Wellington businesses lose $3.2 million after 7.8 earthquake

Wednesday, 14 December 2016

Topshop Topman general manager Jamie Whiting says losing two days of trade wasn't expected, but the business bounced back quickly.

Wellington businesses have lost millions of dollars in the lead up to Christmas after the deadly November earthquake forced the city to shut up shop.

Retailers and accommodation providers in the capital suffered to the tune of about $3.2 million, as shoppers and workers were told to avoid the city in the two days following the 7.8 magnitude quake.

Nationally, on the day of the quake, spending was 3 per cent - or $4.2m - below the level of the previous Monday, according to Paymark.

Businesses were forced to close, meaning spending in the city on the day of the quake - and the day after - dropped 12.1 per cent, Paymark figures show.

Despite this, inner city retailers remain positive and say pre-Christmas trading is going well.

Thousands attended this year's A Very Welly Christmas event, which was a welcome boost for retailers.

* More buildings closed, as Wellington's mayor declares CBD safe for the public**

Topshop Topman general manager Jamie Whiting said the earthquake was 'definitely an unexpected obstacle'.

'[But] overall, we coped extremely well…we had such fantastic trade before the earthquake and it's definitely picked back up since the CBD was closed.'

'Losing two days of trade wasn't expected, but the business has been able to absorb that and bounce back quickly, so in hindsight it wasn't as dire as you might think…

First Retail Group managing director Chris Wilkinson said there was 'no doubt' retail was affected from the quake.

'Almost all businesses lost a day immediately afterwards - some two or three as buildings took longer to determine safe.

'Lost trading like this is hard to pick up later - especially as stores' audiences didn't return immediately, unlike other types of closures such as storms or power outages.'

The 'Very Welly Christmas' event last weekend was a 'welcome respite' for many businesses and helped recalibrate the marketplace, he said.

'Consumers visited town in their droves and we had a number or retailers on [Lambton] Quay say people had told them it was their first time back in the capital in years as they normally shop in the suburbs…

'[So] trade is returning and the city is feeling as if it's getting back to normal, as businesses and the government begin re-populating their office blocks or settling into new areas - however, [it] will take some time before it returns to where it needs to be.'

Hospitality New Zealand vice president Jeremy Smith said a lot of accommodation providers were widely affected by the quake and were still trying to recover losses.

'For the accommodation side, in the days after the earthquake there was definitely an impact - a lot of people cancelled their bookings, and a lot of people cancelled their advanced bookings…

At the same time, food and beverage businesses were also dealt a heavy blow, Smith said.

'Everyone was down massively in that first week - just about everything that could be cancelled, did get cancelled, including Christmas parties…

'The city is still without a lot of people, and businesses are missing them coming in for coffee, or lunches, or that beer after work.'