The latest $125 million redevelopment at Westfield Chatswood will feature the north shore's first Topshop Topman, more specialty shops and an authentic Asian dining market.
In Queensland, Westfield North Lakes has also announced a $140 million upgrade, set to open in late 2016. It will include a new 17,000-square-metre retail mall with about 60 stores, connecting the existing centre to a new 29,000-square-metre IKEA store under construction.
The combined investment from Scentre Group and DEXUS Wholesale Property Fund for stage 1 and stage 2 of Westfield North Lakes is $220 million.
At Westfield Chatswood, the changes will reflect the area's demographics with 14 street food-style operators in Hawker Lane. The new style of malls is also a reflection of consumer demand for more food and services rather than big box department stores.
Scentre Group, the owner of Westfield Chatswood, will undertake the second phase of mall redevelopment with an upgraded fashion precinct planned to open in early 2016. It will include H&M, Uniqlo, Rebel, and local fashion and beauty retailers.
Scentre chief executive Peter Allen said the new-look Westfield Chatswood had been inspired by street food markets in south-east Asia.
He said diners would be able to experience the theatre of open kitchens and signature dishes, from Shanghai dumplings to ramen burgers.
The focus on food and expanded food courts is putting more pressure on the Myer and David Jones department stores in all malls. Both are reviewing their property portfolios, with some stores closing to focus on smaller, more efficient stores in prominent shopping centres.
They will also look to boost their food offerings.
Myer and David Jones have, historically, been difficult to differentiate, other than the target consumer, property ownership and food retail strategy. With both groups under new management, significant differences in the strategy are becoming apparent.
Macquarie Equities analysts said David Jones, now owned by South African Woolworths Holdings, was committed to a high-end food strategy, filling what management viewed as a gap in the Australian grocery market.
"This will initially be seen through the redevelopment of their food halls and followed by the potential rollout of stand-alone grocery stores, similar to the path of M&S in the UK and Woolworths Holdings n South Africa," the analysts said.
"David Jones has already opened discussions with Australian and South African suppliers.
"Myer has a relatively limited food offer, with in-store cafes and food gifting the primary food-related services. Both Myer and David Jones have stated that increased focus on in-store cafes will be a more prominent feature of refurbished flagship stores."
