MELBOURNE RETAIL STRATEGY City of Melbourne

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					MELBOURNE RETAIL STRATEGY
2006:2012
YEAR SIX REPORT CARD 2011:2012
A joint initiative of the City of Melbourne, the State Government
of Victoria and the Melbourne Retail Advisory Board
This year marks the end point of a retail strategy that has proved effective for many business
owners in Melbourne.
The strategy was designed to ensure the city’s retail businesses would thrive. Six years on it has
identified Melbourne’s distinctive retail character and encouraged new investment.
Major international brands have opened stores in Melbourne, and our popular laneways continue
to attract residents and visitors.
Vertical and basement retail businesses have grown in number, and retail space in Melbourne
continues to be highly sought.
Since 2006, Melbourne’s retail landscape has changed substantially. We’ve seen an 18 per cent
increase in retail and industry establishments, with much of the growth occurring in Kensington
and Southbank.
Meanwhile the City of Melbourne’s $25.6 million redevelopment of Swanston Street will attract
more shoppers than ever before to retail businesses along the city’s spine.
In reviewing the strategy we found that more than 80 per cent of those we surveyed believed
Melbourne succeeded well in selling itself. The City of Melbourne has actively promoted retail
through Melbourne Spring Fashion Week and the popular Look.Stop.Shop. program. Building on
underlying strengths, we are prepared for the challenges faced by the retail sector.
As the strategy has shown, opportunities exist for retailers to differentiate their products and offer
customers a unique experience.
Council will continue to promote Melbourne as Australia’s unrivalled retail destination.


Robert Doyle
Lord Mayor
Melbourne’s retail landscape continues to grow, while at the same time maintaining its diverse
retail offering and compelling shopping experience.
The Victorian Government is proud to have partnered with the City of Melbourne and the
Melbourne Retail Advisory Board on the development and delivery of the Melbourne Retail
Strategy 2006:2012. The six year strategy has been instrumental in differentiating Melbourne from
other capital cities both in Australia and globally through identifying Melbourne as a cultural capital
offering authentic experiences.
Melbourne is the only capital city in Australia to have analysed its retail offering across all sectors,
small, medium and large and made a commitment to a long term strategy that is reported on
annually.
The Melbourne Retail Strategy 2006:2012 has driven growth in the sector through encouraging
new retail investment and development of Melbourne’s assets – its distinct laneways. In line with
the recommendations of the strategy, Melbourne’s retail sector has continually innovated and
responded to competitors, building on a series of Tourism Victoria campaigns which have exposed
the concept of authentic Melbourne experiences and local narratives and underscored
Melbourne’s reputation as the event capital of Australia.


Louise Asher MP
Minister for Innovation, Services and Small Business
Minister for Tourism and Major Events
CONTENTS

 5    THE MELBOURNE RETAIL STRATEGY 2006:2012

 6    INTRODUCTION AND EXECUTIVE SUMMARY

 13   MELBOURNE RETAIL ADVISORY BOARD: YEAR SIX REPORT CARD

 18   CHAPTER 1: INVESTMENT AND INFRASTRUCTURE

 31   CHAPTER 2: MAJOR RETAIL TRENDS AND CHALLENGES

 36   CHAPTER 3: MARKETING AND CITY ACTIVATION

 49   CHAPTER 4: FACTS AND STATISTICS

 59   MELBOURNE RETAIL STRATEGY 2006:2012 OBJECTIVES
THE MELBOURNE RETAIL STRATEGY 2006:2012

The Vision:In 2012, the City of Melbourne will be renowned globally as Australia’s leading retail
city with an unrivalled retail landscape acclaimed for its diversity and compelling experiences.


At the completion of the strategy in 2012:Stakeholders strongly agree Melbourne is now the
premier retail city in Australia.
Almost 90 per cent of stakeholders believe the Melbourne Retail Strategy 2006:2012 has
effectively contributed to the retail health of the city since 2006.
Introduction
Melbourne is an engaging, vibrant and inspirational city that offers an infinite number of
experiences with the retail experience at its core.
In 2006, the City of Melbourne and the Victorian Government launched the Melbourne Retail
Strategy 2006:2012. Its objective was to ensure Melbourne’s retail offer continued to thrive and
that the city continued to expand upon its existing strengths while fostering new ones.
The aim of the strategy was to present Melbourne as the premier shopping destination by 2012.
It highlighted the importance of developing Melbourne’s unique assets, its distinct laneways, its
vibrant street life as well as the need for the city’s retail sector to continually innovate and respond
to competitors.
Additionally, the strategy was formulated as a result of extensive research of major retail centres
across the globe including Paris, London and New York.
The strategy focussed on increasing visitation and spending in Melbourne’s retail core –
reinforcing the unique and innovative aspects of the retail offer; forging stronger relationships
between retailers; between retail and events; between retail and other activities; and, improving
access and perceptions of access.
It acknowledged that the retail experience is undertaken within the broader context of a city and
that a number of elements beyond just retail exist to boost the city’s offer in a shopper’s mind.
These include ambience, arts and culture, events, public spaces, access, amenity and urban
design.
A commitment to report annually on the strategy has been fulfilled. The reports provide the
opportunity to highlight the initiatives that have contributed to the city retail scene over the year.
Past reports can be found online at www.enterprisemelbourne.com.au.
This is the sixth and final annual report, summarising the initiatives not only for the 2011–2012 year,
which marks the end-point of the retail strategy, but also across the six years. It includes the strategy
review which incorporates stakeholder research.
Executive Summary
Since 2006, the City of Melbourne and the Victorian Government have collectively contributed over
$1million towards the Melbourne Retail Strategy 2006:2012 including program funding, initiatives,
operational support to the Melbourne Retail Advisory Board and the employment of a dedicated
retail strategist.
The foundation of the Melbourne Retail Strategy 2006:2012 is built on nine objectives.



OBJECTIVES OF THE MELBOURNE RETAIL STRATEGY 2006:2012
Retail Mix
City Ambience and Activation
Architecture and Design
Retail Marketing
Tourism
Access and Amenity
Sector and Business Development
Investment and Attraction
Industry Liaison


The success of the strategy was demonstrated in a recent survey of stakeholders which asked
respondents to rate the MelbourneRetail Strategy 2006:2012 with reference to the objectives.
(Refer to Facts and Statistics chapter for a summary of the review).


Achievements
Since 2006, Melbourne has seen an unprecedented growth, in both population (with an increase of
20,000 people) and an enhanced retail and entertainment industry in the city.
Melbourne’s retail landscape has changed significantly since the introduction of the Melbourne
Retail Strategy 2006:2012 with an 18 per cent increase in retail and industry establishments since
2006 from 4,696 to 5,534 in 2010.
Key growth areas include Kensington (from 27 to 96 establishments); Docklands (from 211 to 471
establishments) and Southbank (from 239 to 388 establishments).
Six years on, the strategy has helped to define Melbourne’s distinct and diverse retail character,
encouraged new retail investment and developments, promoted cultural connectedness and
exposed the concept of authentic Melbourne experiences and local narratives.
A further 268 cafes and restaurants have opened in the city since 2006 – an increase of 25 per
cent. Increases also occurred in children’s clothing retailing (10 new stores); supermarket and
grocery (49 new stores); footwear retailing (40 new stores); personal accessory retailing (20 new
stores); clothing retailing (108 new); women’s clothing retailing stores (93 new stores); men’s
clothing retailing (34 new stores); and furniture retailing stores (14 new stores).


Retail mix
The city celebrated its retail diversity embracing the redeveloped anchor department stores, the
introduction of more global brands and welcomed new and independent stores the city has
become renowned for.
In the review of the strategy, stakeholders strongly agreed that retail mix was the most notable objective
achieved.
In keeping with Melbourne’s reputation as the fashion capital, 108 new clothing retailers were
added with a mix of local independent stores as well as international brands such as Paul Smith,
Prada, Converse, Gap, and Zara.


City ambience and activation
City ambience and activation has been further enhanced over the past six years with a greater
integration between major events, hospitality, the arts and retail.
Stakeholders strongly agree that the Melbourne Retail Strategy 2006:2012 has successfully
encouraged the integration of retail within arts and events, enhancing the overall retail experience
for shoppers.
An example was the Windows by Design campaign as part of the L’Oréal Melbourne Fashion
Festival. Local retailers were invited to partner with designers to develop enticing windows and
interactive displays throughout the fashion festival.
Look.Stop.Shop. and the Great Melbourne Treasure Hunt also utilised the existing support of
larger events, such as the State of Design Festival and Melbourne Spring Fashion Week, to
educate, inspire and entertain city visitors.


Retail marketing
Marketing campaigns focused on promoting the distinct personality of Melbourne’s retail offer to
drive consumer visitation to the city.
The city continues to be positioned as a vibrant and exciting city all year round, with seasonal
campaigns highlighting the city’s strengths at different times throughout the year, including
summer, winter and Christmas.
Sweeney Research reported that during the 2011 winter campaign, 95 per cent of the target
audience said they came to the city for leisure shopping in winter.
The 2011 Docklands’ fireworks campaign drove an estimated 3,000 people per show to Waterfront
City benefiting local businesses particularly retail and hospitality establishments.


Tourism
The offer for visitors to the city has been enhanced by providing an experience that encourages
maximum retail spend.
The tourism sector leverages on Melbourne’s reputation as an iconic shopping destination and the
retail offer is a major element in Tourism Victoria’s Jigsaw marketing campaign. Melbourne city
welcomed over 30,000 international visitors per day in 2011, with shopping being the primary
purpose of visiting for many of these visitors.


Sector and business development
Networking opportunities have been facilitated through workshops and business series events
including as part of Melbourne Spring Fashion Week and other premier events.
Opportunities for increased spend from the conventions business events market to the city’s retail
sector have been further boosted by Melbourne’s reputation as one of the world’s best cities to
host conventions.
This has been further demonstrated by the increase in retail spend by convention delegates
visiting Melbourne.
It is estimated international delegates spend on average almost $800 per day during their stay in
Melbourne and national delegates over $700, as reported in the Melbourne Convention and
Visitors Bureau (MCVB) Convention Delegates Study 2010.


Industry liaison
Further industry liaison was provided by a dedicated interface between City of Melbourne,
Victorian Government and the retail industry through the development of the Melbourne Retail
Advisory Board (MRAB).
The MRAB provides a platform for two-way communication and consultation between the Council
and key retail stakeholders for the ongoing betterment and development of the retail sector within
the city.
The review of the strategy suggests that further industry engagement should be undertaken to
ensure Melbourne retains its position as a retail capital.


Architecture and design
Opportunities are being continually explored to identify innovative ways to utilise the city.
This includes maintaining, expanding and enriching the laneways network and experience within
the city as well as identifying new retail locations.
The addition of new laneways including Russell Place, Goldsbrough Lane and the network of
lanes through QV Melbourne and Melbourne Central have further enriched the laneways’
experience for shoppers and visitors.
The laneways, one of Melbourne’s most prized assets, continues to provide residents and visitors
with a dynamic and cultural retail experience. Since 2006, there have been 26 new establishments
taking up occupancy in laneways – including 12 new cafes and restaurants and 12 fashion
retailers.


Investment attraction
Investment attraction is being identified in the development of second and third level retail space
throughout the city as potential shop spaces for innovative Melbourne retailers.
Vertical retail, establishments above awning and without street frontage, has grown significantly
since 2006, with 197 new establishments up 15 per cent from 1,311 in 2006 to 1,508 in 2010.
From these numbers, the city welcomed 52 new cafes and restaurants, 27 pubs, taverns and bars,
100 new fashion stores (across women’s, men’s and children’s retailing) and 13 new furniture
stores to above awning locations.
Many of the city’s heritage buildings, including Carlow House, Nicholas Building, Curtain House
and the Manchester Unity building are home to vertical retailers including fashion and lifestyle
brands.
Basement establishments, below awning, have grown 39 per cent with 135 new establishments
underground or in basements, mainly driven by fashion establishments with 105 new stores taking
occupancy in these spaces.
Flinders Street Station’s renowned Campbell Arcade is home to many below awning retailers
including The Cats Meow and Corky St Clair.Access and amenity
The strategy has assisted in making significant headway in providing access to the city and adding
further amenities. Work will continue in these areas with added incentives to access the city via
public transport and increasing amenities to enhance the shopping experience.


