Sydney has led the charge with auto-tenants. Tesla opened its first retail store in Westfield London in 2013, followed by Tesla in Pembroke’s 20 Martin Place, Sydney in 2016. That was followed by GPT, which installed the first Toyota retail shop at Rouse Hill Town Centre in 2017.
Loading
In June 2019, Genesis by Hyundai opened its first retail store in Sydney Arcade in busy Pitt Street Mall, while carexpert.com.au opened its first 960 square metre space last year in Westfield Warringah Mall with no salespeople and no sales – just car experts.
Automall by Eagers Automotive opened in AMP Indooroopilly Shopping Centre in Brisbane in December 2021, and comprises a 12-bay rooftop “quick service” facility, with a customer drop-off and pick-up within the existing shopping centre car park.
That allows customers to get the car serviced on-site while they shop, and directly below the service bay is a 2400 square metre car sales showroom, complete with children’s playground and coffee shop.
AMP Capital Head of Retail and Investment, Marco Ettorre, said the opening of the automotive precinct as part of a $40 million investment in AMP Capital’s Indooroopilly Shopping Centre is the latest example of the diversification under way in Australia’s shopping malls.
He said the precinct will accommodate showrooms for more than eight vehicle manufacturers within the shopping centre in an Australian first for automotive retailing.
“The Automall West precinct at Indooroopilly will enable consumers to buy a new car or service their existing vehicle without leaving the shopping centre,” Ettore said.
“It is this kind of innovation that will be needed to retain the appeal of shopping centres for consumers who want greater convenience and as we emerge from COVID-19.”
Eagers Automotive chief operating officer Keith Thornton said at the time of the lease deal that the Automall West at Indooroopilly is the perfect complement to the Automall BNE, which Eagers is building next to the expanded Brisbane Airport.
Loading
“We know that what customers are looking for in a car shopping experience has changed,” Thornton said at time.
“By bringing our car sales operation into the familiarity of a shopping centre environment, we’re simply modernising our offering. It’s an Australian first that we couldn’t be more excited about.”
Ford also plans to open its next Smart Lab concept showroom in Australia in the medium term. Smart Lab is in malls in Quebec City, Canada, Turin, Italy and Brussels, Belgium as well as test-drive pop-up kiosks in China, Germany and the Ford Hub in New York.
Alamsyah said while some traditional mall retailers are closing their stores and moving to online sales, car showroom leases are heading in the other direction, to physical bricks-and-mortar retail.
“These sites are staffed by car experts that focus on helping customers discover the brand, have a test-drive experience, but with no push for a sale, which helps to alleviate the anxiety often associated with the new car purchasing experience,” he said.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.