Retailers Hope Rate Cut Gives Them a Kick

Retailers are hoping that the latest interest rate cut would give them a break ahead of the Christmas season.

According to industry analysts, rate cuts should extend some help to landlords like Westfield Group. Bank of America Merrill Lynch said it sees potential for Aussie retailers to start investing again on real estate investment trust.

True enough, the rate cuts came a day before the Sydney grand launch of Topshop Topman, a UK fashion brand. Its flagship store opened in George and Market Streets.

Topshop Topman’s store occupies four floors of 1,800 square meters. It also employs about 300 staff.

It took Topshop Topman four years of consideration and evaluation before it finally opened its flagship store in Sydney. Real estate agents initially proposed the Commonwealth Bank site but changed their minds when they realized that it is far from the core retail strip.

The sentiment is echoed by many international brands. As much as they want to open stores in Australia, finding a good and available location is a major consideration.

But the launch of Topshop Topman is seen as a positive sign for retailers. This is one of the major brand launches after Spanish label Zara opened its flagship store close to two years ago. Zara’s store is located at Westfield Sydney in Pitt Street Mall.

The introduction of international labels in Australian shores is also expected to make the fashion industry more competitive and exciting.