Australia’s largest shopping centres are retaining a heavier concentration of major retailers than their international counterparts, even as department stores take up a shrinking share of mall space globally.
New research from Cistri found retail majors occupy 39% of floorspace in Australian centres, compared with a global average of 29%, while vacancy rates across Australia’s super and mega regional centres remain extremely low.
The findings come from Cistri’s The Changing Face of Malls Globally, which benchmarks 70 super and mega regional shopping centres across six markets, including 19 in Australia, to examine how their tenant mix has evolved since 2018.
Despite the continued strength of major retailers in Australia, the traditional department store model is evolving as centre owners rethink how large-format space is used.
“Unlike many major malls globally, where change has largely followed department store closures, Australian centres are proactively and gradually reducing their reliance on department stores and some discount department stores. They are repurposing this space into smaller, more flexible formats, including services, that help drive stronger foot traffic,” Urbis Director Ian Shimmin said.
“Australia’s super regional shopping centres have long been among the world’s most sophisticated and actively managed retail assets. Over time, they have evolved from traditional shopping destinations into social hubs and e-commerce-resilient places that play a broader role in daily community life. As a result, Australian vacancy rates remain extremely low.”
Mini-majors take on a bigger role
As traditional department store anchors decline, mid-sized retailers are accounting for a greater share of mall space internationally.
Mini-majors, defined by Cistri as retailers occupying between 930 and 4,650 sqm, have increased their share of occupied floorspace globally from 16% in 2018 to 21% in 2026.
Australia remains below that global average at 15%, compared with 27% in Canada and 25% in the Middle East.
However, Australian mini-majors have the largest average footprint of the markets examined, at 2,040 sqm.
Specialty retail also looks different locally. The average Australian specialty store occupies around 140 sqm, compared with 260 sqm in the US and 290 sqm in the UK.
Cistri said Asian and Australian centres tend to favour a greater depth and diversity of smaller specialty stores, while markets such as the US and UK generally have fewer, larger-format specialty tenants.
Malls broaden beyond shopping
The research also points to a changing role for physical shopping centres as owners introduce more reasons for consumers to visit beyond purchasing goods.
Medical services, fitness facilities, education, childcare and office space are among the non-retail uses increasingly being incorporated into malls. Cistri found these tenants can support retail performance by generating more consistent visitation throughout the week.
Food, entertainment and other categories that depend on consumers spending time at a centre are also taking up a greater share of space globally.
These “in-centre consumption” categories account for an average 28% of occupied floorspace in 2026, up from 22% in 2018. Australia sits at 23%, compared with 38% in Asia and 32% in the Middle East.
Food and beverage represents 6% of occupied floorspace in the Australian centres studied, compared with 17% in Asia, while entertainment accounts for 7% locally compared with 14% across both Asia and the Middle East.
The findings suggest Australia’s major malls have further scope to diversify their tenant mix as international centres devote more space to dining, entertainment and other uses that give consumers reasons to spend time at physical destinations.
At the same time, the continued strength of major retailers and low vacancies indicate Australia is entering that transition from a different position to markets where widespread department store closures have already forced more substantial changes to the traditional mall model.
