SYDNEY: Retail property giant Westfield will cannibalise its existing customer base with the launch of its new Pitt Street development, a Paddington property powerhouse and competitor has claimed.
Theo Onisforou, the owner of Paddington's 'The Intersection' fashion precinct, recently initiated a revitalisation of the Glenmore Road and Oxford Street area, including a change of leaseholders and store renovations.
However, the retail doyen claims the timing of the overhaul, completed just one month out from the first stage opening of nearby Westfield Sydney, was a “coincidence”.
“I expect that Westfield Sydney will harm Westfield Bondi Junction more than it'll harm my precinct, because it's more of the same within a very short proximity,” Onisforou said, adding both would draw an eastern suburbs customer base.
“I'm confident when I say there is nowhere else in the world that Westfield has got two premium retail centres within five or six kilometres of each other, and clearly connected by a railway line.”
While “a couple” of Onisforou's tenants are set to open in the new Westfield Sydney, including Zimmermann, Onisforou was confident business would remain strong in Paddington.
“There's no shortage of people that don't like shopping centres and they're the people I'm catering for,” he said.
New designer tenants in The Intersection include Ginger & Smart, Marnie Skillings and Anna Thomas, while those that have exited include Sydney designer Sally Smith and independent chain Stellino.
Onisforou welcomed the exit of the latter, which stocked labels including Mink Pink and Ladakh during its five-year lease.
“I really want to get to the stage where every concierge in Sydney, if a woman says ‘I want to buy Australian fashion’, they know to go to Paddington,” he said.
Ginger & Smart designer Alexandra Smart revealed the label's new 70sqm boutique in The Intersection would replace its nearby William Street store.
“It's a strong brand statement for us to be in amongst great Australian labels,” Smart said of the move.
Designer Marnie Skillings said the precinct's “villagey feel”, location and labels also lured her to sign on with Onisforou. It is the second boutique for her eponymous label.
Onisforou is also the Australian licensee for denim brand, Diesel.
Erin O'Loughlin