Fast expanding retail chain Cheap as Chips has seized an opportunity to expand its Victorian platform by subleasing a major site in Dandenong.
CBRE Large Format Retail Negotiator Ryan Arrowsmith negotiated the sublease with previous tenant Officeworks.
The 2,225 square metre property, at 26 Princes Highway, has been secured at a rental of $190 a square metre.
Mr Arrowsmith said the deal highlighted the current activity from discount variety retailers looking to capitalise on opportunities in the wake of the collapse of the Discount Superstores Group (DSG).
DSG, whose stores included Sam’s Warehouse and Crazy Clarkes, was placed into receivership in July.
“The failure of DSG has opened the door to entrepreneurial companies seeking to secure a niche in the discount retail space,” Mr Arrowsmith said.
“The move has resulted in an abundance of sites being made available for lease and has left a hole in the market that groups such as Cheap as Chips are looking to capitalise on.”
Founded over 30 years ago in Adelaide, Cheap as Chips is Australia’s premier discount variety retailer. The group has close to 30 large stores in South Australia, Victoria and NSW as well as a growing online presence.
Mr Arrowsmith said the company’s new Dandenong site was adjacent to a strongly performing Coles supermarket, which had been one of the key attractions.
The site also offers more than 200 car spaces as well as exposure to the Princes Highway and has a local population catchment of circa 200,000.