The heartbeat of their local communities, Melbourne’s iconic retail strips have moved through the worst of the retail industry upheaval, according to new research from property agency Fitzroys.

Over the 12 months to June, Fitzroys’ Walk the Strip - Volume 2 report found fewer vacancies across most of Melbourne’s key retail strips, with Church Street, Brighton; High Street, Armadale; and Glenferrie Road, Malvern among the strongest performing centres.

Fitzroys Director, David Bourke, said strip centres have been adjusting and re-mixing to take into account the introduction of Amazon and evolutions in online retailing over the last few years. 

“Much of the change throughout the strips has already taken place in anticipation of Amazon’s introduction, and its impact on the strips will be more tempered than the build-up suggested.” 

Services form an important presence in local communities

Bourke said strip centres have seen a growing proportion of shops being used for service uses, with the number of new cafés, bars and restaurants well-documented. 

“The proliferation of delivery services such as Uber Eats, Menulog and Deliveroo represents a growing proportion of food and beverage turnover, and some operators are finding a secondary location that is sufficient for their needs as there is less reliance on passing trade,” he said. 

Personal care businesses such as hairdressers, beauticians, skin care clinics, masseurs and gyms are also opening in the strips, into locations they previously wouldn’t have considered. 

Bourke said strip centres would always provide an environment that people want to shop and find community in. 

“At this stage it is difficult for the online world to replicate this service offer. There will be further change but innovative and smart operators will continue to thrive, and well-located properties will attract strong demand. Those fundamentals won’t change.” 

“Strip centres will continue to be an important presence in our communities, hosting a strong quality and mix of operators in a focal point for a neighbourhood or catchment.” 

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