Super-malls lure Aussie fashion retailers

Supre's plans to increase store numbers from 14 to 20 this year poses a threat to Hallenstein Glasson. Picture / Carolyn Robertson

Auckland's new shopping malls are luring new fashion retailers across the Tasman, bringing more choice for shoppers but not necessarily tougher competition for Kiwi retailers.

Six Australian clothing retailers will set up shop here for the first time as the Sylvia Park mall in Mt Wellington nears completion and Westfield's new 28-store fashion precinct opens in Nuffield St, Newmarket, next month.

Youth fashion chain Supre is also expanding in what it says is a "booming" New Zealand market, with plans to increase store numbers from 14 to 20 by the end of the year.

The retail leasing manager for Sylvia Park, Roy Stansfield, said a lack of large-scale shopping centres in New Zealand had put many Australian brands off heading across in the past.

Stansfield took it as a sign of confidence in the complex and New Zealand's retail market that surf label Roxy and women's fashion label Kookai were opening stores sized between 230sq m and 300sq m at Sylvia Park - double the average store size at the mall.

Westfield New Zealand deputy director Justin Lynch said the mall had no trouble attracting tenants to Nuffield St. Nine were international brands new to New Zealand, including Australian fashion designers Alannah Hill and Nicholson.

At the other end of the market, Supre's expansion in New Zealand was in keeping with its aim be only a short drive from anyone who needed a fix, said its international brand assistant, Amy McKean.

Listed clothing retailer Hallenstein Glasson was perhaps the most likely to feel the impact from the expansion of the teen fashion chain.

Macquarie Equities analyst Warren Doak said the opening of several new stores by a chain such as Supre presented a greater risk to Glassons than the arrival of several new brands opening one store each.

Although new players had the advantage of being fresh and new, they would have to offer something different to draw shoppers away from existing offerings, he said.

"As a society we talk fashion and we buy price.

"What is Glassons? A fashion item at a moderate price. So it's pretty hard for people to compete with that."

Also in Glassons' favour was its New Zealand ownership, high brand profile and large store network.

Doak also saw limited opportunities for new brands to expand beyond the current pipeline of mall openings.

"Once these guys are set in Sylvia Park, then where do they go?" he said.

"They'll want something in Queen St and Newmarket but ... good luck finding space.

"Then, maybe Wellington, but it takes a long time. Then, when you get to the Cook Strait you've got major supply-chain logistics just getting product across ... New Zealand is not the easiest country when it comes to distribution."

Doak said new entrants continued the trend in New Zealand retailing in the past decade towards more choice.

In April, Hallenstein Glasson's managing director Cliff Kinraid said he saw the expected Australian invasion as positive.

"It keeps us on our toes."

Fashion Industry New Zealand executive director Mapihi Opai was not aware of any concern among the body's 200 members about the arrival of more Australian fashion retailers.


AUSSIE INVASION

New Australian retailers, opening at:

Sylvia Park

* Roxy

* Kookai

* ShooBiz

Nuffield St, Newmarket

* Alannah Hill

* Nicholson

* Kikki.K