A new report by the Australian Retailers Association (ARA) is encouraging Melbourne CBD retailers to extend core trading hours beyond 5:00pm in response to changing consumer behaviour.
Commissioned by the City of Melbourne and Victorian Government, the ARA report has found that while overall visitation to the city continues to recover post-pandemic, it has shifted CBD foot traffic across the week. Thursday has replaced Friday as the busiest workday in the city and Saturdays are busier as higher numbers of consumers and visitors come into the city on weekends.
These shifts have created a demonstrable gap between when consumers, workers and visitors are in the city and when retailers are open for business, particularly on Saturday evenings between 5:00pm and 9:00pm, and Monday, Tuesday and Wednesday evenings between 5:00pm and 7:00pm.
As a result, the ARA has proposed ‘Twilight Trade’ hours as between 10.00am and 7.00pm Sunday to Wednesday, and between 10.00am and 9.00pm on Thursday, Friday and Saturday.
“We know that global shopping destinations seamlessly weave retail into the fabric of the city, with vibrant retail offerings and trading hours that allow customers to shop when they want to shop,” ARA CEO Paul Zahra said.
“This report confirms there is more unmet consumer demand in Melbourne city after 5:00pm than before 10:00am which reflects a shift in pedestrian foot traffic in recent years."
The retail peak body added that while some retailers and precincts already trade these extended hours, including key department stores and supermarkets, there are many retail businesses operating more traditional trading hours or even reduced hours than pre-pandemic.
According to the report, larger retailers trade between 67 and 101 hours per week, while smaller retailers trade between 35 and 56 hours per week.
"While we know that some of our larger members have already responded positively to this change in consumer behaviour, the report also confirms that not all retailers have embraced this opportunity and are potentially missing out on sales,” Zahra said.
“To realise the full potential of this time of the day, we need to do a co-ordinated approach that actively encourages more retailers to trade in line with other global cities.
“From our research, we see strong levels of support for Twilight Trade, but we also see some reluctance for individual retailers to extend hours in isolation.
“We also know how weekends and time with friends and family is important. So being able to spend time to go from shopping to dinner to seeing a show or movie and then perhaps onto a bar or club means that the whole city needs to be open for business.”
City of Melbourne Lord Mayor Sally Capp AO said Melbourne’s foot traffic increases in the city by up to 35 per cent after 6pm/
“Melbourne’s twilight economy is booming,” Capp said. “We’re encouraging city retailers to take full advantage of this change in consumer behaviour – shifting their opening hours to reflect when city visitors want to shop
“We’ll continue to support businesses with the latest data to embrace the city’s new rhythm, boost the local economy and improve the visitor experience.”
Meanwhile, Melbourne Central centre manager Denis Ryan said twilight trading hours align with the changing lifestyle patterns and evolving needs of shoppers and retailers.
“Melbourne boasts a dynamic and vibrant nightlife, and with Melbourne Central at the heart of the city, our retailers play a critical role in activating a core retail offering at times that are most convenient for shoppers, residents, office workers, students and tourists.
“We endorse a collaborative approach that supports the local business community and amplifies the city’s ability to provide a thriving retail and experiential precinct where people can come together for longer periods, which ultimately leads to economic benefit and community development.”