A snapshot of Melbourne’s retail landscape

Statistics                                                           2012                   2006
                                                                            #                      #
Estimated resident population                                    103,631                 80,988
                                                                            #                      #
Employment                                                428,709 (2010)                362,693
                                                                            *                      *
International tertiary (university) students                34,168 (2010)                 26,737
                                                                            #                      #
Residential dwellings                                       53,412 (2010)                42,130
                                                                            ^                      ^
Retail and entertainment industry employment                52,461 (2010)                44,908
                                                                            µ                      µ
Unemployment rate                                            4.1 % (2010)                  4.8%
                                                                            ^                      ^
Retail and entertainment industry establishments             5,534 (2010)                  4,696
                                                                            ^                      ^
Retail and entertainment industry establishments floor   1,538,177 (2010)              1,407,753
space (by sqm)
                                                                            #                      #
Weekday daytime population per day (average)              805,000 (2011)                793,000
                                                                            #                      #
Night time (6pm–6am) population per day (average)         363,000 (2010)                364,000
                                                                            #                      #
International Visitors per day (to Melbourne                      33,000                 30,000
municipality)
                                                                            8                      8
CBD retail core vacancy rate (by shops)                               5%                  5–6%
                                                                            Ù                      Ù
Prime CBD rental core rent                               $2,300 to $3,800       $1,500 to $3,900
Top three inner city growth areas by:
                                                                            ^                      ^
                                                              Kensington             Kensington
• Retail and industry establishments                                  • 96                   • 27
• Retail and industry floor space                                 • 33,826               • 10,703
                                                                            ‡                      ‡
                                                               Docklands              Docklands
• Retail and industry establishments                                 • 468                  • 212
• Retail and industry floor space                                • 164,080               • 70,962
                                                                            ^                      ^
                                                               Southbank              Southbank
• Retail and industry establishments                                 • 388                  • 239
• Retail and industry floor space                                • 150,860              • 103,242



Sources:
8Melbourne Retail Monitor August 2012, Savills Research.
^City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2010.
ÙCB Richard Ellis, MarketView, Melbourne Retail 2011.
# City of Melbourne, City Research branch, City of Melbourne Daily Population Estimates and Forecasts 2004–2030,
2011 Update.
µ       ABS National Regional Profile: Melbourne (C).
‡       City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2012, id Insight, Small
Area Population Forecast for Melbourne LGA, 2006 to 2031 and Places Victoria.
        Residents – id Insight, Small Area Population Forecast for Melbourne LGA, 2006 to 2031.
*       International Tertiary (university) Students – DEEWR (Department of Education, Employment and Workplace
Relations), selected Higher Education Student Data via DIISRTE (Department of Industry, Innovation, Science,
Research and Tertiary Education).
Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2012, id Insight, Small
Area Population Forecast for Melbourne LGA, 2006 to 2031 and Places Victoria.


MELBOURNE RETAIL ADVISORY BOARD
The Melbourne Retail Strategy 2006:2012 has been administered under the auspice
of the Melbourne Retail Advisory Board (MRAB).
The MRAB was established to provide a platform for two-way communication and
consultation between the City of Melbourne and key retail stakeholders and the
Victorian Government for the ongoing betterment and development of the retail
sector within the city.
Responsibilities of MRAB were to assist Council in its goal of delivering a world class
retail experience within the City of Melbourne; advise Council on the achievement of
commitments outlined within the Melbourne Retail Strategy 2006:2012; and to
ensure that its activities and recommendations are in the collective best interest of
retail development in the municipality of Melbourne, transparently free of conflicts of
interest.
Upon the completion of the first board’s three-year term in June 2009, Council
appointed a new board comprising members from prominent city retailers, small and
medium sized retail enterprises, property development and industry bodies with
expertise and experience in advising on retail development.
Council extended the term of industry advisory boards including MRAB to June 2013
to provide continuity in consultation with Melbourne’s industry sector following
municipal elections in October 2012.


Members of the Melbourne Retail Advisory Board 2009–2013:
Australian Retailers Association; Compoundia Pty Ltd (representing Docklands
retail); City of Melbourne; David Jones; Department of Business and Innovation;
e.g.etal; Federation Square; The GPT Group (Melbourne Central); Harrolds; Hill of
Content Bookshop; Jones Lang LaSalle; Public Transport Victoria (formerly Metlink);
Myer; NH Architecture; Colonial First State Global Asset Management (QV); Renouf
and Associates; Sussan Corporation; The Block Arcade.
Beyond 2012 – The future of retail
Renowned for diversity within the retail offer, Melbourne is home to a plethora of retail businesses
across many categories including anchor department stores, multinationals, international and local
independent brands catering to a wide consumer demographic.
To ensure Melbourne retains its premier ranking as a global retail destination, the challenge is to
ensure the city continues to move forward: evolve, seek and embrace innovation.
The current challenges to the retail sector, while mainly global in nature, need to be met on a local
scale specific to Melbourne’s unique culture and identity. While there has been unprecedented
change across the retail sector in recent times, these challenges provide considerable room for
opportunity.
Opportunities for retailers lie in the ability to differentiate to offer an experience to customers and
provide exceptional customer service.
As online shopping moves rapidly from a welcome lifestyle accessory to an essential element of
life for consumers, in both mature and emerging economies, retailers that succeed in this
technologically connected climate are the ones that develop innovative retail offers that embrace
these changes and enhance the consumer experience. The fundamentals of retail will always
remain the same: where there is demand there will always be supply.
The luxury retail sector continues to outperform, demonstrating the importance of maintaining a
strong product selection and delivering experiential customer service. Consumers will be attracted
to stores that continue to offer a point of difference.
City of Melbourne retail stakeholders are united that retail success is not just about retail. Nearly
all respondents surveyed as part of the review of the Melbourne Retail Strategy 2006:20012
consider restaurants, cafes and bars as significant contributors to retail success. They also state
the valued contribution of local art, cultural and sporting events to the overall retail offer.
The integration of these elements within the retail offer will ensure a pleasurable shopping
experience for consumers, and programs including Look.Stop.Shop. which integrate art, design
and retail will continue to entice shoppers to the city.
Rent, economic conditions and public access to the city are also considered challenges for the
city’s retail sector.
While Hong Kong now ranks as the most expensive retail destination, according to CBRE Group’s
report on global retail rents (July 2012), Melbourne is placed comparatively well with prime retail
rents remaining steady since the Melbourne Retail Strategy 2006:2012 was implemented.
Melbourne ranked seventh in CBRE’s report, dropping from its higher rating of sixth in 2011 and is
now below other retail icons including New York City, Sydney, Tokyo, London and Zurich in terms
of global retail rents.
MELBOURNE RETAIL ADVISORY BOARD
YEAR SIX REPORT CARD

Message from the chair, Susan Renouf
In the last 12 months of the six-year strategy, the Melbourne Retail Advisory Board has seen the
culmination and realisation of much of the vision, whilst making us aware that such a vision is, in
its nature, dynamic and ongoing.
There is always more to aspire to in a world being driven by technology and digital practices at an
ever-accelerated rate.


‘The Melbourne Retail Strategy 2006:2012 has been influential in providing acceptance and
awareness within the city. It plays an integral part in the appeal of the city to residents, visitors and
tourists. It’s also a more focused way for retailers to achieve goals.’
Susan Renouf, Chair, Melbourne Retail Advisory Board


In implementing the second half of the strategy, we have been aware of the impact of financial,
environmental and cultural uncertainties. Yet we have arguably sustained our vision that in 2012,
Melbourne city would be renowned globally as Australia’s leading retail city, with an unrivalled
retail landscape acclaimed for its diversity and compelling experiences.
We have recognised the emergence of influential retail trends, and started new and exciting
conversations to embrace the new city-dwelling demographics, and digital age and social media
driving the boom in online retailing.
We believe that hybrid retail strategies will enhance our retail futures, and we encourage
Melbourne retailers to incorporate this in their thinking.
We are researching options to assist small to medium enterprises to join in this new world by
having a digital presence, whether through social networking, websites or mobile platform apps.
Encouraging experiential, innovative retail and leveraging its media potential has been a highlight
for MRAB, specifically this past year. Melbournalia was a series of ‘pop-up’ stores embraced by
consumers.
The summer campaign, ‘462 reasons to visit the city and counting’, included a retail focused
initiative linked to the Australian Open.
Similarly, the L’Oréal Melbourne Fashion Festival in March worked with the city to present
Melbourne’s innovative fashion via Windows By Design, a curation that transformed the city’s retail
windows into an ephemeral gallery.
TheLook.Stop.Shop. initiative has continued as a powerful strategy to engage consumers with
large and small retailers, through major events including Melbourne Spring Fashion Week and
Melbourne Music Week.
Look.Stop.Shop. – Hidden Gems and Rough Diamonds in July 2012 promoted laneways, vertical
retail, below awnings and basement retail across the municipality.
The city has welcomed new international faces of retail including Paul Smith in Collins Street, and
suburban icons such as Phillippa’s Bakery in Howey Place to the retail mix.
The annual CBRE global retailer survey (December 2011) rated Melbourne as Australia’s
preferred retail investment choice for international retailers.
We have pursued the Swanston Street retail vision on several levels, as the redevelopment has
progressed this year. This will be a continued focus once the redevelopment is completed.
The Swanston Street redevelopment also answers issues of user-friendliness in terms of tram
travel. It is in fact the basis of a new conviviality culture where shopping becomes a bonding,
community building experience, and which reinforces the history and culture of our city.
Swanston Street represents the important link from the Arts Precinct, into the ‘Civic Heart’, along
the retail core and to the exciting new education realm at the top end.
We also hope to find great buildings that are unused, and may be developed temporarily at least,
as spaces for our unique entrepreneurs who could not otherwise afford to be in the city.
Our review of the Melbourne Retail Strategy 2006:2012 was designed to define challenges and
opportunities to guide redevelopment of the next strategy to support the retail sector.
The review provides a sound understanding of global trends as they impact on central city
retailing, and their local relevance. We have consulted with key city retailers, large and small to
ensure a range of priorities are delivered.
I thank the MRAB members who give so generously of their time and expertise to assist these
processes. The term of this board has been extended to June 2013, during which time the future
strategy will be developed.


Susan Renouf
Chair, Melbourne Retail Advisory Board
A timeline of the retail landscape in Melbourne 2006 to 2012
         2006                     2007                       2008                    2009

Launch of the           Redevelopment of Myer     Keep Cup launches         Launch of Enterprise
Melbourne Retail        and David Jones,          alternative to disposable Melbourne website
Strategy 2006:2012      Bourke Street Mall        coffee cups
                        begins

MRAB formed             Colonial First State      QV Melbourne becomes     Grand Hyatt Collins
                        Asset Management          the home of Big W,       Street redevelopment of
                        announces new             Harvey Norman,           new luxury retail precinct
                        shopping centre           Domayne and Myer         including Emporio
                        Emporium for the Myer     furniture                Armani, Bvlgari and
                        site on Lonsdale Street                            Paspaley Pearls

Alphaville, Flinders Lane Buttonmania in Nicholas Cats Meow opens          Mid term review of the
                          Building                Campbell Arcade          Melbourne Retail
                                                                           Strategy 2006:2012

Leopold’s Empire, City  Launch of Shopping        Claude Maus              Launch of new ‘super
Square (now a revolving Secrets ‘Deck of Cards’                            flagship’ Sportsgirl
pop up)                                                                    centre, Bourke Street
                                                                           Mall

Collins Street                                    Zoologie                 Costco, Docklands
redevelopment

Development of the                                                         Harbourtown,
Melbourne Convention                                                       Waterfront City
Centre begins

Bourke Street                                                              Forever New, Bourke
redevelopment                                                              Street Mall
completed

                                                                           Prada, Collins Street
         2010                       2011                     2012

Launch of newly           Zara, Bourke Street Mall Paul Smith, Collins
refurbished Myer and                               Street
David Jones, Bourke
Street Mall

Look.Stop.Shop.           Great Melbourne          Melbourne Retail
                          Treasure Hunt            Strategy 2006:2012
                                                   Review

Gewürzhaus, Lygon         Tiffany & Co             Melbourne Central
Street                    refurbishment, Collins   Shopping Festival
                          Street

Lenko Boutique,           Russell Place (new       Aesop, Collins Street
Cathedral Arcade          laneway)

Ganache, Collins Street   Southern Cross Lane      Stuart Weitzman, Collins
                                                   Street

                          Converse flagship,       Daiso, Swanston Street
                          Melbourne Central

                          Gap, Melbourne Central Swanston Street
                                                 redevelopment
                                                 completed

                          Embiggen Books, QV
                          Melbourne

                          Swarovski, Bourke
                          Street Mall

                          Reader’s Feast,
                          Georges Collins Street
Key retail trends from 2006 to 2012
Experiential. Bespoke. Innovative. Sustainable. Pop-up. Collaborative. Vertical.
These are concepts that have been applied to retail over the past six years.


Experiential
Retail that aims to enhance the customer’s experience.


Bespoke
Retail that offers an individually or custom made product or service.


Innovative
Retail that offers something that has not been experienced or created before.


Sustainable
Retail that can be sustained without damaging the environment or without depleting a resource.


Pop-Up
Retail trend that sees operators opening in short terms sales spaces.


Collaborative
Retail that involves collaboration between two different experiences such as retail and art or retail
and hospitality.


Vertical
Retail above ground, multi-tiered without a street frontage.


