Retail transition needs time

CHANGING, NOT FAILING: Vacant shops in Victoria Ave do not indicate a retail sector in crisis.290715WCSMSHOPS5

ONE OF many personal attributes is my outstanding modesty ...

This is why not many people are aware that I'm also one of the world's great salespeople. But those in the know besiege me to sell stuff on their behalf - stuff they've tried and tried but have been unable to move themselves. Why? Because I guarantee success.

House? Car? Caravan? Barbie Doll collection? No problem - I just put them on Trade Me for a $1 starter, with no reserve, and they go like hot cakes.

Which is just a slightly silly way of saying that when people complain they cannot sell whatever, what they really mean is that they just cannot get the price they would prefer. There's a simple solution if they genuinely want a result - simply change the price to "meet the market", to use a favourite real estate phrase.

And, in the case of vacant shops along the Avenue, the same will apply, although, granted, the waters are muddied with new earthquake provision requirements.

But vacant shops in Victoria Avenue do not indicate a Wanganui retail industry in crisis. If the brand stores of the ilk of The Warehouse and supermarkets were to disgorge their contents back into traditional separate shops such as grocers, green grocers, butchers, hardware and the like, there'd probably be enough stores to fill two Avenues.

So it is the nature of retailing that has changed - the main street smaller store often simply no longer suits.

There are initiatives already under way to re-activate the unused stores. But let's not over-estimate the "problem".

Firstly, there will always be a certain number of shops untenanted at any one time due to natural attrition, relocation and the like. In due course these premises will organically re-tenant.

Further, it is unrealistic to bring first-floor premises into the equation. The pressures from other recent retailing strategies, such as online trading, are such that the overwhelming priority should be for street-level retail.

And some will inevitably be casualties of prohibitive earthquake compliance costs, which would have been the case regardless of retail levels.

At the right price, though, these premises will be just what the doctor ordered for other enterprises.

However, landlords need to be very much a part of the discussion, if not actually lead it. They need to pro-actively call for expressions of interest, and incentivise ways for potential tenants that are mutually beneficial.

Examples abound of vibrant main-street revitalisation with solutions outside the square using collectives, space-sharing, shorter term arrangements, craft workshops, stepping-stone rent holidays and the like. And particularly so when the precinct has intrinsic attributes like heritage assets and supportive infrastructure.

But the bottom line is that there is no benefit to anyone in having them unoccupied - they become an exponential financial drain on owners and adjacent stores alike. Much better to have them in use, even if a reduced rental only covers the overheads.

I can speak from a certain amount of experience. Running a community agency in Kaitaia and needing extra space, we took on additional premises in the form of a rundown, hitherto long-vacant, two-storey main street premises on a "caretaker" basis negotiated with the landlord.

Over a couple of years, as we consolidated, we were able to pay a realistic rental, as well as taking on staff and refurbishing the interior at our own expense as payback for the landlord's support.

In recent discussions, a call was made for ways to aid Wanganui's retail "recovery". Wanganui doesn't need recovering; Wanganui is doing very well, thank you very much.

However, a part of Wanganui is in transition - as happens everywhere - and a few steps need to be taken to aid that transition. And I haven't the slightest doubt they will be.

As with the vibrant Taupo Quay market, the end result may look a bit different to the traditional model - and so it should.