Many empty shops at your local mall(s)?

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#1963245 24-Feb-2018 01:27

matisyahu:

amiga500:

How is it going at your local mall?

The Riccarton Mall currently has nine empty shops & one 'pop up' clothing shop. The 'pop up' looks very temporary with trestle tables etc.
Apart from the empty shops there is a floor space at the South entrance which usually has some retailer but is vacant right now. There is also a
Meccano shop that could be empty soon if the chain does not get a buyer.

The largest empty shop is the former Rebel Sports that moved out of the actual mall and across the road. This has been empty for a while. Several other shop
have been vacant for a while as well. And there is very little sign of activity such as new shops being prepared. Most of the empty shops
have the lights turned off.

There are two empty shops next to Farmers that are being used as advertising for Farmers & I include these in the nine shops. This is quite clever,
you have to be paying attention to recognise them as empty shops!

The CEO of Meccano has commented that retailing in the malls is a tough business & as Meccano are in liquidation seeking a buyer, you'd have to believe him.

This would be the most empty shops I have seen at the Riccarton mall, & far more than Northlands Mall. Strangely enough Riccarton seems to be
the mall with the highest foot traffic by far.

So how about your local mall(s)?

Not surprising though; the rent is huge when compared to operating as a stand alone store - the rent for the organisation I worked for before was $22,000 per month at the Queensgate Mall in Lower Hutt. In the end the rental prices are unaffordable and the only reason many businesses keep in the mall is that they believe they'll lose foot traffic if they don't. The interesting part about Queensgate Mall Lower Hutt is the fact that they're not rebuilding the theatre (I could never see the movie theatre making money given how few people us it outside of the time kids have off from school) plus rumours of some retailers leaving.

I wonder what they are going to do with the part they demolished, which is now just an open air car park and looks bad. The Hutt is missing a decent sized theater these days, QUeensgate was really the only one, apart from the small boutique ones. Guess most people are now just watching at home.

matisyahu

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#1963246 24-Feb-2018 03:00

mattwnz:
matisyahu:

Not surprising though; the rent is huge when compared to operating as a stand alone store - the rent for the organisation I worked for before was $22,000 per month at the Queensgate Mall in Lower Hutt. In the end the rental prices are unaffordable and the only reason many businesses keep in the mall is that they believe they'll lose foot traffic if they don't. The interesting part about Queensgate Mall Lower Hutt is the fact that they're not rebuilding the theatre (I could never see the movie theatre making money given how few people us it outside of the time kids have off from school) plus rumours of some retailers leaving.

I wonder what they are going to do with the part they demolished, which is now just an open air car park and looks bad. The Hutt is missing a decent sized theater these days, QUeensgate was really the only one, apart from the small boutique ones. Guess most people are now just watching at home.

As fibre becomes as common as mobile phones you'll find that pay per view releases along side Netflix etc. will pretty much kill off the movie market for all but niche boutique art house films etc. that are part of an evening out with friends. I'm at the stage these days that I'd sooner chill out at home with my partner and order in a pizza than travelling into Lower Hutt, buying tickets, having dinner etc. then catching the bus back when I can stay at home without all the drama. As retailers get their act together there is increasingly less reason to go to a store other than for instant gratification because other than that I pretty much buy everything I want online except for groceries and stuff I need straight away - last time I bought clothes or shoes from a store? would be at least 4-5 years ago.

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#1963255 24-Feb-2018 06:56

wellygary:
amiga500:

How is it going at your local mall?

The Riccarton Mall currently has nine empty shops & one 'pop up' clothing shop. The 'pop up' looks very temporary with trestle tables etc.
Apart from the empty shops there is a floor space at the South entrance which usually has some retailer but is vacant right now. There is also a
Meccano shop that could be empty soon if the chain does not get a buyer.

from Jan this year

https://www.stuff.co.nz/business/100398568/christchurchs-bush-inn-centre-to-swap-supermarket-for-daily-farmers-market-as-malls-compete-for-custom

In August last year Stuff obtained a letter from the leasing manager to a shop owner saying "a substantial alteration to Westfield Riccarton is about to occur". The consent expires next year.

Before a redevelopment malls tend to turn into graveyards, as the long term tenant vacate as their leases expire, ahead of the place being gutted,

The mall operators then sign up really short term "cr*p to fill the gaps" stores until the construction starts, hence the growth in nail bars, thai massage joints,cell phone cover shops and the like...

Not a surprise they are shutting that countdown it was only set up to stop other supermarkets moving in and new world is now essentially down the road a littlevway and there is a much bigger countdown over the road.

Here is my Quic referral https://account.quic.nz/refer/39513 if you are keen to change ISP and to get free setup (save $29). I will get a $50 credit if you use this. Thank you very much if you use my link but I'm sure there are quite a few others who could share the same on here, no hard feelings if you use a different link.

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#1963267 24-Feb-2018 07:19

richms:

There were signs up for the pizza hut when I last endured the mall to pay far too much for a nintendo switch controller at EB games because I needed it right now. If they did the old all you can eat thing then I would be interested, but as its just a vastly inferior takeout option compared to dominos then I will probably isgnore it.