Below awning
Retail below ground, in basements.
CHAPTER 1: INVESTMENT AND INFRASTRUCTURE
The continued development of Melbourne’s streetscapes and innovative developments reaffirms
Melbourne as one of the most desirable cities for international investors.
Melbourne today is an attractive and liveable place to live and work. It is an international hub for
business, retail, education, medicine, arts and industry.
Melbourne has emerged as a popular destination for local, interstate and international visitors,
boasting world class events and attractions.
There is strong evidence that Melbourne will continue to experience sustained growth over the
next 20 years, building upon a strong economy andan increasing population.
The City of Melbourne, in collaboration with the Victorian Government and key stakeholders, is
continually and incrementally planning for and investing in future city growth.
Council’s Municipal Strategic Statement (MSS) identifies areas for urban renewal, that is, the
transition of existing underutilised areas into sustainable living and working environments.
The MSS describes Southbank and Docklands as existing urban renewal areas and identifies E-
Gate, City North, Arden-Macaulay and Fishermans Bend as proposed urban renewal areas. These
areas will accommodate a significant part of the city’s projected growth.
Through the City of Melbourne’s ‘Planning for Future Growth’ suite of projects (including the
revised MSS, planning scheme amendments and structure plans) Council has identified urban
renewal areas, completed structure plans (for Southbank, City North and Arden-Macaulay) and
commenced rezoning of land to facilitate land use transition from industrial to mixed uses.
These areas will cater for a broader range of residential and commercial uses including retail
activities to cater for projected growth.
City North displays strong characteristics of a central city environment, with a diverse mix of uses,
including well-established industrial, commercial, retail and residential uses dispersed throughout
the area. Alongside major health, education and research institutions. The Queen Victoria Market
continues to be a destination and Melbourne icon within this area.
The rejuvenation of Southbank has established major activities in the area including the
internationally recognised Arts precinct, the Southbank Promenade, Melbourne Convention and
Exhibition Centre and the South Wharf precinct.
This work, along with other Victorian Government lead infrastructure investment and Council
initiatives, such as those included in Council’s Transport Strategy, will provide the context for
future retail opportunities, inform and facilitate longer term investment decisions, and inform the
strategic management of existing retail supply.
Swanston Street Redevelopment
The City of Melbourne’s $25.6 million Swanston Street redevelopment is transforming the spine of
our city.
Public consultation on the Swanston Street project was one of the most exhaustive community
engagement processes undertaken by the City of Melbourne.
Underpinning this process was the goal of making Swanston Street as functional as possible for
the tens of thousands of cycling and public transport commuters and visitors who use the street
each day.
During the redevelopment stages, businesses received further promotional support via branding
and directional signage.
The redevelopment of Swanston Street centres on four distinctive public spaces along Swanston
Street including City Square, the Bourke Street Mall, RMIT and the State Library.
The redeveloped Swanston Street includes new tram stops, installation of new lighting, street
furniture, artworks and new plantings.


Retail development activity recently completed and in the supply pipeline
See map.


Development Activity Monitor
The City of Melbourne’s Development Activity Monitor keeps an eye on major new commercial and
residential property developments in the municipality and is limited to new projects that meet
certain characteristics:

    10 or more residential dwellings
    10 or more student or serviced apartment units
    10 or more hotel bedrooms
    at least 500m2 of office or retail floor space

Strong international demand for Melbourne property
International investors continue to be drawn to Melbourne’s office, retail and residential property
markets, according to City of Melbourne’s April 2012 Property Watch Report.
Property Watch is the annual update on the supply, demand, turnover, median prices, rents and
vacancy rates of properties in the City of Melbourne’s municipality.
Offshore demand for Melbourne offices in the central city and Docklands nearly doubled in 2011 to
36 per cent of total volume, with investors attracted to Melbourne’s economic resilience and sound
regulatory system.
Melbourne’s performance is supported by having the second lowest office vacancy rate among
Australia’s capital cities – enjoying moderate growth in rents and capital values.
Other key points in the Property Watch report state a stable retail performance was recorded with
retail turnover increasing 61 per cent in Victoria in the ten years to February 2012 and 2.9 per cent
in the year to February 2012.
New stores and investments
Melbourne is already considered to be Australia’s premier retail capital and this reputation is
gaining strength each year. This year is no exception with the addition of many stores and the
refurbishment of some of Melbourne’s most established stores.
Paul Smith, Stuart Weitzman and Gap are just some of the international brands that have opened
stores in the city. Swarovski also opened in the Bourke Street Mall alongside a refurbished Steve
Madden shoe emporium.
On the corner of Bourke and Swanston streets, Vodafone opened its largest Victorian store.
The iconic Block Arcade celebrated its 120th birthday and continues to experience unprecedented
popularity for the revitalised Hopetoun Tea Rooms.
Melbourne’s GPO welcomed new stores including Dinosaur Designs, Skin and Threads and
Maternity Collective, complementing its offer of the biggest names in Australian and international
fashion.
Melbourne Central introduced 60 new stores including flagship stores for Converse and Levis, and
introduced a raft of activities designed to heighten consumer experience.
In addition, Reader’s Feast re-opened their store in the historical Georges building and the popular
Japanese store, Daiso, launched on Swanston Street.


Paul Smith
Earlier this year, leading British fashion designer Paul Smith opened his first standalone shop in
Melbourne.
The new shop at 120 Collins Street is housed within the heritage listed former professional
chambers.
          2
The 250m building showcases Paul Smith’s fashion collections and also homewares, jewellery,
art, books and antiques.

‘I have always wanted to have a shop in Melbourne because it is famous for its appeal as a city
and I am especially excited about the fact we opened in such a magnificent building as I like each
of my shops to reflect a unique character’.
Paul Smith.


Converse
Converse opened its first specialty store in Australia. Located in Melbourne Central, the store
opened only a year after Converse launched a similar format retail store in the US.
The store’s design pays homage to Converse’s sports and rock ‘n’ roll heritage, with several
bespoke, local, and reclaimed design elements creating a vintage-inspired retail environment.
The Converse Melbourne store offers the most diverse assortment of Converse footwear in
Australia, showcasing the breadth of the brand’s collections.
‘The heart of Melbourne’s shopping district provided an ideal backdrop to showcase Converse’s
independent spirit and diverse product offering’.
Ian Stewart, Converse Director of Marketing, Asia Pacific and China.




Emporium Melbourne
On completion, Emporium Melbourne will host 225 stores on over eight levels to deliver premium
retail in the heart of Melbourne’s central city on what was formally part of the ‘old Myer’ site.
Set to open in late 2013, Emporium Melbourne will feature a mix of Australian and International
designers, concept and flagship stores and an 1,100 seat Café Court.
Located on Lonsdale Street, Emporium Melbourne offers direct access to Myer Melbourne, David
Jones and Melbourne Central via pedestrian bridges.
The redevelopment involves demolishing and rebuilding two-thirds of a city block from Little
Bourke Street through to Lonsdale Street with heritage façades on both Lonsdale and Little
Bourke streets retained.
World class design is being delivered on this project with the engagement of renowned
consultants in architecture, mall interior design and food court design.
The Buchan Group, one of the largest architectural groups in Australia, recognised for its design
excellence and depth of experience in a range of commercial, industrial and retail fields, is the
project architect on Emporium Melbourne.
The design of Cafe Court has been undertaken by Rockwell, New York, in conjunction with
Russell and George from Melbourne who have successfully crafted a unique narrative and
strategy for this project. This together with thecollaboration with internationally acclaimed interior
designers, Wonderwall from Japan, for the ‘Mall Interior Design’ of the project will help to establish
the Emporium as another centre of style for Melbourne.
                                                   2
The Emporium Melbourne will introduce 47,000m of world class retail space at the heart of the
city. Boasting a retail experience to integrate a fusion of fashion, culture, food and art.


Tiffany & Co
The world’s premier jeweller, Tiffany & Co, reopened its Collins Street store in August 2011 after a
ten-month renovation. Tiffany originally entered the Melbourne market in 1996 with its first store in
Crown Casino.
The redeveloped store incorporates elements of Tiffany’s Fifth Avenue store in New York.
The store now covers 1,250m2 of retail space over three levels and has custom furnishings
created by Australian designers and manufacturers.


Eastern Market Fabrica
Eastern Market Fabrica in McGraths Lane opened in December 2011. It is a high-end, avant garde
designer clothing boutique.
Much of their collection is hand finished using exotic materials and produced in limited editions.
Eastern Market Fabrica is the sister store to Eastern Market Capela which opened its doors in a
100-year old church in Carlton in 2006.


World Food Books
Housed in the Nicholas Building on Swanston Street with an online presence, the store functions
as a bookstore importing hard to find art and design books from around the world.
World Food Books provides new experiences for customers by hosting exhibitions, book launches
author readings and encouraging the creative publishing of artists and designers in Australia.
World Food Books was also invited to present at the 2012 New York Art Book Fair.


Phillipa’s Bakery
A gastronomic icon, Phillipa’s Bakery has been supplying the Melbourne region with quality bread
and bakery products since 1994.
The bakery opened a city store on Howey Place following further expansion in the inner suburbs.


Alice Euphemia
Alice Euphemia, located in the Cathedral Arcade, stocks Australian and New Zealand designed
fashion and jewellery.
The store, now in its 16th year, underwent a major refurbishment to complement its birthday
celebrations.
Adding to the retail experience for shoppers, Alice Euphemia continues to work with local brands
on displays and events. Spotted shopping at the store during a promotional tour was international
R&B star Kanye West.


Saba
Collins Street has long been considered Melbourne’s premier shopping boulevard with Australia’s
own, Saba, holding a prominent position with its flagship store. The fashion icon underwent a
complete transformation in style, space and retail approach.
The store now covers two levels and incorporates online kiosks where shoppers can view and
order pieces.


Lucy Folk
Adding to the unique and quirky wares along Crossley Street, jewellery designer, Lucy Folk
opened her doors during the year.


Aesop
Aesop, the world-renowned skincare brand, has stores worldwide and can now count a flagship
space on Collins Street among Paris, London, New York, Tokyo and Zurich, Hong Kong,
Singapore and Taipei.
Aesop worked with Melbourne based architect, Kerstin Thompson Architects, to create a space
which pays homage to the nearby Athenaeum Club.
The store which opened in July 2012 is Aesop’s twenty-second Australian signature space.
Gap
The world’s most iconic lifestyle brand, Gap opened a Melbourne city store in Melbourne Central.


QV Melbourne
Located on the corner of Lonsdale and Swanston streets, QV Melbourne has created a unique
space of laneways and open spaces.
The precinct houses a range of fashion retailers as well as cafés and restaurants.
This year has seen the addition of almost 20 new stores and eight refurbishments of existing
stores. Store openings in the last year included General Pants, Barkins, PappaRich, The UGG
Store, Francis Leon, Boast Homeware, Embiggen Books and Mossman. It is estimated that 10
million customers visit QV Melbourne every year.


Melbourne Central
Melbourne Central, a retail hub on the west end of the city’s core, has been growing from strength
to strength, introducing 60 new stores in the past year.
The retail hub is the gateway for international students in the university precinct and within close
proximity to the Royal Melbourne Institute of Technology (RMIT) and Melbourne University.
The centre held its inaugural One Day Shopping Festival in May recording more than 180,000
Melburnians visiting the centre on that day – the highest figure since the opening of the Boxing
Day sales post-Christmas.
The festival promoted a schedule of activities aimed to raise the bar of the traditional consumer
experience and to drive consumers back into bricks and mortar retail stores.
’It was about getting consumers into the centre and providing them with unique experiences that
they can’t get from online shopping or in any other retail shopping centre’, said Justin Shannon,
General Manager of Melbourne Central.
REVITALISING THE BOOK SCENE
As a tribute to Melbourne’s status as a city of literature, a previously unnamed lane off Little
Latrobe Street was renamed Literature Lane.
Literature Lane firmly fixes the place of writing in Melbourne’s cultural landscape.
In 2008, Melbourne’s literary culture and heritage was recognised when it became one of only five
cities in the world to become a UNESCO City of Literature.
Many literary beacons call Melbourne home, from the Melbourne Writers’ Festival and Emerging
Writers’ Festival, to the Wheeler Centre for Books, Writing and Ideas and the biennial Lord
Mayor’s Creative Writing Awards.
To add to Melbourne’s literary credentials, a new library has been built at Southbank at the former
JH Boyd site and the Docklands library will be built in 2013.
Literature Lane is also a tribute during the first National Year of Reading.


National Year of Reading
The National Year of Reading 2012 is a collaborative project founded by Australian libraries and
library associations to promote reading and literacy. The program encourages children to learn to
read and inspires people to become keen readers through a host of events and activities taking
place across the country.
Libraries will be partnering with local government, the media, writers, schools, publishers,
booksellers, employers, child care providers, health professionals and many other organisations to
motivate a passion for books.


Little Library
Melbourne Central launched the Little Library – a community initiative where consumers and
commuters can swap and share their pre-loved books. In the first two weeks of the concept over
500 copies of paperback books were exchanged.
The Little Library operates through a borrowing system of honesty where consumers can share
their pre-loved books, borrow from the Little Library and in turn donate so others can enjoy.


Embiggen Books
Melbourne is fast gaining the reputation as Australia’s literary capital with a growing independent
publishing scene and increasing number of niche bookstores. Adding a distinctive stamp to
Melbourne’s book scene, Embiggen Books is an innovative concept bookstore focused on science
and design books.
MURIEL CRADDOCK
Literary matriarch Muriel Craddock, a leading figure in the antiquarian book trade for more than 45
years, celebrated her 100th birthday this year.
Along with her daughter, Kay, Muriel was a foundation member of the Australian and New Zealand
Association of Antiquarian Booksellers in the 1970s, and she is now a life member.
Muriel and Kay established Kay Craddock – Antiquarian bookseller in Melbourne in Bourke Street
in 1967, moving 23 years later to the current premises at the neo gothic assembly hall at 156
Collins Street. Muriel was honoured to receive the Lord Mayor’s Gold Commendation for her
longevity as a small business proprietor in 2006.
Top Growth Areas – Retail and entertainment industry
The top three growth areas for the period 2006 to 2010 were Kensington, Docklands and
Southbank. Kensington and Docklands more than doubled the number of retail and entertainment
industry establishments. While the increase in floor space for these establishments in Southbank
increased by almost 50,000m2.
Kensington – Retail and                      Current*             2006
entertainment industry by:
establishments                                     96               27
floor space                                    33,826           10,703
employment                                        906              298


Southbank – Retail and                       Current*             2006
entertainment industry by:
establishments                                    388              239
floor space                                  150,860           103,242
employment                                      4,320             3,274
Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2010*.


