Colliers International negotiates first international retail lease on Chapel Street since 2013
International cosmetics retailer Deciem will open its first Australian store on Melbourne’s Chapel Street.
Colliers International retail leasing specialists Ben Tremellen and Cam Taranto have negotiated a five year lease to Deciem for a 200sqm site at 513 Chapel Street in South Yarra.
Deciem will pay an annual rent of $230,000 per annum or $1,150/sqm per annum (approx.).
“Deciem is one of the first international brands to secure space on Chapel Street since West Elm opened its Melbourne flagship store in 2013,” Mr Tremellen said.
“With the likes of international cosmetic brands such as Sephora and Amuse Cosmetics entering the Australian market within the last 12 months, we are seeing a significant trend towards cosmetic retailers securing larger format stores within premium Australian locations.
“Local beauty retailers such as Mecca, MAC and Napoleon Perdis are also in a growth phase, securing a number of new flagship locations throughout Australia.
“There has been a significant decline in local fashion operations securing new sites within the last 12 months, which has allowed beauty retailers to lead the charge in competing for these flagship locations."
Mr Taranto said Australia was still an unsaturated market for international cosmetic brands, relative to overseas.
“This lack of competition has led to a large push from these international cosmetic brands,” he said. “In addition, large mark-ups on cosmetics has created greater profit margins for these brands, allowing them to expand overseas.
“On the contrary, local retail fashion brands are being squeezed out of the market due to ongoing competition created by the increased presence of international brands in the Australian market as well as tightening profit margins on product lines being influenced by the likes of Uniqlo, H&M, TopShop and Zara.”