourne Fashion Festival (LMFF) Cultural Program

The 2009 L’Oréal Melbourne Fashion Festival (LMFF) Cultural Program was an
exciting and diverse network of fashion-inspired installations, exhibitions and
events that crossed the breadth of the city and beyond. Participation in the
Cultural Program increased by approximately 30 per cent from last year, with
more than 60 activities, many of which offered free public access.
The 2009 thematic ‘Cause and Effect’ provided a forum for designers and artists
to express their creative voice and to communicate their passion for fashion in all
its guises. The LMFF Cultural Program communicated a message of design
innovation by exploring and presenting the creative process. It included a diverse
curatorial framework by engaging with contemporary culture and included various
presentation platforms including exhibitions, installations, films, interactive
activities and an online presence.

Some of the highlights across the City of Melbourne included:

 a special ‘fashion and retail’ exhibition at Format Furniture showcasing
  highlights from the work of Amanda Levete from the world-renowned Future
  Systems architectural practice
 a live photographic art project titled ‘100 Great Outfits’ created by Bronwyn
  Kidd and Virginia Dowzer at Cose Ipanema
 an exhibition, ‘The Giving Beads’, presented by e.g.etal—100 of Australia’s
  most exciting jewellery designers were invited to produce one unique bead that
  was strung with others or presented individually to make a series of exquisite
  necklaces (which were auctioned at a special ticketed event at Comme to raise
  money for beyondblue, the national depression initiative)
 a sublime space called ‘POPPED UP’ for one evening in the Murray White Room
  Gallery in Sargood Lane created by Scanlan & Theodore in collaboration with
  Melbourne architects Herbert & Mason




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 avant-garde project, ‘Chicks on Speed’, recognised nationally and
  internationally as a formidable force in contemporary art, craft and music
  practice, transformed Craft Victoria’s three gallery spaces in Flinders Lane into
  a laboratory of craft development: a live workshop, design studio, performance
  space and installation; a mash-up of new technology; and artisanal technique.




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ARCHITECTURE AND DESIGN

A combination of public and private investment in the fabric of the city
has resulted in whole areas being transformed into welcoming hubs for
arts, retail, culinary, entertainment, events and other experiences. From
the iconic zones of Bourke Street Mall, where David Jones and Myer are
undergoing major overhauls, to new developments such as Northbank
Place and South Wharf, the City of Melbourne’s very identity is being
constantly updated and reinvigorated.

Objective: Establish partnerships between innovative design and architecture
studios with key retail houses to explore opportunities to produce retail driven
landmarks around the City of Melbourne.
The first Melbourne Retail Advisory Board benefited from having significant
representation from the property development and retail architectural design
sectors in the city. The appointment of a new Retail Advisory Board in the second
half of 2009 provides the opportunity to further develop the partnership between
innovative design and architecture studios with key retail houses. That
relationship is already strong, as evidenced by the choice of eminent Melbourne
architects to design the ground-breaking new spaces for both of Melbourne’s
leading central city department stores.

    David Jones revamped
    As the oldest department store in the world still trading under its original name, David
    Jones has a long standing heritage in the Melbourne market.
    The landmark David Jones building began serving the people of Melbourne in 1854 as
    a small timber shop on the present Bourke Street Mall site, later establishing itself as
    Buckley & Nunn. In 1982 the building became the new David Jones store, the first in
    Melbourne.

    In October 2006, David Jones Bourke Street Mall store launched a refurbished
    cosmetics and accessories hall. This success clearly indicates that there is a significant
    appetite within the Melbourne market for a brand and retail offering such as David
    Jones. The concept and vision encapsulated in the cosmetics and accessories hall is
    currently being rolled-out across all categories and floors in both of David Jones’
    flagship Melbourne CBD stores.

    The extensive redevelopment will deliver an unprecedented department store shopping
    experience to the people of Melbourne. It will rival the world’s best department stores
    in London, New York and Paris. In addition to reflecting the latest trends in global
    retailing, the store will also deliver:

     30 per cent more selling space

     an even bigger range of Australian and international brands in key categories

     Melbourne’s largest destination for the world’s leading footwear brands



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     a 40 per cent increase in the size of David Jones youth fashion offering

     a 50 per cent increase in space allocated to lingerie and sleepwear

     a 20 per cent increase in space allocated to menswear
     a 15 per cent expansion of our hugely successful cosmetics and accessories hall

     a new floor dedicated to home electronics.

    The redevelopment is being undertaken in a managed and staged process with minimal
    impact to customers, while preserving and maintaining original heritage fabric and
    features, all of which are synonymous with the David Jones shopping experience.

    The refurbishment will be revealed in late 2009.




    Myer Melbourne progress update
    In 1911 Sidney Myer bought the long established drapery business Wright and Neil in
    Bourke Street, Melbourne. After purchasing a number of the adjoining properties, he
    established a department store on the site, which he called the Myer Emporium. This
    store continues to trade today as the flagship in the Myer department store chain.
    Enhancing Melbourne’s reputation as Australia’s premier retail destination remains a
    high priority for Myer. The $300 million re-development of the Bourke Street store will
    deliver to Melbourne a truly international-class department store. The new store is
    Myer’s gift to Melbourne.

    The redevelopment has provided an even greater opportunity to market and promote
    Myer Melbourne differently from the company’s remaining 64 stores. It has led to an
    increased investment in the store’s marketing activity throughout 2008 and a number
    of new initiatives have been delivered.

    These have included unique events, promotions, in-store theatre and strategies that
    have varied in size, scope and duration, but have the shared objective of attracting
    customers to the city and, specifically, to Myer Melbourne.

    One of the city’s most popular public domain precincts, the Bourke Street Mall has
    provided the perfect environment to engage customers. Myer has utilised this space in
    a number of innovative ways, such as the Celebrity Father’s Day Barbecue Challenge
    and the appearance of singing sensation Gabriella Cilmi, who opened the traditional
    Boxing Day sale in the Mall.

    There has been a far greater emphasis on in-store theatre and entertainment at Myer
    Melbourne when perhaps the greatest demonstration of this took place during the
    company’s ‘New York, New York’ promotion in May—the first retail promotion of its
    kind in Australia.

    For three weeks, the sights and sounds of New York took over Myer Melbourne, which
    resembled downtown Manhattan and Wall Street rather than the centre of Melbourne.
    Gigantic inflatable displays depicting famous landmarks such as the Statue of Liberty
    hung from the entrances and in-store appearances by well-known New York identities
    such as Carsson Kressley and the Naked Cowboy were major draw cards.




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    Customers could eat New York-style hotdogs and pretzels from the Food Walk or be
    entertained by Broadway singers in the cosmetics hall. Even the lift announcer, who
    called out the locations of each department in the store, adopted a New York accent.
    The resources of the ‘Myer One’ program have also provided additional opportunities to
    attract some of Myer’s most loyal customers to the city. Primarily, this has been done
    by giving them access to a series of unique offers that are only available at Myer
    Melbourne and also by holding several invite-only VIP shopping nights at the store.
    These exclusive events, held outside of normal trading hours, are, in particular, well
    attended by those members who would otherwise shop at an alternate Myer store.
    The Bourke Street windows set Myer Melbourne apart from any other retail destination
    in Australia and there has been an even greater reliance on them during the re-
    development, as a focal point of customer interest.
    Aside from displaying many of the brands that are associated with Myer, the windows
    featured several world firsts in 2008. In an unprecedented event, the Fragrance by
    Design exhibition featured elaborately themed and designed window displays featuring
    one-of-a-kind haute couture items associated with some of the world’s best-selling
    perfumes—Chanel, Dior, Thierry Mugler, Vera Wang, Viktor & Rolf and YSL.

    Following on from this, the windows also hosted Catherine Martin’s Oscar-nominated
    costume designs from the film Australia.

    Myer’s ambassador, Jennifer Hawkins, sat in the windows for her first official portrait to
    promote Australia’s most prestigious and popular art event, the Archibald Prize, and
    the Myer Christmas windows drew record crowds. More than a million people travelled
    to the city to view the windows and, together with the Myer Christmas Parade, these
    two unique elements combined to further cement Myer Melbourne’s position as the
    home of Christmas.

    Almost 60,000 people lined Bourke Street to view the parade, which has re-established
    itself as the biggest event on the city’s Christmas calendar. The success of last year’s
    parade was even more meritorious given the limited viewing space directly out of the
    front of the store—a result of the restoration works on the Bourke Street façade.

    It also highlights the enormous opportunity to further enhance the Myer Christmas
    Parade in 2009, especially at a time when the community will begin to see the first
    completed stages of the Myer Melbourne re-development.

    As a result, in 2009 and 2010 there will be an even greater level of investment in
    promoting Myer Melbourne as a preferred retail destination, in turn drawing even more
    people to the city.

Objective: Maintain, expand and enrich the laneways network and experience
within the city.

New laneway developments:
 Goldsbrough Lane, between Bourke and Little Bourke streets, is a new retail
  lane, forming part of the redevelopment of 150 Williams Street and 560
  Bourke Street on either side.
 Northbank Place includes two new laneways—Norval Place and Gem Place.
  These new laneways align with Downie Street and Katherine Place on the other




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    side of Flinders Street, forming visual extensions down to the Yarra’s edge. A
    selection of retail stores will be located along these new lanes.
 The Colonial First State redevelopment of Myer’s former Lonsdale Street site
  will create a mix of commercial and retail buildings connected by lanes,
  concourses and open spaces.
 Laneway art is in its seventh year.

Objective: Promote and develop new and innovative retail areas within the city.

Designers inhabit Docklands
The recently opened Harbour Town retail hub is the location for the latest in
designer shopping. On the upper level of this open air shopping centre is the
1,000m2 Designers’ House—a sumptuous and special retailing experience
designed by e+ Architecture—launched in March 2009. There are 21 individual
designers in a very spacious setting—showcasing well known Australian labels
such as Tim O’Connor, JETS, Covers, Modern Lovers, Sissi G, Soda Kids and The
Maharani Collection, as well as international designer labels such as Missoni,
Jaeger, See by Chloé and Marc Cain. Likened to a high fashion salon that might
be found in Paris, Designers’ House also features exceptional personalised
customer service, a luxurious lounge area and a powder room resplendent with
velvet ottomans, sculptured vanities, marble counters and crystal chandeliers that
has to be seen to be believed.
Designers’ House also runs fashion events such as styling workshops and is
involved in Melbourne Spring Fashion Week.

               ‘I’ve been to 21 countries, but there’s something creative in
               Melbourne. There’s an artistic tremor that I feel. People always
               associated quality with places—we want to evoke that feeling for
               other kids in other cities. So they know they want to come here.’

               Nihal Bhagwandas, Papillon, 3rd Floor, Block Place (Hot Spots 09, Vol 4,
               City of Melbourne, p. 54)

Objective: Develop a city environment that encourages repeat visitation and
heightens the overall experience of shopping in the city.

Update on city users

Based on research conducted in 2008, there were 551,900 users of the CBD,
Southbank and Docklands on an average weekday and 450,700 on an average
weekend. Of these, city workers or people undertaking work-related activities
accounted for 46 per cent on weekdays and 11 per cent on weekends.

               It is estimated that approximately 771,000 people resided in or
               commuted to the city—that is, the whole municipality—on a daily basis
               in 2008. This represents a 13 per cent increase between 2004 and 2008.
               That means there were 92,000 more people using the city on a daily
               basis in 2008 than there were in 2004 (City of Melbourne website,
               www.melbourne.vic.gov.au).

Other statistics include:


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 students accounted for 9 per cent weekdays and 4 per cent weekends
 casual visitors from metropolitan Melbourne were estimated at 123,400 on
  weekdays and 274,700 on weekends
 visitors from regional Victoria were estimated at 21,100 on weekdays and
  32,000 on weekends
 daily international visitors were estimated at 32,500 and interstate visitors at
  29,600.

In the research conducted, the main reason for visiting at the weekend was for
shopping, with the main activities undertaken being in the shopping/retail
precincts during both weekdays and weekends. The Bourke Street Mall was
second only to the Melbourne Aquarium as the most popular location visited on
weekdays. However, the Bourke Street Mall is most popular for weekend visitors.
Docklands and the city arcades are also extremely popular with weekend visitors,
while the Queen Victoria Market also remains a drawcard weekdays and
weekends.

City amenity

 During the 200809 period a number of city amenities were upgraded.
  Additional public seating was installed at several locations across the CBD,
  including at the upgraded Tianjin Gardens in Spring Street and at 13 other
  locations.
 The City of Melbourne continues to enhance the city streetscape during the
  Christmas period with extensive decorations in Bourke Street Mall and at
  Docklands.
 There is ongoing investment in coordinating and improving signal sequences at
  major intersections to make life easier for pedestrians and shoppers.

Car park accreditation scheme

The City of Melbourne Car Park Accreditation Scheme, which was launched by
Lord Mayor Robert Doyle in March 2009, recognises and rewards responsible
practice and improvements to operational management promoting safety and
security of car parks and their patrons. The scheme is a joint initiative of the City
of Melbourne and Victoria Police, developed in consultation with car park
operators. Car parks are assessed by an independent team using specific safety
criteria and only those car parks that clearly demonstrate a commitment to
customer safety and security are accredited. Commitment to safety is rated on a
star basis. The scheme also has a focus on value added services that include
‘Crime Prevention Through Environmental Design’ (CPTED).

Caring for the streets

Parking and Traffic Branch of the City of Melbourne launched several new
initiatives during the 2008–09 period that directly affected retailers in the city.

A Butt Free City

This was a cooperative initiative between the City of Melbourne and Victorian
Government agencies to encourage smokers to dispose of their cigarette butts
responsibly, by providing free pocket-sized ashtrays. Retailers benefited from a
cleaner, healthier environment for visitors to the city.



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Laneway Improvement Program

During March Local Laws officers conducted regular monitoring to ensure
laneways were kept to the highest standards in terms of cleanliness. Areas of
high priority were identified and the worst affected areas were targeted for
remedial action, including personal doorknocking. Such programs position
Melbourne as an environmentally-aware city with a clear strategy for improving
the city’s laneways and eliminating poor waste disposal practices.

Objective: Encourage integration of the retail experience and street landscape.
The retail spines of the city along Swanston Walk and Bourke Street continued to
attract new development in 2008 and 2009. Melbourne’s two major department
stores undertook significant reconstructions of their iconic stores along the
Bourke Street Mall.

The City of Melbourne began a project to upgrade Swanston Walk through a wide
public consultation on several options for the street in May 2009. More than 5,400
responses were received, plus 2,200 people visited the eVillage online discussion
on the topic. Thirty-one submissions were received from organisations and
individuals, many from retailers along the street, with ideas about the future look
for Swanston Street. The seven options all dealt in some way with catering to the
access needs of pedestrians, bicycles, public transport users and vehicles,
including service and delivery vehicle access.
Following this comprehensive community consultation process, a majority of
people supported option six, which focused on fewer cars accessing the street and
a greater emphasis on public transport, bikes and people. The next step in the
redevelopment will be to create a comprehensive design and costing plan to be
presented to the council later in 2009. This will take into account public transport
needs, pedestrian movements as well as emergency vehicle access, disability
access and servicing of businesses.

