Wellington retailers reshuffle, amid the strongest construction activity in a decade

Tuesday, 3 October 2017

Construction boom makes way for more shops in Wellington.

A flurry of construction activity along Wellington's 'Golden Mile' is creating more retail choices for businesses and shoppers.

Retailers around Lambton Quay, Manners St and Cuba St have begun relocating as refurbishment work gets underway on a number of new buildings.

Ty Dallas, of Colliers International Wellington, says this is the biggest retail construction boom for more than 10 years.

Developments include a major new development on Victoria St and Lombard Lane, the strengthening of the former Farmers building on Cuba St and the strengthening and refurbishment of Stewart Dawson's corner.

Meanwhile, new retail developments are underway on Woodward St, the ground floor of the new PWC Centre on the waterfront, the ground floor of 20 Customhouse Quay, and a new retail block on a car park in Thorndon Quay.

The former Farmers building on Cuba St is going to be redeveloped as a mix of retail, hospitality, residential and office space.

An artists impression of the refurbishment to 7 Woodward St, Wellington.

* When Topshop closes who will replace them?

* Flood of new retailers hits the capital**

Work on the PwC Centre being built on Site 10 on Wellington's waterfront is expected to be complete by mid-2018.

Ty Dallas, associate director of Colliers International, said the capital was experiencing its highest level of retail construction activity for more than a decade.

'The major retail construction projects reflect the positivity in the Wellington market.'

The PwC Centre will feature mainly office space, however, part of the ground floor will be used for retail, cafe, and exhibition spaces.

First Retail Group managing director Chris Wilkinson says the retail changes were good for the city and shoppers alike.

Despite a challenging retail market, there was still a 'healthy appetite' from national and international retailers to secure new space in Wellington, Dallas said.

First Retail Group managing director Chris Wilkinson said new developments, such Victoria St enabled existing retailers to improve their profile, while newcomers were able to find space which suited their store.

Meanwhile, the strengthening work, such as space on the Stewart Dawson's corner, had 'displaced a number of retailers' including Rodd & Gunn and Footlocker, Wilkinson said.

In addition, a lot of leases had also come up for renewal, enabling businesses to better size their sites, or move to better accommodate customers, he said.

The changes were good for the city and shoppers alike, Wilkinson said.

'The CBD has a lot of cutting-edge retail environments, reflecting what's happening in other leading cities … That's good news for Wellington which faces continued local, national and international competition.'

The demise of Topshop left a large site on Lambton Quay available, but Wilkinson said the size and layout of the store meant it would not suit many of the larger retailers currently entering the New Zealand market.

'Our pick is that it will most likely suit a brand that is 'in-waiting' for a larger space, as perhaps a medium-term pop-up,' Wilkinson said.

'Other options could be for retailers like Country Road to take the space, allowing parent David Jones to create greater scale for the department store by utilising the adjacent building to deliver growth categories, such as their new food offer.'