Woolworths continues retail domination via convenience stores

Woolworths have unveiled plans to construct new convenience stores in Melbourne, aiming to further expand their dominance in the retail sector.

Fairfax understands that the megastore has signed up for two locations on Swanston and Flinders streets in the CBD.

On the

Swanston street site, rent will be approximately $2030 a square metre which is being negotiated by

Allard Shelton’s Patrick Barnes and

CBRE.

The

Flinders street site has been negotiated by

Colliers International for 700-square metres.

When asked about its new strategy to construct convenience stories, Woolworths remained tight-lipped.

“Our stores vary in size and are designed to best meet the needs of the community they serve,” a Woolworth’s spokesperson said.

In Sydney last week, Woolworths opened a concept store on Elizabeth Street which was modelled on another in Woolloomooloo.

The megastore plans to unveil more stores in both Sydney and Melbourne which will offer a select range of products.

Woolworths and its retail rival Coles view central-city neighbourhoods as goldmines for growth.

Their latest strategy to meet the needs of city residents follows EzyMart which is based in Sydney and will open its fifth Melbourne store this year.

According to Fairfax, smaller stores such as 7-Eleven and IGA may be affected financially by the new megastore convenience stores.