Customers are king, retailers told

Peter Peeters says Whangarei CBD retailers need to innovate and be aware of customer needs if they want to stay in business. Photo / John Stone

Retailers in Whangarei's CBD need to be more innovative and accept that bulk retail at Okara Park is part of a modern city life if they are to survive in business, says one of the city's leading commercial real estate brokers.

Harcourts commercial and industrial property broker Peter Peeters said CBD retailers had a captive market with the city centre's 9am-to-5pm employees shopping in town throughout the day.

However, many retailers, he said, could do with a lesson in "how to make a customer feel valued instead of leaving them thinking that was not a nice visit.

"When we are spending our hard-earned cash, customers want to feel it was a pleasant experience."

A Northern Advocate survey of the CBD precinct in late December, including 10 streets and the Strand Arcade, found 40 empty businesses with Rathbone, Cameron and James Sts the worst affected areas.

A number of retailers had claimed that the main challenges included menacing teenagers, a district council that actively encouraged business to the big bulk retail development at Okara, and inadequate parking, including coin-operated parking machines.

Mr Peeters said the demise of the CBD could not to be left at the feet of Whangarei District Council.

"To lay the blame for high vacancy rates in the CBD on the council is either simplistic, naive or just plain stupid."

Mr Peeters, who has about 15 CBD retail leases on his books, said the city infrastructure was sound, "the buildings already exist".

"I don't think you can blame council for the demise of the CBD. If they had not allowed for bulk retail, we would have local folk going out of town anyway."

He said, however, that the council had a part to play when it came to the implementation of planning laws in the Resource Management Act and of the cost of development levies.

"The council does have a duty to ensure that development can happen by being realistic with the cost of development levies which are currently claimed to be one of the highest in the country."

He said the development of Okara Shopping Centre could not blamed for the demise of the CBD either.

"They are two distinctly different types of retail business.

"Big box developers require large areas of land while boutique and inner city shops do not.

"While big box retailers tend to attract shoppers on the weekends, inner city shopping is essential to the hundreds of office workers in the CBD.

"Focusing their business on this captured market is what small business owners need to do.

"The consumer drives the demand, consumers want and retailers have to adapt to these wants.

"If the retailers continue to try and to dictate the supply instead of adapting to the market forces they will become extinct, as we can see from the vacancies.

"Big box retail is here to stay and expected in any modern city."

Mr Peeters said retailers in the CBD needed to put an emphasis on personalised service, and a memorable shopping experience.

He said a hotel was key to developing the city and WDC would need to assist that process by providing reasonable development levies and possibly making available land holdings it currently owns.