Spending soars in central Christchurch, most on clothes, food and drink

Monday, 10 December 2018

Spending in the heart of Christchurch has rocketed in the past year as new openings attract more people.

Retail spending in the heart of Christchurch has rocketed in the past year as more people flock to the centre, the latest sign of the city's recovery.

Visitors to the CBD's core spent $210.5 million on debit and credit cards in the year to October, a rise of 33 per cent on the $158.5m in the previous 12 months.

But those tasked with promoting Christchurch say they want more – for people to see the city centre as their 'own living room'.

Growth is largely down to a boom in spending on clothing and in restaurants, bars and cafes, triggered in part by the opening of The Crossing last year and the $140m Terrace in early 2018.

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Christchurch is also attracting more people to its centre, with foot traffic in key parts of the CBD rising over the last six months.

The opening of the new central library Tūranga in October triggered a 58 per cent leap in the number of pedestrians in Cathedral Square.

The rise in spending and people on the streets is a timely boost for CBD retailers and hospitality owners who have struggled in recent post-quake years, compounded by a lack of apartment sales. In the lead-up to Christmas, it is hoped late night central city shopping from Thursday and a 'Big Shopping Night Out' event on Friday will lure people out of malls.

Earlier this year, McDonald's said the lack of foot traffic was one of the reasons it would not reopen a CBD restaurant.

In September, Cosmic retail manager Scott Curtis said the store's new BNZ Centre premises had less foot traffic than their previous Re:Start mall store, while Scorpio Books director Dave Cameron said although his business was a 'destination shop', he thought people were 'still shy' to come into the city centre.

Fast forward to December, and Maureen Taane, who owns the Hapa gift and jewellery stores in the BNZ Centre and The Tannery, said the feeling was different. 'It is upbeat, exciting and on the verge of an explosion.'

More visitors have been out and about in central Christchurch over the last six months, with spending and foot traffic on the increase.

Figures from economic development agency ChristchurchNZ – based on card retail spending in the city and excluding online purchases – show:

- Spending on clothing, footwear and at places like chemists in the city centre rose 43 per cent, from $35.1m in the year to October 2017 to $50.2m in the year to October 2018;

- Food and drink accounted for the greatest proportion of spending, the $121.7m forked out over the last year – a rise of 23 per cent on the $99m in 2017 – accounting for more than half the $210.5m spent in the heart of Christchurch;

- That $210.5m spent in the city's core – its main retail precinct, the area around the cathedral, to the Avon River, across to Manchester St and down to Tuam St – is just 28 per cent of the $752.9m spent in the four avenues and four per cent of the $5.23bn across Christchurch as a whole for the year to October;

- The opening of The Crossing in September 2017 was a major boost, accounting for a 56 per cent growth in spending on the same month the year before.

Gift shop owner Maureen Taane hopes the rise in visitors indicates the turning of a corner for embattled retailers.

Meanwhile, a new method of monitoring foot traffic being trialled by Christchurch City Council has uncovered a rise in visitors to the city centre since it was introduced last winter.

Average numbers at four key sites have risen steadily, with Cathedral Square seeing a 64 per cent increase in hourly visitors since June and Worcester Boulevard a 70 per cent leap.

Taane, a committee member of the Central City Business Association, said she has noticed a marked spike in foot traffic around her BNZ Centre shop in recent weeks, a welcome sight after a 'super-tough' winter.

She puts the increase down to increased visitors to the city centre following the opening of Tūranga and the Hoyts EntX cinema on Colombo St in September.

Food, drink, clothes and clothes sales have driven a sharp increase in retail spending in Christchurch over the last year.

'But it's not just those – even something as simple as introducing Lime scooters, they bring people in in a fun and exciting way.

'It's just connecting the dots and giving people more than two or three reasons to spend an entire day in the city centre.'

After a year of struggle for small businesses, Taane says she feels positive about the future.

'What we are seeing now is people coming in and saying, 'I haven't been into the city centre for a couple of years, I can't believe my eyes'.'

Anna Elphick, strategy manager at ChristchurchNZ, said the economic upswing was 'heartening'.

'An enhanced retail offering is attracting people back into the central city and that is great.

'What we're seeing is a central city that people want to spend time in, [but] we want more.

'We want people to see the city centre as their own living room, that they own it and that they choose to spend some of their January and Christmas holidays actually exploring their own city, not necessarily needing to do that in other parts of the country.'