Docklands – Retail and                          2012              2006
entertainment industry by:
establishments                                    468              212
floor space                                  164,080            70,962
employment                                      5,754             2,233
Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2012
City Of Melbourne Budget 2012–13
The City of Melbourne’s 2012–13 Budget reaffirmed the city’s strong financial position with no debt
and AAA/A-1+ rating.
Connecting Melbourne’s people and places and supporting the city’s communities and businesses
were central components in the Budget, which featured a zero per cent rate rise.
The Budget contained a record $117 million investment in infrastructure and $364 million on
community services and signaled the completion of many projects.
Some of the key in vestments include:

    $6.5 million to finish the revitalisation of the city’s spine, Swanston Street;
    $4.75 million toward the new Docklands Library and Community Centre and further
      investments in signage, a new taxi shelter and late night ranks, New Year’s Eve
      celebrations, winter fireworks and events sponsorship;
    $2.6 million to enhance Melbourne’s iconic streetscapes; and
    $630,000 for city safety initiatives to cement Melbourne’s place as a prosperous and
      sustainable city.

City Business Development
The 2012–13 Budget dedicated almost $2 million to city business development, through grants
and sponsorship, precinct programs, mentoring and networking, and other Enterprise Melbourne
initiatives.
One of these sponsorship opportunities is the Event Partnership Program, which helps stage
events throughout the city and helps increase the quality of the events. An annual program with
two rounds of funding per year, it is available for events or festivals that enhance the city’s
vibrancy.


Retail Business Consultations
The Right Honourable Lord Mayor, Robert Doyle hosted a business consultation program to
discuss the impact of the Melbourne Retail Strategy 2006:2012 and priorities for Council.
Representatives from the city’s large and small retailers met to identify opportunities and share
expertise. The diversity and retail mix of the city were highlighted as key success areas of the
retail offer. The ‘hidden secrets’ and the continuing innovation of independent retailers across the
city were heralded as key successes of Melbourne’s retail mix.
The program attendees recognised the need for retailers to provide experiential customer service
to keep customers coming back – a factor increasingly important with the current momentum
towards online shopping.


Cultural Precinct Update
The City of Melbourne and Victorian Government entered into a partnership in 2008 to create the
City of Melbourne Cultural Precinct Enhancement Program with the aim to improve and expand on
the precincts’ existing strengths.
The program includes funding the restoration of significant laneways, street beautification, public
art, landscaping and lighting. It has also boosted resources for the communities to enhance and
showcase their culture and heritage.
The City of Melbourne’s Cultural Precinct Enhancement Program focuses on:

    Chinatown (Little Bourke Street, Melbourne)
    Greek precinct (Lonsdale Street, Melbourne)
    Lygon Street cultural precinct (Carlton)
In addition to the Enhancement Program, the City of Melbourne is researching the history of
Melbourne’s three cultural precincts. This research will be used to create a series of installations to
tell the stories of the city’s cultural past.
Between 2008 and 2011 work carried out to enhance these precincts included:

    installation of cafe screens and catenary lighting in the Greek precinct;
    catenary lighting and Tianjin Gardens entry poles in Chinatown; and
    an upgrade of the Piazza Italia stage and Argyle Square south gardens, Lygon Street.

Streetscapes
Providing high quality and welcoming spaces for the community is part of the vision of a ‘City for
People’ as outlined in the Council’s Future Melbourne strategy.
To achieve this goal, in 2011 the City of Melbourne introduced the Streetscapes Framework which
aims to work with businesses and the community to respond to the changing needs of our streets.
The framework will ensure our streets are prepared for the future growth of the municipality.
In 2011–12, the Streetscapes program improved Flinders Lane between Swanston and Queen
Streets.
In the 2012–13 period the program will invest over $2.5 million to improve sections of Collins and
Elizabeth streets.


Docklands
Docklands became a part of the Melbourne Local Government Area in July 2007. Planned as a
waterfront destination for an estimated 20 million visitors each year, a workplace for 40,000 people
daily and a residential area for up to 16,000, it is expected to change the look and feel of
Melbourne when it is completed over the next decade.
The 2011–12 year saw Docklands experience the most development in its 12 year history with
more than $2.4 billion worth of private development (commercial and residential) under
construction across 16 projects, totalling approximately 350,000m2 gross floor area, including
approximately 1500 apartments.
As this 190 hectare site – the same size as the original central business district, including 44
hectares of water – transforms into a modern residential, commercial and visitor destination, it is
playing an increasingly important role in the growth of Melbourne as a global city.
It is expected that by 2025 the area will have attracted a further $9 billion worth of private
investment, with the number of residents anticipated to nearly triple from 7,600 today to 20,000,
and with the number of workers anticipated to reach more than 60,000.
At June 2012, the vision for Docklands is well on the way to being realised with:

     $8.5 billion of development completed or under construction (over 50 per cent of
       development has occurred in Docklands to date)
     Over 5,400 dwellings built or under construction
     More than 7,600 residents
     More than 38,000 workers
     Docklands continues to attract millions of visitors annually.

Docklands economic indicators 2006 to 2012
Economic indicators                                                 2012            2006         Change    % Change
Residents                                                          7,680           4,217          +3,463       82%
Retail and entertainment industry by establishments                  468             212           +256       121%
                                                      2
Retail and entertainment industry by floor space (m )           164,080           70,962         +93,118      131%
Retail and entertainment industry by employees                     5,754           2,233          +3,521      158%

City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2012,
id Insight, Small Area Population Forecast for Melbourne LGA, 2006 to 2031 and Places Victoria



Docklands Small Area Report (CLUE) findings.
Since 2006, there have been over 250 new retail and entertainment establishments to open in
Docklands, from 212 to 468 establishments in 2012.
Retail and entertainment employment, built space and business locations have all increased
significantly, as have restaurant and bar seats, child care places, educational facilities and hotel
rooms.
Between 2010 and 2012 employment in Docklands increased by 4,596 (or 13.7 per cent) to
38,198 people.
Finance and insurance is the largest employing industry sector in Docklands and accounts for 31.8
per cent of all employment. On average, employing businesses are significantly larger in
Docklands than in the municipality of Melbourne as a whole (45 employees per employing
business location, compared to 28).
It has become the head office for many of Australia’s largest corporations, including Myer,
National Australia Bank, ANZ and Kraft Foods.
Docklands has around 531,000m2 of office space and 98,000m2 of retail space. In the last two
years, the number of café/restaurant venues has grown from 127 to 151, and associated seating
capacity from 15,836 to 18,331.


Docklands Activation
In 2007, the Docklands Retail Statement was developed with the objective for Melbourne’s
Docklands to be a vibrant waterfront retail precinct that enhances and extends Melbourne’s
globally acclaimed city to the waterfront.
The statement, a joint initiative between the City of Melbourne, Places Victoria and the Victorian
Government, addresses retail issues in the Docklands and was designed as a companion to the
Melbourne Retail Strategy 2006:2012.
The City of Melbourne also has a retail specific activation and destination marketing program for
Docklands with an ever-growing list of events including Fireworks in July, while also supporting the
marketing initiatives of Destination Docklands.


Docklands Community and Place Plan
Following detailed consultation with the Docklands’ community during 2010 and 2011, the new
Docklands Community and Place Plan (DCPP) identifies the community endorsed projects for
delivery in Docklands over the next 10 years and beyond.
The DCPP, launched in July 2012 by Victorian Planning Minister Matthew Guy and Melbourne
Lord Mayor Robert Doyle, is a plan for $300 million in community infrastructure projects in
Docklands.
This includes City of Melbourne’s $4.75 million investment in the waterfront library and community
centre as well as places for sports and recreation.
The plan includes existing projects like the recently completed Docklands Community Garden, a
communal green space that also supplies locals with fresh produce and plants.
To complement new community places, the Docklands Public Realm Plan will focus on bringing
the charm of Melbourne’s city character into public spaces by steering new development in the
area and introducing signage to guide people from the central city to the waterfront.
Further Docklands investments include funding for: new multipurpose sports courts; maps and
signage; support for Destination Docklands to continue promotions and generate activities to
attract visitors.

URBAN FOREST STRATEGY
The city’s urban forest is currently facing a complex set of challenges with scientists forecasting
that a changing climate means more frequent low water periods and increased extreme heat
events in the future.
In addition to this Melbourne is growing daily and increasing in density.
To meet these challenges the City of Melbourne has released the Urban Forest Strategy. The
strategy generates a new legacy for Melbourne and creates a forest for future generations. It
predicts Melbourne’s urban forest will become diverse, robust and resilient in the face of current
and future challenges.
A key aspect of the strategy is to double the city’s tree canopy by 2040 – this will provide a range
of environmental and economic benefits for the city and particularly for retailers.
A national US study, conducted by social scientists at the University of Washington shows that
consumers are prepared to spend, on average about 12 per cent more for products in shops with
well treed districts compared with no or low tree districts.
They also rate the quality of product 30 per cent higher in districts having trees over those with
barren sidewalks. On average, consumers are willing to spend more time and money shopping in
well treed districts and they will perceive that they have received better value for their money.
Transport strategy
Melbourne is the heart of Victoria’s prosperous economy and enjoys a vibrant social and cultural
life. Almost 800,000 people pass through our city everyday. This is likely to rise to one million by
2030.
The City of Melbourne is responding to this rapid growth through its Transport Strategy 2012–
2030. The key directions of the strategy include integrating all modes of transport with city
development, boosting the performance of public transport, cycling and walking networks and
improving freight delivery in the central city. The strategy is the result of extensive community and
Victorian Government consultation.
Since 2006 public transport use has been growing at nearly 6% every year, with walking and
cycling also increasing strongly. The latest Victorian Integrated Survey of Travel and Activity
(VISTA) 2009 showed that 53 per cent of weekday trips to the City of Melbourne were by public
transport, cycling or walking. The City of Melbourne aims to increase this to 80 per cent by 2030.
Within the municipality, 84 per cent of all trips were taken by a combination of: public transport (16
per cent), cycling (3 per cent) or walking (66 per cent). The transport strategy aims to boost this to
95 per cent by 2030.
While most trips to the heart of the city (the Capital City zone) during the week are for work
purposes (66 per cent), once people are in the city a large share of their trips relate to shopping.
Future work, including a new pedestrian strategy and road safety strategy, will focus on analysing
and improving the walking environment in the city including the access to retail precincts.
CHAPTER 2: MAJOR RETAIL TRENDS AND CHALLENGES
Australia’s digital future will transform a raft of industries including retail trade as reported by IBIS
World in ‘A snapshot of Australia’s Digital Future 2050’.
The report states retail will continue its online revolution, with eBay, Amazon and other diverse
product group providers redefining the traditional concept of high street and shopping centre
retailing.
More than one in two Australian shoppers aged over 15 now shop online, causing major change to
Australia’s retail industry. A report by PwC and Frost & Sullivan shows that in 2012, online
shopping in Australia will increase 17.9 per cent to $16 billion, and is predicted to grow to $26.9
billion by 2016 at a compound annual growth rate of 14.1 per cent.
The report claims the most popular online purchases are still electrical items (62 per cent), and
clothing, footwear and personal accessories (61 per cent). The category to record the biggest
jump has been food and groceries, now purchased online by 23 per cent of shoppers, compared
with 17 per cent last year.
The report also found growth of online shopping is being driven by evolving digital tools and
increasingly sophisticated and connected consumers, who have high expectations of the retail
experience.
The overall retail sector in Australia is estimated to be worth over $250 billion per year while
e-commerce and online retail sales in Australia is valued at over $11 billion according to NAB.
While there has been much growth to the retail sector in Melbourne since the implementation of
the Melbourne Retail Strategy 2006:2012 in 2006, challenges and opportunities will always exist.
Innovative retailers will continue to raise the bar and opportunities for success will always present
for those that seek to evolve.
Melbourne’s renowned diversity with its retail offer has ensured its consistent rating as Australia’s
premier shopping capital.


Bricks and mortar stores in an online world
Traditional ‘bricks and mortar’ retailers are facing the increasingly challenging trend of online
shopping.
The digital revolution has armed consumers with the immediacy of price comparison, free and
quick shipping as well as smartphone apps to enable shoppers to become more buyer savvy.
The shopping experience has fundamentally changed through technology. As more and more
consumers use their smartphones for everyday use such as paying bills, purchasing movie tickets
and buying groceries, businesses must ensure they maintain a strong digital presence.
Opportunities exist by offering the consumer an experience they cannot attain online. Traditional
retail stores should compete by offering an enticing store experience through excellent customer
service and outstanding visual merchandise.
Major department stores and the anchor stores of Bourke Street Mall, Myer and David Jones
embraced the consumer shift to online shopping.
David Jones announced their plans for OmniChannelRetailing (OCR) as well as plans to transform
its store via customer service and engagement, technology and management expertise.
Since 2011 David Jones has implemented online initiatives such as a bespoke Mobile Site and a
Brand finder, which enables customers to search for their favourite brands.

