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Building a retail business in the regions: The Daylesford store bringing joy to locals

A tree-change led to a career change for this Melbourne couple. Learn how they launched and grew their business, Daylesford Trading Co, in regional Victoria.

By Jessica Golding. Pictured below: Sebastian Halse and Gary Grach.

  • A Melbourne couple turned a regional move into a thriving retail business in Daylesford, Victoria.
  • The store is a welcoming space for locals and visitors, who flock to the town for the yearly ChillOut Festival – a recent stop on The CommBank Tour.
  • The business’s growth has been driven by the in-store experience, online sales and strong supplier relationships.

After a 23-year teaching career, Gary Grach was ready for a change when COVID hit in 2020. He and his partner, Sebastian Halse, were living in Melbourne at the time and had been making regular weekend trips to Daylesford – 110 kilometres north-west of the city, at the foothills of the Great Dividing Range.

The couple decided to make a permanent move to the regional Victorian town, which is known for its mineral springs, spas and artistic community. After buying a house and settling in, another opportunity presented itself when they came across a renovated retail space on the main street that was sitting empty.

"I’ve always loved retail and I thought it was time to take a punt," says Gary, who worked at a department store prior to teaching. Spotting a gap in the local market for affordable toys, he took out a two-year lease on the property and opened Daylesford Trading Co – an eclectic variety shop that stocks everything from board games and puzzles to books, homewares, art and local produce.

"Life can be quite serious so it’s nice to have products that bring a smile to people’s faces," says Gary. "It’s a welcoming place and I work really hard on providing great customer service."

Daylesford Trading Co stocks an assortment of toys, homewares and local products.

Growing the business with online sales

While the in-store experience is key to Daylesford Trading Co’s success, online sales have ramped up in recent years with Sebastian joining the business. 

"It’s quite time-consuming putting all the products online and he’s got skills there that I don’t really have," says Gary. "What people buy online is actually quite different to what sells in-store, so that’s been a learning experience."

Like most small business owners, the two wear many hats to keep running costs down and ensure everything runs smoothly. "I do the accounting side of things and the stock buying, but I’m also doing the cleaning," Gary says. "Whereas my partner will be managing the online store, packing orders and doing the marketing."

Gary works with local makers to source products like honey, jams and art to sell in the store.

Managing suppliers and business finances

Committed to keeping prices affordable for customers, Gary works with a wide range of suppliers, seeking out quality products from businesses that are closing down and connecting with local makers.

"It took 12–18 months to build really great relationships to get affordable local products like honey, jams and art," he says. "There’s probably over 30 suppliers to manage, which is time-consuming, but then you get a better choice of products."

His degree in accounting and previous career as an accounting and business teacher helps him navigate the financial side of the business and plan for potential cost increases.

"What’s happening at the moment with petrol prices starting to rise, I can see in a few weeks freight charges increasing," he says. "It’s all those external events that as a business owner, you need to be aware of."

ChillOut Festival brings thousands of visitors to Daylesford each March.

Connecting with the community

While the store’s regulars are mainly local parents who come in with their kids, ChillOut Festival – Australia’s largest regional LGBTQIA+ pride event – brings people from all over Australia to Daylesford each March.

"People who come here for ChillOut just love how open and embracing the whole community is," says Gary, pointing out that Daylesford was named one of the 10 most welcoming towns in the world by Booking.com in 2024. "Every year it seems to be getting bigger. It’s probably my favourite weekend of the year because everyone’s in a great mood."

Looking ahead, Gary is optimistic about the future of the business. "It’s done really well so I keep extending the lease," he says. "I've tried to make it really kid-friendly, where you can touch lots of things – the kids love coming in."

The CommBank Tour, a national initiative designed to enhance financial fitness in regional Australia, visited Daylesford as part of this year’s ChillOut Festival. Visit The CommBank Tour to learn more.

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Published: 8 April 2026

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