Poor marks for University Hill

MAB Corporation's recently opened Brand Junction discount shopping centre at University Hill Bundoora has reportedly hit rough waters.

Industry sources have told Ragtrader magazine the Victorian-based retail complex, which opened in November 2008 after several operational delays, was failing to attract the numbers seen at competitor stores DFO and Docklands. It was alleged a limited retail offering and a lack of advertising spend had resulted in low foot traffic.

Menswear retailer Tarocash confirmed while its University Hill site was not "struggling," it had been disappointed with sales to date. Gary Novis, chief executive of the brand's parent company Retail Apparel Group (RAG), said the current economic downturn made discount shopping particularly attractive for shoppers.

"[However] trade is certainly not where we expected it to be at this point," he said of the brand's University Hill store.

RAG property manager Nicole Haley said she had been in discussions with management about the centre's performance and remained hopeful of improvement. She said executives had confirmed they planned to spend "substantial" money on advertising going forward.

"One factor to bear in mind is that they opened the centre during the university holidays, which run from December to March, and because this is a very university focused area that might have affected foot traffic."

Haley believed a stronger retail offering would also attract more shoppers to the complex. Strong performance at Westfield's Plenty Valley shopping centre - a stone's throw from University Hill - implied the local demographic was ready to shop given the right retail mix, she said.

"There's certainly some great retailers at University Hill, but they need to entice some really big names in."

Current fashion tenants included Aldo, Croft, Globalize, Guess, Laura Ashley, Milu, MNG, Novo, Rivers, Strandbags, Tarocash and Zu.

Laura Ashley managing director Daryl Chait said the first two months of trade had been "fantastic", although sales had slowed after Christmas.

"I'm not too alarmed however, as a big component of the centre's market is university students, who have been on holiday until this month."

Globalize managing director Clayton Cross said while the centre opened well it had entered a "tougher period".

MAB Corporation general manager Mark O'Connell denied claims put forward by one source, who said a substantial percentage of lettable area was still vacant at the complex. O'Connell said only nine out of 80 stores were vacant and the centre was well positioned to capitalise on demand for discount shopping avenues.

"We've had over 300,000 shoppers come in since it opened," he said.

Positioned on the corner of Plenty Road and the Metropolitan Ring Road opposite RMIT, University Hill is 18 kilometres north from the Melbourne CBD. Brand Junction is a $1 billion fully integrated mixed use development across the business, retail and residential categories.