International homewares retailer, Daiso, has confirmed in will open its Australian flagship in Melbourne’s CBD later this year.
Ben Tremellen, Colliers International manager of retail leasing, and leasing agent Michael Di Carlo, ofSavills, together with Tim Boyce, Daiso property executive and former Coles Group head of property,have facilitated a new lease under which Daiso will occupy 1800sqm site at Level 1, 2 Elizabeth Street.
The Japanese-based brand has signed a 10 year lease with the doors expected to open in late August.
Tremellen said while Daiso had several existing franchise outlets in Australia, this store, at the cornerof Elizabeth and Flinders Streets, would become one of the first company-owned and operated stores tobe opened in Australia. Daiso opened its first company-owned store at the Myer Centre in Brisbane onApril 23 to strong customer traffic.
“Traditionally, retailers have had a strong preference for ground floor shop fronts, but as vacancy acrossthe Melbourne CBD remains tight I believe we will see an increase in what we call vertical retailing,particularly with big box international retailers,” Tremellen said.
“At Colliers International, we are working with numerous landlords to activate multiple levels for retailuse. This new Daiso store will be one of the largest Level 1 retail offerings in the Melbourne CBD when itopens later this year.
Colliers International introduced Daiso to leasing agents Savills after coming on board tohelp the popular Japanese retailer find a site for their Australian flagship
Daiso’s Australian CEO, Kit Cheong – a former senior executive at the Coles Group and Pacific Brands –said the Daiso concept of providing everyday life solutions for one price of $2.80 was perfectly suited tothe Australian retail market.
“With up to another dozen stores to open this calendar year along the east coast, the business is alreadywell positioned to capitalise on some excellent locational opportunities that have emerged,” Cheongsaid.
Di Carlo declined to confirm the rent but said Daiso would pay more than $200/sqm over office rents,which represented exceptional value for building owner Fivex Commercial Property and an affordableretail rental for Daiso.He added the space was originally earmarked for offices but agents were able to work with both theowner and tenant to deliver a concept that allowed the area to be activated as a retail store, with accessvia escalators from Flinders Street.
He said the building’s location on the Elizabeth Street corner, opposite Flinders Street station – wherepassenger numbers were expected to double from 200,000 per day to 400,000 per day within 10 years– and the diverse mix of food retail, residential and education uses surrounding the building were keyfactors in Daiso’s decision-making.