Objective: Establish a forum to ensure the retail vision for Melbourne sits within a
sustainable framework for the working and residential populations of the city.
Business Forums Focus on Sustainability

Business3000, in partnership with the City of Melbourne, hosts four breakfasts
and one gala dinner event each year to showcase Melbourne businesses. Future
seminars will continue to feature prominent retailers talking about their vision for
continuous improvement in the retail offer and environment of the city.

The Beyond Sustainability forum hosted by the City of Melbourne in March 2009
helped local businesses explore the possibilities for the private sector to take
Australia toward, and then beyond, sustainability.

              ‘The term Sustainable Development is generally understood to mean:
              “Meeting the needs of the present without compromising the ability of
              future generations to meet their own needs”’ (Beyond Sustainabilty
              Business Forum Report, www.ideaservices.com.au accessed on 8
              September 2009).




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    Sustainability initiatives
    The City of Melbourne is committed to creating a more sustainable and liveable
    Melbourne. To best achieve this, programs are focused on residents, businesses and
    buildings within the municipality.
    Programs aim to improve the municipality’s environmental performance through
    reducing water and energy consumption, minimising greenhouse gas emissions and
    improving water quality and waste management practices.

    KeepCup initiative

    A 2008 recipient of a City of Melbourne Small Business Grant has developed and is now
    marketing a unique alternative to disposable coffee cups. Approximately 500 million
    disposable coffee cups end up in landfill in Australia each year (The Age, 21 July 2009,
    Epicure p. 12). The KeepCup is a reusable alternative that is designed to fit under the
    group heads of commercial coffee machines. Developed by Abigail and Jamie Forsyth
    with assistance from Design Victoria and the City of Melbourne it is now being
    promoted locally and internationally.

    Retrofit of 500 Collins Street

    The City of Melbourne’s 1200 Buildings project aims to facilitate the retrofitting of 1200
    buildings in the municipality by 2020 to improve energy performance.

    Early in 2009 the refit of 500 Collins Street was one of the first to near completion.
    Prior to the refurbishment, 500 Collins comprised approximately 26,000m² of office
    space plus three retail shops and parking for 140 cars. The refurbishment created 10
    additional shops and the building has been completely transformed, gaining a Five
    Green Star Design rating in the process. It was the first CBD building refurbishment in
    Australia to achieve this rating.

    The principal environmental sustainability features of the project are significant energy
    and water savings, careful use of materials and reduced maintenance costs.

    Supermarket goes green

    In future, the Safeway supermarket located in Merchant Street, Victoria Harbour will
    act as the blueprint for all Safeway/Woolworths stores nationwide in its sustainable
    initiatives.

    The store features:
     a cascade refrigeration system that produces approximately 25 per cent less
      greenhouse gas emissions

     refrigeration cases that include high-efficiency fans, low-heat glass doors and LED
      fittings, which lessen the need to constantly reduce the temperature

     automatic night blinds on upright refrigeration cases—this feature alone is expected
      to reduce carbon dioxide emissions by up to 100 tonnes each year
     water cooled displacement air conditioning that ensures only habitable space is
      cooled/heated.

    Other initiatives ensure that the waste heat from fridge compressors is used to heat air
    in the air conditioning system. And where lighting is required, the latest T5 technology


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    has been used. This uses 30 per cent less energy than conventional older technology
    lighting.
    The store also reduces water use and water wastage as well as creating less hard
    waste.

    Sustainability and event management

    As part of its commitment to sustainable practices, the City of Melbourne encourages
    partner event organisers to report on sustainable initiatives undertaken during an
    event.
    In this regard, the L’Oréal Melbourne Fashion Festival (LMFF) reported on a number of
    strategies in place for this year’s event:

     event organisers were conscious of both power and water usage and implemented
      strategies to reduce wastage wherever possible, including recycling spent light
      globes and other disposable items

     there was a strong promotion of public transport to access the various venues
      around the city as well as the provision of a free shuttle bus service to and from
      Chadstone and around the city

     organisers monitored the event’s ecological footprint by consulting with suppliers
      and caterers to ensure that over-catering did not occur.




    Green Light, Eat Right campaign
    The City of Melbourne has engaged Nutrition Australia to develop and implement an
    innovative program for city food outlets to help them improve the types of cooking oils
    used, swap full fat dairy products for low fat options, use more lean meats, and
    introduce more fruits and vegetables into their menus. To help people make healthier
    choices, foods have been classified according to nutritional value, with green signifying
    the healthiest choices. Nine outlets in the food court at QV’s urban market are
    participating in this Australian first for food courts.




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RETAIL MARKETING

Melbourne is populated by active and engaged consumers who are
setting the agenda for the wider community. The City of Melbourne
plays a key role in maintaining the city’s reputation as the retail
destination. Throughout the past year, the City of Melbourne has
engaged with its retail constituents to deliver specific, targeted
campaigns that further enhance Melbourne’s splendid reputation.

Objective: To promote Melbourne’s distinct retail personality and attitude.
City of Melbourne ‘Destination Marketing’ campaigns

The City of Melbourne delivers an annual program of tactical seasonal campaigns
that primarily target 18 to 39 year olds who work or live in the city, as well as
visitors living within a 20km radius.

In 2008–09, four destination campaigns highlighted the municipality’s unique and
diverse retail experience: Spring in the City; Christmas in the City; Marvellous
March campaign (which focused on major events), and Winter in the City (which
focused on arts, culture and entertainment).

    Destination campaign details
    Spring in the City

    After a successful spring campaign in 2007, Spring in the City was reprised for 2008.
    The campaign objectives were to:

     position the City of Melbourne as fashion retail heaven—the ultimate shopping
      destination

     encourage consumers to come to the city to purchase their ultimate spring
      wardrobe or racing outfit, and indulge in a little beauty therapy while they were at it

     extend visitation before and after events, encouraging visitors to experience
      Melbourne’s fantastic dining and nightlife offerings

     encourage consumers to take up the dining promotional offers linked with major
      events and add to their city experience

     increase awareness of the That’s Melbourne website as a guide to what to do and
      see in the city.

    The campaign was strongly promoted, including via event partner eNewsletters
    (reaching a combined database of 43,000 people); general advertising; point of sale at
    participating restaurants; and flyers at city train stations.

    Christmas in the City

    Each year, the City of Melbourne delivers a six week Christmas marketing campaign.
    This includes a series of events, Christmas decorations, advertising, promotions and



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    publicity, that positions the city as the ultimate destination for Christmas shopping,
    dining, entertainment and events. The ‘City of Christmas’ marketing campaign aims to
    stimulate visitation (and repeat visitation) to the city from early November through to
    December.

    Objectives included:
     developing and delivering a range of high quality free Christmas events and
      activities in the city

     creating a Christmas tradition of signature events and attractions
     generating repeat city visitation for Christmas shopping, dining, events and
      entertainment

     encouraging use of public transport to the city during Christmas.

    Marvellous March

    Marvellous March is an umbrella marketing campaign designed to support a
    blockbuster calendar of events offering everything from hallmark international events
    to community-based festivals. The Marvellous March campaign brings all the events
    together, providing consumers with one call to action for all event information,
    promoting and reinforcing Melbourne’s position as the event capital of Australia. The
    campaign also aims to promote longer city visitation pre- and post-event through
    dining, nightlife and shopping messages.

    The following are selected City of Melbourne supported or owned events that were
    backed in the Marvellous March campaign:

     Melbourne Food and Wine Festival

     Moomba Waterfest

     L'Oréal Melbourne Fashion Festival

     Melbourne Queer Film Festival

     The Antipodes Glendi Festival
     Thai Culture and Food Festival

     Queen Victoria Market Turkish Pazar

     Flemington Festival of Racing
     Formula 1 Australian Grand Prix

     2009 AFL Premiership Season

     Melbourne International Comedy Festival

     Dralion—Cirque du Soleil

     Melbourne International Flower and Garden Show.

    Winter in the City

    In 2008, the City of Melbourne once again delivered the Winter in the City consumer
    marketing campaign. The City of Melbourne cooperated with Tourism Victoria in the




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    campaign to target local and interstate markets with consistent messages focusing on
    arts and cultural events.
    Dining, nightlife, entertainment and retail participation further completed the visitor’s
    winter experience in the city, increasing local, regional, interstate and international
    visitation throughout the season.
    The objectives of the campaign were to position the city as:

     a warm, imaginative and creative place to explore in winter

     the destination for major events
     a place with many hidden secrets to discover in winter

     the best place for boutique shopping, cosy bars and great restaurants.

    The following major city events participated in the campaign:
     Melbourne Winter Masterpieces, Art Deco 191039, National Gallery of Victoria

     Australian premiere of Wicked, Regent Theatre

     Circus Oz 30th Birthday Bash, Birrarung Marr

     Ignite @ Docklands

     Melbourne International Design Festival

     State of Design
     Melbourne International Film Festival

     2008 Laneway Commissions

     The Light in Winter, Federation Square
     Edward Scissorhands, The Arts Centre, State Theatre

     A Taste of Melbourne, Royal Exhibition Building

     Game On, Australian Centre for the Moving Image

     Guys and Dolls, Princess Theatre.

                 Increased pedestrian activity has been noted across all three months
                 during winter 2008 in comparison to 2007: June (+4.4 per cent), July
                 (+7.4 per cent) and August (+2 per cent).

Launch of That’s Melbourne eNewsletter

The 2008 Winter in the City campaign marked the launch of the first ever That’s
Melbourne eNewsletter. Distributed weekly, the eNewsletter provides a vehicle to
promote a balanced combination of events happening in the city that week, as
well as new city bars, restaurants, galleries and attractions. Subscribers increased
from less than 500 at the start of June to more than 2,500 in less than 13 weeks.
It now reaches upwards of 11,000.

That’s Melbourne

The That’s Melbourne website provides one easy portal to all the information on
what is happening in Melbourne. Information relating to over 1,500 businesses




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ensures that anyone visiting Melbourne is able to find just the right fashion outlet,
specialty store or café, bar or nightclub to fit their requirements.
Relaunched in May 2008, the website attracts an average of 110,000 visitors per
month. In the last six months more than 32 per cent of visits were from
interstate and 7.4 per cent were international.
Each week the website homepage lists Melbourne’s top five restaurants and bars
based on page hits. All landing pages throughout the site serve as promotional
spots for events and businesses, these are rotated weekly to meet demand and
provide fresh ideas for visitors.

Businesses located in the city can list their information on the That’s Melbourne
website free of charge. Listed businesses tap into a ready-made audience and can
capture more interest than with their own website alone. The site can list every
outlet a business has in the CBD and drive visitation to a business’s own website.

Information on listing a business can be found at
www.thatsmelbourne.com.au/business. Event organisers can list upcoming events
free of charge using the online form. Business and event listings with quality
images and content receive greater promotional opportunities through That’s
Melbourne.

              Businesses and events are also promoted through That’s Melbourne’s
              social networks including Facebook and Twitter.

Hot Spots

In 2005 the City of Melbourne commissioned the first ever City Guide—a
magazine-style publication focusing on the city’s strengths and personalities. The
aim of the publication was to develop a mouthpiece for the city that had a very
distinct attitude and tone which would appeal to a younger, urban city market.
Since this time, the City Guide has evolved to become Hot Spots—a dedicated
publication targeting young inner-city locals distributed at city bars, cafés,
cinemas, retailers, universities, as well as backpacker and visitor information
centres within Melbourne. The aim of the guide is to provide hip visitors with an
‘insiders’ guide’ to the secrets of the city.

In 2009, Winter Hot Spots took a new turn, re-launching the successful
publication after a 12 month hiatus. The publication divides its content into six
distinct sections—using the districts model as a guide, the city is broken into five
segments: central (CBD); southside (Southbank); westside (Docklands);
northside (Carlton and North Melbourne); and cultural precincts (Chinatown,
Greek precinct, Lygon Street).

Each chapter begins with a main precinct feature, profiles an interview with a key
city personality, reveals a secret within the area, and then profiles up to 16
individual listings of inner city businesses and/or events within that area. For
example, Winter Hot Spots 09 profiles new retail businesses, fashion designers
and retail people and personalities such as Thread Den and Max Olijnyk of Note to
Self jeans.




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The five chapters are complemented by a new section entitled ‘Profiles’, which
introduces seven Melburnians who live, work and breathe the city. The purpose is
to showcase some of the people behind Melbourne, and their creative work.

Objective: Leverage strategic partnerships and develop joint venture campaigns
that will see the Melbourne message communicated stronger and further.
Communicating Melbourne’s message

The City of Melbourne has supported the retail sector through its partnership with
the Seven Network during the 200809 period, with the following:

 ‘Absolutely Melbourne’ Spring television special including:
     a segment on Fashion in the City featuring Green with Envy, Marais, Call me
      Madam, Dizingof, Arthur Galan
     a segment on Spas in Town featuring Retreat on Spring, Park Club Health
      and Day Spa, Orchid Day Spa, Chuan Spa
 ‘Absolutely Melbourne’ Christmas in the City television special, which featured:
     Myer Windows
     Myer Santaland
     David Jones Magic Cave
     Atrium at Crown
     Jasper Junior
 ‘Absolutely Melbourne’ Summer in the City television special, which included a
  segment on the L’Oréal Melbourne Fashion Festival (LMFF).

All of these television specials also featured segments on different restaurants
and bars in the city.

In addition to this television programming, the City of Melbourne supported retail
with paid buys for:

 a Spring in the City television advertisement that ran for three weeks in
  August/September 2008
 Christmas television advertisements, running for eight weeks in November and
  December 2008.

Objective: Deliver increased retail spend to city retailers by leveraging visitation
to Victoria from the many major and hallmark events.

Throughout the year, the City of Melbourne, together with Victorian Government
agencies, communicates the message about the hallmark events in the city that
are geared to attracting retail-specific visitors.

There are also other promotions that are part of a broader plan to bring people
into the city to ‘discover’ all manner of opportunities.

Marketing campaigns range from national broadcasts—particularly with partner
Channel 7—to national and local print media, radio, magazine and online, as well
as brochures, city street banners and other media and PR campaigns, all of which
are designed to support and promote each event.




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L’Oréal Melbourne Fashion Festival (LMFF)

The L’Oréal Melbourne Fashion Festival (LMFF) is one of the most important
yearly events for the Australian fashion industry and brings together retailers,
designers, manufacturers and other fashion industry participants. In 2009, the
festival attracted record attendances and is estimated to have generated
substantial visitor expenditure in the City of Melbourne over the eight-day festival
period.

    Returns for Melbourne
    LMFF puts in for the economy

    The L’Oréal Melbourne Fashion Festival (LMFF) is one of Victoria’s great treasures. It
    adds beauty and richness to our history, our culture and our community.

