Store on move after rent hike

McLeod's Booksellers is on the move again and owner David Thorp says the business is a victim of its own success.

While he is excited about setting up the new store in Pukuatua St, Thorp said it was the third move in the 30 years he has owned the store and a hassle he could do without.

"It is a hassle, but it is a smart business move and I'm sure we are doing the right thing for our very successful business."

McLeod's will move into the former Pettits Sewing and Craft store opposite Zippy's Cafe in Pukuatua St at the beginning of February - not far from where it started.

"For me, it feels a bit like going the full circle. I took over from my father in 1982 in the original shop where Hennessy's is now."

Arthur Coates started the business in 1890 and it became McLeod's Booksellers when Ken McLeod bought it in 1944. Thorp's father Trevor Thorp took over in 1967.

But rental increases have forced the current owner to move every 10 years.

"The first time was when Bob Jones was buying up commercial property in provincial New Zealand and cranking rents up to city prices - at the same time banks and insurance companies sought the prime retail spots."

His rent was pushed up from $7 a square foot to $34 and Thorpe moved McLeod's to the Hinemoa Centre, which became "the new hot spot", causing rents to rise and driving the move to the current Tutanekai St site.

"Good local stores become a victim of their own success. Chain stores pay a lot of money to be where the foot traffic is."

Thorp said the local businesses responsible for that foot traffic were then unable to compete with the rents chain stores were willing to pay.

A 50 per cent rent rise at the Tutanekai St site is the reason behind this latest shift.

"This came just as we were going into the recession."

Thorp said it was important to retain local businesses in the retail centre because they offered a point of difference and kept more money in the local economy, not just wages.

He said independently owned stores provided town centres with character and were better able to cater for local needs and interests.

But Thorp said rents were unlikely to drop, even with 56 empty stores in the central business district, because this would lower commercial property values and cause owners difficulties with lenders.