Exodus of retailers from Tauranga's CBD

Tuesday, 10 September 2019

Back in 2019, Tauranga retailers described the CBD as being in 'crisis', with about 160 empty shops. (This video was first published on September 10, 2019.

For lease signs line shop front after shop front in Tauranga's formerly bustling CBD.

There are now an estimated 160 empty shops in what is being called a crisis by Downtown Tauranga retailers.

Downtown Tauranga spokeswoman Sally Cooke said the CBD has been hit by a 'perfect storm' of issues from parking, construction projects, ongoing street closures and a decline in street retail shopping.

Empty shops litter Tauranga's CBD as about 160 retailers have left due to a downturn of retail spend.

'All of this construction is going to result in a vibrant CBD when it is all completed, but having it all happen at once is causing real issues,' she said.

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'Some of these projects have been delayed, compounding issues.

Family business Hammon Diamond Jewellers have been in the CBD for years and say the future is bright once the construction and parking issues are resolved.

'A parking building was supposed to be completed by last Christmas and the Durham Street upgrade was supposed to be completed before the new University Building opened.'

As retailer after retailer closes shop - those that remain have petitioned Tauranga City Council to invest in creative solutions to the crisis.

The new University of Waikato building is now open and is hoped to help revitalise the shopping in Tauranga's CBD.

Downtown Tauranga asked for free buses in and out of the CBD, council money to activate empty stores as pop-up offerings and art displays, and art displays and more events to be held in the city centre.

'If we can utilise empty spaces and empty buses, then we can create an amazing opportunity by installing art displays and pop-up shops to bring the CBD to life,' Cooke said.

Hammon Diamond Jeweller owner, Julie Hammon, says their family store has been in Tauranga's CBD for 33 years and she had no plans to leave.

'We've had a lot of highs and lows over the years,' she said.

'We've been offered locations in the malls, with incentives, but this is where we want to be.

'A lot of regional CBDs have been through redevelopments and this gives me optimism to ride out this extremely difficult trading period.'

One retailer who closed shop in the CBD after 18 years of trading says leaving the CBD was the best thing he could have done for his businesses.

Gateway Games owner Greg Kindell moved to the suburban shopping centre in Bethlehem and business immediately upturned.

'If I had stayed in the CBD I would have gone bankrupt,' he said. 'I'm not joking.'

'I think it might be too late for Tauranga's CBD or, at the very least, it will be five years before it is good again as these building projects need to finish.

'Council needs to look to Napier and see what they have done there to beautify it and make it a place to visit.'

Retailers who have remained in town are hopeful the completion of the University of Waikato Complex and the $100 million redevelopment of the Farmer's building, which will feature apartment buildings and 8000 sqm of retail space, will be the shot in the arm the CBD needs to bring trade back.

'There is a bright future here,' Hammon said.

'This level of investment would only be done if they believed in the CBD as we do.'

Mayor Greg Brownless said the council cannot play favourites with the shopping districts in its consideration of ways to relieve pressure on retailers.

'Running free busses into the CBD could create problems with other retail areas,' he said.

'One thing we are looking into is having the first two hours of parking for free.

'It's something that comes up a lot when speaking to people who use the CBD.'

Options to amend the CBD will be debated at a council meeting on Tuesday.