    Passion and commitment best embody the essence of this wonderful festival. Passion
    motivates all those involved in making the L’Oréal Melbourne Fashion Festival a reality.
    Whether it is identifying, fostering and promoting Australia’s great designers,
    celebrating the fashion sense of our consumers or exploring the amazing offerings of
    our innovative retailers, the festival showcases all that is great in our spectacular city.
    Exploring the amazing treasure troves of Melbourne’s laneways is an inspiration to
    visitors looking for that unique shopping experience.

    In 2009, over 371,000 people participated in the L’Oréal Melbourne Fashion Festival
    events and activities where over 300 fashion brands and designers were presented.
    The festival provided a multi-tiered marketing and promotional framework for the
    fashion and associated industries with the multiplicity of venues, events, campaigns
    and community projects across its diverse platforms including runway shows, the
    student showcase ‘Metamorphosis’, the Cultural Program, sponsor events and retail
    workshops. LMFF business events, which focus on the development of the fashion and
    retail industry, were filled with sell out crowds. Compared to last year, attendance at
    LMFF Cultural Program increased by over 30 per cent.

    The unique retail and consumer value proposition offered by LMFF is heralded
    internationally as a leader in its field. The 2009 festival is estimated to have contributed
    a direct benefit to the Victorian economy of $54.8 million, after allowing for the indirect
    or flow-on impacts the benefit is estimated at $67.2 million. The direct impact on the
    Australian economy is estimated at $69.9 million. The total impact on the Australian
    economy after allowing for flow-on impacts of expenditures is estimated at $88.1m
    (Economic Impact Assessment for L’Oréal Melbourne Fashion Festival 2009 by URS).
    The L’Oréal Melbourne Fashion Festival could not have become the success it has
    without the support of the Victorian Government. Since formation of the festival in
    1997, the Victorian Government has supported and assisted wherever possible.

    We look forward to an even brighter star in 2010; the anticipation, the energy and the
    enthusiasm that is the L’Oréal Melbourne Fashion Festival.

                              Laura Anderson, Chairman, L’Oréal Melbourne Fashion Festival

Specific City of Melbourne events
In addition to the sponsored events, City of Melbourne delivers Melbourne Spring
Fashion Week (MSFW), the Melbourne Awards, New Years Eve in the City,



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Summer Fun in the City, Moomba Waterfest and Ignite at Docklands. All these
events bring people into the city where they are exposed to the diversity of retail
offerings available.

Melbourne Spring Fashion Week (MSFW) provides an accessible platform for some
of Australia’s most exciting fashion talents and brands to showcase their
collections to the media, key retailers and public. In turn, the event provides
consumers with an array of affordable opportunities and experiences, with more
than 100 fashion and fashion-related events on the official program.
Specifically, the 2008 marketing campaign consisted of radio spots; Mitch’s
Melbourne TV commercials; The Age, marie claire and Fashion Trend advertorials;
as well as widely distributed event program guides and brochures. This was all
backed up with online campaigns via the That’s Melbourne website and the
eNewsletter, as well as city banners, including a dedicated MSFW banner program
around the CBD and Docklands.

The Melbourne Awards recognise outstanding achievement in community
development and business excellence, enabling the city to recognise the
individuals, community organisations and corporations that make a significant,
but often unsung, contribution to the quality of our community. Recognising these
achievements inspires and challenges others to make their own contribution
towards creating a better future for Melbourne. The year-round program
culminates in the announcement of the award recipients at a prestigious Gala
Awards Ceremony on Melbourne Day—30 August. The evening is hosted by
Channel 7 celebrities. The audience includes sponsors and their VIP clients, senior
business leaders, City of Melbourne representatives, entrants and past winners.

Summer Fun in the City is an annual six to eight week outdoor event featuring a
program of free events, entertainment and interactive activities across
Melbourne’s famous parks, gardens, city spaces and waterfront. Held in January
and February, Summer Fun in the City provides more than 12 different events
with more than 200 sessions programmed across a number of prime event sites
throughout the City of Melbourne. Attendance figures throughout the entire event
are estimated at more than 60,000. The City of Melbourne delivers this event in
conjunction with a range of contracted partners, both in operations and
programming.

New Year’s Eve in the City (NYE) is Melbourne’s largest free single-day public
celebration. NYE 2008 attracted the largest attendance in history. An estimated
450,000 people visited Melbourne’s CBD to enjoy the festivities. From 4pm on 31
December thousands rolled into the city to find a spot from which to watch
Melbourne’s sky light-up in the biggest fireworks displays of the year. Crowds
enjoyed a range of free family fun, from live bands and main stage amusements,
to carnival rides and live entertainment, until 2am on 1 January—all taking place
across the banks of Melbourne’s Yarra River through Alexandra Gardens and
Birrarung Marr, Southgate, Federation Square and at Waterfront City, Docklands.

Moomba Waterfest is Australia’s largest free community festival and remains one
of Melbourne’s favourite annual celebrations. The event has been held over the
Labour Day long weekend in March for more than 50 years. Today the event
attracts more than 900,000 local, state, national and international visitors to the
city during the four-day period. Moomba Waterfest blankets Melbourne’s city


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parks and the Yarra River with an array of activities for all the family. Located
within Birrarung Marr, Alexandra Gardens and along the Yarra, Moomba provides
a variety of activities.

Objective: Position the city as the capital retail experience within Australia.

For a description of some of the initiatives that have taken place over the last 12
months, see ‘Investment attraction’.

Objective: Continually seek out new and innovative ways to provide the latest
retail information to consumers.
The City of Melbourne is currently looking at a variety of advanced technologies to
broadcast information to people in a number of ways, particularly via mobile
phone.




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TOURISM

The Melbourne Retail Strategy in 2006 noted that visitors to a city want
to become part of the city they are visiting and to experience it as the
locals do. This has long been part of the attraction of shopping
destinations in the city such as the Queen Victoria Market. It is there
that international and interstate visitors can mingle with locals doing
their everyday shopping in a place where trading has been
conducted in much the same way since 1878. The strategy aims to
align the retail offer with the authentic experience and ‘sense of the
city’ that visitors seek, and to ensure that visitors have the knowledge
they need of the city’s rich and diverse retailing.

Objective: Provide visitors to Melbourne with an experience that encourages
maximum retail spend.

City of Melbourne is working closely with the Melbourne Convention and Visitors
Bureau (MCVB), Melbourne Convention and Exhibition Centre (MCEC), and
Tourism Victoria, to develop activities and projects that will maximise expenditure
by delegates to Melbourne conventions.

Objective: Develop a retail specific City Ambassador program to deliver the city’s
unique retail message and experience to visitors.

During 200809 an additional 50 to 60 people were trained to support the highly
successful City Ambassadors program, bringing the total number of volunteers to
approximately 150.

All volunteers are provided with in-house and on-street training and an
experienced, senior volunteer supports each new recruit during the training
process. Retail and shopping content is a substantial part of the introductory and
refresher training volunteers undertake. Retailers are also invited to present
directly to volunteers through a variety of forums.

A 30 per cent increase in the number of customer inquiries has resulted from the
increased number of volunteers on the street. In fact, customer contacts reached
almost 350,000 for the 200809 period. A substantial proportion of inquiries
received by volunteers relate to retailing.

              For the first time in 2009, the City Ambassadors were part of the
              Melbourne Open House event held in July. The 2008 event enticed
              30,000 visits to eight venues. In July 2009 more than 30 buildings were
              open, many not normally accessible to the public. More than 50,000
              people visited the city to make the most of the opportunity (The Age,
              A2, Saturday 1 August 2009). Such occasions provide prime
              opportunities on which retailers can build as visitors traverse the city.




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Objective: Provide intrastate, interstate and international visitors to Melbourne
with access to comprehensive and insightful information on Melbourne’s retail
offer.

Both the Melbourne Visitor Booth (MVB) and the Melbourne Visitor Centre (MVC)
provide a valuable source of information for local, interstate and international
visitors to Melbourne. They continue to be well patronised, together fielding over
a million inquiries a year. Most of the half a million annual inquiries to the Bourke
Street booth have a retail component.
The City of Melbourne does a ‘meet and greet’ of cruise ship patrons, who are
encouraged to visit the MVB or MVC for further information.

Light boxes operating 24 hours a day are located outside the Bourke Street visitor
booth, similar to those at the MVC in Federation Square, contain billboard posters
advertising events and happenings taking place in the city. They are also
available for collaborative advertising by precincts or other groups of retailers.

Melbourne retailers can also reach out to potential customers by producing ‘show
bags’ of goodies such as vouchers and discount offers, which can be given away
at the MVB.

    Visitor statistics
    The statistics for visitors to the various City of Melbourne tourist offerings for 2008 are:

     MVC: 890,081 visitors or an average of 2,439 visitors each day (this is a 10.3 per
      cent increase compared with 2007)

     MVB: 571,374 visitors or an average of 1,565 visitors each day (this is a 1 per cent
      increase compared with 2007)

     City Ambassador Program: 286,187 visitors or an average 784 visitors each day
      (this is a 14.5 per cent increase compared with 2007)

     Melbourne City Tourist Shuttle: 321,216 passengers annually

     Cruise Ship Program: 36,848 visitors serviced annually.

That’s Melbourne website

The That’s Melbourne website thatsmelbourne.com.au is currently attracting an
average of 110,000 visitors per month. In the last six months more than 32 per
cent of visits were from interstate and 7.4 per cent were international.

As the city’s destination website, That’s Melbourne promotes the destination
strengths of the city, including shopping, what’s on, places to go, dining and
nightlife, as well as information on getting around the city. The website offers a
wealth of opportunities to promote city businesses, events and attractions.

Visit Victoria website

Tourism Victoria, the Victorian Government’s statutory authority for actively
marketing Victoria as a premier tourism destination both domestically and
internationally, plays a significant role in promoting Melbourne retail.

Tourism Victoria maintains a dedicated shopping portal on the Visit Victoria
website, www.visitvictoria.com/shopping. The portal contains editorial features on



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precincts and hubs, including Queen Victoria Market, QV, GPO, laneways and
arcades. The shopping content is soon to be reviewed and updated with new
content from Shopping Secrets (Deck of Secrets) and The Melbourne Design
Guide.

Tourism Victoria also produces seasonal Melbourne ‘experience’ itineraries, for
example, www.visitvictoria.com/fashionandfun, that feature various Melbourne
retailers.

Individual retailers can take out a self-authored product listing (annual fee
applies) on www.visitvictoria.com. This information is then fed through to the
Australian Tourism Data Warehouse (ATDW) for national distribution.

Tourism Victoria also operates a mobile site, m.visitvictoria.com that features 30
Melbourne retailers—from Alice Euphemia to Mag Nation to Thread Den—and
promotes specific shops and retail hubs through the Experience Melbourne and
Lost and Found eNewsletters.

Objective: Continually review and monitor tourism growth markets and consumer
behaviour to ensure tourism marketing and services reflect the interests of these
groups.
Tourism surveys

The City of Melbourne conducts an annual tourism services survey. Survey results
include data collected about visitor interest in and experience of shopping in
Melbourne. The figures here are the latest research findings:

Annual Visitors’ Survey (April 2008)
Key results relating to retail
 More than half of all respondents—57 per cent—described their main purpose
  for visiting Melbourne as being holiday/leisure/shopping/sightseeing. This is an
  11 per cent increase on last year.
 At 46 per cent, the most popular activity remains shopping, up slightly on last
  year (43 per cent).
 The number of respondents citing shopping as the reason why they had visited
  a City of Melbourne information service was up slightly on last year’s survey,
  from 17 per cent to 20 per cent.
 More than half all respondents had visited Bourke Street Mall precinct (51 per
  cent) and 38 per cent had visited the Queen Victoria Market.
 Over 50 per cent of the respondents in each of the following categories were
  more than likely to have gone shopping during their visit; females, those aged
  45–54, interstate visitors (particularly those from Queensland) and those who
  had visited Melbourne previously.
 Almost 100 per cent of female respondents rated their shopping experience as
  very/fairly satisfying.
 When asked about their preferred method of accessing information relating to
  Melbourne prior to arrival, 63 per cent of respondents said the Internet was
  most important, which highlights the significance of the City of Melbourne’s
  commitment to fast, accurate and up to date information on its websites.




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    Melbourne Airport
    Melbourne Airport is the gateway through which many visitors, international and
    domestic, arrive in Melbourne. They may come for a holiday, to visit friends and
    relatives, for business or to pursue educational opportunities.
    The 24 hour, curfew-free operation of Melbourne Airport, combined with a single
    terminal precinct, provides greater scheduling flexibility for airlines when compared
    with competitors Sydney and Brisbane.
    During the last 12 months a number of international airlines have commenced flying
    directly into and out of Melbourne Airport, which has led to a steady increase in
    international passenger numbers for the 2008–09 period.
    There have been particular increases in specific portions of the market: the South-East
    Asian market has grown 44 per cent; and student arrivals are also significant—the
    Malaysian market increased 55.7 per cent and the Indian market increased 26.2 per
    cent in the month of March 2009 over the previous year.




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ACCESS AND AMENITY

One of central Melbourne’s great strengths is its high level of
accessibility. It is at the heart of greater Melbourne’s extensive rail and
tram system, and is also well serviced by the bus network. Destinations
within the city are also highly accessible. The famous Hoddle Street grid
is easy to navigate and attractive to walk around, lined with active
street frontages and avenues of plane trees. For destinations that are
beyond walking distance, Melbourne’s renowned trams criss-cross the
city centre and inner suburbs, and now extend down to Docklands.

Central Melbourne’s accessibility has contributed to its status as Victoria’s primary
retail destination and helped to maintain the largest concentration of retail floor
space in the state. The Melbourne Retail Strategy celebrates the city’s
accessibility, but acknowledges that there is work to be done in improving
perceptions of access to and within the CBD.

Objective: Influence local and state transport policies to benefit city retailers.

Public transport to Docklands

Melbourne Docklands is a 200ha mixed use development on Melbourne’s
waterfront. For many years an industrial wasteland, this area has been
progressively reinvigorated to become one of Melbourne’s most vibrant
residential, commercial and recreational precincts.
Public transport enhancements have significantly improved access to shopping in
Docklands during 2009. The free City Circle tram has been re-routed along
Docklands Drive to link the CBD to new retail at Waterfront City, Harbour Town
and Australia’s first Costco store, which opened in August 2009.

              By the time the Melbourne Docklands vision is fully realised in 2020, it is
              expected that it will be home to 17,000 people and that, per day, it will
              be the workplace for 40,000 and destination for 55,000 people.

              At completion, it is anticipated that Melbourne Docklands will have
              provided Victoria with more than $12 billion of development
              infrastructure.

In addition, the number 86 tram has for some time been terminating at Harbour
Town. From September 2009, the number 48 tram will be re-routed to run down
Collins Street from Spring Street and terminate at Merchant Street, providing a
convenient public transport link between the heart of Victoria Harbour and the
CBD.

