The retail mix reveals Melbourne's heavy reliance on food related retailing,combining to represent approximately 40 per cent of all tenancies. This food-heavy strategy reflects deliberate efforts to maintain CBD vibrancy despite reduced office attendance, though success varies significantly based on weekend and evening activation capabilities.
Unlike other CBD prime retail cores, Melbourne shows a true diversity of uses with clothing & soft goods, personal & household goods as well as services representing a good split offering something for all visitors.
Melbourne's tourism recovery provides crucial support, with hotel occupancy at 72.9 per cent after strong new hotel additions, indicating steady visitor flows that benefit retail particularly during weekends. The city's reputation for food culture and laneways continues attracting domestic and international tourists who contribute significantly to retail spending outside traditional business hours. The upgrade of assets along Bourke Street Mall has been instrumental in drawing visitors back in, these tenancies such as Mecca and PopMart leaning on experiential activations and social media trends bringing vibrancy back to the mall.
Melbourne's retail sector shows resilience through strategic adaptation. The focus on experiential dining, cultural activation, and weekend tourism creates alternative revenue streams that reduce dependence on office worker spending. As refurbished luxury assets return to market and office attendance gradually improves, Melbourne's retail sector is positioning itself for stronger recovery in the medium term.
