Melbourne CBD retail surges as Lacoste joins wave of flagship openings

Melbourne’s CBD retail market is continuing its strong post-pandemic resurgence, with global fashion brand Lacoste the latest to secure a major flagship store in the heart of the city.

The French label will open a 190 sqm store at the new $400 million Melbourne Walk precinct ahead of Christmas, consolidating two tenancies fronting Little Collins St and adding further momentum to the city’s retail revival.

The deal, announced by Colliers on November 14, signals not just confidence in the Melbourne market, but a clear shift in how major brands are investing in CBD retail. Colliers’ senior executive for retail leasing Ruby Koop said retailers were increasingly prioritising immersive, experience-driven flagships over traditional shopfronts.

“These stores are immersive brand experiences designed to draw customers back in-store and compete with online,” Ms Koop said. “Melbourne Walk’s design and connectivity make it the perfect stage for global brands like Lacoste.”

Lacoste joins a growing cohort of major retailers reinvesting in central Melbourne, including Mecca’s new multi-level emporium and JD Sports’ Southern Hemisphere flagship on Bourke Street Mall.

According to Colliers, the market fundamentals are shifting sharply: foot traffic is now just 22 per cent below pre-pandemic levels, retail turnover sits 21 per cent above 2019 benchmarks, and competition for prime sites is intensifying amid a 72 per cent decline in new retail development nationally.

Tom Larwill, Colliers’ head of retail leasing in Victoria, said Lacoste’s arrival reflected a broader confidence upswing linked to major city-shaping projects.

“With the Metro Tunnel completion, which is forecast to inject thousands of commuters into the CBD daily, it’s all happening in Melbourne’s CBD and driving strong demand for premium space,” he said.

It’s a sentiment echoed by Lord Mayor Nick Reece, who told CBD News earlier this month that Melbourne was experiencing a “retail renaissance”.

Highlighting a streak of major openings across fashion, beauty and lifestyle brands, Cr Reece said the CBD had made an extraordinary turnaround from the days when one in three shopfronts sat vacant.

“We had the opening of Mecca, Rodd & Gun, JD Sports, Pop Mart, TJ Maxx, and now Muji is coming – the biggest Muji store in Australia,” he said. “It’s been fantastic to see life coming back into our retail scene.”

He added that the imminent Metro Tunnel opening, expected to funnel an extra half a million people into the city each week, would further accelerate growth.

Colliers’ senior research analyst Sam Ryan noted that Melbourne’s recovery was being driven by strengthened consumer confidence and a renewed appetite for in-person shopping experiences, despite changes to work patterns.

“Flagship formats are no longer just a branding exercise; they’re a strategic response to shifting consumer behaviour,” he said.

For Melbourne Walk – a precinct blending heritage façades with contemporary architecture and more than 6000 sqm of retail space – the timing could not be better. With Lacoste opening in the peak Christmas trading period, the development is poised to become a key anchor in the CBD’s next phase of revitalisation.