Zimmerman said on-the-shelf products at these smaller stores would also serve as samples to entice buyers to shop online.
“Why do you need 120 or 130 square metre stores?” he said.” I think we're going to see some really big structural changes and I don't think that the landlords have really come to grips with it”
He said growing overheads related to physical stores was becoming a bigger issue for the retail sector.
“I think the big issue for retail facing Australia at the moment is the cost of the landlord,” he said.
Miniso agreed. He said rent was a key consideration for offshore groups when considering entering the Australian market.
“We've been doing a 2018 budget review,” he said “On one side we have our ambitions expansion plan, but on the other side it's like, what's the cost?”
The conversation also touched changing consumer spending patterns and the apparent spending shift toward ‘experiences’. Listen to the podcast above to find out more.
Jo Masters is Senior Economist at ANZ