’It’s all about experimental retail … windows, personal shopping, latest VM, QR codes, social
media’
Bernie Brookes, CEO, Myer


Virtual Supermarket
Woolworth’s introduced its first virtual supermarket to Flinders Street Station. A specially made
wall was constructed inside the station and converted into a virtual supermarket featuring more
than 120 of the supermarket’s most popular products.
Commuters were able to experience the newest in supermarket shopping innovations in five steps
by using the Woolworths’ app and scanning the product from the wall culminating in delivery of
groceries to the consumer’s door.


QR Codes
Quick Response Codes (QR Codes) provide an instantaneous solution to consumer needs and
social media connections.
It is a relatively new technology in Australia and aims to engage consumers in an immediate and
interactive way using 2D barcodes that can be scanned by a camera-enabled smartphone.
The City of Melbourne used QR codes as part of the summer marketing campaign during the
Australian Open Tennis Tournament to encourage visitation through the city’s retail and hospitality
precincts.
In May this year, Melbourne Central introduced technology to enhance the consumer shopping
experience. QR Codes at Melbourne Central provided consumers with immediate information on
products, promotions and discounts, offering instant rewards that they could redeem within the
centre.


Global retail trends – looking to the future
As part of the review of the Melbourne Retail Strategy 2006:2012, The Future Laboratory was
commissioned to provide a report on the future landscape of retail and the trends that will impact
the sector beyond 2012.
Four identified trends were:

    Conviviality culture;
    Future economy;
    Brand-standing; and
    Intuitive futures
Identifying these trends help to inform Melbourne retailers of emerging developments in the retail
world.
These have been defined as follows:
Conviviality Culture
The power of community and shared experiences. In this context, shopping becomes a bonding,
community-building experience through:

    Multi-sensory selling – using sights and smells, and sound and touch to enhance retail;
    Social networks as retail channels, which aligns retail with online sociability; and
     Experiential retail which harnesses the excitement and performance of live events in a
       retail context.
Shopping as entertainment will spread to the food sector and city centre shopping areas will
become multi-purpose spaces as conviviality culture provides a real world counter-balance to an
increasingly online society.


Future Economy
In turbulent times, a retail sector in flux will require new, exciting and seemingly anarchic solutions.
These include:

    Collaborative commerce – putting the consumer in control of the brand and helping
      shoppers become retailers;
    Consumer curation – individual shoppers becoming retailers’ most powerful sales tools;
      and
    Worker Theatre – brand’s artisanal power to build exceptional customer loyalty.
As consumers become collaborators with retailers, retail data capture technology will shape the
development of Anarconomy (anarchy + economy) as consumers learn to profit from their
personal data and brands use it to hyper-personalise their offer.


Brand Standing
The technique by which retailers have become flags of belonging and leadership in difficult
economic times incorporates:

    Cause commerce or retail philanthropy;
    Transparent trading, with consumers’ new demands for visible and sustainable supply
      chains; and
    Edu-tail, the seamless meshing of education and retail.
In the future, global brands with deep local roots, and mass market brands with premium values,
will power the next stage of Brand standing.


Intuitive Futures
The ways in which digital and online technologies create a seamless shopping experience.
Retailers are adopting:

    Offline/online retail, with retailers and cities developing hybrid strategies;
    Interactive engagement into retail spaces and buildings;
 Gaming – engaging consumers by bringing the rewards and playfulness of gaming into
   retail; and
 Personalisation strategies that are ever-more sophisticated.
The convergence of online and offline retail will accelerate in Intuitive Futures as brands use
gaming, augmented reality and no-contact payment technologies to reach out to consumers in
novel and unexpected ways and spaces.


Pop-up Shops
One of the key retailing trends over the past six years has been the phenomena of pop-up shops.
Operators open these shops in short terms sales spaces for many reasons including testing the
retail waters and selling end of season stock. They also provide the opportunity for emerging
brands to enter high traffic areas without the high expenses attached.


Habbot
The Habbot Studios footwear collection is designed in Australia by Annie Abbott, and hand made
in Italy from fine Italian leathers. The store ‘popped’ up in Melbourne’s GPO and also Howey
Place.


Sportsgirl Van
Sportsgirl took their wares to the street in an ice-cream van to promote their new magazine Make
Believe, and show off the latest collections from Sportsgirl.


Melbournalia
Melbournalia presented a retail event experience that utilised different sites in the Melbourne city
with a curated selection of Melbourne made and designed products.
Leading up to Christmas, Melbournalia showcased uniquely Melbourne products and offered old-
fashioned customer service.


The Quick and the Dead
The Quick and The Dead opened in the Nicholas Building, featuring a collection of handmade and
locally produced work from Melbourne based artisans – as well as some interstate offerings.


Von Haus, Sarah Scout, S!X and Milly Sleeping
These four Melbourne retailers combined talents and took the idea of portable stores to the next
level in one of the city’s laneways in Crossley Street.


Skin and Threads
Skin and Threads ‘popped’ up on Little Collins Street. A premium Australian brand built on the
simple principle that pure and natural fabrics are the building blocks for a luxurious and casually
elegant lifestyle. This ethos of superior quality and an aesthetic of simple sophistication permeate
each and every piece. This is also carried through the entire brand, in store design and the calibre
of people involved in the process.


The Order
The Order set up a pop-up shop in the weeks preceding Christmas in Curtin House. The collection
consisted of classic solid tables, bench seats, stackable chairs and a limited range of Danish-
inspired chairs. Each piece was individually made in various materials and finishes – laminated,
whitewash and natural teak.
Street Trading Cylinders
Previously housing newspapers and magazines, the city’s street cylinders are now offering new
street trading opportunities for entrepreneurs to take their wares to the street.
On the corner of Swanston and Little Collins streets, La Petite Crêperie folds out each morning to
make room for a crepe machine and a kitchen. It’s a tiny space not connected to mains water or
power, so the co-owners drew on their experience with yacht and van kitchens to make the space
work.
‘This is a chance for us to give Melbourne something really special and different,’ said co-owner
Patrizia Maselli.
Under the City of Melbourne’s Street Activity Policy 2011, the city’s street cylinders have been
repurposed. Other new kiosks and street traders popped up this year including a South American
organic crafts and fashion cylinder.
Melbournalia utilised one of the street cylinders as one of their locations to offer consumers an
engaging retail experience. Each location transformed from site to site, tailoring the offer with
men’s, women’s, home and accessories.


Markets
Alongside Melbourne’s prestigious reputation as the fashion capital, the city is also renowned for
its inimitable, quirky and fashion forward markets.
Markets successfully opening over the last six years have included: the Suzuki Night Market,
held at the Queen Victoria market during Summer; the Luna 1878 night market also at Queen
Victoria Market which encourages shoppers to venture out during winter; the Chinatown Market
in Heffernan Lane which transforms into a true night market once a month; the Docklands Flea
Market which transformed the western end of New Quay into an open air market using redesigned
shipping containers to host retail and pop-up restaurants; the Docklands Sunday Markets, a
market in the heart of Docklands with arts and craft through to vintage clothes and jewellery
designers; and, the Arts Centre Melbourne Sunday Market which brings together Victoria’s
finest artisans, against the backdrop of Melbourne’s Arts Precinct.
CHAPTER 3: MARKETING AND CITY ACTIVATION

Tourism Victoria
As Australia’s number one city associated with great shopping, Melbourne’s retail offering
continues to be an important element of Tourism Victoria’s award winning Jigsaw marketing
campaign.
Following Phase 8 of the Jigsaw campaign ‘It’s Easy to Lose Yourself in Melbourne’ which ran
from 2006 to 2010, Tourism Victoria launched Play Melbourne in 2011.
The Play Melbourne campaign, aims to deepen consumer appreciation of Melbourne’s creative
sub-culture, convert preference to travel to Melbourne and reinforce its reputation as Australia’s
most culturally diverse city.
It also adds a new element of discovery to Phase 8, which also focused on Melbourne’s laneways,
arcades and precincts, and the complementary experiences around the retail environment – bars,
galleries, dining and cafes.
As part of Play Melbourne the retail experience is highlighted through a multi-channel campaign
including radio, print, television, digital and social media featured through:

    radio – key messages in radio scripts;
    television commercial – featuring laneways, retail, cafes, dining and bars;
    print advertisements – both brand and advertorial pieces featured leading retail products,
      innovations and experiences; and
    digital – online executions featured retail products as well as through social media.
During 2011–12, the Play Melbourne video reached one million views on YouTube, 540,000 visits
to its dedicated website, 19,000 Facebook fans and 15,000 iPhone app downloads.
Tourism Victoria’s Melbourne marketing activity has also led with product stories that have
featured in the Sydney magazine series, Collections, as well as other print and digital channels.
In addition, Tourism Victoria’s niche campaign Lost and Found which targets creative opinion
leaders, tells the stories of designers, cutting edge retail, as well as artisans, musicians and other
creatives in an e-publication series each year.
Both campaign and visitation results show that Play Melbourne has resonated with interstate
markets.
Domestic overnight visitation to Melbourne increased by 5.7 per cent to reach 6.6 million in the
year ending December 2011. During the same time period, domestic overnight visitor expenditure
also increased by 2.4 per cent to $4.8 billion, which is ahead of the national growth rate of 1.6 per
cent


Tourism Brand Health Survey
The Brand Health Survey measures Victoria’s and Melbourne’s competitive image or brand health
by looking at consumer perceptions of the state’s product strengths. The survey has been
conducted for more than a decade and provides an important benchmark for evaluation. The
survey is undertaken annually by Roy Morgan Research. The 2011 survey was conducted over the
first week of June and is based on a nationally representative sample of approximately 1,200
respondents aged 14 years and over.
City attribute                  2000       2000        2011       2011 2011 leads Melbourne
                             national Melbourne’    national Melbourne’    by (%)   change
                            score (%   s ranking   score (%   s ranking            2000–11
                                   of                     of                            (%)
                          respondent             respondent
                                   s)                     s)
International sporting           36           2          50           1    11% pts    +14% pts
and cultural events                   (Sydney =
                                             1)
Great place to go                39           1          59           1    35% pts    +20% pts
shopping
Reputation as a great            41           1          52           1    20% pts    +11% pts
city for theatre
Food experiences and             35           2          49           1    16% pts    +14% pts
world class restaurants               (Sydney =
                                             1)
Interesting cafés, bars          33           2          52           1    26% pts    +19% pts
and nightclubs                        (Sydney =
                                             1)


Visitor shopping trips
The Brand Health Survey shows Melbourne retained its number one ranking overall, and
outperformed Sydney in most attributes, including as a great place to go shopping. Melbourne also
ranked higher for its reputation as a great city for theatre, international sporting, cultural events
and world class restaurants.
Tourism Research Australia’s (TRA) data shows that over one million international visitors visited
Melbourne’s CBD in the 12 months to 31 March 2012. In the same period, 3.5 million domestic
overnight visitors and nearly five million domestic day trip visitors visited the CBD. Nearly 80 per
cent of international visitors to Melbourne’s CBD shopped for pleasure during their trip, as did 40
per cent of domestic overnight visitors and 25 per cent of domestic day trip visitors to the CBD.


Melbourne Airport
International passenger numbers at Melbourne Airport increased by eight per cent in 2011–12
compared to the previous year, with the total number of international passengers reaching 6.78
million for the year.
International passenger numbers at Melbourne Airport in 2005–06 were 4.4 million – representing
growth of nearly 150 per cent in the six years to 30 June 2012.


Conference visitors and spending
Melbourne has become known nationally and internationally as one of the world’s best cities for
hosting conferences and conventions. The economic impact of delegates, especially in relation to
Melbourne’s retail sector, is becoming increasingly important.
The Melbourne Convention and Visitors Bureau (MCVB) Delegate Study conducted in 2010 found
that 27 per cent of international delegates travelled with two other people who did not attend the
conference.
International delegates stayed in Melbourne for six nights while attending a conference and on
average stayed in Australia for 9.8 nights.
International delegates spent an estimated $799 per day and $4,134 during their stay in
Melbourne.
A large number (58 per cent) of international delegates spent time shopping and 56 per cent
visited parks and gardens.
Twenty per cent of national delegates travelled accompanied to Melbourne, primarily with their
partner.
It is estimated that national delegates spent $708 per day and $3,344 during their entire stay in
Melbourne.
Of the visiting national delegates, 45 per cent experienced Melbourne’s bars, entertainment and
nightlife, while 44 per cent spent time shopping and 27 per cent visited parks and gardens.

MYKI VISITOR PACK
The city’s public transport ticketing system, myki, has introduced a new visitor pack.
The pack includes a pre-loaded myki card with enough value to cover one day’s travel in Zone 1
and includes information to help visitors get around Melbourne and use the myki ticketing system.
Discounts at 15 Melbourne tourism attractions, a specially designed wallet by Melbourne’s leading
cartoonist Mark Knight, and a transport map are also included in the pack.


