Innovation needed to halt grim future for Hastings retailers
Innovation needed to halt grim future for Hastings retailers
Stores going out of business and others relocating to new premises outside of the central business district, along with a general lack of interest in main street retailing has seen Hastings city retail occupancy continue to drop over the past year.
“There has been a distinct lack of demand for retail space in Hastings and the outlook is grim unless a proactive and innovative approach is developed,” says Louise Thompson, author of a six-monthly Hawke’s Bay retail occupancy survey from Logan Stone.
While tenant retail occupancy levels in Napier, Havelock North and Taradale are higher than six months ago, only Taradale is higher than a year ago. Hastings has seen a 3.6 percent drop over the same time and is 8.7 percent lower than the same time in 2014.
“Over the longer term,
occupancy is decreasing in the traditional retail precincts
of the region,” says Ms Thompson, citing changing retail
habits and the increasing supply of competitive premises
away from the retail cores.
“Along with this, the
current low population growth and increased competition from
online activity suggests there is little reason for
occupancy levels to increase in the near future.
“Retailers are attracted to places where people are
present or can easily access so regeneration and increased
activity needs to happen if the occupancy trend is to be
reversed.”
While local business associations, regional
development entities and councils appeared to be working to
resolve the apparent decline of the central business
districts, this may not be enough, Ms Thompson
says.
“The global trends suggest that in low-growth
provincial centres, the structure of central business
districts needs to change with a reduced space requirement
for traditional retail business. Retail occupancy in our
main centres will not improve until shoppers are attracted
to the core retail precincts on a regular and repetitive
basis.”
Retail occupancy in Hastings had declined to
its lowest level since the survey began in the year 2000,
says Ms Thompson. “We are expecting further store
closures and relocations in the coming 12 months and this,
combined with very limited demand for retail space, will
lead to additional vacancies in the central retail core of
Hastings.”
While Napier’s retail occupancy has
fallen from February 2014, the trend appears to have been
reversed over the past six months with a small increase in
occupancy apparent in the latest survey.
Occupancy in
both Havelock North and Taradale has increased over the
survey period. Taradale and Havelock North continue to
grow as precincts of convenience to the surrounding
residential areas. Havelock North continues to attract
boutique shoppers and expand its café culture, while also
attracting more commercial tenants.
Consistent with
international trends, boutique and convenience shopping are
two key factors in attracting potential shoppers and the
increase in occupancy in both Havelock North and Taradale
was evidence of this, according to Ms Thompson.
While
Ahuriri is not part of the survey it was providing an
alternative to central Napier for hospitality, art, boutique
and related traders as well as commercial offices, and Ms
Thompson believes it has the potential to provide a boutique
precinct comparable to Havelock North.
Relocation of
commercial activities to vicinities such as Havelock North
and Ahuriri was a threat to the central business districts
of both Napier and Hastings, she says.
The following
table provides a summary of the retail occupancy rates in
the February 2015 survey:
Movement since | |||||
Location | Feb 15 Result | Aug 2014 | Feb 2014 | Feb 2011 | |
Hastings | 85.9% | 3.6% | 8.7% | 11.7% | |
Napier | 87.8% | 0.8% | 5.7% | 4.7% | |
Havelock North | 97.2% | 0.5% | 0.3% | 0.5% | |
Taradale | 95.3% | 3.1% | 4.2% | 1.6% |
ENDS