White paper - Legal Insights into retail leasing and employment law development for luxury brands

Legal Updates for Luxury Retail: Leasing & Employment Trends

Author : FACCI

Language : English
Number of pages : 6

Exclusive to FACCI Members

Abstract

Explore the evolving challenges of the sector, particularly in relation to retail leasing and employment law!

Summary

On February 27,2025, the French-Australian Chamber of Commerce & Industry (FACCI) organised a luxury sector roundtable in Sydney, in collaboration with Baker McKenzie. This event brought together key industry stakeholders from diverse luxury brands to discuss the evolving challenges of the sector, particularly in relation to retail leasing and employment law. The discussion was led by Sebastian Busa and Lucienne Gleeson, both Partners at Baker McKenzie.

Recent data from the Australian Bureau of Statistics (ABS) highlights that the luxury sector remains resilient despite broader economic fluctuations. Notably, retail spending on luxury goods has outperformed other segments, with Western Australia, South Australia, and Queensland experiencing higher-than-average consumer demand since October 2024. New South Wales, and Sydney in particular, is emerging as a dominant luxury retail hub, with nearly 25% of its stores catering to high-end national and international brands. Pitt Street Mall, which is now ranked as the 8th most expensive retail destination worldwide, exemplifies Australia’s growing significance in the global luxury landscape.

However, luxury brands in Australia operate in a commercial real estate environment characterised by the concentration ownership among a few dominant landlords. At the same time, legislative changes in employment law are reshaping workforce management, requiring luxury brands to adapt to new compliance obligations. Therefore, a strategic approach is crucial to ensuring long-term growth.

The second edition of the luxury industry roundtable provided an opportunity to explore major market trends and develop key recommendations on two main topics:

Retail leasing challenges and negotiation strategies
Employment law developments and their impact on workforce management

Retail leasing challenges and negotiation strategies

Retail leasing remains a cornerstone of luxury brand expansion, requiring a meticulous approach in negotiation with landlords. The Australian commercial real estate market is quite concentrated, with a few major players...

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