November is rapidly becoming Melbourne’s second Christmas trading season, with Black Friday and major events driving a significant uplift in spending, foot traffic and retailer demand across Victoria’s retail precincts, according to Knight Frank.
The latest edition of Knight Frank’s monthly Retail Leasing Insider newsletter, distributed by the firm’s Melbourne retail team, found that Victorian retail spending in November 2025 was approximately 10.8% higher than October 2025, while discretionary spending excluding food rose approximately 16.7%, highlighting the growing importance of the month for retailers and property owners alike.
The spending surge coincides with Melbourne’s packed spring events calendar, including the Melbourne Cup Carnival and major entertainment and cultural events, alongside Black Friday sales, which have evolved from a single promotional event into one of Australia’s most influential retail trading periods.
Knight Frank Head of Research & Consulting Victoria Dr Tony McGough said Black Friday had fundamentally changed consumer behaviour, with November increasingly challenging December as the most important trading period of the year.
“Melbourne’s busiest retail period is gathering pace, with major events and Black Friday set to drive visitation, discretionary spending and renewed activity across the city,” he said.
“Once largely associated with the US, the Black Friday sales event is now firmly established on Australia’s retail calendar, bringing Christmas spending forward and extending the peak trading season for retailers.
“With a significant noticeable uplift in spending, November has become a major trading period in its own right.
“The month begins with the race that stops the nation, the Melbourne Cup Carnival, bringing visitors, events and increased expenditure across Melbourne. Last year, the extended weekend generated an estimated $533 million in economic benefit for Victoria, with 71,690 visitors travelling to the state specifically for the event.
“Spending included more than $63 million on fashion and grooming, because race day calls for looking your best, and nearly $47 million on accommodation.
“Activity continues throughout November, with Melbourne’s entertainment and cultural calendar
keeping the city’s retail and hospitality precincts busy.
“When consumers are coming into the city for major events, dining experiences and entertainment, that activity naturally flows through to retailers. Combined with Black Friday sales, it creates a powerful tailwind for retail businesses and retail property in the lead up to Christmas.”
The strength of retail spending comes as Knight Frank’s latest Australian Retail Review highlights improving fundamentals across the sector nationally, with household spending increasing 6.8% year-on-year, retail vacancy rates declining, retailer turnover growth remaining positive and leasing spreads continuing to strengthen.
The report found retail vacancy nationally had fallen to around 3%, the lowest level in more than a decade, while retail owners continued to achieve positive rental growth as tenant demand remained robust.
Knight Frank Retail Leasing & Projects Coordinator in Melbourne Marie Formica said Melbourne’s retail leasing market was seeing the benefits of these broader market trends.
“Retailers continue to place significant value on having a physical presence, particularly in high-performing locations where they can connect directly with customers and benefit from increased visitation during major shopping and events periods,” Ms Formica said.
“We’re seeing strong enquiry across a range of retail categories, particularly from operators looking to position themselves ahead of key trading periods and take advantage of Melbourne’s unique ability to attract shoppers, tourists and eventgoers.
“While online sales remain important, Black Friday is increasingly demonstrating that successful retailers take an omni-channel approach, combining digital engagement with physical stores that offer convenience, brand exposure and customer experience.”
Ms Formica said Melbourne’s retail market continued to be underpinned by limited supply in sought-after locations and ongoing demand from both national and local retailers.
“Well-located retail space remains highly sought after,” she said. “Retailers recognise the value of being present in vibrant precincts where consumers are spending time and money, and that is creating positive leasing momentum across many parts of Melbourne.” To see Knight Frank’s latest Retail Insider newsletter, click here: RL INSIDER – NOV26.
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