Doors open thanks to Dick Smith’s closing

Doors open thanks to Dick Smith’s closing

Significant-brand retailers are among those snapping up former Dick Smith’s stores

Auckland, May 2, 2016 – The closing of the doors of Dick Smith’s stores across the country marks a time of new beginning for some significant-brand retailers.

Bed Bath & Beyond is among the well-known brands securing former Dick Smith’s retail spaces, according to Colliers International Director of Retail, Leroy Wolland.

“New Zealand’s largest manchester specialist Bed Bath & Beyond has taken two of the stores, while another significant brand – who cannot be revealed due to commercial sensitivity – taking a number of outlets, with several more stores around the country under contract or under offer.”

“We have chosen these sites for their excellent exposure, high level of foot traffic and premium location,” says Bed Bath & Beyond spokesperson Trevor Brown.

Australia and New Zealand’s oldest electronics retailer was pushed into receivership in January, owing its lenders more than $150 million, with its 62 New Zealand stores being shut down.

But many of their stores occupy extremely high profile positions, rendering them extremely sought-after, Wolland says.

“Many of the stores occupy prominent locations within shopping centres, high street and suburban strip locations, as well as a large format retail centres.

“Typically the sites are very visible within their environment, with great signage opportunities and exposure, and also boast good, generic floor configurationswhich are suited to a variety of retail uses including fashion, food and beverage (F&B), convenience and homewares.”

Wolland has been working with Colliers’ colleague Jessica Martin to lease the sites. He says the types of businesses taking these spaces – like Bed Bath & Beyond – are generally quite different to that of Dick Smith.

“However there have been a couple of electronic retailers who have secured a number of sites - potentially capitalising on the goodwill generated from the location created by Dick Smith’s stores.
“There are also a couple of new entrants to the New Zealand retail market – from Australia – who have jumped on a number of these sites,” he adds.

“The closure of the Dick Smith’s chains has simply accelerated their rollout.”

Many of the sites Dick Smiths operated within shopping malls are in great locations and should be easily released, Wolland says.

“It’s highly likely that these could be leased to other national branded tenants.”

However, it not all good news for all landlords across the country, Wolland says.

“Some ex-Dick Smiths stores in regional New Zealand and those towns with smaller catchment sizes might struggle to attract tenant interest.

“This small catchment size could be seen as a barrier to entry for other national branded tenants in in towns such as Alexandra, Masterton, Kerikeri - where Dick Smith operated from one of the best spots in town.”

ENDS

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