Brick by brick, Lego opens world’s largest flagship store in Sydney

It will sit on the corner of Sydney Arcade and Pitt Street Mall – the most expensive shopping strip by rent in the country. The site has previously been occupied by international fast fashion retailer Forever 21 and sneaker and sports retailer JD Sports.

The flagship store will join other Lego certified locations in New York, London, Hong Kong and Dubai. Lego has been described by the Forbes’ Fast Company publication as the Apple of toys.

Consumers crave interactive and experience-based retail stores and like to be entertained while shopping. The format is also welcomed by tenants who want shoppers to linger.

There are 22 Lego certified stores in Australia including one in GPT’s Melbourne Central plaza which was one of the first to open in a capital city. The massive Legoland discovery centre at Vicinity’s Chadstone Mall in Melbourne’s south-east is a different concept offering.

Sydney’s new store will be home to exclusive large-format brick-built features that draw inspiration from local architecture, with the design based on stories of Australia. There will also be giant 3D models built by Ryan ‘The Brickman’ McNaught, the only Lego certified professional in the southern hemisphere.

Some of Lego’s retail experiences include the storytelling table, where customers can access ‘behind-the-scenes’ through interviews and videos displayed on screens, and the personalisation studio where visitors can experience the first Lego minifigure factory in Australia.

Alex Alamsyah, partner and head of retail leasing at Knight Frank, and Sepideh Vahdat, national leasing manager, urban & lifestyle at Mirvac Retail, advised on the lease at 400 George Street, which is managed by Mirvac.

Alamsyah said that with Pitt Street Mall holding the title of the most expensive retail street in Australia for many years, Lego has taken a prime spot to launch the flagship store.

“King, Market and Castlereagh Streets house many luxury brands’ flagship stores and are constantly challenging Pitt Street Mall for the title but so far, those streets can only hit $8000 to $12,000 in rent per square metres, per annum, while Pitt Street Mall rent can range from $18,0000 to $24,000 per square metres per annum.”

Bill Eroglu, director of property at Alquemie Group which has the Lego licence for Australia and New Zealand, said the group is “excited to partner with the Lego Group to bring the largest Lego store in the world to Sydney CBD and bring joy and creativity of Lego Play to all the fans both young and old”.

Troy Taylor, vice president and general manager at Lego Australia and New Zealand, said the immersive new store will feature creative play experiences, with playful nods to Australian culture that are sure to create lasting memories for every Aussie or visitor from around the world.

Retail leasing specialist Zelman Ainsworth said as retailers continue to trade seamlessly online and in-store, their retail stores are finding ways to create environments and experiences that cannot be achieved online.

“Global and Australian retailers are creating incredible flagship stores that tell stories about their brands and products, with creative and localised narratives. Gone are the days of shops with endless racks and a sale sign in the window,” Ainsworth said.

Lego’s opening comes amid another reshuffle of tenants in Pitt Street Mall. Alamsyah has recently secured a Swatch flagship store in the MidCity arcade, while another watch giant, TAG Heuer, is expanding from 100 sq m to 120 sq m for (an undisclosed) record rent.

Jeweller Swarovski is taking the former Innisfree site while Longines will take over the former Swarovski store.

In Melbourne, luxury labels and interactive sportswear groups are also taking up new digs.

Ainsworth Property has advised Loewe, part of the LVMH stable, on a 300 square metre store on the corner of Flinders Lane and Russell Street. In other deals, there is a new 500 square metre Nike Jordan store that will land at Melbourne Central and Swatch has leased a new 400 sq m store at 260 Collins Street.

“We are getting more senior executives from global retail organisations visiting Australia to see what the hype is all about,” Ainsworth said.