What are the key characteristics of the Bondi Beach strip?
Bondi Beach is an iconic beach located in Sydney’s east approximately 7km from the CBD. With its international recognition and natural appeal it attracts backpackers and tourists throughout the year while also housing various TV personalities. Bondi Beach is constantly featured in the media, in shows such as Bondi Vet, Bondi Rescue and The Block. The unremitting supply of visitors to the area and constant media attention makes Bondi Beach a desirable location for retailers. The strip is also saturated with food retailers, both restaurants and takeaway food.
Are any international brands showing interest in the strip?
At one stage, Patagonia was rumored to have looked at Bondi, to go into direct retail, but this has not happened. The fashion scene is very parochial with local brands, local designer wear and boutiques fashion stores occupying the area. The area attracts many international visitors. There's not enough business to sustain an international fashion retailer, as all the recognised brands can be found at Westfield Bondi Junction, which is in very close vicinity to Bondi Beach.
What is the prime retail space on the Bondi Beach strip?
Typically food retailers are situated along Campbell Parade facing the beach, whereas fashion retailers are ensconced in the back streets behind Campbell Parade, although swimwear and surf wear retailers can be found along the main strip. Gould St is parallel to Campbell Parade and is the home to many local brands such as Ksubi, Shona Joy, General Pants and also smaller boutique stores. Less notable retailers can be found on Hall St and Glenayr Ave. The prime retail area for fashion is anywhere in this vicinity behind or on Campbell Parade bordered by Hall St and Curlewis St up to and including Glenayr Avenue. Conversely, food retailers are most successfully positioned along Campbell Parade.
What are the key demographics of the area?
According to the 2006 national census 44 per cent of residents have a weekly individual income of $800+ per week. One or two person- households dominate with over 70 per cent, coinciding with the 61 per cent of residents living in a flat/apartment or unit. Renting is the predominant type of ownership with 45 per cent. The area is eclectic, in so far as you have some of the most expensive apartments in Sydney, juxtaposed with housing commission apartments.
What do retailers pay to rent on the key streets?
Fashion retailers pay between $1500 and $2500 gross per week to secure spots in this prime retail precinct. These rents increase annually with either CPI or five per cent.
How is the mix of retailers changing?
The impending redevelopment of the Hakoah Club on Hall Street will present new serviced apartments and a shopping arcade. The development will attract more tourists to the area and perhaps shift some attention from the main strip up to Hall St. Fashion retailers situated between Campbell Parade and Hall St will benefit from the increased foot traffic between these two locations. There has been no mention of the type of retailers entering the centre however in my opinion the centre will be weighted towards food-oriented retailers (fresh food) or service retailers. The negotiated rents in the new centre will have a significant impact on the rents paid by retailers in the vicinity.