THERE were no block-long queues or overnight campers at the launch of Zara's fourth Australian store yesterday.
An hour before the Spanish fashion retailer opened in Chadstone Shopping Centre, only a small media gaggle had gathered outside the bright new double-storey, 1400-square-metre store.
But by 9.30 am, Zara's official kick-off time, about 100 shoppers mysteriously materialised, lured by a Facebook page, social media and word of mouth.
They swarmed inside and began dashing from rack to rack. Zara's fourth opening (one in Sydney, one in Adelaide, now two in Melbourne) might not have generated the usual hysteria, but it was a fair show of shopper loyalty, considering that, like Topshop, it does not advertise, but spreads the word by its website, blogs, tweets, Facebookers and gossip.
It's remarkably effective. "I'm really excited," said a Murrumbeena mum, Rita Kurek. She had dropped the children at school, and was now on a familiar hunt. "I usually go to the city store, so this is a lot closer for me."
She had unhooked three tailored, tweed "Chanel-esque" sleeveless dresses priced eye-poppingly cheaply at $119 each, and a chic buttermilk hop linen spring coat for $199.
"I love Zara for the quality, the price, and because it's not made in China," she said.
In fact, it's made at its huge base in Spain, as well as in Brazil, Turkey and other low-cost manufacturing centres
But, buyer perceptions about Zara and its slightly younger, hipper rival, Topshop, two global fast-fashion conglomerates that already have footholds here, is positive and resilient beyond most Australian retailers' wildest imaginings.
Asked how long stuff typically hung from the same racks, one staff member said: "We are changing daily it is hard to know how long this jacket will be here."
It's a quick-track business model that has fired the Zara and Topshop mantra: "Grab it now, or miss out."
And it guarantees that customers, once hooked, will keep coming, going through the stores almost as often as new stocks.
For shopping malls, the maths is blindingly obvious. A Sydney CBD leasing agent, who did not want to be named, said the shopping mall's classic lure, a department store, just did not generate enough people to keep modern malls going any more.
"Historically, shopping centres needed an anchor a department store on the left side, a supermarket on the right," he said. "But, David Jones and Myer are getting slower."
Competition is hot among agents to sign "mini major" tenants instead.
Both the Inditex-owned Zara and British-owned Topshop will open more Sydney stores in October.
Other similar conglomerates reportedly scouting for sites here include the Swedish chain H&M, Japan's Uniqlo, and America's Abercrombie and Fitch and Forever 21, are considered gold prospects, with plans ranging from 50 to 80 stores opening in coming years.
"They're the crowd pullers," says Gary Loo, director of Knight Frank retail leasing in Melbourne. "They have a larger footprint, bring in new product all the time and support a wider product range, which the typical smaller fashion retailer can't, and they entice people back again. And again."
Frequently Asked Questions about this Article…
What did Zara's fourth Australian store opening reveal about Zara's brand appeal in Australia?
Zara's fourth Australian store (now two in Melbourne, one in Sydney and one in Adelaide) drew about 100 shoppers at opening, showing strong local demand. The turnout — organised largely via social media rather than traditional advertising — underlines that Zara has resilient shopper loyalty and broad appeal in Australia.
How does Zara attract customers without traditional advertising?
Zara relies on its website, blogs, tweets, Facebook and word of mouth instead of traditional ads. The brand’s fast-turnover stock and a “grab it now or miss out” mentality encourage shoppers to visit frequently and share finds on social media, amplifying interest without paid advertising.
Where are Zara’s garments manufactured and does that matter to shoppers?
According to the article, Zara manufactures at its large base in Spain as well as in Brazil, Turkey and other low‑cost manufacturing centres. Some shoppers noted this when comparing Zara to other retailers, and perceptions about where clothing is made can influence customer preference.
What is Zara’s fast‑fashion business model and why should investors notice it?
Zara uses a quick‑track model: stock is changed rapidly (staff said items can change daily), creating scarcity and frequent store visits. For investors watching retail trends, that model drives repeat foot traffic and makes Zara a strong crowd‑puller for shopping centres.
How do Zara and fast‑fashion rivals like Topshop affect shopping mall landlords and leasing strategies?
Mall agents quoted in the article say fast‑fashion chains act as modern ‘mini majors’ that attract consistent foot traffic, unlike traditional department store anchors. Landlords and leasing agents are competing to sign these crowd‑pulling tenants because they bring new product regularly and entice shoppers back often.
Which other international fast‑fashion brands are reportedly scouting Australia?
The article mentions that H&M, Japan’s Uniqlo, and US chains Abercrombie & Fitch and Forever 21 have been reported as scouting for Australian sites. Plans discussed in the piece ranged from about 50 to 80 stores opening in coming years for these types of entrants.
What does the rise of Zara and Topshop mean for traditional department stores like David Jones and Myer?
Leasing agents in the article suggested department stores such as David Jones and Myer are getting slower and no longer generate the same traffic for modern malls. As fast‑fashion brands expand, malls are shifting toward smaller ‘mini major’ tenants that refresh product more often and better sustain shopper visits.
What should everyday investors consider about shopping-centre exposure as fast‑fashion retailers expand?
Based on the article, investors monitoring retail and property should note that fast‑fashion tenants can increase mall foot traffic and leasing demand, while traditional department stores may be weakening as anchors. Those are market dynamics to watch when assessing retail real estate or retail‑linked investments, but specific investment decisions should be based on broader research and personal circumstances.
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