H&M Australia achieved the second highest sales per store across the group in 2014.
This is according to a new report into the rise of international retailers in Australia.
The pace of first time international brand entrants and expansions in Australia has continued at the same rapid rate as last year, with openings or leases secured on more than 30 new stores.
This compares to over 35 new openings and lease deals for the full 2014 calendar year, according to CBRE’s Q3 2015 Retail MarketView.
CBRE senior research manager Danny Lee said Sydney and Melbourne had seen the highest levels of activity in 2015, followed by Brisbane and Perth.
“Foreign brand penetration in Australia is fairly low in comparison to other countries at 28%, which is a key attraction for these offshore retailers,” Lee said.
“It would take an additional 50 brands to enter the market to reach the same level as some Asian countries, such as Singapore and Hong Kong, with 90 more required to reach the UK’s level of 57%.”
CBRE executive Tim Starling said the low penetration rate in Australia served to minimise competition between foreign brands.
“Zara’s Sydney and Melbourne CBD stores ranked highly among the company’s best worldwide traders for the group in their first year of operation and continue to be in the top 10 list.
"H&M has also seen recent success with their new Australian stores, achieving the second highest sales per store across the group in 2014,” Starling said.
Another key attraction for foreign retailers includes the fact that Australia is one of the highest consuming developed nations, with consumption per capita growing at twice the rate of the US between 2008 and 2014.
“We believe the Australian retail market will undergo significant change over the next decade as it emerges from an era of strong competition from foreign brands and changing consumer behaviour aided by technology advancements,” Starling added.