With Western Australia’s new housing market continuing to boom and cashed-up consumers upgrading to better fridges and lounge suites, the state’s bulky goods retailing sector is basking in the state’s prosperity.
Over the five years to May 2007, household goods have shown the highest average compound growth rate of all retail goods categories of 11.6 per cent, according to Australian Bureau of Statistics data. Spending on household goods in the year to May 2007 alone was up 13.1 per cent.
Savills research estimates there is over 70,000 square metres of bulky goods space under construction, with the majority due to enter the market by the end of the year.
Of those developments soon to come on stream, the largest bulky goods complex under construction is at 92 Ellen Stirling Boulevard for kit-furniture supplier, Ikea.
The 26,000sq m superstore is being developed by Lex Group and Mirvac chief Adrian Fini and is due to open in January 2008.
Ikea’s long-term home on Scarborough Beach Road sold for $19.9 million to Araluen Golf Club Resort-owner Jacky Mulani, who is expected to build a new bulky goods and office complex when Ikea moves out.
Fellow private developer Michael Hodgson is also making a contribution to the bulky goods sector, building an 18,000sq m complex at 401 Scarborough Beach Road, Innaloo next to his Nookenburra Hotel.
Outdoor and adventure goods retailer Anaconda and craft supplier Spotlight have pre-committed to a combined area of about 7,000sq m.
Spotlight is also anchoring a 9,740sq m complex south of Perth called Myaree Central, which is due for completion by the New Year.
CB Richard Ellis estimates there is about 201,000 square metres of bulky goods supply in the pipeline over the next three years for the Perth metropolitan region.
The agency has noticed many new retailers committing to a minimum four store roll-out when entering the WA market, as demonstrated by the arrival of Petstock and Amart All Sports over the past 12 months.
While the focus of bulky goods development is in Perth’s northern and southern corridors, retailers are also looking to Mandurah and the growing regional hubs of Bunbury, Kalgoolie, Geraldton and Albany, the latter about to attract a Spotlight store.
