First look: Inside Mecca’s new mega-store lifting hopes for Aussie retail  

Beauty giant Mecca’s new flagship store is being hailed as a game changer for Australia’s retail property market, as some brick-and-mortar shops remain under pressure.  

The new mega store, located in the heart of the Bourke Street mall in Melbourne, will be one of the largest standalone beauty destinations in the world when it opens its doors on Friday August 8.

The new Mecca store will span across three levels. Picture: Sean Fennessy

The company said the new store will span 4,000 square metres across three floors and will attract an estimated 50,000–plus consumers weekly in search of beauty products and more than 80 in-store services, including skincare, make-up and other treatments.  

It’s a glow up for Melbourne’s retail property landscape, and is being closely watched by property types to see what kind of destination experiences it will offer for today’s social media-hooked shoppers. 

The new mega-store will be located in the heart of the Bourke Street mall in Melbourne. Picture: Sean Fennessy

Mecca founder and co-chief executive Jo Horgan said the new store would be the physical embodiment of their purpose to help people look, feel, and be their best. 

“It reimagines what experiential retail can be, fusing creativity, culture, and collaboration to create something so much more than a store – it’s the mecca of all meccas,” she said.  

The new Mecca store will offer hundreds of beauty brands for shoppers. Picture: Sean Fennessy

On top of hundreds of beauty brands, shoppers can expect skincare, hair, makeup, nail and wellness services, as well as a perfume ‘gallery’, 200sqm auditorium, cafe, and more.  

Mecca has leased the space from a Newmark Capital-managed fund, which purchased the former David Jones department store in 2020.  

The fund has been refurbishing the property since David Jones’ lease expired in 2022, with media company Clemenger and men’s fashion retailer Rodd and Gunn also committing to space in the building.  

Shoppers will be able to try a range of in-store services, including skincare, make-up and other treatments. Picture: Sean Fennessy

In the midst of the refurbishment, Newmark undertook a capital raising to complete the project, reflecting the changes in market conditions over the past five years. 

“A new store like this shows there’s a strong argument that consumers still value the in-store experience,” REA Group senior economist Anne Flaherty said.  

“It’s not just about going in and buying a product, it’s about trying some skincare or make-up and experiencing different products before you buy them. 

The new store will attract an estimated 50,000–plus consumers weekly. Picture: Sean Fennessy

“Personal beauty products still remain in demand because they’re seen as small luxuries or even essentials that people still want to engage with in person.”  

The new store opening comes as the Melbourne CBD held the lowest retail vacancy of any city centre in the country, according to CBRE figures.  

People were also shopping more and more in the Melbourne CBD and city centres around the country, according to Colliers research.  

The new store will span 4,000 square metres. Picture: Sean Fennessy

Improving consumer confidence and strong population growth lifted foot traffic in CBDs nationally during the second quarter of the year, supported by the continued return of workers to offices.  

Colliers’ director of retail leasing in Victoria, Tom Larwill, wasn’t involved in the Mecca deal, but said the move showed confidence was returning to CBD retail.  

“Mecca’s new flagship store is going to be a game changer, it’s going to be one of the biggest cosmetic stores in the world,” he said.  

The design revives key 1930s features, including terrazzo floors, plaster ceilings, and faience tiles. Picture: Sean Fennessy

“What Mecca will deliver is something you’d expect to see in Singapore or Dubai, so having it in Melbourne is going to elevate the retail profile, not only nationally but internationally. 

“While some retailers are downsizing, others like Mecca are doubling down and creating immersive environments you just can’t replicate online.” 

The Mecca opening comes just weeks after sports fashion retailer JD Sports opened its nearby global flagship store in the Bourke Street mall, giving the local market an injection of confidence.  

It will be one of the largest standalone beauty destinations in the world. Picture: Sean Fennessy

But Ms Flaherty noted that there were still headwinds facing the retail property sector, including lower household spending and higher costs for retailers.  

“People have cut back on their spending and non-discretionary retail is one area that’s really taken a hit since the pandemic,” she said.  

“We’re still seeing smaller retailers struggle, in particular clothing stores, cafes and restaurants, and a lot of those businesses continue to become insolvent in the current market. 

The new Mecca store will open in the former David Jones store (right) at 299 Bourke Street in the Melbourne CBD. Picture: Getty

“The outlook is mixed, so it depends on the location of the store, its product offering and how much exposure it has to household spending.”  

Whether it sparks a broader revival or simply stands apart, Mecca’s mega-store bet shows there’s still room for bold moves in a retail world being reshaped by online shopping and in-person experiences.