Luxe jeweller Cartier defies the pandemic to sign a flagship lease
Luxury retail is back on the agenda for cashed-up shoppers and the brands are wasting no time getting a foothold into a new store in readiness for a busy year.
Buying an expensive designer handbag or watch may have waned during the pandemic so to entice shoppers through the doors and compete with the internet, the labels are creating “experience stores” from VIP suites to personalised shopping experts.
Luxury retailer Cartier is the latest in a line of upmarket brands that defied the doom and gloom of COVID-19 and has signed a major lease in the Sydney CBD. Called a Maison, the two-level store will be “luxury reimagined”.
Other big names that have taken new leases or extended existing ones across the city include Fendi to replace the former Hermes at 135 Elizabeth Street and Seiko to replace the Hype DC at MidCity between George Street and Pitt Street Mall.
Valentino, Dolce & Gabbana, Brunello Cucinelli, Missoni, Roger Dubuis, and Style Runner are all coming to the Dexus-owned 25 Martin Place at King and Castlereagh Streets under the MLC Centre.
This is in contrast to Melbourne where the luxury market has softened due to the many COVID-19 enforced lockdowns.
Key leasing agents say upmarket brand are now setting their sights on Brisbane to get a prime position in new developments across the CBD in readiness for the surge in tourism at the 2032 Summer Olympic Games.
In Sydney, the French luxury “Maison”, Cartier, is opening its Oceania flagship boutique at the newly built 388 George Street Pavilion Building, on the corner of King Street and George streets. Boasting a 783 square metre two-level store it plans to open around March, 2022.
Having opened quietly in the midst of the pandemic in late 2020, the new retail pavilion at 388 George Street, with its curved facade, is built on what was a large slab of uninviting concrete at the entrance to the tower previously known as the American Express building, before being leased by NRMA and then IAG.
The ground plane and pavilion building was designed by architects FJMT and has five levels of commercial and retail space, a rooftop bar and the flagship retail stores.
Owners, Brookfield Properties and Oxford Investa Property Partners (OIPP) undertook a $200 million transformation of the office tower and created the retail space on the busy city corner. It will sit opposite the Louis Vuitton store.
Danny Poljak, executive vice president & co-head of Brookfield Properties, said 388 George Street continues to set new benchmarks for the Sydney CBD, and “we are delighted it will now provide an anchor point for the city’s new luxury retail precinct”.
“Cartier is one of the world’s most prestigious luxury brands and realises our vision for the retail space of this development.”
Alban du Mesnil, managing director of Cartier Oceania, said the brand’s arrival at this location continues the momentum of the newly pedestrianised George Street becoming a major luxury precinct in the Sydney CBD.
“After enjoying a longstanding presence in Australia for more than 45 years, the announcement of our new Oceania flagship marks a thrilling new chapter in the relationship between Cartier and Australians,” Mr du Mesnil said.
Joining Cartier at 388 George Street is Sneakerboy, and the new Locali by IGA Romeo.
Alex Alamsyah, partner and head of retail leasing at Knight Frank Australia introduced and negotiated the Cartier deal at 388 George St Sydney, and said there have been several other deals for luxury retailers “pre- and post-Covid-19”.
He said during Sydney’s lockdown last year and part of this year, several retailers took the opportunity to secure prime sites in Sydney CBD on 10 years leases or even longer.
“The strong brands will survive and the small independent and weakly positioned names will undergo structural issues and, in some cases, even disappear,” Mr Alamsyah said.
Melbourne-based Zelaman Ainsworth, retail specialist of Ainsworth Property said major retailers, particularly luxury, recognise the impressive performance of their Melbourne boutiques, “and while the last two years may not have been fun, the confidence in Melbourne’s luxury market is very much front of mind for some of the world’s biggest retail groups”.
Nicole Quagliata, fund manager, OIPP, said: “Cartier is a fantastic addition for 388 George Street, and we are thrilled to welcome this iconic, luxury brand to their new flagship store”.
Leif Olson, director – head of retail leasing Australia at CBRE negotiated the luxury fitness retailer Peloton at 20 Martin Place, Sydney and said the pandemic has shown consumers are putting more money into their health and wellbeing.
Mr Olson has also leased leisure and fitness brand Lululemon’s biggest store in the Southern Hemisphere as part of Brookfield Place’s redevelopment at Wynyard Station.
“Peloton is a great example of technology keeping people connected whilst remaining active,” Mr Olson said.
“New market entrants are looking at this region for growth, we are a stable and growing economy that is a secure place for retailers.”
He said established brands in Australia are upsizing due to the success in this market, many of these brands are increasing their footprint with flagship stores along George Street.
Versace, Jimmy Choo, Michael Kors, Kate Spade, Aje Athletica, Piaget and Pandora are all said to be coming to Westfield Sydney.
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