Global footwear and apparel brand New Balance has recently relocated its Australian headquarters to a converted warehouse in the recently launched Morris Moor precinct in Melbourne. This move is part of a strategic reset for the brand, which is seeking to attract younger staff and foster a more collaborative culture. Besides New Balance, the 12,500sqm Morris Moor precinct features a brewery, restaurant and beer hall. It also places a strong emphasis on sustainability, with an all-electric
ic design, rooftop solar photovoltaic system, five electric vehicle chargers and end-of-trip facilities to encourage local commuting. Other amenities include yoga studios, sporting facilities and cafes on site.
New Balance occupies 1,500 sqm of the space, with offices located on the first level.
Dean Howard, New Balance Australia’s general manager, told Inside Retail that the brand had outgrown its old offices in Cheltenham and sought a new space that enhanced connectivity, while also adding to work-life balance. He said the location at Morris Moor had larger working areas, as well as more meeting spaces, facilities and entertainment options for New Balance staff, customers and wider stakeholders.
Howard added that New Balance is coming off an “incredible decade of growth”, with the move to Morris Moor providing the opportunity to take the brand to the next level. Despite the new office being around 12km away from the brand’s Melbourne Central concept store, he noted that a more central location wasn’t a viable option.
“The combination of office-space design, leisure options and ease of access for our staff is paramount,” he said.
“With that in mind, we’re confident that the new space will excite existing staff and bring new talent knocking at our door.”
Agile and innovative workplaces
According to Jenny Liu, head of change management for CBRE’s Pacific workplace team, retailers are increasingly seeking “agile and innovative” headquarters. This aligns with greater demand by staff for hybrid working arrangements following the pandemic.
Amid high levels of burnout and staff shortages, a positive and welcoming work environment is also paramount as a means of attracting and retaining staff.
Liu said that retailers need to consider a variety of factors when deciding on their head office. This includes sufficient space requirements, hybrid working capabilities, storage facilities, merchandise display areas, content creation spaces for podcasts and videos, and staff training and development areas. .
She also noted that inner city locations are in high demand for Australian retailers – with close proximity to stores and distribution centres being desirable. T2 and Amazon have both moved or set up headquarters close to CBD locations in recent years.
“We are also seeing a lot of retail HQs in creative precincts – such as Surry Hills and Chippendale in Sydney and Richmond and Cremorne in Melbourne,” she said.
However, central locations may be associated with higher costs, and reduced space.
Feel at home
Meanwhile, Howard explained that New Balance remains committed to reducing its environmental impact.
As a member of Business Ambition for 1.5C, he noted that the brand has made a commitment to reduce its company-wide emission reductions in line with climate science. “With this in mind, reducing impact across the supply chain, including our office space, is incredibly important,” Howard said.
“Morris Moor has a comprehensive list of initiatives in place [that] align well to our overall goals as a business.”
He added that the brand wanted its HQ to reflect its Boston roots, while also celebrating a culture of collaboration across the world.
“Whether you’re in Singapore, London, Boston or Melbourne – you’ll always feel at home in a New Balance office,” he said.