Marketing

City of Melbourne seasonal destination marketing campaigns
The City of Melbourne delivers destination marketing campaigns during the main seasons of
summer, winter and Christmas, and online activity during school holidays, to drive consumer
visitation to the city.
Seasonal campaigns profile the city’s strengths at different times throughout the year while
positioning the city as a vibrant and exciting destination all year round.
All campaigns are supported through extensive online promotion on
melbourne.vic.gov.au/whatson and the City of Melbourne ‘What’s On’ eNewsletter and social
media channels.


Winter campaign
The winter campaign ‘See the city in a new light this winter’ aimed to entice consumers into the
city during the traditionally colder and quieter months.
The campaign was in market from June to August and highlighted the wide range of events, arts,
culture, shopping and dining experiences on offer.
The advertising schedule included print, radio and online. Social media, PR and the winter Hot
Spotsguide also formed part of the campaign package

Results
    The city is seen as a creative, vibrant, diverse, social, exciting, and inspirational winter
      destination; compared to 2010 few Melburnians associate the city with being dark and cold.
    The What’s On website which was the primary source for further information promoted
      across the advertising campaign had more than 700,000 visits.

Dockland’s fireworks
To encourage increased and repeat visitation to the Docklands precinct during the winter months,
the City of Melbourne presented free fireworks shows every Friday night in July as well as pre-
fireworks entertainment.
Visible from anywhere in Docklands, the Waterfront City gave the best experience with
programmed music as fireworks danced across the sky.
Thousands of people attended each show providing economic benefit for local businesses, in
particular retail and hospitality.
The fireworks event was repeated in July 2012.


Christmas campaign
Each year, the City of Melbourne delivers a Christmas marketing campaign. Given the new
direction for Christmas in 2011, this included new decorations and event programming. The
campaign focused on positioning Melbourne as the Christmas capital.
The 2011 Christmas festival included content from over 80 businesses in the city as part of the
umbrella marketing campaign. The main channels of promotion were advertising, including press,
radio, online, outdoor, PR and social media.


Summer campaign
The summer marketing campaign: ‘462 reasons to visit the city this summer’ was a fully integrated
campaign with a major focus on Melbourne’s waterfront, school holidays and city wide precincts.
The campaign ran from 4 January to 4 March 2012. It included a strong retail activation using QR
codes at strategic locations across Melbourne’s waterfront aimed at driving traffic and spend to the
city’s attractions, hospitality venues and retailers.
City of Melbourne sponsored events were also leveraged through the campaign, in particular the
Australian Open.
The Australian Open activation included mobile billboards with key messages to encourage
visitors back to the city to dine and shop.
Promotional staff at Flinders Street Station handed out maps and postcards, and a targeted email
was sent to Australian Open ticket purchasers with special offers.

Results
Sweeney Research conducted post event in April 2012 showed that:

    75 per cent of people who saw the advertising said they were more likely to consider
      visiting the city.
    More than 90 per cent of the target audience agreed there is a wide range of things to do
      in city.
    75 per cent of the target audience said they went leisure shopping in the city during
      summer.
    34 million advertising impacts totalling a unique reach of 5 million of the target audience.
    Facebook fans increased by 30 per cent.
    The What’s On website had more than 550,000 visits during the campaign period.

Hot Spots guide
Hot Spots is a free pocket-sized publication that promotes new businesses, activities and events in
Melbourne. It is a discerning guide to the very best of what’s new in Melbourne.
Eighty thousand copies of Hot Spots were distributed.
Hot Spots was supported by a strategic marketing campaign, that included promotion and public
relations activities, promoting it as a ‘must have’ guide to new Melbourne.


Social media
The City of Melbourne uses social media as another channel to communicate throughout the year.

    Facebook 37,500+ fans
    Twitter 22,000+ followers

What’s On website
Attracting an average of more than 250,000 unique visitors each month, City of Melbourne’s
What’s On website is a free marketing channel for City of Melbourne events, attractions and
businesses.
As the city’s destination website, melbourne.vic.gov.au/whatson promotes the destination
strengths of the city, including what’s on, places to go, dining and nightlife, shopping, as well as
information on getting around the city.
The What’s On eNewsletter delivers a weekly snapshot to 23,000 people of what to see and do in
the city, profiling the latest and greatest in events (arts, sport, festivals, school holidays), bars and
restaurants, attractions, shops, galleries, businesses and campaigns.


Retail specific initiatives of the Melbourne Retail Strategy 2006:2012
Two highlights in retail initiatives over the last six years have been the Great Melbourne Treasure
Hunt and Look.Stop.Shop.
Look.Stop.Shop. was a free event celebrating in-store retail experiences and creating an alliance
between retail events and existing, more established major events (for example the State of
Design festival, Melbourne Spring Fashion Week and Melbourne Music Week).
By using the event’s existing support, the initiative aimed to educate, inspire and entertain city
visitors and shoppers driving them to explore and transact through the city’s retail precincts.
Since its inception three years ago, over 75 retailers have participated in Look.Stop.Shop. which
has been promoted through social media, marketing and PR.
GREAT MELBOURNE TREASURE HUNT
The inaugural Great Melbourne Treasure Hunt (GMTH) was held over two weeks in February
2011. It was a retail-focused campaign driven by the Melbourne Retail Advisory Board’s
recommendation that a February marketing campaign be established by Council. February is a
traditionally low visitation period and this event was an attempt to drive visitation to the city.
The result was an integrated marketing campaign, focused on consumers engagement through a
‘treasure hunt’ style competition. The aim of the event was for consumers to see Melbourne in a
new light and rediscover the city as the destination for shopping, lifestyle, events and leisure.
‘Look.Stop.Shop. was a great model for improving and making window design more exciting’.
Susan Renouf, Chair, Retail Advisory Board
‘Look.Stop.Shop. was awesome. I really like the idea of creating a trail of stores around the city’.
Alex Cleary, Designer/Owner, Alpha 60
‘The Great Melbourne Treasure Hunt was a fantastic initiative. It is important to maintain that sort
of initiative’.
Elle Roseby, CEO, Sportsgirl


Melbourne’s calendar of events
Melbourne is home to world class events that draw millions of people to the city on an annual
basis across fashion, sport, arts and other cultural programs.
The City of Melbourne delivers an esteemed events program throughout the year including New
Year’s Eve fireworks and celebrations to welcome the new year, Moomba in March, Melbourne
Spring Fashion Week in September, Melbourne Music Week in November and Christmas
festivities in December.
New Year’s Eve 2011 attended by over 256,800 people told the story of Melbourne’s gold rush era
through projections, lighting and entertainment all of which culminated in a midnight fireworks
display. The event continues to grow with an estimated injection of $20 million to the local
economy.
The Moomba Festival, now in its 57th year, continued the tradition of breaking records with over
1.2 million people enjoying the March festivities and $40 million injected in to the local economy.


Melbourne Spring Fashion Week
Melbourne Spring Fashion Week (MSFW) is the city’s most exciting consumer fashion event.
MSFW provides valuable support to the retail, design and fashion industry.
In 2011, the 17th year of MSFW, the event continued to deliver on key Council objectives such as
activating Melbourne, increasing visitor numbers and providing an opportunity for economic
stimulus. The program showcased over 200 events in and around Melbourne and over 100,000
people visited the city during the fashion extravaganza.
Visitors not only immersed themselves in fashion but were encouraged to explore retail precincts
and find the hidden treasures in the city’s prized laneways. MSFW 2011 contributed over $5
million to Melbourne’s economy through investment in venue hire, equipment, contractors,
catering, talent, staff, publicity and marketing.
The city’s retail and hospitality precincts also benefited as attendees spent, on average, three
hours and $310 during each MSFW 2011 visit.

MSFW’s objectives are grounded in sound business goals, ensuring sustainable growth and
realisation of potential, specifically:

    promote direct retail traffic at a non-sale period and capitalise on the high yield Spring
      Racing Carnival;
    position the city as ‘the fashion capital’ highlighting the unique environment within the city’s
      retail, bars and other business experiences;
    create excitement around city retail at the beginning of the new fashion season and
      showcase the offer for immediate purchase;
    provide a cost-effective means of promoting retail fashion to consumers for both retailers
      and designers;
    provide a launching pad for new designers, products and stores in retail centres within the
      City of Melbourne; and
    drive consumer and sale promotions and stimulate product sampling and trial.
The 2011 MSFW consumer* was:

    female (88 per cent);
    aged 14 to 39 (83 per cent);
    rated MSFW 8 out of 10; and
    attended to see the new season fashion trends and to enjoy the ambience and
      atmosphere.
* Source: GA Research TBL Assessment – MSFW 2011


L’Oréal Melbourne Fashion Festival
L’Oréal Melbourne Fashion Festival (LMFF) is an annual celebration of fashion, beauty, business
and creative endeavour for everyone to enjoy. A true feast for the senses, the Festival presented
the most stylish, week long entertainment on offer including world class runway shows featuring
Australia’s established and emerging designers, state of the art production, beauty workshops,
industry seminars, forums, live entertainment and much more.
The Festival inspires and connects designers, retailers and shoppers who keep the Australian
fashion industry alive. Consumers can experience a runway show or fashion activity in March
before exploring Melbourne’s retail hotspots, armed with the most fashion-forward insights.
More than 380,000 fashion devotees attended the Festival’s 126 officially programmed events and
aligned activities throughout the month of March.
The Festival launched an online ‘Shop the Runway’ tool which integrated technology and offered
consumers the opportunity to purchase direct from the runway.
An expanded Business Series was also a highlight presenting 2,500 fashion, retail and design
industry representatives with networking opportunities across five events.
The Festival’s Cultural Program delivered over 79 fashion themed events across the city and the
impressive runway schedule featured both emerging talent and high profile designers including
Toni Maticevski, Alex Perry and Dita Von Teese.
Another initiative of LMFF was the Windows by Design free activation presented by the City of
Melbourne.

MYER AUTUMN WINTER 2012 LAUNCH
Myer unveiled its Autumn Winter 2012 collection in the historic Mural Hall featuring ambassadors
Jennifer Hawkins, Jessica Hart and Kris Smith on the runway. Myer also officially welcomed new
brands to its portfolio including Morrison and Autonomy in a spectacular parade showcasing the
new season collections by Myer’s leading stable of Australian designers.
Myer created a customer activation program hosting a series of in-store parades and fashion and
beauty workshops. Over 1,500 customers took the opportunity to see firsthand the collections in
Mural Hall at three separate shows on the day. Melburnians and customers alike had the
opportunity to meet Myer Ambassadors, hear directly from designers, take part in beauty
workshops and the latest styling updates for the season from Romy Frydman.
In the age of engaging customers through social media Myer asked customers and guests to
share their thoughts on the new season’s collections and join the conversation on Twitter by
adding #MyerAW12 to tweets.
Myer also looked to broaden the reach of the shows by streaming the collection launch live via the
Myer website to a further 7,000 customers.


FEDERATION SQUARE
Federation Square entered its 10th birthday year in 2012 with an abundance of events and
activities.
The Square received nearly 9 million visitors at the beginning of 2011 and that number is set to
rise in the future with an increasing number of plans for the precinct.
Last year’s program included a visit by Her Majesty the Queen, celebrations for the National
Gallery of Victoria’s 150th birthday, an interactive Big Screens program and a vibrant education
program that engaged over 4,600 students.


Melbourne Music Week
Awarded winner of the Australian Best New Event 2010, Melbourne Music Week (MMW) returned
for its second year in November 2011.
MMW held a week-long program of events dedicated to supporting and celebrating Melbourne’s
world-famous live and independent music scene.
MMW aims to unite individuals, businesses and organisations involved in the creation of music;
including live music venues, cafes, bars, record shops, clothing stores, music recording labels.
From 18 to 26 November over 18,000 people attended events as part of MMW.
MMW joined forces with Look.Stop.Shop. in 2011.
The collaboration offered a curated journey through independent retail and hospitality businesses
via window displays, events and specially created collections. This included an interactive
mannequin at pop-up store, Where Lovers Lie, which invited shoppers to create their own
soundtrack through fashion.
Following the success of the 2011 event, MMW is returning in 2012 with a bigger line-up of acts
and events.
Christmas
The city underwent a complete makeover during the 2011 Christmas season. City Square,
temporarily renamed ‘Christmas Square’, was reinvented as an urban forest during the
transformation.
Multiple native pines were used in the display which were irrigated throughout the season and then
planted across the municipality post festivities.
The setting provided a complete sensory experience with each tree fitted with light and sound
devices and a specifically composed sound and light show each night.
The square also featured a new Nativity scene, Santa’s House for Christmas photos, roving
carollers and a mistletoe bridge over the Yarra.
The entire municipality was decorated, including the Melbourne Town Hall, and a ‘Christmas’ tram
reflecting the true essence of Melbourne.
A Gingerbread village by Epicure at the Town Hall made entirely from gingerbread was also on
show which attracted over 35,000 visitors.