Melbourne City Tourist Shuttle

The route of the highly popular Melbourne City Tourist Shuttle—the free tourist
bus service operated by the City of Melbourne—has been altered to include
Docklands. The shuttle’s route now includes 13 stops, nine of which are in the


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heart of various retail districts around the city, including Lygon Street,
Southbank, Federation Square, Harbour Esplanade, Waterfront City and Queen
Victoria Market.

Objective: Provide consumers with better parking options at off-peak times and
weekends.
Overview of parking spaces

The City of Melbourne’s Census of Land Use and Employment (CLUE) uses the
number of car parking spaces, rather than the number of square metres occupied
by car parks, as a measure of availability for users. The latest CLUE data (2008)
shows a gradual increase in car parking supply, which matches the employment
and residential population growth in recent years.
Private and commercial car parking has increased significantly over the past 11
years. In the CBD and Southbank, car parking spaces grew by 29 per cent, from
approximately 53,500 in 1997 to more than 69,000 in 2008. Total car parking
spaces in the City of Melbourne (the entire municipality) grew 25 per cent, from
approximately 137,000 in 2002 to more than 170,000 in 2008. The CBD and
Southbank accounts for 69 per cent of commercial parking.

Objective: Provide consumers with added incentives to access the city via public
transport and shop in the city.

Throughout all of its marketing activities and publications, the City of Melbourne
promotes public transport as the best, easiest, simplest and most economic way
to access the city and its retail offerings.

At specific times, such as Christmas and New Years Eve for example, the City of
Melbourne also runs advertising panels on trams, in conjunction with the tram
operator, promoting public transport use.

    TravelSmart Map
    The TravelSmart Map has been developed by the Victorian Department of Transport, in
    collaboration with Melway and the City of Melbourne, to promote sustainable transport
    information in a handy, pocket-sized format.

    First launched in 2002, TravelSmart is an initiative that aims to reduce people’s
    dependency on individual car transport and encourage better use of walking, cycling
    and public transport options.

    Since its inception the Victorian Government initiative now forms a specific Walking and
    Cycling Branch within the Department of Transport. This branch works in collaboration
    with local governments to promote smarter, healthier travel choices.

Objective: Encourage retail staff to see Melbourne city as the retail workplace of
choice over other retail centres.

Victoria Harbour’s growth
Victoria Harbour’s retail workforce has been quietly growing over the last 12
months, as residential and worker demand for services grows in Docklands.
According to developer Lend Lease, there will be 15,000 people working and
living in Victoria Harbour by March 2010. Merchant Street is developing as the


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focal point of a vibrant new shopping precinct at Victoria Harbour. Many
convenience retailers such as optometrists, physiotherapists, doctors, dry
cleaners, bakers, banks and credit unions, a post office, a full-line supermarket,
cafés and take away food shops serve the large number of office workers who
come to the area each day as well as the growing number of residents at Victoria
Harbour.

                Safeway Victoria Harbour is a strong community partner and operates
                the sausage sizzles at community events such as outdoor movies and
                carols on Victoria Green.

The National Australia Bank was the first large corporation to take up residence at
Victoria Harbour. It has been followed by Lend Lease, Ericsson, Fujitsu and many
smaller organisations. The new ANZ headquarters, due for completion in late
2009, will be the largest office complex in Australia, housing some 6,500 people.
The ANZ complex will include a bank branch and leading food retailers.
Additionally, Myer’s new head office complex, which is currently under
construction on Collins Street, will incorporate a substantial retail component as
part of its ground floor office block.
The future will see the Merchant Street area offer discretionary spending options
too, such as fashion, technology, books and music, with additional food and
beverage outlets facing the waterfront.

    Out of the ordinary
    For four days during June 2009, Signature Prints showcased the work of Australian
    wallpaper designer Florence Broadhurst at a ‘pop up’ shop in Merchant Street.
    Signature Prints is the proud custodian of the extraordinary Florence Broadhurst design
    library and it owns the exclusive worldwide rights to print the unique artwork of this
    Australian icon. Discerning shoppers were provided with a rare opportunity to view the
    exquisite Florence Broadhurst collection as a whole and the ‘pop up’ store gave
    Signature Prints a chance to research the Melbourne market.

Waterfront City

The Harbour Town Shopping Centre at Waterfront City in Docklands is an open air
shopping concept in two precincts—the southern section houses brand direct
outlet shopping while the northern precinct houses full-line specialty retailers. The
main retail outlets merge into a food precinct near Costco. The Melbourne centre
opened in October 2008 and complements three other successful Harbour Town
centres at the Gold Coast, Adelaide and Perth.
Waterfront City is a mixed use development with retail, commercial and
entertainment and residential precincts, including town homes and apartments. A
boutique hotel is planned for the near future. The IceHouse National Ice Sports
Centre is scheduled to open there early in 2010 and will host national and
international ice skating and ice hockey events.

Harbour Town is highly accessible. It has public car parks, the number 86 and the
City Circle trams now terminate there on Docklands Drive, and it is an easy walk
from the city and Etihad Stadium.



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              Out of all of the employing businesses in Docklands, over half are in the
              retail or food and beverage sector—of the 327 employing businesses,
              almost one third (105) are retail and 87 are food and beverage
              services.

              It is anticipated that during the next five years Docklands will be
              responsible for 57 per cent of retail development activity expected in
              the City of Melbourne (2008 Docklands Small Area Economic and
              Demographic Profile, City of Melbourne, p. 3).

Objective: Increase favourable perceptions among local consumers about access
to the city.

Improved access
The City of Melbourne has undertaken extensive studies in 2008–09 on how to
improve bike access into and through the city. Consultation between the City of
Melbourne and the City of Port Phillip is underway to improve the access between
the two municipalities along the city’s southern edge. A new bike lane was
introduced in Market Street and more additions to the city’s bike network are
planned.
Harbour Esplanade at Docklands will be redesigned during 200910 to improve
pedestrian, cycle and public transport access. The Victorian Government and
VicUrban will undertake works to separate bike and walking paths, and tram
routes are being relocated in the section between Bourke Street and La Trobe
Street.

The launch of the new retail development at South Wharf in late 2009 will include
re-opening of the nearby bike and pedestrian path along the south bank of the
Yarra.

As part of the City of Melbourne’s project to upgrade Swanston Street, an
extensive community review was undertaken.

Taxi driver education

The City of Melbourne’s taxi driver education program emphasises compliance
with road rules in order to improve public safety, including observance of parking
and loading zone restrictions in the city. Particular attention to this issue between
April and June 2009 helped to ensure that those parking restrictions applicable to
loading zones, short stop taxi ranks and clearways were observed, benefiting
retailers and businesses in the CBD.

Update on residential situation
The City of Melbourne’s residential population was estimated at 89,759 in June
2008, which represents a 60 per cent increase since 2001 (ABS Regional
Population Growth Australia 2007–08, Cat. no. 3218.0). According to the latest
CLUE data (2008), the resurgence of inner-city living and the development of
Docklands has seen the amount of residential accommodation in the City of
Melbourne grow rapidly in recent years. Between 2002 and 2008 the number of
apartments, houses and townhouses rose from 33,786 in 2002 to 53,511 in
2008; a 58 per cent increase. The rapid growth is partially attributable to




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municipal boundary changes, however half of the 14,396 residential apartments
added in the last six years are found in the CBD and parts of Southbank.
At the same time, there has been a 941.2 per cent increase in the turnover in the
‘supermarket’ category of retailing in the CBD (from a very small base in 1996).
This reflects the matching population increase—both in terms of residents and
workers. This phenomenal increase in the ‘supermarket’ category includes
convenience stores such as 7-Eleven, IGA and Coles Express. The category also
includes several full-line large supermarkets such as Safeway at QV and Victoria
Harbour, Coles at Melbourne Central and Spencer Street and Aldi in Franklin
Street.

Objective: Establish a quiet hub for city shoppers that provides baby change
facilities, rest spots, and parcel minding services.

The City of Melbourne City Ambassadors, the Melbourne Visitor Booth in Bourke
Street and the Melbourne Visitor Centre at Federation Square are able to provide
visitors with information on the location of suitable conveniences for use by the
public.

Objective: Provide more efficient ways to fulfil deliveries to city retailers.
Smart City Delivery Project

The City of Melbourne recently commenced the Smart City Delivery Project in
partnership with the Department of Transport. The project will work with
retailers, transport providers and other stakeholders during 2009 and 2010 to
develop innovative solutions for moving freight and deliveries within Melbourne
while protecting the city’s liveability.
The project will be conducted over several phases, including data collection and
transport modelling, stakeholder engagement and consultation and design and
planning phase. An implementation plan will then be incorporated into the new
City of Melbourne Transport Plan, ‘Connected City—Future Melbourne Transport’.




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SECTOR AND BUSINESS DEVELOPMENT

Business events in Melbourne are closely allied to the city’s strengths in
social, scientific and technical research and development. There are
seven major universities in the city—two of which (RMIT and the
University of Melbourne) have their main campuses on the fringe of the
CBD. The conference and business events sector builds on this strong
presence of the ‘knowledge economy’. The Melbourne Retail Strategy
identifies that there is great potential for retail to service the
conference and events visitor and to enhance their experience of the
city.

Objective: Facilitate opportunities for increased spend to the city’s retail sector
from the Conventions and Business Events market.

Melbourne’s Convention and Exhibition Centre (MCEC)

Business events are high yield and one of the fastest growing sectors in tourism,
making the new Melbourne convention centre, which officially opened for business
in July 2009, one of Melbourne’s most valuable new resources.

The convention centre is fully integrated with the existing exhibition centre to
form the Melbourne Convention and Exhibition Centre (MCEC), which is the
largest such complex in Australia. This world-class centre gives Victoria an
international advantage in securing conventions and bringing business tourists to
the state.

The Melbourne Convention and Exhibition Trust, which operates the new centre,
is working with the Melbourne Convention and Visitors Bureau (MCVB) to attract
convention business and there are 51 international events already booked. As
international convention delegates spend, on average, five times more than
leisure tourists (MCEC website, www.mcvb.com.au, Annual Report, 2008, p. 18),
the 100,000 plus delegates expected to attend these events undoubtedly bring a
substantial boost to Melbourne businesses during their stay.

The economic impact will also be amplified by the fact that conference delegates
from overseas often bring a partner. According to recent research commissioned
by the MCVB, 38 per cent of the international delegates surveyed brought
someone with them on their trip to Melbourne. The study also found that 60 per
cent of international delegates intended to return to Melbourne for a holiday
within the next five years (MCEC website, www.mcvb.com.au, Annual Report
2008, p. 18).

The MCEC is also a major drawcard for domestic events. There are 200 national
conventions, meetings and seminars booked to occur between now and 2011,
expected to bring a further 250,000 delegates to Melbourne.

The Victorian Government contributed $370 million toward construction of the
convention centre under the Partnerships Victoria framework, with the remaining
commercial development financed privately. This significant tourism infrastructure



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investment is part of the Victorian Government’s agenda to grow the $1.2 billion
business events sector. The development will pave the way for Victoria to
compete in the lucrative business tourism market and is expected to inject $197
million a year into the local economy for the next 20 years.

                 The Melbourne convention centre project has already delivered an
                 estimated $4 billion in economic benefits for the state and
                 approximately 1,780 jobs have been created from the construction of
                 the new centre and commercial precinct.

South Wharf Precinct

The MCEC is the centrepiece of a $1.4 billion development along the Yarra River,
providing a new link to Docklands and the city in an exciting new public space for
all Victorians and visitors to enjoy.

Adjacent to the MCEC complex is the new $13 million Maritime Precinct, housing
the historic Polly Woodside, due to open later in 2009, which will add to the
potential for retailers to capitalise on visitor numbers to the area.

The City of Melbourne financed a new cycle and foot bridge that connects the
north and south banks of the Yarra River at South Wharf, further enhancing the
area’s amenity. A naming competition was open to the public during March 2009,
with more than 500 submissions received. The announcement of the preferred
name will be made later in 2009.
The City of Melbourne joined forces with MCEC and Destination Melbourne to
produce the South Wharf visitors’ services strategy, which will be an invaluable
guide for convention centre delegates. A comprehensive brochure, including a
map and information on attractions, various precincts, Melbourne’s arcades and
parks, will be handed to every delegate who visits the MCEC—potentially
thousands of people each year.

    South Wharf Retail
    Situated on the banks of the scenic Yarra River, South Wharf is a visionary and
    dynamic space that completes Melbourne’s extensive redevelopment along the south
    bank of the Yarra.

    Complementing the new world-class Melbourne Convention and Exhibition Centre
    (MCEC), South Wharf features a new deluxe Hilton Hotel, and will also feature a brand
    new five star office tower plus an exciting array of cafés, high quality restaurants, bars,
    cinemas and a variety of retail and lifestyle offerings. All have been master planned to
    capture the essence of Melbourne’s unique laneway grid and European-inspired
    culture.

    There will be some 60,000m2 of retail floor space across the new suburb of South
    Wharf, which will have the Post Code 3006. As construction has run slightly ahead of
    schedule, the expected opening date is October 2009. On completion, approximately
    180 tenants will trade from the South Wharf precinct, bringing to life Melbourne’s most
    recent offering to pedestrians, shoppers, tourists, diners and conference delegates.

                                                                    Plenary Group, June 2009




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Objective: Facilitate continued retail innovation, excellence, knowledge and
opportunities for the city’s retail sector.
Retail training

The Australian Retailers Association, housed in central Melbourne, administers the
Retail Employment Pathways program to help retail job seekers by providing the
skills, experience and support necessary to establish a successful career in
retailing. This eight week training program to assist retail job seekers obtain
satisfying and sustaining jobs has been developed by the Commonwealth
Government to give successful participants a Certificate II in Retail qualification
as well as specific skills training, job seeking tips, retail career mentoring and
retail work experience.
The RMIT TAFE Enterprise and Workplace Training (EWT) Department also
provides a range of options for employees, employers and community groups to
access a variety of business training and consultancy options in VE&T
qualifications and non-award programs. Courses include those available for part
time and full time training for industry employees as well as workplace based
traineeships in retail.

    Shopping around by Design
    RMIT Business TAFE School launched a new program in September 2006 aimed at
    giving store staff valuable design skills. Customers expect high standards from today’s
    leading retailers and RMIT saw the need for a course to equip students with a range of
    functions including retail business skills. The new program also incorporates the option
    to learn and practise creating displays and props using a range of merchandise,
    knowledge of product design features and how to relay this information to customers.

    The Certificate 3 in Retail Operations (Design Focus) is offered jointly with the RMIT
    School of Design (TAFE) and runs from 12 to 18 months.

    Brad Beitzel, from the RMIT Business TAFE School, said: ‘This innovative program will
    give retail staff a better understanding of design features of products and how they can
    complement a customer’s needs.

