Mecca has finally opened its luxurious Melbourne flagship to the public, with experts hailing the three-storey development as a new standard for bricks-and-mortar retail in a changing consumer environment.
After three years of construction, Mecca’s retail centrepiece welcomed eager customers to its 299 Bourke Street premises on Friday.
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Built into the former home of David Jones’ city menswear store, the elaborate fitout houses Mecca’s classic beauty and skincare product range and a number of bespoke additions.
There is the fragrance gallery and hair salon; the in-built florist; and a cafe serving Melbourne’s own Seven Seeds coffee and Lune croissants.
Visitors will also find a full-fledged skincare clinic, brow studio, and a beauty atelier, delivering hair, makeup, and nailcare services within 90 minutes.
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It is a maximalist expression of a retail concept born in 1997, when founder Jo Horgan first brought the Mecca business to Melbourne’s South Yarra shopping district.
Since then, Mecca has grown to become one of the country’s most recognisable retail brands, both for its 100-plus shopfronts and its online retail presence.
Its market penetration has also helped Mecca ward off international competitors like Sephora, which have entered the Australian market not as pre-destined winners but genuine challenger brands.
People enter after doors open in Melbourne, Friday, August 8, 2025. Opening of MECCA Bourke Street store, where brands, products, services and experiences come together across three levels. Source: AAP Image/Con Chronis
Mecca shows physical retail must evolve
On the dawn of Mecca’s new retail era, experts say there are important lessons to take from Mecca’s commitment to bricks-and-mortar retail.
“This new store launch shows that physical retail is far from dead, but it must evolve,” said Emma Easton, a senior retail strategist at Retail Oasis.
Not every brand has the resources to plug a florist and cafe into their retail outlets, but “Mecca shows that in-store retail needs to deliver more than just convenience, it must deliver emotion, education, and inspiration,” she continued.
“Even in an era where technology is leading, human interaction often wins.”
Brian Walker, CEO and founder of consultancy Retail Doctor Group, agreed that premium physical experiences can be vital.
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The flagship demonstrates the “theatre of retail”, he said, allowing shoppers to immerse themselves in the brand’s identity.
We have never, ever walked away from the fact that retail is, at its heart, a social activity.
Spending more time browsing a store brings obvious economic benefits, too, with shoppers more likely to indulge while browsing compared to a quick in-and-out visit.
Bricks-and-mortar as an ‘ecosystem’ play
Beyond a physical spectacle, experts think the flagship will serve Mecca’s broader store network and e-commerce operation.
“I think some people would see this as a bricks-and-mortar play,” said Walker.
“It is, but it’s also an ecosystem play, because everyone that walks into that environment is also a digital customer.”
Easton agreed, saying visits to Mecca’s new flagship could drive longer-term brand affinity.
The brand has “created a powerful omnichannel presence, where digital and physical complement rather than compete”.
The store serves as a natural canvas for social media content, too, with consultants expecting customers to become brand advocates through their own footage of the space.
This could help the flagship create a ‘halo’ effect for the brand, influencing shoppers who might not ever step foot in the Melbourne CBD.
A general view of the MECCA store in Melbourne, Friday, August 8, 2025. Opening of MECCA Bourke Street store, where brands, products, services and experiences come together across three levels. Source: AAP Image/Con Chronis
Mecca’s long-term bet on consumer experience
That commitment to experiential bricks-and-mortar retail comes at a cost.
Mecca has not disclosed the exact amount it devoted to the elaborate fit-out, but the Nine papers report it was enough to plateau company profits through 2023 despite revenue increasing to $1.2 billion.
The rent Mecca will pay building owner, Newmark Capital, is also considered a major component of the property’s value, which was pegged at $121 million when the property group purchased the site in 2020.
Its opening coincides with a cost-of-living crunch that has made it harder for smaller discretionary retailers and hospitality businesses to get by.
In comments to the media, Horgan herself has described the development as a significant bet on the future of physical retail.
While the store has not yet been open to the public for a full day, Walker said the risk very well could pay off.
“I think it’s a reasonably pretty safe bet,” he said, given the residual spending capacity of Mecca’s core audience.
Nathan Tindall, director at Point Retail, said the Australian economy is a “microcosm” of the challenges facing American and British markets, where regional shopping centres are closing and many historic department stores are struggling.
Mecca’s new development sets it apart from those struggling physical sectors, he said.
“I think that what’s surviving and what’s thriving is the businesses that are able to really target their market but also drive excitement in retail,” he said.
“I think old, boring retail is dead, and I think that what’s replacing it is stuff like this.”
Some personal anecdotes point to Mecca’s new commitment being a commercial success.
“My teenage daughter said to me yesterday, ‘Dad, let’s go down and do a retail discovery tour’, which is her excuse to visit the Mecca flagship,” said Walker.
