Whangārei shops closing amid cost-of-living crisis, quiet streets

Beautiful Things owner Fiona Matson says it is time for her to move on from her store of 20 years but the lack of people in the CBD is a factor. Photo / Denise Piper

The recession, rising costs and a lack of people through the door are forcing a number of businesses in Whangārei CBD to shut their doors.

Fashion store Loftie Lifestyle Store, Christian bookstore Manna and beauty service Laser Clinics NZ - Whangārei have all closed the doors to their Cameron St stores in recent weeks.

Gift shop Beautiful Things is due to close in two weeks, while Trade Aid Whangārei in the Strand Shopping Centre is also closing as part of a nationwide change.

Beautiful Things owner Fiona Matson said there are a number of factors involved in closing her Cameron St shop after 20 years.

Most pressing is her desire to retire so she can spend time with her mother, who has dementia, and her nine grandchildren.

But Matson admitted the lack of people in the CBD had a huge impact and she would not be closing down if town was booming.

While businesses in Whangārei Town Basin are supported by events and busloads of cruise ship passengers, the CBD has been missing out, she said.

“You can bring more people to town if you make it more attractive, then more people in town would mean less trouble [and crime],” she said.

“Town is dying while we’re making the Town Basin beautiful.”

Free parking, which was successful during Covid restrictions, or a shuttle bus which can move people around the CBD, Town Basin and Okara Park Shopping Centre would help, Matson said.

“I won’t miss winter, I know that: it’s a struggle for every business.”

On top of the lack of customers in the CBD, retailers are struggling with leases going up and rates, which are paid by the retailer not the landlord, are due to increase a record 17.2 per cent.

Whangārei fashion shop Loftie Lifestyle Store, better known as Lofties, closed on April 12. Photo / Denise Piper

Matson said online shopping is also having an impact on bricks-and-mortar stores, which have to employ more people than online retailers.

“Online is huge and it’s not helping retailers. It’s not just the stores, it’s jobs gone too.”

Beautiful Things has two staff as well as Matson.

She admitted the store closures all at once are due to the financial year ending on March 31, when the culmination of difficult times over the last year are finally realised.

Matson said Beautiful Things is lucky to have a loyal customer base and its closing down sale is going well, with about half of stock already sold.

North Chamber president and Bernina Northland owner Tim Robinson said the shops closing is not unique to Whangārei CBD, but is the story of retail nationwide.

Competing with online sales is part of the difficulty, he agreed.

“Retailers have really got to decide if you’re doing something which is unique and offering a genuine value proposition.”

His own store offers courses, sewing machine repairs and long-arm quilting, making it different to what people can simply buy online.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.