As a cosmetics giant opened the doors to shoppers at a new flagship store on Friday, some wondered if the opening marked a turning point for Melbourne's hushed post-pandemic CBD.
"I think there's definitely going to be a halo effect in the CBD and you're already starting to see it," one woman who had taken a day off work to attend the opening said.
"I think you'll start to see neighbouring businesses opening up and it will give a lot of people hope.
"Melbourne may have slept for a little while during COVID but we're back."
It was a sentiment shared by others in line at Mecca's new multi-level emporium.
One woman said people had travelled from all parts of the country.
"I think it's going to bring more people in … even today, people have flown in from interstate just for today so what does that tell you?" she said.
About 20,000 people were expected to attend the grand opening with some eager customers lining Bourke Street as early as 4am.
"We had a curriculum day so we've got the day off to come down and see the new store," 17-year-old student Tess, who was waiting first in line, said.
The company's founder, Jo Horgan, said she envisioned the new store as a cultural institution to be associated with the city.
"We want it to be just as synonymous with Melbourne as the National Gallery of Victoria or the Australian Football League," Ms Horgan said.
Billed as Melbourne's "biggest retail opening" in 100 years, the Mecca megastore launch comes amid a revival of consumer activity in the CBD despite a slow post-pandemic recovery for the city overall.
Shopfront vacancies drop, online shopping rises
While data shows Melbourne has the highest office vacancy rate in the country — 17.9 per cent according to the Property Council of Australia — the retail sector is continuing to show promise.
The retail vacancy rate in central Melbourne (which takes in the city's main shopping precinct) was just 5.5 per cent last month after peaking at 27.9 per cent in 2021 while the city was in the midst of COVID lockdowns.
The broader CBD retail vacancy rate was last month 7.8 per cent, according to the City of Melbourne.
"We're seeing a strong surge in businesses opening their doors in Melbourne — from global brands to local heroes — fuelling the fire of the city's retail revival," Councillor Kevin Louey said.
Retail developments drive investment, expert says
Mecca's CBD flagship launch comes ahead of a number of other precincts being opened around Bourke Street Mall later this year — Melbourne Walk, Collins Arcade, and Town Hall station.
Retail leasing expert Zelman Ainsworth said those projects were likely to drive further investment and attract businesses of all scales.
"There's been several developments recently in the CBD retail core which coincidentally happened around the same time, so it created some disruptions to the traffic flow in the retail core," he said.
"But now they're all being delivered at the same time. The Melbourne CBD has never experienced such a rejuvenation, hype and uplift in decades.
"It's going to create an enormous amount of activity."
Mr Ainsworth said the city's retail resurgence was attributable not only to larger, more established chains but sole traders too.
"The artisan, more creative retailers that create the charm the Melbourne CBD is world-famous for, is only improving," he said.
"We're seeing retailers starting to go up multi-level buildings, into lower grounds, into laneways, into rooftops."
Mr Ainsworth doesn't believe the booming retail industry will be hampered by the otherwise high vacancy rates for CBD offices, an issue he argued had different underlying factors.
About Retail Show Australia 2026
Retail Show Australia is thrilled to announce that the much-anticipated next edition of exhibition will take place 22-24 September, 2026. Next year, we're embracing a powerful theme: Resilience, Evolution, Rebounce. Join us as we celebrate the strength and adaptability of the retail industry, explore its dynamic evolution, and witness the incredible rebound of this vibrant sector.
Dates：September 22-24, 2026
Venue：Melbourne Convention and Exhibition Centre (MCEC)
Reference: www.abc.net.au/news
