Cafe and restaurant sector recorded 10.3% growth over past year: Colliers International

Cafe and restaurant sector recorded 10.3% growth over past year: Colliers International
Cafe and restaurant sector recorded 10.3% growth over past year: Colliers International

Annual retail sales turnover, now higher than the 4.9% long-term average, is evidence of confidence returning to the sector, explains Colliers International, which has unsurprisingly been boosted the café and restaurant sector. This sector has seen 10.3% growth over the past year.

Michael Bate, head of retail at Colliers International, said that it’s discretionary spending that is behind this improvement.

“Money spent in cafes and restaurants is particularly good for the local economy, as unlike international luxury purchases where the financial benefit goes offshore, spending in cafes and restaurants is predominantly retained at home,” said Bate.

He noted that the propensity for consumers to spend is currently underpinned by increasing house prices and positive sentiment. Strong house prices over 2013 have been mirrored by strong retail turnover, particularly in Sydney, Perth and Melbourne.

However, those winning the retail race are not solely relying on their physical property shopfront, but are looking to online offerings that complement the traditional street outlet.

Australians were recorded as spending approximately 6.5% of their usually bricks-and-mortar spend online – or $15 million in the year to February.

New retail space supply is led by the category of large format – which Colliers notes will total 41% of 2.8 million square metres of retail supply under construction or ready to complete over the next four years.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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Retail

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