The Shopping Centre Council of Australia (SCCA) and the National Retail Association (NRA) have jointly welcomed the ACCC's decision to re-authorise the Casual Mall Licensing Code of Practice for an additional 10 years.
The decision marks the longest extension since the Code's inception in 2007 and ensures short term pop-ups can continue in common mall areas without unreasonable introduction of competitors.
The Code allows businesses to occupy space for a maximum of 180 days and helps to support existing retailers with permanent space in shopping centres to increase their footprint during busy sales periods such as Christmas.
Pop-ups also offer incoming retailers and start-ups a cheap and effective point of entry to shopping centres, allowing them to benefit from the foot traffic through centres while gaining experience on a trial basis before taking up longer term leases.
SCCA executive director Angus Nardi said the ACCC’s 10-year extension was an endorsement of the Code’s effectiveness.
"The 10-year extension acknowledges the important role pop-up retail plays in shopping centres and celebrates the unified approach of retailers and landlords to enable dynamic and evolving offerings for consumers.
"We thank the ACCC for their courtesy and professionalism in engaging with us on this issue," he said.
According to the SCCA, Australian shopping centres have on average 15 casual mall sites, with 20 bookings per site per year, and an average ‘pop-up’ time of 23 days.
NRA CEO Dominique Lamb echoed Nardi's comments and added that pop-ups will help bring life back to shopping centres as Australians emerge from the pandemic.
"Since inception, the Casual Mall Licensing Code has played an important place in enabling retailers to expand their footprint during busy periods and act as a springboard for small businesses to access and test target markets with a lower cost and lower risk.
"As we emerge from the pandemic, pop-ups will continue to play an integral role in allowing start-up businesses to upscale into shopping centres, supporting the continued growth of the Australian retail sector," she said.