    ‘The areas this program will cover include fashion, soft furnishings, clothing,
    homewares, footwear, interior decorating and visual merchandising.’
    RMIT’s Workplace Training Manager said: ‘Retail operators in fashion and design want
    highly skilled and confident employees who can do more than operate a till.

    ‘In our program, participants learn about the style and design features of products and
    their functionality to better assist customers.’

                                  RMIT News, www.rmit.edu.au accessed on 4 August 2009

Small Business Grants

The City of Melbourne’s Small Business Grants Program provides grants of up to
$30,000 to innovative small businesses located or locating within the City of
Melbourne. The grants seek to encourage and support new, creative and different
business activities and projects that will contribute to a thriving and competitive
business environment within the city.




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The two rounds of grants for small businesses in 2008 resulted in the following six
retail recipients:
 Craft Victoria—to introduce a computerised system that will enable the
  organisation to extend its retail operations
 The Design Institute of Australia—to aid in the establishment of an exhibition
  and education space
 Hear Now—to expand the organisation’s role to become an independent
  touring and booking agency for international and Australian DJs
 Kimono House—to expand the range of activities offered to incorporate a range
  of specific and targeted craft workshops and cultural classes in Japanese art,
  crafts and culture
 Thread Den—to provide a second room equipped with top-quality industrial
  sewing machines and to offer more classes to enthusiastic patrons
 Tiffins—to install a fully integrated electronic order tracking system.

Sustainable retailing—recent innovations

There are many retailers within the City of Melbourne who are taking the
challenge to innovate their retailing offer very seriously by becoming more
sustainable. The following are just a few who illustrate this point:

 Gorman clothing in the GPO offers a range of great clothing designs for women
  across a range of ages. The clothing uses organically grown materials, mostly
  cotton and bamboo.

              ‘We want to reward customers who buy greenpower at home, ride
              their bikes to our stores or catch trains and trams. We choose our
              suppliers carefully to make sure we are working with companies that
              are doing their thing for the environment too, from stationery suppliers
              through to freight forwarders. We no longer consider a new supplier if
              they don’t have an environmental policy.

              ‘We think the way we are doing things has a better result for all
              involved, most importantly the planet, rather than by purchasing
              offsets and making the claim of “carbon neutrality”. Our way is about
              making and influencing changes right now, and our actions are based
              on emission reductions rather than emission bandaids. We are forcing
              other companies to re-think the way they do business and we are
              seeing the effect flow on, broad and wide, much further than the
              fashion industry.’

              Lisa Gorman

 Alice Euphemia, Shop 6, Cathedral Arcade, 37 Swanston Street, mostly
  sources its hand-made individual fashion locally, which reduces supply ‘miles’
  and energy use.
 Recycling specialists in the city include Blonde Venus, 3 Crossley Street, which
  uses recycled materials in up-to-the-minute funky fashion, and Kikki.k, 318
  Little Collins Street, which makes stationery from recycled paper, Retrostar
  Vintage Clothing, upstairs, 37 Swanston Street, which revives the best


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    examples of the ‘trendy styles’ of the last few decades, and the Craft Victoria
    shop at 31 Flinders Lane, which includes gifts hand-made using recycled
    materials.
 e.g. etal jewellery at 167 Flinders Lane uses natural products such as pebbles
  and recycled bits and pieces in a range of great jewellery.
 Organic product offerings in the city include Queen Victoria Market’s organic
  fruit and vegetables, free range eggs, sustainable/chemical free meat and fish
  products, organic and macrobiotic delis—and even organic wine, Aesop, at 268
  Flinders Lane, which sells face creams created from organic ingredients and
  has interior walls and fittings made entirely of recycled cardboard packaging,
  and Koko Black’s organic chocolate and fair trade coffee at 52 Collins Street.

    Melbourne—the time is right for ‘your local city’
    An expert retail observer’s perspective

    For a number of striking reasons, 2009 is proving to be a challenging year for retailers.
    The economic downturn has motivated many consumers to review their consumption
    patterns, as they seek to better manage household budgets. The ‘ROSI’ (Research
    Online, Shop In-store) consumer is now able to control for themselves which avenues
    of marketing messaging they wish to be exposed to, and which resellers—local,
    national and international—they will shop with. The new generations of consumers,
    Gen Y and Gen Z seem less loyal and more cynical than their predecessors, and turn to
    alternative and informal information channels to guide their decisions on where to
    spend and where to go.

    Melbourne itself faces challenges as a retail destination. The redevelopment and
    expansion of suburban shopping centres poses an increased competitive threat, and
    the explosion in online retailing has meant that traditional pathways to product
    acquisition for the shopper have changed beyond recognition. The global economic
    downturn means that potentially less international and interstate consumers will visit
    the city.
    Challenging times for sure, but also times filled with opportunity. In boom times,
    consumers were courted by new market players and locations, and deluged with
    promises of innovation, novelty and attractive price points. If the promise wasn’t all it
    seemed, it didn’t really matter. But times have changed. Authenticity, trust, honesty,
    quality and value are the new simple truths that underpin successful consumer
    connection. In a world where it is easy to be connected but not necessarily engaged,
    the time is right for Melbourne to show its local personality and share its many secrets
    in new ways. If consumers are jaded by the prospect of another visit to a sterile and
    characterless suburban mall, the time is right to celebrate the differences and promote
    the quirky ‘jagged edges’ of city retail. If consumers are sceptical of façade, the time is
    right to show them the ‘real deal’. If quality of family experience is more important
    than speed of transaction, then the time is right to highlight the many simple pleasures
    of time spent in ‘your local city’.

    The key to Melbourne connecting with consumers in this new age of ‘discerning
    consumerism’, especially in a time when marketing ‘noise’ is at an all time high, is
    clarity, consistency, relevance and synergy of message. When we view white light
    through a prism, we can see its component tones and understand its composition. For



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    Melbourne, this is a particularly relevant metaphor in terms of presenting the city in a
    new light for a new age. The redevelopment of Bourke Street, and the regeneration of
    Docklands for example, are showing consumers the new colours of the city, but these
    are welcome signs of evolution rather than revolution. More so than ever before,
    Melbourne is well placed to capitalise on the consumers’ hunger for both style and
    substance.

             Stephen Ogden-Barnes, Director, Australian Centre for Retail Studies, Monash
             University, April 2009, co-opt member of the Melbourne Retail Advisory Board,
                                                                               20062009




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INVESTMENT ATTRACTION

The unique Melbourne experience is what attracts domestic and
international visitors alike and drives them to rate Melbourne as the
best shopping location in Australia. Over the past 12 months,
Melbourne has continued to reinforce itself as a city of personality with
its own distinctive identity, not just a city of global brands that feels the
same as anywhere else in the world.

When it comes to investment attraction within the retail core, Melbourne
continues to hold local and global investors’ interest. The Victorian Government
has continued to investigate potential gaps in the retail landscape and is working
with its network of domestic and international business offices to ensure
Melbourne’s retail offer remains relevant and diverse.

Melbourne has experienced record retail investment of over $1.8 billion in the last
year, including investment by the fourth-largest American retailer Costco, the
continued redevelopment of the Myer Melbourne Bourke Street store, the recently
announced redevelopment of the Myer Lonsdale Street store, and the David Jones
Bourke Street women’s store.

Complementing the redevelopments, a number of fashion retailers have
established flagship stores in the Bourke Street Mall. Sportsgirl’s new ‘super
flagship’ store, which occupies an area of 490m2, is a confident expression of the
brand and has been described as a piece of theatrical retail, where customers not
only want to buy the latest fashions but also hang out with their friends. The
superstore features eight fashion zones, including: the Stage—a space that can
be used for various functions from hosting DJs to art installations; Off the Rails—
offering the newest products in the store; the Melting Pot—housing limited-edition
capsule collections; the Treasure Chest—which showcases jewels, bags and
scarves; and the Shoe Cupboard.

General Pants Co’s Bourke Street flagship store is a creative hub with influences
from the worlds of art, fashion, music and design. The change rooms feature
walls adorned by art installations from designers including Georgia and Alex
Cleary from Alpha60.

Forever New’s clothing and accessory range is showcased over two floors in a new
flagship store, which also houses a Style Bar and stocks successful UK brand
Lipsy.

The long-awaited redevelopment of the Grand Hyatt hotel on Collins Street will
ensure that Collins Street remains at the forefront of desirability in terms of retail
destinations. The totally repositioned façade offers Collins Street a new luxury
retail precinct housing Emporio Armani, Bulgari and Paspaley Pearls. Louis Vuitton
has continued its dominance of Collins and Russell streets with a total
refurbishment and the Prada flagship store, modelled on the Milan store, opened
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Objective: Identify and develop second and third level retail space throughout the
city as potential shop spaces for innovative Melbourne retailers.
Promoting above awning retail

The Melbourne Retail Advisory Board continues to explore the above awning
potential of Melbourne’s CBD. As prime ground floor retail spaces continue to be
in demand, above awning spaces provide opportunities for creative new
businesses to become established.

There is approximately 100,000m2 of above awning space that could be adapted
for retail and services found on the following levels:

Level above ground                m2
1st                          22,268
2nd                          16,021
3rd                          20,308
4th                          18,225
5th                          13,730
6th                          15,585
Total                      106,137


    Vertical retailing
    Vertical retailing includes above awning as well as basement retailing. Vertical retail
    outlets appeal to those shoppers who have a sense of adventure, those who explore
    not just the streets, but interesting buildings too, looking for that special item. Clients
    of vertical retailing appreciate discovering an outlet and then finding exactly the item of
    clothing, jewellery, footwear, music or whatever they are hunting for, knowing it will be
    truly distinctive.

    The concept of vertical retailing isn’t exactly new, but its uptake in Melbourne is
    gathering momentum. The strong growth of vertical retailing in central Melbourne over
    the last few years highlights the resurgence in popularity of the CBD as a retail
    destination and, complementing the city’s famous laneways, vertical retailing in
    Melbourne may perhaps be described as ‘vertical laneways’.

    Curtin House, located in the heart of Melbourne at 252 Swanston Street, has become
    home to a diverse range of above awning businesses. From the well known Cookie Bar
    on the first floor to Toff in Town on the second floor, on up to specialist fashion
    retailers Order and Progress and Someday as well as exclusive book retailer Metropolis
    on the third level, Curtin House’s revelations end with the Rooftop Cinema on level
    seven.

    With an eclectic mix that is renowned among regular customers, Someday offers a
    range of exclusive label skate fashion for 18 to 35 year olds. Stock is constantly
    updated and Someday keeps its regulars informed with online news. Order and
    Progress also fills a niche market with its progressive and contemporary range of the
    latest fashion from Brazilian and other hard-to-get designers. Completing the third
    floor, the large and airy space Metropolis occupies creates an enticing ambience in
    which to display its range of specialist topic books.


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     ‘Aladdin’s cave’ comes to mind when visiting Nicholas House at 37 Swanston Street.
    This building, accessed via the stunning Cathedral Arcade, contains a unique
    combination of boutique retailers, including Kimono House and Buttonmania (located in
    the former ballroom), as well as artists’ studios and office tenants.

    Mag Nation was so taken with the notion of vertical retailing that it has occupied the
    whole building at its Elizabeth Street store. There it has just launched The Third Floor—
    a retail concept for those interested in design, fashion, popular culture and more.

    Some recipients of this year’s Small Business Grants are also above awning retailers.
    Among them are Hear Now, an independent music store specialising in electronica,
    located at 2 Somerset Place in the heart of the bar and club scene, of which it is such a
    major part; and Thread Den, a sewing lounge combined with a retail store specialising
    in local established and emerging designer clothing, located at 16 Errol Street, North
    Melbourne (upstairs via Webb Lane).

    Another treasure, hidden away below Flinders Street at Shop 9 Campbell Arcade, is
    The Cats Meow. Boasting mostly made in Melbourne labels, this is a clothing store with
    a difference, stocking fashions and accessories from independent designers. There are
    one-off originals as well as everyday basics—inviting shoppers to venture underground.

    These are just a small snapshot of the diverse interpretations of vertical retailing that
    can now be found in the heart of Melbourne.




    G’day UK Victorian satellite event
    In June 2009, the Victorian Government and LMFF collaborated in the inaugural G’day
    UK promotion to present leading, innovative Victorian fashion designers to a high
    profile and select London audience.

    The Victorian Government hosted an event to showcase Victoria’s best food, wine,
    fashion and lifestyle. Guests included high-level players in the global fashion retail field,
    as well as food and wine buyers, media, migration agents and global recruitment
    consultancies. The LMFF Board Chair and Festival Director attended as ambassadors
    for Melbourne fashion and retail, to promote future business opportunities between
    Victoria and the UK.
    LMFF curated a quality fashion exhibition of six outfits from selected Victorian
    designers to highlight Melbourne’s fashion design excellence. Designers and labels
    included Toni Maticevski, Gwendolynne—with accessories by milliner Richard Nylon—
    MaterialByProduct, Fool, S!X and Dhini.

Objective: Attract dedicated homeware and hardware stores to the city.

With the expansion of Melbourne’s boundaries to include Docklands and the
highly successful campaign to attract people to take up residence in the city, a
new opportunity for retailers of homewares and hardware has arisen—an
opportunity to add to the traditional retail strengths of fashion and food. From
beds and bedding to storage solutions and decorator items, residents, city
workers and visitors alike can now find what they need in the city. From lounge
suites to lighting there is a store to service the needs of all homemakers of every
budget.



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 There are three Hardware Express stores now located in the city—Spencer
  Street, Bourke Street and Russell Street—reflecting the growth in demand
  from an increasing residential community as well as city workers.
 Homewares stores are among the variety of retail experiences on offer at the
  recently opened Harbour Town at Waterfront City, Docklands.
 Much of the new retail space at South Wharf will form part of a fresh
  homemaker centre with more than 60,000m2 of dedicated space.
 The QV Centre is the location for BigW, Harvey Norman, Domayne and Myer
  Furniture among other homewares retailers.

    Costco
    Membership warehouse club chain Costco has come to Australia, opening its first
    Australian warehouse at Waterfront City, Docklands in August 2009.

    The Melbourne Costco Warehouse Club is approximately 14,000m2, with parking for
    575 vehicles. Like other Costco locations, the Docklands warehouse offers quality
    name-brand and private label merchandise in a vast range of product categories to
    individuals for private use and to businesses for resale.

    Costco is the fourth largest retailer in the United States and eighth largest in the world,
    with 58 million card holders at more than 550 locations throughout the United States,
    Canada, Mexico, England, Scotland, South Korea, Taiwan and Japan. This makes
    Costco’s new warehouse at Docklands one of the most important retail investments
    into Victoria in the past decade in terms of international retail positioning.

    The Victorian Government has worked with Costco for more than 10 years to ensure
    that Victoria secured the first Australian Costco warehouse. The Costco Warehouse
    offers a new retail format to the local marketplace, while having a significantly positive
    impact on visitation, retail expenditure and the profile of Melbourne and, more
    specifically, Docklands. Costco’s initial investment is in excess of $70 million and will
    lead to future warehouse openings and expansion across the country.

