It has led to a seismic shift in the development of retail property, with the department chains downsizing and the space being leased by new brands and tenants.

Michael Bate, head of retail at Colliers International, said for the year to date, household goods sales, which comprise the second largest segment, have consistently grown at above trend and now sit at a rate of 6 per cent year on year.

"Unsurprisingly, the regional data shows a correlation between dwelling price and retail sales growth, with NSW and Victoria remaining above average, recording year on year retail sales growth rates of 4.14 per cent and 4.82 per cent respectively," Mr Bate said.

To take advantage of the desire for home furnishings, the overseas heavyweights of Zara and H&M, the two biggest fast fashion chains in the world, are offering homewares in their new stores.

Sweden's H&M opened with fanfare in Sydney last month and has dedicated prime floor space to homewares. Not to be outdone, Zara home is opening next door to H&M in coming months.

Supermarkets and food sales are also very strong, although competition is fierce among the existing players and the new entrants. As a result, consumers are benefiting from price wars and almost hourly specials.

Clothing sales are rising, albeit boosted by the entrance of the overseas brands, which are filling up the space previously leased by department stores.

As a result, the country's retail industry is undergoing a period of significant change, as established retailers are forced to evolve in order to survive, according to the latest retail research from Colliers International, "Game On: Retail's new entrants flex muscle as competition grows".

"Our industry is undergoing an unprecedented period of disruption, as these established players have been forced to evolve in order to meet the changing demands of the consumer and revive profitability," the research said.

"These changes are opening up new opportunities for the many emerging brands in Australia, who are looking to gain a foothold in an established and well-heeled market."

According to the research, two retail segments thathave undergone significant disruption are the supermarket and department store sectors.

Daniel Lees, associate director of research at Colliers International, said the entrance of the South African Woolworths to Australia via its takeover of David Jones, was giving the department store sector a 7 on the Richter scale shake up.

"Under their new ownership, David Jones has undergone a transformation, and they are looking ahead at new opportunities, such as fresh food.  At the same time, Myer has been forced to revitalise their offering in order to stay competitive," Mr Lees said.

"The impact on the retail property sector as a result has been significant. Myer has decreased their property footprint in several key areas, such as Top Ryde where they are withdrawing completely. In other centres they are reducing their footprint."

Mr Bate added with this rationalisation of space, comes a huge opportunity for the emerging brands to establish themselves in well-located retail spaces with good foot traffic and exceptional visibility.

"Our retail landscape has changed significantly in recent years, but that's nothing on what we're going to see in the coming years," Mr Bate said.

"The march of international retailers into our country is nothing new, but the second, third and fourth wave of these will continue to come."