Lord Mayor’s Commendations
The Lord Mayor’s Commendations acknowledge and celebrate the long-term commitment of
independent small business proprietors to the city.
There are over 12,500 small businesses in the City of Melbourne, employing almost 75,000
people.
Over the years, our city’s entrepreneurs have adapted and prospered, creating jobs, boosting the
economy and playing an important role in making Melbourne the world’s most liveable city.
The Lord Mayor’s Commendations program has been running since 2005 and has so far
recognised more than 330 proprietors that have been operating for longer than ten years.
All industries and sectors are represented, from retail to hospitality, art galleries, fishmongers,
health, hairdressers and even Australia’s oldest paint maker.
There are four commendation categories for the Small Business Proprietor; Platinum 50+ years,
Gold 40+ years, Silver 25+ years and Bronze 10+ years. The Generational Family Business
Commendation is presented to families who have been in business in Melbourne for three or more
generations.
Twelve generational family businesses have received commendations including the Wittner
Family.
GENERATIONAL COMMENDATION
The Wittner Family
Wittner Shoes was founded by HJ Wittner who opened the first store in Footscray in 1912 and
2012 marks the shoe dynasty’s 100th birthday celebrations.
Wittner began as a family footwear retailer. HJ Wittner believed that a business would grow and
prosper if its customers were satisfied with the service provided and quality footwear was offered
at the best value for money.
Almost a century later his business still flourishes. A third generation of the family, three
grandchildren, Michael, Peter and Debra, are now at its helm and actively involved in the
management of the company.
The company has expanded to more than 67 stores located in all states of Australia, and it has
maintained a continuous presence in Melbourne’s central city since 1926.
David Wittner, Chairman, has been in the family business since 1950. David was honoured in the
Queen’s list of awards on Australia Day when he became a Member of the Order of Australia for
his contribution to business, particularly footwear retailing.


Gold Commendation

Connie Ceresiani
Connie and Franco Ceresiani first opened their jewellery boutique on Elizabeth Street in 1968. The
success of the business led to a second branch being opened in 1979 on Bourke Street’s popular
Centrepoint Mall and after several more additions and changes, they relocated to the ‘Paris end’ of
Collins Street in 2003.

Leon Corn
Friederich Robert Abrecht established his eponymous wholesale jewellery business in Melbourne’s
central city in 1875. Now trading as Abrecht Bird Jewellers.
Leon Corn’s association with Abrecht Jewellers began in 1971. Leon believes that Abrecht
Jewellers’ ‘long association with the City of Melbourne has been good for the business’. Leon
received a Gold Commendation in 2012 for trading for 41 years..

Alan Pinkus
In the mid 1950s, Alan Pinkus and his late brother Brian opened their first shoe store in Hampton.
A destination shop followed in Brighton with international designers, and the birth of their forte –
Bridal Party and Special Events.
In 1966, Pinky’s was established in Bourke Street and considered ahead of its time.
In 1970, Alan and his business partner and wife Diana, created a 6,000 square foot ‘shoe
paradise’ opposite the Melbourne Town Hall, which was branded Alan Pinkus.
Forty-six years on, they have established boutiques, including in Myer, both locally and interstate.
The Alan Pinkus city store is now located on Little Bourke Street.
Silver Commendation

Lynne Pilkington
Pilkington Jewellers of Little Collins Street began in 1949. Lynne Pilkington joined the business as
partner with her father Alwyn in 1980. The store still offers bespoke handcrafted jewellery and
jewellery repairs.

Abbie Siegel
Abbie Siegel’s mother, Diane Spielvogel, opened Paint ‘N Powder in Royal Arcade in 1965, this
establishing the first perfume boutique in Melbourne’s CBD. Abbie joined Paint ‘N Powder in 1984
and expanded the business. Abbie received a silver commendation in 2012 and Dianne received a
Gold Commendation in 2006.

Gregory Smith
Gregory Smith established Meka Products in 1979 as a woodware manufacturer selling goods at
the Queen Victoria Market. Despite ceasing manufacturing in 1997, Gregory and partner Suzanne
have maintained their retail business at the market.


Bronze Commendation

Dean Hewitt
Dean Hewitt started Madam Virtue & Co in 1998 and it has since become a Melbourne institution –
participating at important fashion festivals and playing a key role in the fashion industry. Operating
out of one of Melbourne’s iconic laneways, Crossley Street, Madame Virtue & Co has dressed a
number of celebrity clients and featured in national and international publications.

Verity Mathews
Verity Mathews’ father Bill opened City Books in 1996. Verity joined the business in 1999 and
hopes to provide a haven for Melbourne book lovers for years to come.


Melbourne Business Precincts Program
The Melbourne Business Precincts program 2011–13 is designed to assist precinct associations
within commercial development districts of the municipality, membership development and
precinct focused activities.
Comprising representative members of each recognised precinct association and the City of
Melbourne, the Melbourne Business Precincts Board will administer the precinct program,
including allocation of $300,000 marketing funding.
The program provides funding support for retail development, including marketing initiatives,
membership development, business-to-business activity, promotion and events to drive visitation
to relevant precinct areas within the designated district.
As a key output of the program, the Melbourne Business Precincts Board will focus on business
growth via the promotion and activation of consumer-relevant precinct areas.
Small Business Grant Recipients
The City of Melbourne Small Business Grants program provides business owners with the
opportunity to start up or expand their innovative and unique business, enabling them to contribute
to the vitality of the city.
Small business make up 83 per cent of all businesses in the Melbourne municipality and each one
of these successful applicants has something unique to contribute to Melbourne’s business
offering.
The grants program has contributed to the success of businesses such as Mag Nation, spice
retailer Gewürzhaus, Rooftop Cinema, Koko Black, confectionary company Suga and ethical
clothing brand Ink and Spindle.
The City of Melbourne’s Small Business Grants Program has been running since 1996.
It has provided almost $6 million in funding to more than 260 small businesses in the city.

2011–2012 RECIPIENTS
Melbourne City Rooftop The business aims to bring bees back to the city through deploying hives
on the roof spaces of cafés, restaurants, hotels and in residentialgardens in and around
Melbourne.
House of CQ is a new fashion studio introducing luxury, handcrafted corsetry, made-to-measure
bridal and couture, and tailor-made lingerie. The business offers bespoke clothing under four
brands and also mentoring programs for young designers.
Gumbo Kitchen is a mobile gourmet food van specialising in fast food based on recipes from the
New Orleans region in the United States. The Gumbo Kitchen food van travels to various locations
during Melbourne events and festivals.
Lydra designs and manufactures handbags and clutches. Products are up-cycled from remnant
upholstery and old leather jackets. Lydra will establish a creative hub providing local designers
access to manufacturing tools.


Public Art Program
Taking it to the streets has taken on a whole new meaning with the City of Melbourne’s Public Art
Program.
Nine new projects were commissioned in 2012 – some temporary while others will become a more
permanent part of the city.
Melbourne’s Public Art Program, which started in 2001, has brought a number of innovative and
thought provoking pieces to our urban environment.
The artworks are found in publicly owned spaces as well as public areas of private development
within the city, including built and open spaces such as buildings, streets, squares, parks and
gardens.
Following on from the Laneway Commissions program, the new structure for public art
commissions opens more opportunities for artists to create public art works throughout the
municipality.
MELBOURNE MOST LIVEABLE CITY
Melbourne has been named the world’s most liveable city by the Economist Intelligence Unit (EIU)
for the second year in a row, outranking other top international cities including Vancouver, Vienna,
Auckland and Helsinki.
The EIU ranking is one the world’s most widely accepted rankings of liveability, comparing 140 of
the world’s major cities.
Stability, healthcare, culture and environment, education and infrastructure are the five broad
categories on which the cities are assessed.
CHAPTER 4: FACTS AND STATISTICS FOR 2011–12

Review of the Melbourne Retail Strategy 2006:2012 (August 2012)
The review of the Melbourne Retail Strategy 2006:2012 was designed to measure the initiatives
undertaken throughout the six year term of the strategy.
An independent survey of 85 key stakeholders was conducted by The Future Laboratory which
included members of the Melbourne Retail Advisory Board; representatives from city and national
retailers, including large retail chains, Small Medium Enterprises (SMEs) and independents;
stakeholders from the Melbourne property, tourism, transport and events sectors; and local and
national media; participants in the Mid Term Review from 2008–2009; local and international retail
experts; and local and state government stakeholders.


Summary of findings
The stakeholders agree that Melbourne is the premier retail city in Australia, with 85 per cent
saying that Melbourne has been successful selling itself as Australia’s leading retail city. Almost 90
per cent consider Melbourne as a better domestic retail centre over the other Australian cities.
While stakeholders see Sydney as the primary domestic competitor, overall Melbourne rated
stronger as a retail destination.
Highlights of the last six years as considered by stakeholders, include the attraction of new and
innovative retail: 87 per cent of stakeholders say this has been achieved.
Stakeholders also consider the laneways to be a highlight of the retail scene and considered them
as Melbourne’s most exciting retail space. Other highlights illustrating the city’s retail mix were
identified in the review as the new Zara store on Bourke Street, Collins Street and also the Bourke
Street Mall.
Over 80 per cent of stakeholders feel that the City of Melbourne has been successful at supporting
and retaining the existing retail industry over the last six years.

‘What would have happened without the Melbourne Retail Strategy 2006:2012? It is a coherent
and comprehensive document that supports the urban offering.’
Justin Shannon, General Manager, Melbourne Central
‘The laneways are fantastic and so is Melbourne’
Maria and Eva Konecsny, Owners, Gewürzhaus Herb and Spice Store
‘Flinders Lane is very special for food and art’
Nick Shelton, Editor, Broadsheet


The review highlighted further opportunities for retail in Melbourne on both the cultural and digital
spheres. Stakeholders see potential in aligning the city’s international cultural reputation with its
retail environments.
In the digital sphere, 77 per cent of stakeholders state retailers must utilise smartphone shopping
technologies as much as possible to stay on the forefront of innovative retail.
Further opportunities highlighted as part of the review by the stakeholders related to niche and
innovative retail and how the city must further encourage this.
Retail impacts identified from the stakeholder survey
Research from the survey identified seven factors that stakeholders consider may impact on the
retail sector.


Effectiveness versus awareness
Stakeholders consistently rated the Melbourne Retail Strategy 2006:2012 as being successful,
though highlighted the strategy needs to be better promoted to get retailers further engaged.


Cultural Retail
Melbourne needs to align its retail environment intrinsically with its unique cultural qualities.


Tradition and Innovation
Melbourne is seen as being a traditional retail environment.


Finding a niche
The city’s local, niche brands need a home.


Techno-infrastructure
The stakeholders anticipate a retail future dominated by mobile online technologies.


Global benchmarking
The stakeholders see plenty of parallels in the other major retail capitals.


Own winter
An opportunity to emphasise a point of difference for retailers and as a retail environment.

‘(The Melbourne Retail Strategy) demonstrates to the retail sector that Government takes it
seriously and understands how it contributes to the city/state’s employment and liveability.’
Howard Goldberg, CEO, Country Road
Retail and entertainment industry establishments: key growth areas
 Total retail and entertainment industry                    2010        2006     + Change       % Change
 establishments
 Total retail and entertainment industry establishments     5,534      4,696         +838           18%
 Children’s clothing retailing                                18           8              +10      125%
 Supermarket and grocery stores                              103          54              +49       91%
 Footwear retailing                                           87          47              +40       85%
 Other personal accessory retailing                           49          29              +20       69%
 Hardware and building supplies retailing                     10           6              +4        67%
 Stationery goods retailing                                   22          14              +8        57%
 Clothing retailing                                          333         225         +108           48%
 Men’s clothing retailing                                    106          72              +34       47%
 Motorcycle retailing                                         22          16              +6        38%
 Furniture retailing                                          53          39              +14       36%
 Women’s clothing retailing                                  362         269              +93       35%

Source: City of Melbourne, City Research Branch, Census of Land Use and Employment 2010


Vertical, basement and laneway retailing
An area of growth and opportunity for retail includes the move to vertical, basement and laneway
locations.
Vertical retail (above awning) has grown significantly since 2006, with 197 new establishments (up
15 per cent from 1,311 in 2006 to 1,508 in 2010). From this number, the city welcomed 52 new
cafes and restaurants; 27 pubs, taverns and bars; 100 new fashion stores (combined figure for
women’s, men’s and children’s retailing) and 13 new furniture stores to above awning locations.
Many of the city’s heritage buildings, including Carlow House, Nicholas Building, Curtain House
and the Manchester Unity building are home to vertical retailers.
Basement (below awning) has grown 39 per cent with 135 new establishments underground or in
basements, mainly driven by fashion establishments with 105 new stores taking occupancy in
these spaces.
The city’s prized asset, the laneways continue to provide residents and visitors with a dynamic and
cultural retail experience. Since 2006, there have been 26 new establishments to take occupancy
in laneways – from 12 new cafes and restaurants and 12 fashion retailers, further elevating the
ranking of the laneways experience.
 Above awning retail and entertainment industry   2010            2006           + Change         % Change
 establishments

 Total                                            1,508           1,311          +197             +15

 Children’s clothing retail                       8               0              +8               %

 Catering services                                5               1              +4               400%

 Footwear retailing                               23              12             +11              92%

 Furniture retailing                              31              18             +13              72%

 Other electrical and electronic retailing        10              6              +4               72%

 Clothing retailing                               129             89             +40              45%

 Men’s clothing retailing                         36              26             +10              38%

 Women’s clothing retailing                       126             95             +31              33%

Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2010


Below awning retailing
 Below awning retail and entertainment industry            2010           2006         + Change         % Change
 establishments
 Total                                                      479           344              +135              +39
 Women’s clothing retailing                                  51            14               +37            264%
 Clothing retailing                                          59            20               +39            195%
 Men’s clothing retailing                                    17             6               +11            183%
 Footwear retailing                                          12             5                +7            140%
 Women’s footwear retailing                                  11             5                +6            120%
 Other personal accessory retailing                          10             5                +5            100%

Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2010
Laneways retailing
 Laneways retail and entertainment industry                 2010          2006     + Change      % Change
 establishments
 Total                                                       262           236           +26             11%
 Men’s clothing retailing                                      3             1            +2         200%
 Other personal accessory retailing                            2             1            +1         100%
 Clothing retailing                                           17             9            +8             89%
 Other specialised food retailing                              6             4            +2             50%
 Footwear retailing                                            3             2            +1             50%
 Women’s clothing retailing                                   19            19             0               0

Source: City of Melbourne, City Research Branch, Census of Land Use and Employment (CLUE) 2010


Melbourne Retail Monitor
As a key component of the Melbourne Retail Strategy 2006:2012, the City of Melbourne and the
Victorian Government established a city-focused retail monitor to examine the health of the retail
market based on reports of property indicators, capturing Melbourne’s retail CBD core, Docklands
and Southbank.
The monitor, established in 2007 serves as a benchmark to match what is happening in
Melbourne in comparison to local, national and global trends. It also facilitates the strengthening of
Melbourne’s reputation as Australia’s premier shopping destination.
In addition to the usual property indicators such as rents, yields, vacancy, tenancy mix and
turnover of retail tenants (churn), the monitor also examines:

     retailer sentiment analysis each half year;
     retail trends, issues in retail, eye on the economy, global view twice a year;
     major development (greater than $10 million) in Melbourne and nationally activity twice a
       year; and
    benchmarking / competitive analysis once a year.
Since 2006 vacancy rates have remained low though steadily increasing as a result of the global
economic impacts.
The Melbourne Retail Monitor for 2011–12 was provided by Savills Research by way of two six-
monthly reports in February and August 2012.
The August 2012 report covers the last six months from March 2012 to July 2012.
Major findings in the August 2012 report:

     The latest GDP figures (released June 2012 for year ended March 2012) show the
       Victorian economy bolstered by consumption and public investment.
     By shop front, clothing and soft goods retailers (38 percent), hospitality (26 percent) and
       services (10 percent) dominate the CBD core.
     Savills recorded 57 vacancies within the city centre from 1,143 shops surveyed, equating
       to a vacancy rate of 5 per cent. This is a decrease from the previously reported vacancy
       rate of 7.4 per cent in the March 2012 report.
     Savills has surveyed 872 shops in the combined region of Southbank and Docklands. Of
       this, 126 were recorded vacant, generating a vacancy of 14.4 per cent for the fringe
       precinct. This is an increase from the previously reported vacancy rate of 11.1 per cent in
       the March 2012 report.

Melbourne Retail – Prime CBD – Vacancy Rate (%) Jun-02 to Jun-12




  Source: Savills Research / CLUE


Retail Core Rents ($/sq m)
                              Q4/06               Q4/11           Change    Change    Change   Change
                                                                     Low     Low %      High    High %
Rent, $/sq m p.a            Low       High     Low        High    2006–11   2006–11    2006–   2006–11
                                                                                          11

Bourke Street Mall         5,100      5,800   6,700       8,700     1600       31%      2900      50%
(Super Prime)
Swanston St (Prime)        1,500      3,900   2,100       3,800      600       40%      –100      –3%
Elizabeth Street           1,500      3,900   2,100       3,800      600       40%      –100      –3%
(Prime)
Little Collins Street          –         –    2,100       3,800       n/a       n/a      n/a         n/a
(Prime)
Collins Street (Prime)     1,500      3,900   2,100       3,800      600       40%      –100      –3%
Secondary areas              800      2,000   1,750       2,250      950      119%       250      13%
(Bourke – excl Mall &
Flinders)

Source: CB Richard Ellis, Market View, Melbourne Retail 2011


Retail Rents
Retail space in Melbourne continues to be highly sought after within the retail core, across
laneways, arcades and shopping centres with many international brands including Zara, Converse,
Paul Smith and Gap entering the market.
Rents in Melbourne’s shopping haven of Bourke Street Mall are considered super prime with other
areas of the retail core, Swanston Street and also Elizabeth Street considered prime.
Melbourne Retail & Services – CBD – Tenancy Mix Count (%) Jul-12




Source: Savills Research


Melbourne Retail & Services – Southbank Precinct – Tenancy Mix Count (%) Jul-12




Source: Savills Research


Melbourne Retail & Services – Docklands Precinct – Tenancy Mix Count (%) Jul-12




Source: Savills Research
Pedestrian Monitor
The City of Melbourne has developed a pedestrian monitoring system and online visualisation tool
to better understand pedestrian activity within the municipality.
The monitoring system comprises 18 pedestrian counting sensors strategically located in the
central city and Docklands. It works 24 hours a day, seven days a week. counting pedestrian
movements, not images, so no individual information is collected.
The data collected, which represents volume of pedestrians or people in an area, can be used as
a key performance measure to monitor and evaluate the effects of pedestrian infrastructure
investments.
Also to monitor and assess the impact of ongoing and major events in the city to assess and
respond to current needs and forecast future demands to improve walking in the city.
The monitor also serves to better understand the environmental impacts and benefits of walking.
The data is also useful for businesses to determine property values, security needs and staffing
requirements.
Businesses can also use the data to inform their marketing strategies to maximise exposure to
passing pedestrian traffic and attract potential customers.
Based on the data collected, pedestrian activity increased by 5 per cent on weekdays (from
99,000 to 104,000) between May 2011 and May 2012, and 1 per cent on weekends (from 93,000
to 95,000) for the retail and leisure precinct sensors.
December 2011 recorded the highest weekday activity (123,000) due mainly to Christmas season
celebrations, followed by March 2012 (115,000) which can be attributed to the major events that
dominate the city’s calendar.
The City of Melbourne has developed an online data visualisation tool to make the data publicly
available.
The tool is designed to be able to illustrate the impact a major event has on the level of pedestrian
activity in the city and the degree to which this impact is due to more people coming to the city or
being drawn from other parts of the city. It also allows users to download the data for further
analysis and use. The tool is available online at www.pedestrian.melbourne.vic.gov.au


Who uses the city?

City of Melbourne municipality: daily population estimates and forecasts
The City of Melbourne daily population estimates and forecasts 2004–2030 (2011 Update) has
revised the ‘daily population’ (previously termed ‘city user’) for the purposes of City of Melbourne
data collection. It now includes the under 15 years age group who travel to or is in the Melbourne
municipality. The definition is also based on the purpose of travel to the city and the person’s
origin of residence.


Day time daily population: 805,000
It was estimated that approximately 805,000 people, including children under 15 years of age,
travelled to or were in the city on a daily basis in 2011. This was dominated by city workers (49 per
cent), followed by metropolitan visitors (20 per cent). The daily population aged 15 years and over
comprised:

    91,000 residents
    391,000 workers
    56,000 students
    231,000 visitors (metropolitan 158,000, regional 12,000, interstate 28,000 and international
      33,000).
    Night time daily population: 363,000
Melbourne is truly becoming a 24-hour city with an average 363,000 night time daily population in
2010, a slight increase of 1.9 per cent from 2008 (356,000). The growth is driven by worker,
resident and (metropolitan) visitor groups.

DAILY POPULATION EXPENDITURE ESTIMATES
The estimated median expenditure by Victorians per visitor is $12 on a weekday and $40 on a
weekend. A quarter of Victorian visitors to the Central Melbourne Area in a weekend spend in
excess of $150.
Source: City of Melbourne Central Melbourne Travel Survey 2012



MELBOURNE AS AN INSPIRATIONAL, BOLD, INNOVATIVE AND CREATIVE CITY
The Central Melbourne Travel Survey highlighted almost 80 per cent of city visitors see Melbourne
as an inspirational, bold, innovative and creative city. The level of agreement was highest among
residents of the Central Melbourne Area (CMA), and interstate and overseas visitors. When asked
what they believed was the most creative aspect of the city, they rate the arts, art precincts,
galleries and museums, followed by architecture and buildings and Federation Square.


Population Statistics
The most recent resident figure for the Melbourne Local Government Area is estimated at 103,631
people as at June 2012.
This estimation is derived from adding an estimate of change over the last year to the Australian
Bureau of Statistic’s (ABS) 2009 Estimated Residential Population (ERP) for the municipality.
Population estimates for City of Melbourne from 2006 to 2012
Small Area                     Year          Population    Proportion of
                                                                   CoM
Carlton                        2006              12,880              16%
                               2012              15,633              15%
Docklands                      2006                4,217              5%
                               2012                7,680              7%
East Melbourne                 2006                4,675              6%
                               2012                5,178              5%
Melbourne – St Kilda Rd        2006                 951               1%
                               2012                1,710              2%
Melbourne – CBD                2006              15,404              19%
                               2012              22,399              22%
Parkville                      2006                5,206              6%
                               2012                5,739              6%
South Yarra                    2006                4,699              6%
                               2012                4,702              5%
Southbank – South Wharf        2006                9,943             12%
                               2012              13,792              13%
Kensington                     2006                9,160             11%
                               2012              10,558              10%
North Melbourne                2006              10,561              13%
                               2012              12,396              12%
West Melbourne                 2006                3,293              4%
                               2012                3,845              4%
City of Melbourne              2006              80,988             100%
                               2012             103,631             100%

Source: id Insight, Small Area Population Forecast for Melbourne LGA, 2006 to 2031
MELBOURNE RETAIL STRATEGY 2006:2012 OBJECTIVES

Objective
Retail mix
Introduce a specific retail business monitor to regularly benchmark the health of the city’s retail economy.
Develop and maintain the integrity of retail mix throughout the city.
Ensure the city’s retail offer remains diverse, authentic and continually evolves.
Cultivate new and unique retail experiences that will add to the city’s existing offer.
Evolve the city’s distinctive retail enclaves that highlight the city’s diverse offer.
City ambience and activation
Create a nationally recognised shopping festival that will attract visitors from across Australia.
Facilitate greater integration of Melbourne’s events calendar and the retail offer.
Develop a varied, year round events calendar to stimulate visitation to the city and retail core.
Encourage the integration of retail and arts to enhance the retail experience and create repeat visitation.
Architecture and design
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.
Maintain, expand and enrich the laneways network and experience within the city.
Promote and develop new and innovative retail areas within the city.
Develop a city environment that encourages repeat visitation and heightens the overall experience of shopping in
the city.
Encourage integration of the retail experience and street landscape.
Establish a forum to ensure the retail vision for Melbourne sits within a sustainable framework for the working
and residential populations of the city.
Retail marketing
To promote Melbourne’s distinct retail personality and attitude.
Leverage strategic partnerships and develop joint venture campaigns that will see the Melbourne message
communicated stronger and further.
Deliver increased retail spend to city retailers by leveraging visitation to Victoria from the many major and
hallmark events.
Position the city as the capital retail experience within Australia.
Continually seek out new and innovative ways to provide the latest retail information to consumers.
Tourism
Provide visitors to Melbourne with an experience that encourages maximum retail spend.
Develop a retail specific City Ambassador program to deliver the city’s unique retail message and experience to
visitors.
Provide intrastate, interstate and international visitors to Melbourne with access to comprehensive and insightful
information on Melbourne’s retail offer.
Continually review and monitor tourism growth markets and consumer behaviour to ensure tourism marketing
and services reflect the interests of these groups.
Access and amenity
Influence local and state transport policies to benefit city retailers.
Provide consumers with better parking options at off-peak times and weekends.
Provide consumers with added incentives to access the city via public transport and shop in the city.
Encourage retail staff to see Melbourne city as the retail workplace of choice over other retail centres.
Increase favourable perceptions among local consumers about access to the city.
Establish a quiet hub for city shoppers that provides baby change facilities, rest spots, and parcel minding
services.
Provide more efficient ways to fulfil deliveries to city retailers.
Sector and business development
Facilitate opportunities for increased spend to the city’s retail sector from the Conventions and Business Events
market.
Facilitate continued retail innovation, excellence, knowledge and opportunities for the city’s retail sector.
Investment attraction
Identify and develop second and third level retail space throughout the city as potential shop spaces for
innovative Melbourne retailers.
Attract dedicated homeware and hardware stores to the city.
Industry liaison
To provide a dedicated interface between Melbourne City Council, State Government of Victoria and the retail
industry that will deliver Melbourne’s vision of becoming Australia’s leading retail city.



Acknowledgements
The City of Melbourne and the Victorian Government thank current and past members of the
Melbourne Retail Advisory Board and former Councillors and Ministers for their contributions in the
development and implementation of the Melbourne Retail Strategy 2006:2012.
We also thank our retailers whose innovation and dedication to the city ensures Melbourne as not
only the world’s most liveable city but a premier retail destination.


Tracking and Reporting
The Melbourne Retail Strategy is reported on annually. This report and the progress of the
strategy have been prepared for public viewing. Tools such as the retail monitor, CLUE,
Pedestrian Reports and data from CB Richard Ellis have been used as benchmarks.
Details correct at time of printing

				
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