    The Costco investment also opens new opportunities for local Victorian manufacturers,
    including the potential to grow Victoria’s exports by supplying international warehouses
    across Costco’s worldwide distribution system.




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INDUSTRY LIAISON

The City of Melbourne and the Victorian Government recognise the
importance of retail to the success of Melbourne in maintaining its
position as a preferred destination. In recognition of this, the Melbourne
Retail Advisory Board (MRAB) was established. As the strategy is now in
its third year, a mid-term review has been conducted to reflect on the
strengths of the strategy and to propose priorities for the future to 2012.

Objective: To provide a dedicated interface between Council, State Government
and the retail industry that will deliver Melbourne’s vision of becoming Australia’s
leading retail city.

Melbourne Retail Advisory Board

The Melbourne Retail Advisory Board (MRAB) met regularly in 2008. In 2008 the
MRAB initiated a study of the position of central city retailing in the broader
Melbourne context. The study was completed in December 2008. The key findings
of the study indicate that:

 interstate tourists are going further than the central city
 floor space continues to increase in the CBD
 CBD retail turnover is growing slowly
 visitors arriving by public transport and on foot are a resource for retail.

Positive findings for the City of Melbourne include:

 new centres and coming refurbishments will increase interest in the city
 there is expected to be a growth in employment and the number of high-
  income residents
 based on Metlink and City of Melbourne’s own pedestrian counting, there will
  be increased CBD visitation.

In 2009, the board commissioned Future Laboratory to report on global trends at
a special seminar at the Town Hall for the retail and hospitality sectors. Future
Laboratory followed this with a mid-term review of the strategy to appraise the
success of the strategy to date and investigate the potential impact of global
retail trends on Melbourne retailing into the future.

              ‘Melbourne’s reputation as a global retail destination will be further
              enhanced with the opening of Australia’s first international class
              department store at Myer Melbourne, in 2010. Just as the Bourke Street
              store has remained at the centre of the city’s retail precinct for almost
              100 years, the brand new Myer Melbourne will set new standards and
              provide the community with an inspirational retail environment.’

              Bernie Brookes, CEO, Myer, July 2009




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City of Melbourne precincts

The City of Melbourne is fortunate to have a range of diverse and distinct
precincts across the municipality; small pockets of the city with their own unique
character, colour and charm. Each precinct has a recognisable identity, and while
some precincts occupy just a lane or two, others offer a window into another
world.

Melbourne’s precincts lie in four main districts:

 district south: Yarra River, Southbank, Northbank, Federation Square and St
  Kilda Road
 district central: CBD area within Spring, Flinders, La Trobe and Queen streets
  (the district focuses on key retail areas in Collins Street, Little Collins Street,
  Flinders Lane, Bourke Street, the laneways and the arcades)
 district west: Docklands area including Spencer Street and surrounds
 district north: Errol and Victoria streets in North Melbourne, Queen Victoria
  Market area, West Melbourne and Kensington.
The City of Melbourne District Precinct Program 200710 engages local trader
associations to commercially develop and enhance retail precincts. The program
focuses on enhancing established areas of commercial, retail and consumer
significance within the municipality via event and marketing-related activities.

The program aims to:
 build relationships by providing the opportunity to meet key people and
  stakeholder groups—these may be developed locally, nationally and
  internationally and could be further leveraged into formal or informal networks
 increase the capacity for visitation by adding to the number of people who
  would normally come into the city, thereby providing potential benefit to
  businesses within the municipality
 increase economic benefit by building business links or developing targeted
  business and commercial networks
 raise the profile and the status or awareness of the city through media
  exposure.

The Collins Street precinct, located between Spring and Queen streets is the style
centre of Melbourne, housing exclusive international designer stores, beautiful
jewellery retailers and exclusive shoe vendors in a range of historic and modern
buildings, jostling with bars, theatres, restaurants and arcades.

There are also three cultural precincts within the City of Melbourne:
 Greek precinct—Lonsdale Street between Russell and Swanston streets
 Italian precinct—Lygon Street, Carlton
 Chinatown—Little Bourke Street, between Spring and Swanston streets.
Business consultation program

For the past three years the City of Melbourne has conducted extensive
consultations with members of the city’s business community including retailers
from all sectors—micro businesses to major retailers, clothing to homewares. The




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results of these consultations have been compiled into a series of reports
available from www.businessmelbourne.com.au

    The Docklands Retail Statement 20072012: one year
    on
    VicUrban, the City of Melbourne and the Victorian Government published the Docklands
    Retail Statement in May 2008 to guide the evolution of retail in Docklands as visitor,
    worker and resident populations grow over the next five years. The statement’s
    strategies aim to take advantage of the waterside location and linkages to the existing
    city to build up retail as the precinct matures as a whole.

    While progress in Docklands against the specific objectives is outlined throughout the
    relevant sections of this report, the following provides an overview of how the
    Docklands retail offer is progressing in general.

    Already the pattern of retail development is following the principles of the Docklands
    Retail Statement. Retail is being encouraged to cluster at identifiable activity nodes
    including Market Street and Waterfront City/HarbourTown.

    The strong commitment to placing retail in accessible and active street frontages
    continues as the main precincts evolve. The extension of two tram routes further into
    Docklands will continue to drive the evolution of active street frontages and the mixing
    of retailing with residential and workplace development.
    In August 2009 there were around 280 occupied retail tenancies in Docklands (210
    shops, 70 shopfront businesses), in comparison to just over 150 in mid 2008. Vacancy
    rates have continued to decline, falling from 22.8 per cent in June 2008 to 14.5 per
    cent in June 2009 (CBRE Retail Monitor).

    Diversity in the retail offer is increasing, with shops serving all the main target
    groups—local workers and residents, destination shoppers from across Melbourne and
    further afield, and visitors wanting to combine dining, recreation and retail.

    In mid 2008, Docklands had an estimated 10,000 workers. By the end of 2009 this
    number will have almost doubled and is anticipated to double again by 2020. The
    Docklands residential population was 6,000 at the start of 2009 and is expected to rise
    to 17,000 by 2020. Visitor numbers have been rising dramatically, currently at around
    10 million, the number of annual visits is expected to rise to 20 million by 2020.




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PART 2—SUMMARY OF FINDINGS OF RETAIL
STRATEGY MID-TERM REVIEW

1       Executive summary

The Melbourne Retail Strategy 2006:2012 helped to define Melbourne’s distinct
and diverse retail character, encouraged new retail investment and
developments, promoted cultural connectedness and elucidated the concept of
authentic Melbourne experiences and local narratives.

In common with other global cities, Melbourne has experienced a period of
increased investment, retail growth and an explosion of retail-led creativity over
the past three years. The city has become more desirable in many respects: as a
residential locale, as a business hub, as a media focal point, as a shopping
destination and, more broadly, as the creator of an exciting frisson of creative
enterprise that spans retail, arts, food, hospitality and design.

However, the global and local retail landscape has changed significantly since the
launch of the Retail Strategy in 2006. Melbourne will need to continually evolve
its retail offer to remain relevant to the modern consumer.

Looking to the future, ‘convergence’ probably best sums up the prevailing
approach to retail for cities such as Los Angeles, Seoul, London, Singapore, Paris,
Cape Town, Berlin and Melbourne. Whether it’s online with offline, real with
virtual, or shopping with working and lifestyle, today’s consumers expect a city
that focuses on culture and ‘liveability’. They demand a retail offering that fits
seamlessly into all spheres of their lives.

The Future Laboratory’s mid-term review sets out the actions that Melbourne
should undertake to capitalise on its enviable position as Australia’s leading retail
city. The report’s major focus points include:

 integrating technology into the city retail offering
 encouraging experiential retail and leveraging its media potential
 redefining and aggressively pursuing innovative retail
 facilitating activity that fuses business with leisure
 creating more pleasurable and user-friendly shopping experiences
 fortifying and promoting distinctive culture and history
 leveraging the relationship between retail and cultural pursuits.

2       Strategy audit

2.1     Introduction

In 2006, the City of Melbourne launched a retail strategy that sought to ensure
Melbourne’s status as Australia’s premier shopping destination. The framework of
the current strategy is a great success, and it is commendable that stakeholders,
from state and local government to boutique retailers, believe in the vision.




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In the past three years, many new initiatives have improved Melbourne’s diverse
retail mix. However, the city’s general retail spirit has lost something of the
excitement of 2005, when the original retail strategy was researched. The factors
that have contributed to this are:

 global economic uncertainty
 redevelopments at Chadstone Shopping Centre and Westfield Doncaster
  attracting many of the retailers that made the CBD special
 a number of new CBD developments that are still to be effectively absorbed
  into the Melbourne retail fabric/landscape
 cheaper rents in emerging inner-suburban retail strips
 absorbing Docklands into the City of Melbourne.
To counteract this, we suggest that Melbourne further promotes its position as a
‘creative’ and ‘ideas’ capital by emphasising the fostering of ideas and creative
enterprise in the city. One idea would be to change from a CBD (Central Business
District) to a CID (Central Ideas District).

The Economist Intelligence Unit predicts that world retail sales in 2009 will drop
by 3.5 per cent, and the forecast for 2010 predicts a sluggish recovery of only 1.2
per cent. Projected real retail spend is forecast to fall by 0.7 per cent during
2010. This underlines the necessity of a retail vision for Melbourne that sets the
city apart in terms of desirability.
The seven key issues we see as essential for the future development of
Melbourne as Australia’s leading retail destination are as follows:

 integrating technology into the city retail offering
 encouraging experiential retail and leveraging its media potential
 redefining and aggressively pursuing innovative retail
 facilitating activity that fuses business with leisure
 creating more pleasurable and user-friendly shopping experiences
 fortifying and promoting distinctive culture and history
 leveraging the relationship between retail and cultural pursuits.

2.2     Strategy assessment

The Melbourne Retail Strategy 2006:2012 began with a vision for Melbourne:

    ‘In 2012 Melbourne city will be renowned globally as Australia’s leading
    retail city with an unrivalled retail landscape acclaimed for its diversity and
    compelling experiences.’

What was agreed in the Retail Strategy?

A Melbourne Retail Advisory Board (MRAB) was established, which set a number
of objectives relating to the following nine headings: retail mix; city ambience and
activation; architecture and design; retail marketing; tourism; access and
amenity; sector and business development; investment attraction; industry
liaison.

The objectives agreed in the strategy are outlined in the Melbourne Retail
Strategy 2006:2012 and two subsequent report cards.



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Have the strategy’s objectives been achieved?

Overall, the retail strategy has been highly influential in defining Melbourne’s
position as a key retail city.

Retail mix

In the 2006 report, small retailers/boutiques were seen as the key players that
provided Melbourne with its distinctive retail character. They still provide the fine
grain to the CBD experience, but it is now evident that department stores,
international labels and high-street brands have been more active and visible in
the CBD over the past three years. This combination has enhanced Melbourne’s
retail diversity.

Food and wine, as predicted in the original report, has played an important part in
cementing Melbourne’s position as a sophisticated tourist destination.

City ambience and activation

The retail strategy has helped to articulate Melbourne’s distinct retail character
and city ambience. The past three years have seen the continued regeneration of
many parts of the city. However, more must be done to preserve and enhance
Melbourne’s diversity and urban environment.
Architecture and design

Melbourne’s human scale is an exceptional asset. All our international experts
rate Melbourne’s architecture, streetscape and heritage highly. Areas set aside for
respite, more space for pedestrians and a more considered approach to signage
need to be considered for the future.

Retail marketing
Events are one of Melbourne’s great strengths. A disconnect remains, however,
between Melbourne’s many festivals and the benefit to CBD businesses and
retailers. More needs to be done to underline to the government, Victorian Major
Events Company and tourism bodies that retail is an integrated part of the
cultural, event and creative life of Melbourne.

Tourism
The Tourism Melbourne volunteer ambassador scheme has grown and visitor
information booths have been expanded in the past three years. Tourism Victoria
has done a great job of selling Melbourne as a sophisticated and cultural city
nationally, but many feel that Tourism Australia focuses on traditional Australian
stereotypes with little value for Melbourne.

Raising Melbourne’s international media profile was touched on in the last report
and should be revisited.

Access and amenity

One of the great challenges facing Melbourne is its public transport system. The
original report argued that an improved public transport system was central to
the success of Melbourne’s retail future.




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Sector and business development

Existing retail precincts and Melbourne’s long-term and mid-size businesses need
continual nurturing and must be supported by the strategy. Selling heritage and
Melbourne’s ‘story’ cannot focus solely on new developments.

The importance of service was identified in the 2006 report but was not taken up
in the formal council strategy documents. This should be reviewed.

Investment attraction

The retail strategy was one of the key factors that influenced companies such as
Costco when they chose Melbourne as their first location in Australia. David Jones
and Myer department stores have quoted the report as part of the inspiration for
their Bourke Street redevelopments. The redevelopment of Bourke Street Mall
together with the retail strategy also encouraged stores such as Sportsgirl,
Forever New, General Pants and Supré to create effective flagship stores.

Collins Street continues to attract major international brands, but more can be
done to develop a collaborative approach by state and local government to attract
retail businesses.

Industry liaison
Business-to-business recommendation is a powerful influence. Successful city
retailers act as ambassadors and industry mentors for the city and existing
fashion and design festivals should be used to support and communicate the
strategy. The City of Melbourne must render more visible the support and
direction that the strategy facilitates.

Is the retail strategy still relevant?
The retail strategy is still very relevant, yet Melbourne needs to adopt more fully
many of its ideas and communicate its aims more successfully.

               ‘The retail strategy was fantastic. It still provides a perfect framework.
               As a city, we just have to do it better.’

               Naomi Milgrom, executive chairman and CEO, Sussan Corporation

Local issues facing Melbourne retail that need to be addressed
The following observations have been made in conjunction with our local expert
panel (see Appendix).

Competing with Sydney as Australia’s retail capital
Sydney’s laneway strategy, event attraction strategy and support of pop-up
venues for emerging talent add to the competition and may detract from the
features that make Melbourne retail so distinctive.
The completion of Westfield Sydney City in 2010 will help Sydney to market itself
as Australia’s ‘retail capital’. However, we see this is an opportunity rather than a
threat. Westfield Sydney City will help define the difference between the two
cities, and if Melbourne focuses on its core values it will sell itself as the authentic
city experience.




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Capital city offer

The Chadstone and Doncaster shopping centres are considered the primary ‘local’
competition for Melbourne retailers. The recent expansion and refurbishment of
both Doncaster and Chadstone seem to have taken some of the energy out of the
CBD, but we believe that no mall experience can compete with the architecture,
events, culture, heritage, streetscape, retail diversity, laneways, food and
hospitality of Melbourne’s CBD.

City rents
Many local retailers interviewed felt that high rents in the CBD create a barrier for
fine-grain, innovative businesses. Actively supporting innovative, experiential
retail by offsetting business overheads (marketing, online support, professional
development, international promotions) needs to be further explored.

