Retailer exodus: Why are so many Central Wellington stores empty?
Saturday, 29 July 2023
Whether it’s a pandemic, evolving work habits, CDB redevelopment plans, or even an earthquake: retail on Wellington’s Golden Mile is going through a bumpy patch.
The Post carried out a stock take of vacant stores and hospitality sites along the prime CDB thoroughfares from the top of Lambton Quay to the end of Courtenay Place this week and mapped out where the retail rot has set in.
The worst affected areas are a rash of vacant shops at the top of Lambton Quay, a cold dark section of Manners, and the oft-reported struggles of Courtenay Place nightlife.
The good news was that Willis and Cuba streets were still in good health, and some big retailers in key sites were set to return.
Rufus Topley and Nicola Topley of the Homestore in the Lambton Quay mall Capital on the Quay were in the process of emptying their site, with plans to move to a smaller CBD premises on Panama St.
“We’ve been [here] 30 years and we’ve noticed in the last year that customer patterns have changed. People are still working from home, the car parking’s awful and the new plans with Let’s Get Wellington Moving has put us all on edge,” Rufus Topley said.
“Car park prices have gone up, supplier prices have gone up, rent’s gone up, so we’re now just looking to downsize and cut the rent and save money.”
The co-owners said they were paying about $13,000 a month in rent for their location.
Cuba St bar Laundry shut down after a rent dispute with the landlord in June 2022 but owners held on to the caravan in the hope of finding a new venue.
That caravan was listed this week on Trade Me, which co-owner Matt Rutledge said signified, “that part of the dream is over” as rents were now too expensive to consider reopening the popular bar elsewhere.
“The dream of reopening Laundry, we held onto it for a long time … we can’t really go any further.”
The Post counted 46 vacant sites on The Golden Mile and Cuba St.
Chris Wilkinson of First Retail Group said Lambton Quay’s retail strength had traditionally been “bullet-proof”, but several factors had taken their toll on the sector in recent years.
“It was powered by the public services and had a high degree of commuter traffic, but even before Covid that area was starting to go off the boil.”
He cited events such as the 2016 Kaikōura earthquake and the fact that some parts of public service institutions were relocated to other areas.
Crown Commercial real estate agent David Grant said from a lease perspective the CBD was still positive.
“Because we are doing the deals, which is a good indication that there are still people actively looking for new sites.
“Whilst we’re in a softer market than before, it’s not all doom and gloom.”
Wellington Chamber of Commerce chief executive Simon Arcus said the city needed to concentrate on making its CBD accessible and safe.
“I hear a lot of people saying they don’t like being in that part from Manners St to Courtenay Place because it doesn’t feel safe.”
The Post counted 46 vacant sites on The Golden Mile and Cuba St.'/>Arcus said low business confidence was manifesting in lease negotiations where retailers were reluctant to take on longer leases.
“Because they’re not confident in what’s going to happen in the next six months.”
Retail New Zealand chief executive Carolyn Young said Wellington retailers’ main concerns were lack of sales, low foot traffic, the economic climate, Wellington City Council, and Let’s Get Wellington Moving’s changes, alongside retail crime and increasing lease costs.
“More than ever it is important for Wellingtonians to shop local and for the council to put retailers as the key stakeholder in any decisions being made that impacts their ability to operate.
“This includes easy access to shops, a positive and energised environment that encourages people into the city, and fully tenanted stores.”