I was told by a Pizza Hut employee (many years ago as they were closing down their dine-in restaurants) that they were "dinosaurs" and on the way out. I imagine it's probably far cheaper to rent a small outlet then pay larger rent for a sit-down restaurant.

Although, having said that...

http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=11990215

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#1963372 24-Feb-2018 12:28

matisyahu:

The interesting part about Queensgate Mall Lower Hutt is the fact that they're not rebuilding the theatre (I could never see the movie theatre making money given how few people us it outside of the time kids have off from school) plus rumours of some retailers leaving.

I'm not sure where you heard about the cinemas not being rebuilt. Plans are well underway and drilling for core samples for foundation design work was undertaken a few weeks ago. The one thing that hasn't been announced is who the cinema operator will be, with speculation that it won't be Event back in there.

3puttssuck

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#1963417 24-Feb-2018 13:39

Dunnersfella:

The mall based retailers are stuck between a rock and a hard place.

They require huge margin to survive as the cost of being in the mall is so darned high (from rent to share of profits). That's why you see businesses with typical big margins there, clothing, food etc. The issue is that there's so many similar businesses! It's almost as if people who own a business literally have no imagination in the type of company they run. From a geek perspective, I look at the likes of JB HiFi and Noel Leeming and wonder just how much margin they must be sitting on to exist within a mall. Lots of customers / sales means you end up paying even more money to the mall owners...

Re: Bush Inn, I wouldn't be surprised to see Smiths City not re-open in the mall as their recent 6 month result saw them make a pathetic $2000 profit for the last 6 months!

Out of interest, where did you see they made $2000 profit in the past 6 months. I'm not calling you out. They sell product that competes with the company I work for and would like to see some numbers. I have seen their 6 month report but I didn't see where it broke the numbers down.

Thanks.

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#1963493 24-Feb-2018 15:23

3puttssuck:

Dunnersfella:

The mall based retailers are stuck between a rock and a hard place.

They require huge margin to survive as the cost of being in the mall is so darned high (from rent to share of profits). That's why you see businesses with typical big margins there, clothing, food etc. The issue is that there's so many similar businesses! It's almost as if people who own a business literally have no imagination in the type of company they run. From a geek perspective, I look at the likes of JB HiFi and Noel Leeming and wonder just how much margin they must be sitting on to exist within a mall. Lots of customers / sales means you end up paying even more money to the mall owners...

Re: Bush Inn, I wouldn't be surprised to see Smiths City not re-open in the mall as their recent 6 month result saw them make a pathetic $2000 profit for the last 6 months!

Out of interest, where did you see they made $2000 profit in the past 6 months. I'm not calling you out. They sell product that competes with the company I work for and would like to see some numbers. I have seen their 6 month report but I didn't see where it broke the numbers down.

Thanks.

It was pretty big news in the mainstream media before Xmas.

Edit: Link to a story about it https://www.nbr.co.nz/article/smiths-city-first-half-profit-all-wiped-out-fading-consumer-demand-saps-sales-margins-b

amiga500

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#1963548 24-Feb-2018 16:17

I think Smiths City almost went under about 15 years ago. Don't think they do tech. stuff very well. Going back 15 years they would get stuck with old product at hugely unrealistic prices, and in 2018 they are still having that issue to some extent. In another thread I mentioned a hugely over-priced Seagate 2 gb desktop drive...

quickymart

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#1963567 24-Feb-2018 17:01

Must say last time I was in a Smiths City (which was in Greymouth) I thought their range of tech stuff was rather dated and overpriced.

Dunnersfella

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#1963584 24-Feb-2018 18:06

They simply don't seem to have an aged stock programme within their stores, meaning the only reason the managers seem to move through old products is pride, not for financial reasons (competitors will be punished financially by their head office when they are stuck old stock).

They either don't move through the old kit, or aren't doing the numbers to get rebates from their suppliers.

Whatever it is, I believe it won't be too long until we see them drop computers / phones / audio visual all together.

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#1963591 24-Feb-2018 18:27

matisyahu:

mattwnz:
matisyahu:

Not surprising though; the rent is huge when compared to operating as a stand alone store - the rent for the organisation I worked for before was $22,000 per month at the Queensgate Mall in Lower Hutt. In the end the rental prices are unaffordable and the only reason many businesses keep in the mall is that they believe they'll lose foot traffic if they don't. The interesting part about Queensgate Mall Lower Hutt is the fact that they're not rebuilding the theatre (I could never see the movie theatre making money given how few people us it outside of the time kids have off from school) plus rumours of some retailers leaving.

I wonder what they are going to do with the part they demolished, which is now just an open air car park and looks bad. The Hutt is missing a decent sized theater these days, QUeensgate was really the only one, apart from the small boutique ones. Guess most people are now just watching at home.