Defining location

In the past three years, Melbourne has been dramatically altered by the addition
of Docklands and the new retail at convention centre, Spencer Street, as well as
the maturing of Southbank and the Casino developments on the Yarra.

Docklands is perhaps the most challenging to incorporate into the city’s prevailing
marketing strategy. It can, however, be marketed as an additional retail
destination.

Environmental concerns
Melbourne City Council plans to make Melbourne a zero net carbon emissions city
by 2020. We see environmental issues as an intrinsic part of most of the
proposals we have put forward. Environmental concerns are now a fundamental
given of any planning process.

3       Mid-point review

Here we place the aims and objectives of the Melbourne Retail Strategy
2006:2012 into a global context. We select five trends that are affecting retail
outlook, taking into account the dominant social, technological and design
perceptions that are driving change. We then speak to our international panel of
experts to gather an international perspective—including opinions on the
Melbourne CBD retail offering, and the retail strategy focus. Membership of the
international expert panel can be found in the Appendix.
To focus these insights on Melbourne CBD, we then give a local perspective from
a panel of local industry experts, to help with the analysis of the original retail
strategy. Membership of the local expert panel can be found in the Appendix.

3.1     Global trends

Convergence probably best sums up the prevailing approach to retail. Whether
it’s online with offline, real with virtual, or shopping with working and lifestyle,
today’s consumers expect a retail offering that provides seamless transition
across all spheres of their lives.

Below, we outline five key trends that are impacting on the retail landscape.




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Online retail and technology

A solid and integrated web presence is no longer an added extra, but a consumer
expectation that makes or breaks brands, and can in fact drive purchasers into
bricks-and-mortar stores. Over the next three years, shopping will increasingly
become an anywhere, anytime experience. Brands such as New Look, Porsche
and Ralph Lauren have trialled shop windows integrated with 24/7 credit card
access, allowing consumers to purchase products they spot in the window. This is
a must if stores are to compete with the instant shopping power of online stores
such as Net-a-porter and Yoox.com. The former has launched into mobile
shopping territory with the release of its Net-App for iPhone.

City case studies
Seoul was recently called ‘the world’s most wired metro area’ by Time magazine.
Initiatives include high numbers of wifi spots providing free internet access;
‘media poles’ used to access information from air quality to traffic conditions; an
RFID card payment system usable across all forms of transport; and online
socialisation hubs that connect the city’s young people.

Where technology is used, it must provide solid customer benefits. The Prada
store in Manhattan uses RFID to allow sales assistants to check stock items in
real time, while changing room touchscreens display product images and
information. The iPhone app Yowza!! uses GPS to find the best discounts in
nearby stores—great for the consumer who can search out the best deals and
also great for retailers.

The web also presents a valuable opportunity to disseminate credible information.
Sites such as Melbourne’s ThreeThousand.com.au and the global social and
culture portal SuperFuture.com (due to launch a Melbourne edition) already have
large followings. Travel apps for the iPhone and other android devices
complement the increased uptake of mobile web access.

Trend relevance to Melbourne: Online retail and technology

Melbourne’s vendors and customers agree that online will play an increasingly
significant part in the future retail experience. Most local retailers acknowledge
the communicative power of their websites, but very few are successfully crossing
over into the realm of commerce.
Experiential retail

Today’s most successful stores and shopping processes offer enriching
experiences that go beyond the merely transactional. Today’s retail has begun to
seek the unusual, genuine, local and connected: hence, we see retail spaces
being transformed into entertainment zones, and entertainment spaces
transformed into retail zones.

City case studies

The Merci store in Paris’s Bastille district exemplifies experiential retailing. A
second-hand bookshop houses the streetfront café. A second entrance wends
through the flowershop and nursery into a courtyard seating area which features
the Merci Fiat car, complete with model driver, passengers and purchases in the
signature Merci packaging. Exhibition spaces inside the warehouse-style store
merge into new and vintage clothing retailing areas for children and adults,


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alongside colour-coordinated homewares, furniture and fabrics. A percentage of
the profits from the Merci enterprise goes to charity.
Unique retail offerings can define a city. Examples include Galleria Rossana
Orlandi in Milan and Dover Street Market in London. These stores act as individual
curators, presenting collections in spaces that are inspiring, creative and varied,
and mix art with dining, music, leisure and pleasure. Shopping travellers are
seeking these unique mixes of street culture, art, entertainment, history,
creativity, and originality. A unique destination fashion store is becoming as much
a hip city’s signature ticket as a monument, bridge or art gallery.

Stores seeking to expand their existing offering in a tight market are using
experiential retail techniques; experiential retail is also about unexpected places
and spaces. Surf brand Quiksilver recently collaborated with Standard Hotels to
design a range of swimwear available at the hotels’ poolsides from upmarket
vending machines.

Trend relevance to Melbourne: Experiential retail

Many of Melbourne’s fashion boutiques are exceptionally well-connected to the
creative sector and already leverage their contacts to create ambassadors or
unique marketing opportunities. For example, Swedish fashion house Swensk
established Did Projects—an initiative that involved hosting an exhibition and
book launch in its retail space for the newly formed independent publishing house
OWN Books. We note, however, that Melbourne lacks a distinctive high-end
department store; such stores can deliver the ultimate in experiential retail, for
example, Selfridges in London.
Bleisure

Bleisure refers to the blurring of business with leisure. A growing band of
consumers is seeking places, spaces and experiences that provide seamless
transition between work and fun. Cultured, flexible, fast-moving, intelligent and
design-aware, bleisurites’ always-connected lives see them constantly swapping
and sharing information. These consumers gravitate to goods and services that
offer maximum flexibility and they seek spaces that facilitate the free flow of
thought and creative ideas, whether hotel, workspace, bar or store. With the
recent expansion of the Melbourne Convention and Exhibition Centre, the CBD
shopping district is perfectly placed to capitalise on this market and trend.

City case studies

Singapore, voted Top International Meeting City in the Union of International
Associations 2008 Global Rankings for the second year running, benefits both
from its hub location, and its reputation as a safe, wired city. A government-led
‘strategic cluster approach’ sees companies, industry associations and
government agencies working together to foster and attract business events and
Singapore has been increasingly attracting bleisure travellers.

Retailers are responding to the bleisure thirst for knowledge and learning by
adding richness to their offering. For example, Pecha Kucha events, swift 20-slide
presentations by designers, architects and cultural thinkers, are held in galleries
and stores from Bangkok to Oslo, Melbourne to Manchester. The knock-on
benefits extend beyond purchases made at the time, as bleisurites share and
spread their experiences as they go.


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Trend relevance to Melbourne: Bleisure

Sydney’s Galeries Victoria capture the bleisure generation. A range of tenants
appeals to the city’s Asian demographic (Incu, VA Select, Graniph, Kinokuniya,
Chat Thai), free wifi is provided, and creative use of space keeps a steady flow of
human traffic talking, walking and working. In Melbourne, the new city library in
Flinders Lane and ancillary Journal Café and Canteen, and Curtin House on
Swanston Street both present good bleisure models.

Door-to-store
Door-to-store is a trend that tracks the shopping experience as a whole, from
leaving home to crossing a store threshold. The liveability of a city has a direct
impact on the shopping experience; traffic congestion, crime, pollution and
overcrowding can make certain urban hubs no-go areas for all but the hardiest
shoppers. Consumers are increasingly seeking environments that are LATTE
(local, authentic, targeted, trustworthy and ethical). Pedestrianisation is key;
lanes and byroads provide the best opportunities for cities to create pedestrian
zones.

City case studies
Paris has worked hard in recent years on door-to-store initiatives that provide
innovative transport and pause solutions. The city’s Velib system has been one of
the world’s most successful and high-profile bike schemes. Every summer, the
Paris Plages project sees the city’s Seine thoroughfares transformed into beaches,
complete with swimming pools, concert stages, ice cream vendors, deckchairs,
beach volleyball, wifi hotspots and cafés.
We are also seeing the growth of green city spaces that offer respite amidst the
traffic and chaos. Recent big-news urban ‘pause places’ include West Side
Manhattan’s much-applauded High Line Park, which has seen New Yorkers and
tourists alike take to a converted railway to enjoy its ‘wild’ flower beds,
landscaped gardens and considered seating.

Trend relevance to Melbourne: Door-to-store
Melbourne has not focused on creating pleasurable spaces between retail
experiences. As the laneways become more popular, they no longer provide the
sense of escape and calm that they once offered and the city can become an
abrasive shopping trip. The hugely popular Greenhouse pop-up garden created
recently in Federation Square by Joost Bakker is exactly the kind of initiative
Melbourne needs to consider for its green pause places.
Heritage and culture

Today’s hottest brands seek spaces that add to the dialogue of their label and
look for the authenticity of heritage spaces and streets.
City case studies

Big labels in London are shunning the flashy blandness of Bond Street and
heading for the smaller and more neighbourly Mount Street. Lanvin, Goyard, Marc
Jacobs and Wunderkind are the latest to make the move. Mount Street’s
freeholder aims to keep a mix of the upmarket with the traditional pubs, galleries,




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private members’ clubs and cafés that first inhabited the street, a trend at the
forefront of smart retail planning.
As the world gets faster, louder and more crowded, innovators are looking for
ways to reconnect us with a sense of community, meanwhile fostering
independent retailers. This sense of cultural ‘happening’ underlies most hot cities.
London, New York, Paris and Tokyo are all hubs of creative intellect which provide
the places and spaces for such energy to spill onto the streets and into the wider
public consciousness. Any projects that help to expedite this contribute to a city’s
profile.

Celebrating diversity and difference is the model of the future. Destinations are
now embracing the aspects that make them unique. Such diversity is now
beginning to be viewed as a method for cultural exchange, in a trend that we’re
calling Culture Swapping.

Trend relevance to Melbourne: Heritage and culture

Melbourne’s arcades, laneways, below-street and above-awning retail have
framed the traditional Melbourne shopping experience for decades. An excellent
range of local guide publications celebrates Melbourne’s retail, design studios and
galleries, alongside its rich culture and history. The Melbourne story of diversity
and intricate retail experiences is established and authentic.

3.2      Mid-term review recommendations
The City of Melbourne offers a diverse range of retail options. Its experiential,
innovative and independent retail could set it apart from other cities in the world,
if emphasised in addition to national and global brands.
Technological integration

Melbourne has much progress to make before it can call itself a connected global
retail capital. Technology’s potential for positive impact upon Melbourne’s retail
landscape is so significant that it must be treated as a new 10th Focus Area for
the strategy and prioritised.

    Recommendation: Tech-connect with consumers
    Relevant trend: Online retail and technology
    Timeframe: Short- and mid-term

    The provision of information frequently crystallises intent to visit the CBD and it makes
    sense to provide such information while shoppers are out and about. The City of
    Melbourne should be working with digital partners who can help them target shoppers,
    and supporting a retail and cultural portal such as SuperFutures, plus a mobile network
    city guide.

Retail mix

The CBD currently offers a diverse, stimulating and engaging retail experience.
Our panels provided insights into how still more could be made of this; and also
into areas that remain weak.




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    Recommendation: Extend Small Business Grants program
    Relevant trend: Experiential retail
    Timeframe: Short- and mid-term

    It is difficult for the City of Melbourne to subsidise rents for fine-grain businesses.
    Consequently the Small Business Grants program has an exceptionally important role to
    play as an enabler of diverse retail and should become a key tool.

    Recommendation: Establish a fashion-focused retail laneway
    Relevant trends: Experiential retail, door-to-store
    Timeframe: Long-term

    We recommend the development of a laneway with a distinct fashion focus. Alongside
    a strong and diverse product offering, this laneway could be further defined by late-
    night trading hours and peripheral retail services such as a ‘laneway stylist’ or
    concierge to create a sense of theatre.

City ambiance and activity
Events play a large part in generating tourism in Melbourne. The CBD could
benefit more from this. Our local and international experts emphasised the
importance of Melbourne’s sporting and cultural attractions being located so close
to the CBD.

    Recommendation: Continue to educate retailers on leveraging large events
    Relevant trend: N/A
    Timeframe: Short-term

    Retailers need to be educated on how to leverage the state’s major events more
    successfully. VMEC sells Melbourne to the world as a sophisticated city, and retail
    needs to be a big part of that sell, linking it with culture and hospitality. A council role
    should be established to inform and educate retailers about the benefits of linking to
    Melbourne’s event calendar.

    Recommendation: Incorporate the shopping festival concept into existing
    festivals
    Relevant trend: Experiential retail
    Timeframe: Mid-term

    Our panel responded negatively to the basic concept of a shopping festival; the focus
    should be on creating a cool and cultured city that draws visitors of itself, rather than
    using crude tactics to overtly encourage shopping.

    Recommendation: Expand retail aspect of arts precinct
    Relevant trends: Door-to-store, heritage and culture
    Timeframe: Mid- to long-term

    There is potential for the Southbank and Sturt Street area, which already houses
    Melbourne’s major cultural institutions, to become an arts/retail/tourist precinct.
    Keeping artists and arts organisations in the CBD reinforces its cultural vitality. Sturt
    Street has the potential to become home to mixed-use retail, arts organisations and/or
    pedestrian weekend market space.



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    Recommendation: Revitalise Elizabeth Street
    Relevant trends: Experiential retail, door-to-store, heritage and culture
    Timeframe: Mid- to long-term

    Elizabeth Street is currently one of Melbourne’s biggest disappointments and lacks any
    real retail focus. As it leads to the popular Queen Victoria Market, it would be natural to
    extend the fresh food and wine offer along Elizabeth Street. Edible plantings such as
    olives or oranges, or a vertical kitchen garden at the market, could also add interest.

Architecture and design

This is an area our international experts feel is key to driving the retail strategy
forward, with a unique, liveable and lively CBD being the draw for world-class
retail.

    Recommendation: Develop a cohesive visual strategy for the city
    Relevant trend: History and culture
    Timeframe: Mid-term

    Many of our experts point to the need for a cohesive visual strategy for the signage of
    the city; one that protects its heritage-based visual assets and is flexible enough to
    allow individual areas to develop their own distinct characters.

    Recommendation: Improve Bourke Street Mall
    Relevant trend: Door-to-store
    Timeframe: Mid-term

    Bourke Street Mall is in need of more work. Such an important space should reflect the
    overall retail vitality that shoppers associate with Melbourne. Bourke Street Mall is an
    exceptionally important space for shopping families, yet at present it offers very little
    respite from the melee of city shopping and does not reflect the social aspects of
    shopping. Including respite spaces and seating in laneways and arcades leading off the
    mall should be investigated.

    Recommendation: Increase green space and respite space throughout the
    city
    Relevant trend: Door-to-store
    Timeframe: Short- to mid-term

    Increasing the city’s green spaces is a crucial focus, both for enjoyment and
    environmental purposes. Consider a plan to introduce food production and distribution
    within the city to boost retail and entertainment, while attracting media and tourist
    attention.

