Coming up Daiso Again in Melbourne

Popular Japanese retailer Daiso is opening its largest Australian store yet, in downtown Melbourne, amid plans to roll out as many as 12 more outlets along the east coast this year.

Well-known in Japan as the 100 Yen Shop, Daiso’s smorgasbord of household and gift products are priced more prosaically at $2.80 in Australia.

The giant chain already has 2500 stores in Japan and another 500 overseas, including an outlet that opened in Brisbane’s Myer Centre. Its other stores in Australia include outlets at GPT’s Highpoint and Westfield Doncaster in Melbourne.

In a deal brokered by Colliers International agent Ben Tremellen and Savills agent Michael Di Carlo, the retailer has taken up a 10-year lease across 1800 square metres at 2 ­Elizabeth Street in Melbourne. Face rent on the space is close to $700 per square metre, sources said.

Opening in August, it will be Daiso’s first company-owned and -operated outlet in Australia.

The corner site, in a property held by Sydney boutique investor Fivex Commercial Property, stands just opposite Flinders Street railway station.

The first floor vacancy was previously office space but is now being converted to retail, to take advantage of the thousands of commuters using the station each day.

The retailer’s tenancy will add momentum to the Town Hall’s ambition to rejuvenate the final block of Elizabeth Street before the station.

Daiso is the latest in growing number of major global brands, such as TopShop and Zara, which are now opening outlets in Australian high streets and shopping malls.

Nick Lenaghan

AFR 2 May 2013