Woolworths has expanded its footprint in the Sydney city after snaring a location for its Metro supermarket in Pitt Street Mall.
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It comes amid speculation that a bank, said to be Suncorp, has also leased the former General Pants space in Lendlease's Mid City Centre, facing the mall.
Leasing agents say the two new leases reflect the shifting sands of city retail, with Pitt Street Mall, said to be the country's premium shopping strip in terms of rent, moving away from being all fashion to general service-style tenants.
This is starting to mirror George Street, where a range of tenants are setting up shop as the street nears completion of its upgrade to a pedestrian and light-rail thoroughfare.
Last week Woolworths lodged a development application with the City of Sydney to lease the basement level of Investa's 400 George Street, facing Pitt Street Mall.
The space is currently leased to fast fashion house Forever 21, which has not lived up to expectations.
It is an American retailer with its headquarters in Los Angeles, California, but the label is operated under a territory licence in Australia from a United Arab Emirates company, Sharaf Retail, in the same way as the UK-based Top Shop Top Man, which was placed into administration in May.
The licensee, Sharaf Retail, has instructed leasing agents to seek new tenants for the three-level space.
The Woolworths application is for use of the lower ground floor tenancy within the Sydney Arcade under 400 George Street to a Metro supermarket with signage including an under awning sign and three signs to the Pitt Street Mall facade and two signs within the entry foyer.
The proposed trading hours are 5am - 1am the following day, Monday - Sunday inclusive. The cost of the fitout is about $1.9 million.
It will add to the Woolworths Metro sites in York Street and at 333 George Street. The supermarket giant has identified the smaller stores as a growth sector to cater for the increased number of residents in central business districts who prefer grab-and-go shopping.
Matt Hudson, the national director and head of retail leasing at Cushman & Wakefield, said quality retail is at such a premium that even non-traditional retailers are competing for such prime space.
"Companies are also willing to reconsider traditional location strategies to ensure they have access to a high volume of engaged consumers,' Mr Hudson said.
"This is also a great example of retail as a place maker and how service retailers alongside food and beverage, entertainment and leisure and health and wellness create a well-rounded precinct."
The same is occurring in George Street, where General Pants has relocated to a 1000-square-metre site at 415 George Street and Optus and Vodafone have new sites at 383 George Street.