    Recommendation: Further promote laneway and above-awning development
    Relevant trends: Experiential retail, door-to-store, heritage and culture
    Timeframe: Short-, mid- and long-term

    The concept of vertical laneways (above-awning retail) has expanded slowly but surely
    in the last three years. This dynamic and original retail offering should be further
    encouraged and promoted. Melbourne’s laneway network should also be further
    improved, enhanced and promoted.



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Retail marketing

The resounding consensus from our expert panel is that first and foremost
Melbourne needs to create a great retail destination. If the CBD is an exciting
place to be, it will attract shoppers (as distinct from simply ‘promoting shopping’).
Appropriate retail marketing can then be built upon this strong platform.

    Recommendation: Rebrand the CBD
    Relevant trend: Heritage and culture
    Timeframe: Mid-term

    The CBD and Docklands boast a healthy residential population and the city provides a
    textured experience touching on commerce, arts and culture. The City of Melbourne
    should consider a new title for the CBD that rebrands it around lifestyle: the City
    Lifestyle District or Central Ideas District.

    Recommendation: Market Collins Street as Australia’s leading retail street
    Relevant trends: Experiential retail, heritage and culture
    Timeframe: Short-term

    Sydney’s Castlereagh Street will shortly lose its major brands to the new Westfield
    Sydney, which will be promoted as a mall. This gives Melbourne a distinct advantage,
    as Collins Street can be seen as ‘Australia’s premier shopping street’. Collins Street
    needs more effort to render it a renowned shopping destination.

    Recommendation: Work with David Jones and Myer to promote the
    refurbishment of the two department stores and their contribution to Bourke
    Street
    Relevant trend: Experiential retail
    Timeframe: Short-term

    The refurbishment of Myer and David Jones has embraced many of the trends
    discussed in experiential retail, and should be promoted to highlight the ‘big brand’
    power of Bourke Street and its two major department stores, as well as Melbourne’s
    position as Australia’s retail capital.

Tourism
The relationship between tourism and retail is exceptionally important. In many
visitors’ minds, Melbourne is firmly entrenched as a shopping destination but
more needs to be done to weave a retail dimension into the broader tourist
experience.

    Recommendation: Embrace technology
    Relevant trends: Online retail and technology, bleisure
    Timeframe: Short- and mid-term

    Technology is a prime way to drive visitors to Melbourne into the CBD to shop, by
    providing multi-layered information. Tourism today is increasingly connected with
    technology, modern travellers are coming to expect connectivity, and a myriad ideas
    within this space should be explored.




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Access and amenity

As with architecture and design, our international experts feel this is a key
objective in driving the retail strategy forward.

    Recommendation: Develop a retail-friendly mobility strategy
    Relevant trend: Door-to-store
    Timeframe: Mid-term

    The City of Melbourne needs to review its mobility strategy with the aim of attracting
    more shoppers and residents. Public transport and pedestrianisation are the two key
    issues.

    Recommendation: Embrace alternative or innovative transport
    Relevant trend: N/A
    Timeframe: Short- to mid-term

    A great selection of city transport options could lure consumers seeking new
    experiences. Solutions and technologies appropriate for central areas such as the CBD
    could be identified by a design and mobility consultant.

    Recommendation: Improve amenities along Swanston Street
    Relevant trend: Door-to-store
    Timeframe: Mid-term

    While Swanston Street is fairly downmarket, it is nonetheless the busiest street in the
    CBD and Melbourne’s ‘civic spine’. Much could be done to improve Swanston Street and
    the small parks and open areas near it, and the City of Melbourne is now developing a
    strategy for this, in consultation with retailers.

    Recommendation: Addressing CBD violence
    Relevant trend: N/A

    Melbourne is considered a very safe city, so overtly addressing violence could in fact
    have the opposite effect to that desired: actually causing the CBD to become
    associated with violence. It should also be noted that an element of grittiness actually
    contributes to the desirability of the world’s top cities.

Sector and business development

    Recommendation: Support mid-size and long-term businesses
    Relevant trend: Heritage and culture
    Timeframe: Short-term

    The city’s retail business support structures and marketing focus often overlook long-
    term or mid-size businesses. Many culturally and commercially valuable businesses fall
    into the gap (or canyon) between ‘start-ups’ and large businesses. These middle-
    market businesses must be supported by local government.




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Investment attraction

    Recommendation: Focus on experiential retailers
    Relevant trend: Experiential retail
    Timeframe: Mid- to long-term

    A new mid- to large-scale retail operator would deliver a valuable economic dividend
    and implicitly encourage current retailers to improve their performance. A cutting-edge
    department store is currently missing. While Harvey Nichols (courted for Westfield by
    Sydney City Council) and Lane Crawford have both been tabled, we also feel that
    Milan’s La Rinascente department store could fit well, especially given Melbourne’s
    large Italian community.

    When seeking to attract international fashion brands, the focus needs to be on those
    that embody the trends of heritage and culture and experiential retail, rather than
    homogenous brands that add nothing dynamic to the city’s retail mix.

    Recommendation: Work with a local merchant to create a destination store
    unique to Melbourne
    Relevant trend: Experiential retail
    Timeframe: Mid-term

    Supporting one of Melbourne’s existing retailers in developing a destination store to
    rival the likes of Colette or Dover Street Market would put Melbourne on the retail map,
    garnering press, blog and market attention, and attracting local and international
    visitors.

Industry liaison

Our international and local experts emphasise that a strong educational
foundation in all spheres (arts, culture, fashion, retail, graphics, jewellery,
millinery, events) plays an important role in Melbourne’s plans to become
Australia’s retail capital. Melbourne hosts almost 150,000 foreign students. The
culture, vibrancy, energy and ideas that this unique market holds should be
celebrated and tapped.

    Recommendation: Forge supportive relationships with educational
    institutions
    Relevant trend: Heritage and culture
    Timeframe: Short- to mid-term

    Educational institutions such as the Centre for Adult Education, Kangan Batman TAFE
    and William Angliss Institute of TAFE are the creative lifeblood of the retail sector. The
    City of Melbourne should investigate ways to strengthen relationships with these retail-
    related faculties.

    Recommendation: Focus on business education
    Trend: Heritage and culture, bleisure
    Timeframe: Mid-term

    Melbourne can learn from Tokyo, which has an enviable retail mix that offers high-end
    brands alongside emerging talent. Tokyo’s wealth of independent and emerging
    fashion retailers is supported by an affluent consumer base with a thirst for the unique


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    and the new; and graduating fashion students in Tokyo are taught sound business
    skills.

4       Strategic thinking and insight
In this final section, we offer insights and conclusions based on the findings of our
review.

Future focus
The City of Melbourne cannot be all things to all people, so it is necessary to focus
and hone its retail offering. We propose a strategic plan whereby each of
Melbourne CBD’s three retail experiences are highlighted for the next three years.
We would identify the key Melbourne CBD experiences as follows.

Bourke Street/big-brand retail

Everything is in place to promote 2010 as the ‘relaunch’ of department store
shopping in Melbourne—with Bourke Street Mall as its centre.

The laneways

A serious laneways promotion in 2011 will counteract the big promotional push of
Westfield Sydney City in that year.

Collins Street/luxury

Collins Street, already the preferred location for major international brands, can
be further developed as Australia’s premier shopping street. In the next three
years there is an opportunity for the Victorian Government to encourage a new
retail luxury concept, perhaps driven by a major local merchant.

Supporting innovative and experiential retailers

A portal linking innovative retailers would create a united front and provide a vital
ideas exchange.

We feel that incentives are needed to encourage independent retailers back into
the CBD and to encourage greater experimentation across the board.

Short leases for graduating designers and emerging retailers would help them
build profile and gain retail experience, without the major commitment of a
permanent store.

Educational institutions should be supported and incorporated into retail
environment and culture. Is there an opportunity for RMIT to become a leader in
encouraging links between design, visual merchandising, interiors and retail
business?
We feel it is more important than ever for the council to foster stronger links with
Melbourne’s vibrant independent retail scene.

It is also vital that Melbourne City Council places the concerns of communities
and neighbourhoods at the heart of all decisions relating to retail or commercial
activities. Cities such as London, New York and Paris are increasingly requiring
developers and brands to work directly with communities, to improve social fabric
and ‘liveability’.




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Protecting Melbourne’s heritage

Our international and local experts note that big-brand retail is in decline. In
response, many brands are creating stores that reflect the values and needs of
the communities that house them. We strongly recommend that the council
reconsiders its stated desire to lure more international brands and ‘big-box’
retailers, and looks instead at developing a ‘partnering policy’ that encourages
such retailers to work with neighbour brands. Alternatively, such retailers should
develop a presence that promotes a local aesthetic, rather than one that speaks
in a blander international voice.

We understand there is a space issue associated with attracting large-scale
retailers such as Apple, but creative solutions in keeping with Melbourne’s historic
identity must be explored. Cities such as Paris, Seattle, New York, Milan, Antwerp
and Brussels are encouraging big brands such as Apple, McDonald’s, Gucci and
Prada to develop ‘neighbourhood celebration stores’ rather than flagships. Many
planning teams and retail property developers within these cities now work
closely with brands and local communities, to identify potential problems and also
potential markets that can serve local needs as well as the bigger catchment
area.

More could be made of communicating and promoting the story of Melbourne,
especially its laneways, whether via plaques, history trail signs or information
points at key locations.

Tourism retail promotion

The pop-up retail concept in locations such as the airport or Federation Square
would draw tourists into the CBD. A pop-up kiosk at Melbourne Airport would
provide the perfect place to exhibit and sell a curated collection of CBD-generated
items or even offer discount cards to newly arrived travellers.

Tourists are increasingly turning for information to sites such as TripAdvisor,
Dopplr, Tupalo and Travelistic, to downloadable apps and to Twitter. The council,
in association with its retailers, should consider the creation of a
blog/Twitter/social media tsar or voluntary group of city enthusiasts.

Liveability

Melbourne’s high quality of living is undeniable, but so too is the drain towards
the suburban malls, seen as easier places to shop, particularly for families.

We propose a major pedestrianisation initiative; there is potential for select
laneways to be pedestrianised, or to establish a ‘pedestrian corridor’ from north
to south and east to west.

The CBD has benefited from repopulation strategies but it lacks the ‘pause places’
that give shoppers a much-needed break. Alongside a general greening of the
streets, communal pedestrian areas such as the QV mall and Bourke Street Mall
should be an immediate focus.

Bikes and business-sponsored electric and smart cars should be used to break up
the speed, pace and visual cadence of the environment.

Urban gardens in various forms should also be installed and maintained by the
council, in association with local community groups.



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Initiatives should use greening techniques that are productive, edible,
regenerative, sustainable and, most importantly, educational. Council finance
could be supplemented by retailer sponsorship.

Repopulation strategy

Many of our experts cited the need for a resident population to breathe life into
the CBD. Strategies could include a minimum residential quota for every new
build and redevelopment, or cleaning and greening the city centre and introducing
innovative transport solutions to make it more attractive to families and older
people.

A liveable city is also a shoppable city. With this in mind, smaller shops rather
than larger outlets are needed. So too are amenities, and a planning policy that
actively encourages mixed-use developments and small- to medium-size business
start-ups.

Visual cohesion

Melbourne lacks a cohesive approach to the visual noise of the CBD. If the aim is
for Tokyo-style chaos, then make this a specific focus. If it’s for a more European
character, retailer guidelines need to be agreed and enforced. This doesn’t need
to be a city-wide policy; pockets of each style can exist alongside each other.

A liveability agenda

Community should be moved to centre stage. While the 1990s was about cities’
financial prowess (London, Hong Kong, Singapore, Frankfurt) and the 2000s
about cultural credentials (Dubai), the next decade will be about creating,
developing and promoting lifestyle cities. The emphasis is shifting towards vibrant
city communities, neighbourhoods and inhabited precincts.

Living city initiatives are being undertaken by a range of cities across the globe,
from Seoul to Singapore. Melbourne needs to embrace this shift, and to use its
current status on liveable cities indexes to market itself more effectively and
strategically, building on the credentials it already enjoys. Melbourne also
urgently needs to develop more coherent liveable index policies that can quickly
be integrated into the next stages of the retail strategy plan.

Retail, then, should not be viewed solely as a corporate and commercial initiative,
but as a civic issue that benefits all. Retail can also contribute to the visibility and
growth of Melbourne, not as the ninth most liveable city, but as the world’s first.
We believe Melbourne can achieve this enviable position by 2012.

                                        The Future Laboratory, September 2009




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APPENDIX

The international expert panel comprises

      Simon Anholt, policy advisor and researcher specialising in national identity
      and the brand images of nations, cities and regions
      Wayne Berkowitz, native Melburnian, founder of the shopping, city and
      culture portal SuperFuture.com

      Greg Clark, chairman of the OECD LEED Forum on Development Agencies and
      Investment Strategies, lead advisor on city and regional development for the UK
      Government

      Chris Cornell, business analyst at Urban Outfitters
      Alejandro Gutierrez, architect, urban planner and associate director of
      integrated urbanism at Arup

      Sucharita Mulpuru, principal analyst of e-business and retail at Forrester
      Research

      Dr Satoshi Onuma, president, Bunka Fashion College, Tokyo

      Dennis Paphitis, founder and director of Aesop

      Mary Portas, retail and brand communication expert

      Dermott Reilly, independent emerging technology expert specialising in
      converging technologies

The local expert panel comprises

      Chez Asch, retail development coordinator, City of Melbourne

      Christine Barro, owner, Christine
      Sener Besim, general manager, Scanlan & Theodore

      Paul Bonnici, director, PB Group

      Bernie Brookes, CEO, Myer
      Helen Day, planning department, City of Melbourne

      Martin Ginnane, manager, manufacturing and services industries, Industry and
      Trade Division, DIIRD (the Victorian Government’s lead agency for economic and
      regional development)

      Emma Goodsir, owner, e.g.etal

      Robyn Healy, program director, fashion, RMIT
      Rob Maniscalco, designer and owner, Claude Maus

      Brendan McClements, CEO, Victorian Major Events Company

      Naomi Milgrom, executive chairman and CEO, Sussan Group
      Robert Moore, planning department, City of Melbourne



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      Roger Nelson, director, NH Architecture

      Peter Panagakis, retail development manager, Grocon
      Joe Pascoe, director, Craft Victoria

      Ari Petrovs, development manager, Carlton Brewery, Grocon

      Mary Poulakis, co-owner, Harrolds; president, Collins Street Precinct
      Don Richter, director of marketing, Tourism Victoria

      Cr Susan Riley, Deputy Lord Mayor of Melbourne

      Fiona Scanlan, designer and owner, BIG by Fiona
      Jane Sharwood, manager, business and international, City of Melbourne

      Frank Valvo, owner, Fur Hairdressing

      Bianca Wiegard, co-owner, FAT

      Brian and Vincent Wu, co-owners, Incu




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