Retail Sector Faces Significant Challenges Amid Growth and Expansion in Greater Bendigo

The retail industry remains a cornerstone of Greater Bendigo’s economy, providing 5,781 jobs across the region and accounting for 12.1% of all employment. Bendigo Marketplace, the area's largest shopping destination, continues to draw 3.5 million visitors annually thanks to anchors Woolworths and Big W alongside over 100 specialty stores. Yet, this growth masks underlying challenges that threaten to disrupt the sector’s momentum, especially with expanding residential areas demanding more retail infrastructure.

Rising Demand Outpacing Retail Supply

A long-forecasted undersupply of supermarket floorspace is becoming a pressing issue in outer suburbs such as Strathfieldsaye, Epsom, and Huntly, where expansions have not kept pace with population growth. As early as 2015, the City of Greater Bendigo’s Commercial Land and Activity Centre Strategy highlighted that by 2031 these suburbs would face significant shortages in essential retail space, especially supermarkets, triggering urgent calls for infrastructure investment to accommodate future demand.^[1]

Current retail developments accentuate this pressure. A $12 million retail hub proposed at the Midland Highway and Howard Street intersection in Epsom is awaiting council approval, signaling recognition of gaps in servicing outer communities. Meanwhile, the Bendigo CBD is experiencing a wave of commercial upgrades with plans for a four-storey office plus penthouse at 52 Queen Street, indicating a shift toward higher-density commercial property to meet evolving business needs.^[2][3]

Changing Consumer Preferences and Retail Formats

Devoted locals and visitors alike have shown a penchant for Bendigo’s recent retail trends favoring boutique, artisan shops, and a retro revival. Vintage and antique stores along with laneway shopping featuring unique threads and contemporary homewares cater to evolving tastes. This shift towards smaller, experience-focused retail spaces contrasts with large format anchors but also creates challenges for long-standing retailers who must innovate to remain competitive.^[5]

Meanwhile, Bendigo Marketplace maintains a robust 96% occupancy rate reflecting strong demand in the city centre’s retail cluster, home to 33% of all local businesses. Despite this, competition both from within the city and in satellite suburbs creates headwinds as consumers seek value, quality, and convenience, influenced by broader market trends like cost-conscious spending and technology adoption, including AI in pricing and forecasting.^[2][6]

Retail's prominence as Greater Bendigo’s second-largest employer underscores the sector's economic weight but also its vulnerability to these shifting dynamics. Retailers must balance maintaining a diverse mix of specialty and anchor tenants while adapting to gradual urban sprawl and changing demographic profiles.^[3]

Looking ahead, Greater Bendigo’s retail sector must strategically address the spatial undersupply and evolving consumer preferences that define 2026’s operating environment. Investments in multi-use retail hubs and support for small and medium enterprises-over 95% of the region’s business base-will be key. Entities such as Be.Bendigo have stepped up with initiatives like online business directories to bolster local sourcing and help retail businesses thrive in a competitive landscape.^[1][12]

While plans like the Epsom retail hub remain tentative, the urgency of addressing floorspace deficits is clear. For shoppers and businesses alike, staying abreast of these developments will be critical to navigating a rapidly transforming retail scene in Greater Bendigo.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.