She said redevelopment in Napier's Hastings St was slowing, with the former Williams building being demolished and a new development proposed. The former Farmers building now provided smaller retail tenancies, the majority occupied.
Redevelopment of the Post Office building was complete. NZ Post had returned and new smaller tenancies had been created, fronting the carpark. The former State Cinema is being redeveloped, with the new building fully leased. Mid City Plaza remains vacant as it awaits redevelopment.
Hastings has seen the closure of Postie Plus, Pagani, Pumpkin Patch and the relocation of the Baby Factory to the Bay Plaza.
"The closure of these stores had impacted on the retail mix, with an increasing number of discount stores apparent," she said. The temporary relocation of Hastings interior decorators Hutchinson's from the Opera House complex to the 200 East block, while seismic improvements take place, has been positive for the block "that was previously dominated by high vacancies and second-hand retailers".
Notable new tenants on the retail scene are Harvey Norman, opening a Napier branch in the Balmoral Centre on Wellesley St, and PK Furniture in the former Mitre 10 Mega building on St Aubyn St in Hastings, which has been vacant for nearly four years. One-third of the former Mitre 10 Mega building remains to be leased.
Mitre 10 Mega's new location, the Park Mega Centre, was expected to see new development in the next six months. Noel Leeming is expected to relocate there next year. Ms Thompson said online shopping was becoming a concern for retailers, accounting for 6 per cent of the national retail spend.
Retail locations that continued to attract shoppers were quality High Street precincts and convenience locations.
"High Street stores offer products and service that can't be purchased online, while convenience stores are easily accessible for items needed now.
"Adapting retail space to meet the changing demand is crucial to sustain our core retail precincts." Napier's retail occupancy record high was 97 per cent in 2003, with Hastings recording the same high in 2011.