Close
 

Paul Keane on the Bayfair expansion

  • Opinion
  • October 17, 2017
  • Paul Keane
Paul Keane on the Bayfair expansion

My comments last week on the future of shopping centres received some wide commentary and some direct feedback. The principal response was the ability for retailers to be able to pay the rents on offer for new space, and who then will fill the space being built. The very recent announcement that Bayfair Shopping Centre in Mount Maunganui Tauranga is to have a $100 million dollar refurbishment and expansion including cinemas and additional retail would seem to fly in the face of my comments last week.

"It takes many years for a shopping centre to be planned, and it takes even longer for an existing shopping centre owner to expand an existing centre particularly where new space for expansion has to be acquired". 

This is the case at Bayfair where the retail offering has been stagnant for years, and unless a major redevelopment is undertaken, the centre runs the risk of further erosion and very stiff competition.

Tauranga of all regional centres has been impacted by what I call the "Auckland Invasion". These are the retirees predominantly who have sold in Auckland for a healthy profit and moved to Tauranga in such locations as Bethlehem, Papamoa etc. I emphasise the word "Retirees". These older folk don't necessarily work so their spend is somewhat less than other consumers. The retail growth in Tauranga has been far more significant than any other region. The Crossroads has been built at Tauariko, and plans for a major Town Centre in Papamoa are already on the drawing boards.

I suspect that the announcement of a $100 million dollar redevelopment and expansion of Bayfair shopping centre was forced on the owners by the pending competition.

Tauranga is unique in that people living in Mount Maunganui will shop in the area and those in Tauranga will shop in their closest neighbourhood. Tauriko and Bethlehem therefore will have their own followers as will Bayfair. Consequently, people are now less inclined to travel a distance to a shopping centre if they have like offerings on their doorstep, and online shopping also has a separate appeal. The secret is therefore for Shopping Centre owners to make their centres more appealing than others in an endeavour to reach out to people living beyond that centres traditional trade area.

"Watching what happens in Tauranga over the next couple of years will be a benchmark indicator for the rest of New Zealand retail." 

Certainly there will be a significant pursuit of likely retailers to occupy the space on offer. One assumes that Bayfair have already acquired a cinema operator, but the rest of the space will need to be filled to make the financials work for the developer and its bankers.

Sales will be the dominant driver for all retailers going into 2018 and the added attraction will be easy and free car parking, something that Bayfair as an example has lacked in quantity to date. Challenges are certainly ahead, but for the sake of Bricks and Mortar, I hope the owners do well, and the outgoings on offer give an opportunity for retailers to make some money in what I suspect will be fierce competition.

Paul Keane is a registered property professional and has vast experience in New Zealand’s commercial property industries. He provides retail and property consultancy including development management to many New Zealand property owners, developers and city councils. This post originally appeared on RCG's blog.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Fit-Out: Retreat to the Wine Cave

  • News
  • December 15, 2017
  • Sarah Dunn
Fit-Out: Retreat to the Wine Cave

A wine retail outlet like no other opened in Auckland’s Newmarket in October. The Wine Cave is intended to create a subterranean-feeling, luxurious atmosphere that showcases high-end wine to its best effect.

Read more
 
 

Amazon is coming

  • News
  • December 15, 2017
  • Greg Harford
Amazon is coming

If there's one word that strikes fear into the heart of many Kiwi retailers, it's "Amazon". This massive global business has enormous scale; a turnover nearly two and a half times that of the entire New Zealand retail sector; and a share price of nearly NZD$1,400.

Read more
 
 

Back in Time: Kowtow

  • News
  • December 15, 2017
Back in Time: Kowtow

Created in 2007 by Gosia Piatek, Kowtow launched from a small home-based dream to one of New Zealand’s most respected ethical brands as it celebrates its first decade in business.

Read more
 
topics
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
 
 
 
News

On the road with mobile payments tech

The past decade has seen a proliferation of pop-up shops, farmers’ markets, food trucks and temporary collective sale spaces. Rachel Helyer Donaldson explores how rising ...

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita@tangiblemedia.co.nz or call 022 639 3004

View Media Kit

}