Colliers announce that the prestigious Swiss watchmaker, Longines, is set to open its doors at 110 William Street in Perth in 2024. This strategic move is part of Swatch Group Australia (Aus) Pty Ltd.’s expansion, contributing to the growing array of luxury brands in Perth, Western Australia.

Longines has secured 139m2 of space, creating a dynamic convergence alongside Tag Heuer and Chanel, further enhancing the landscape of luxury brands in Western Australia.

Longines, a member of the world’s largest watchmaking group, Swatch Group, will open its fifth boutique in Perth later this year, in addition to existing locations in Melbourne CBD, Chadstone, Brisbane, and Sydney. This marks the third significant announcement from the Group, following the recent openings of Swatch on Murray Street earlier this year. 

Colliers Retail Leasing Expert, Joel Humich said “The Swiss watchmaker and jeweller, Swatch Group, is set to open its second Perth location in 2024. Following the earlier opening of Swatch, Longines is the next global watch brand to establish itself in Perth’s CBD.

“The corner tenancy at 110 William Street, Perth is considered to be one of the prime retail locations in Perth, due to its high foot traffic, mall frontage, and nearby complementary retailers” Mr Humich added.

According to Mr. Humich, “Longines will play a pivotal role in elevating the CBD retail experience, enriching the lively precinct along Murray Street. The exceptional quality and prominence of these brands underscore Perth’s position as a growth opportunity for Australia’s luxury retail landscape as Perth continues to attract retailers and consumer spending” said Mr Humich.

Retail spending in WA/SA/QLD has continued to outperform the national average since October 2024, with current retail spending growing +2.64% in May-24 compared to the same month last year in these states. This outperformed the national average for this same period which only grew +1.71%.

Retail performance within these markets has been driven by robust economic backdrops such as  low unemployment (particularly in WA which has the lowest unemployment rate nationally) and strong demand.

Colliers Director of Research, Nik Potter said “The second quarter of 2024 has witnessed robust rental growth for CBD retail in Brisbane, Perth and Adelaide. This growth is driven by strong local markets and significant investment in CBD precincts, attracting more visitors to these prime locations.“

Performance throughout these states has translated into significant average gross face rental growth within the CBD’s of Perth, Brisbane and Adelaide who combined have seen average CBD rents grow by +2.15% on a yearly basis to June 2024. This has outperformed the national average for this same period who saw growth of +1.96%.

Colliers Head of Retail leasing Australia, Michael Tuck said “Rental growth within these markets has been boosted by Brisbane +3.0%, Perth +1.7% and Adelaide +1.4% (year on year to June 24). We have seen Perth outperforming in comparison to the other capital cities which is reflected in the number of international brands with active requirements in the Perth CBD looking to establish flagship stores.”

“These cities are tapping into the growth potential for brands looking to expand beyond the traditional markets of Sydney and Melbourne, especially for Luxury retail, which is expected to generate $6.2bn in annual sales nationally in 2024” said Mr Tuck.

Mr Potter said “Brands are aiming to enhance their presence and seize new opportunities in Brisbane, Perth and Adelaide. Tenant demand is largely driven by luxury retailers, food and beverage operators, and dining establishments. Additionally, population growth in these areas is expected to further strengthen the local markets in the future.”

As luxury brands look to grow their sales, supply of luxury stores throughout Brisbane, Perth and Adeliade are well under-represented compared to the NSW and VIC markets where the share of luxury stores exceeds these cities proportion of the total population. Brisbane, Perth and Adeliade are uniquely positioned to capture the expansion of luxury retail into these markets.

Mr Humich said “In the 1H of 2024, the Perth CBD has seen strong interest from various retailers—luxury flagships and independent local shops alike.”

WA’s spending power and increase in economic scale is attracting new retailers such as luxury which is diversifying Perth retail landscape. 

“Colliers brought to market 6,514m2 of retail floor space in 1H 2024 in WA, within the Perth CBD and city fringe markets. The increase in stock of retail space has been received well by the market with a focus on 110 William Street, Perth attracting both national and international retails, enhancing the city’s retail offering and fostering a vibrant spending environment” said Mr Humich.

Luxury retail has witnessed significant growth given some of this uplift has been from savings accumulated through the pandemic period. But is still expected to grow 2.7% per annum over 2029.

Perth’s CBD is set to flourish with the addition of renowned brands such as Longines, Van Cleef & Arpels, Christian Dior, Gucci, Cartier, Paspali Pearls, and Swatch.

Their presence promises to elevate the city’s retail landscape, offering consumers an exceptional selection of high-end products.

Western Australia has a disproportionate balance between their share of population and share of luxury stores, implying that Perth is undersupplied with luxury retail and becomes an attractive expansion opportunity for global brands.