As fibre becomes as common as mobile phones you'll find that pay per view releases along side Netflix etc. will pretty much kill off the movie market for all but niche boutique art house films etc. that are part of an evening out with friends. I'm at the stage these days that I'd sooner chill out at home with my partner and order in a pizza than travelling into Lower Hutt, buying tickets, having dinner etc. then catching the bus back when I can stay at home without all the drama. As retailers get their act together there is increasingly less reason to go to a store other than for instant gratification because other than that I pretty much buy everything I want online except for groceries and stuff I need straight away - last time I bought clothes or shoes from a store? would be at least 4-5 years ago.

bah, they said this when VCR tapes were made, they said this again when when laser discs and DVDs were invented, someone said this again when you could buy/download/stream movies online....

Theaters will only dissapear if the pubic stop demanding to see things on 'big screens' and treat such occasions as occasions.

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#1963648 24-Feb-2018 22:07

H&M are have announced that they are going into Riccarton Mall which may be the reason there are so many empty shops

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#1963662 24-Feb-2018 22:46

Knowing what rentals are being charged at westfield malls and some of the lease conditions (you'd be horrified) it is absolutely amazing to me that anyone can make money in a mall, esp those with low-value items for sale. Having said that, two customers I have in malls seem to be creaming it even with some of the totally outrageous things they have been made to do by Westfield including being relocated with next to no warning or consultation, to a lesser area of the mall in a smaller shop for more rent including having to pay for their own fit out and moving costs. It's even worse at the airport, but again, profits can be HUGE.

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#1963663 24-Feb-2018 22:54

matisyahu:

amiga500:

How is it going at your local mall?

The Riccarton Mall currently has nine empty shops & one 'pop up' clothing shop. The 'pop up' looks very temporary with trestle tables etc.
Apart from the empty shops there is a floor space at the South entrance which usually has some retailer but is vacant right now. There is also a
Meccano shop that could be empty soon if the chain does not get a buyer.

The largest empty shop is the former Rebel Sports that moved out of the actual mall and across the road. This has been empty for a while. Several other shop
have been vacant for a while as well. And there is very little sign of activity such as new shops being prepared. Most of the empty shops
have the lights turned off.

There are two empty shops next to Farmers that are being used as advertising for Farmers & I include these in the nine shops. This is quite clever,
you have to be paying attention to recognise them as empty shops!

The CEO of Meccano has commented that retailing in the malls is a tough business & as Meccano are in liquidation seeking a buyer, you'd have to believe him.

This would be the most empty shops I have seen at the Riccarton mall, & far more than Northlands Mall. Strangely enough Riccarton seems to be
the mall with the highest foot traffic by far.

So how about your local mall(s)?

Not surprising though; the rent is huge when compared to operating as a stand alone store - the rent for the organisation I worked for before was $22,000 per month at the Queensgate Mall in Lower Hutt. In the end the rental prices are unaffordable and the only reason many businesses keep in the mall is that they believe they'll lose foot traffic if they don't. The interesting part about Queensgate Mall Lower Hutt is the fact that they're not rebuilding the theatre (I could never see the movie theatre making money given how few people us it outside of the time kids have off from school) plus rumours of some retailers leaving.

I was talking to a friend the other day who is a chef. She has a chef friend in ChCh who closed down his restaurant a year or so ago because the rent was high; I asked how high, and she said 'Put it this way - I have another friend who runs a restaurant in a town in Italy and his rent per month is less than the ChCh rent was per week..."

We've also seen a number of shops in the village open with great fanfare, last about 6 months and then close up. You then hear "they couldn't afford the rent".

It seems that many landlords are happier with empty shops paying no rent if they can't get a full rent than they are with occupied shops paying at least some rent - a situation which is the reverse of the usual scenario in commercial letting.

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#1963668 24-Feb-2018 23:08

Geektastic:

It seems that many landlords are happier with empty shops paying no rent if they can't get a full rent than they are with occupied shops paying at least some rent - a situation which is the reverse of the usual scenario in commercial letting.

Unrelated, but I took offices in a place that had been empty for 2.5 Years! I got a crazy good deal, but was an excellent tenant always paid my rent, looked after the place. Guy gets to rent review time sends me a 72% increase letter. Excercised my right to a market rent review, came back at 22%, said we would pay 21%. He declined, came back at 72% again. Looked around, found a place with 50m2 more space for $2k more a year than I was paying, told him I was leaving. Building sat empty for over a year before he filled it again, at $1K a year less than we were paying.

The new landlord is amazing. Got hot over summer (no aircon), he comes in to fix a minor issue we report, is SHOCKED how hot it is, 3 days later aircon guy turns up and fits 12K aircon for us, didn't give us a rent increase or ask for a contribution. Our rent increase at review time was 6%, but offers to spend difference on improvements on the place. Whats more, we had agreed to split the cost of a couple of walls added in, he does them before we move in, and I ask him for the bill, he doesn't respond. I call him a fortnight later and he wishes me a merry xmas!

I have had crappy landlords for 15 years and an excellent one for 3. Amazing.

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