Homemaker Retail Precinct Performance Can Be Volatile
The performance of homemaker retail precincts can be quite volatile, due to the nature of products sold typically being of higher average ticket size. Homemaker retail precincts mainly contain retail associated with leisure and lifestyle, including (but not limited to) furniture, manchester and bedding stores, homeware and electrical stores, pet shops and pet care, automotive, hardware, and sporting goods stores. As many of these items are discretionary (not necessarily essential) purchases, consumers may pull back on their spending on these types of products if disposable income becomes limited. Heading into Christmas, a particularly expensive time of year, it is an opportune time to reflect on how homemaker retail precincts are currently performing.
Some of the highest average spend per transaction homemaker retail precincts across Australia include Home HQ Nunawading in Melbourne, Wagga Gate Homemaker in New South Wales, Homemaker City Aspley and Maroochydore Homemaker Centre in Greater Brisbane, according to the latest edition of Geotech’s Precinct Prospector Report (based on Precinct Scout Mastercard Merchant Data). All of these homemaker precincts are ranked within the top 20 on average spend per transaction within their respective states. However, performance of homemaker retail precincts can be quite volatile. Some of the homemaker precincts with the most significant declines in both transaction activity and average sales over the last year include: Indooroopilly Central in Queensland and Home Central Albion Park in Sydney.
In addition, despite having a high average spend per transaction, Home HQ Nunawading in Melbourne has actually been having significant declines in both transaction activity and average sales over the past year which is concerning.
Homemaker and bulky goods centres are highly sought after, due to the larger format stores that are required for this type of retail. Larger format stores often require a high level of investment for store setup, therefore it is important for homemaker and “big box” retailers to determine the most optimum homemaker retail precincts to enter into for their particular brand. it is important to determine which homemaker retail precincts are experiencing growth (or declines) in transaction and sales activity before investing significant funds into setting up large format stores.
Geotech is happy to assist and provide further information if homemaker retail precincts, or any other type of retail precinct, are a consideration for your brand. Contact us at email@example.com or by calling (03) 9544 0440.
Precinct Scout visually displays the strength of a precinct on important measures such as transaction and sales activity, which is an invaluable tool for retailers wanting to assess homemaker or any other retail precinct. Click here to find out more https://www.geotechinfo.com.au/precinct-scout