Ragtrader regularly investigates how key shopping strips in regional Australia are faring. Here, Melinda Oliver looks at trade in the Victorian beach side town of Lorne.
Tourists have been flocking to Lorne along Victoria’s Great Ocean Road for years, with peak traffic in the school holidays and summer period. At around two hours drive from Melbourne, it is an easy-access institution for holiday-makers and also attracts international visitors.
Directly on the surf beach, Mountjoy Parade is the main road running through the compact area. It is home to a mix of fashion boutiques, surf shops, a cinema and food outlets. Nearby, ample holiday apartments and a caravan park make it a busy hub.
Retailers say it is an area of highly seasonal trade, with a common practice to shut up shop on weekdays during winter. Deluxe owner Renea Forsyth says she chooses to reduce opening hours in the cold months, rather than have her team on the floor with no customers.
“It is difficult for sales staff to remain motivated when they may not make a sale all day,” she says. “[Instead] we go to Melbourne midweek to buy [stock from brands] and the store manager is included in the buying.”
Forsyth opened the womenswear boutique 10 years ago to bring contemporary and directional labels to the coast. Metalicus, Body by Dainy Sawatzky, Katie Hosking, Indigo, Bettina Liano, True Religion, Citizens of Humanity, Nevenka, Fleur Wood and Zimmerman Swimwear are among the brands gracing the racks. She says the strongest selling category is lower-priced fashion pieces.
“Our target customer is 20 to 50 years old, who likes elegant fashion that takes them from the beach to running the kids to school, or lunch out with the girls,” she says.
To reward the loyalty of local customers, Forsyth offers a 10 per cent discount. Also important are events to generate community interest in fashion.
“This year we have had two fashion parades; one was held in Geelong at the Mercedes Benz dealership with four other stores from the region,” she says.
“The other was at the Lorne Golf Club with local ladies and other stores in our street participating. The direct effect on sales is still to be gauged as the high season approaches.”
Forsyth has witnessed an increase in the number of retail outlets along Mountjoy Parade in recent times.
“Some businesses have come and gone. The key is making the summer sales strong and subsidising the winter to meet costs. It is not easy.”
Long experienced in the ups and downs of Lorne trade, the manager of Oceans Clothing, Rebecca Richards, finds the strong seasonality works in the store’s favour. Her family has run the trend-focused womenswear boutique for 30 years and also operates Oceans Girl next door, which caters to a younger demographic. Over the two stores, they house 240 brands.
“[The seasonality] is a good thing for us as we know when we will be busy,” she says. “We know the demographic of the people that come in at different times of the year.”
Richards says she has shifted the product offer in recent seasons to include more specialty pieces rather than basics. She finds that customers on holidays have more time to browse and try on items for occasions. A major challenge for the store is the timing of delivery of winter stock. Richards needs it by March in order to sell it and have a discount sale before they close for the winter break.
“It is a small window – not many brands can do this,” she says.
A major improvement that Richards would like to see in the area is more parking, as the lack of easy spaces to stop means the store misses out on a lot of day-trip customers.
To offer a point of difference on the street, the owner of Retro Baby, Janet McLeod, specialises in vintage swimsuits and apparel. McLeod sources swimsuits from the 1940s, ‘50s and ‘60s and sells them all year round, with her main trade also in summer.
“Down here there is a beach culture, which is a different sort of vintage – it is more casual than in Melbourne,” she says. “They want sunfrocks to wear to the beach and that sort of thing.”
McLeod explains that the swimsuits are becoming extremely rare, as they often have a hard-wearing life in comparison to the way people treat evening gowns. She says many people come to the area to visit her store, but she is also in the process of expanding online to boost sales all year round.
She says trade has been steady in recent years, but she has noticed customers are more discerning with their money.
“In the past, when people used to have ‘60s parties and they would buy a whole look head to toe, they would get everything,” she says. “Now they may buy a statement piece.”