Close
 

Commercial property and business needs to respond to change

  • Opinion
  • June 30, 2015
  • Paul Keane
Commercial property and business needs to respond to change

A trip to Greece is an exhilarating experience: history, food, culture, sun and casualness.  Having been there three times, I have enjoyed the escape and the traditions it has to offer. About five years ago on a visit to Greece, we again decided to visit the Acropolis.

It’s an ancient citadel, located on a high rocky outcrop above the city of Athens. The Acropolis contains several ancient buildings of great architectural and historic significance, of which the most famous is the Parthenon. It’s a must visit if you’re in Athens. It’s quite breathtaking and the lights at night are something to behold as they cascade over the ruins of Ancient Greece.

On that visit, we just walked up into the Acropolis, right through the entry gates, along with dozens of other like tourists. It subsequently occurred to us that there was no charge for entry, but discussion proved that staff had been sacked due to them pilfering entry proceeds. As a result the entry stations were abandoned and tourists were getting in for free.

This is not a travel story, it is an analogy.

We can learn from the Greek economy

Greece as a country has had a very young entry level for retirement, with very generous superannuation to retirees. Working is not encouraged, it is very much a casual approach to life with little or no energy required by individuals. As a consequence, it is normal for the economy to be under threat.

The current economic debacle could threaten the long term future of the country, and by the time this opinion piece gets online, the country could be bankrupt. The impact on Europe and the Euro could be significant, and New Zealand will not escape the potential economic tsunami that may follow. 

But why has this happened? It’s all about not taking the bad medicine when one needs to. Greece has lived off social funding for years and the chickens are finally coming home to roost. What can we learn from this? 

Lessons for an ageing population

The first lesson is for New Zealand to look seriously at the aging population and to control the age for receiving the national superannuation. Times have changed. People are more aware of saving for retirement, and those in their 30s and 40s have the opportunity to save from now for their future. The National Government of the 1970s abandoned the retirement savings scheme and this must not be allowed to happen again, where the future was abandoned for “Think Big” opportunities of the time. Increasing the retirement age is probably well overdue. So where’s the analogy?

Controlling the outcome: Shanton

The closure of the Shanton retail chain, finally announced late last week, is the analogy. None of us can escape from economic pressures, but we can avoid a calamity, and we can control the outcome. Changes in customer behaviour, moving with changing customer aging, recognising demographics that suit your store location, controlling growth and sales, and ensuring profit is king is how to avoid going bust.

It’s really quite simple. The Shanton brand was most recently focussed on the lower socio-economic group, in that the fashion range available was priced to attract that demographic. The problem is that this group has little disposable income and the consequences are that Shanton remained a discount outlet. Probably a case of “too many eggs in one basket”!

Adjusting to the circumstance: RCG

The analogy is also interesting from RCG’s perspective. This company was founded on its retail expertise. We have worked with retail clients from across the retail spectrum for over 25 years. We remain close to retail and retailers. However, we have not ignored the need for adjustment to our business as circumstances change or economic situations also change.

Whilst we pioneered the large format retail experience that evolved in the early 1990s, we have learnt that nothing stays the same and LFR is now not as powerful as it once was in terms of aggressive development.

As a result we have adapted our skills, bringing mixed-use and commercial residential developments within our portfolio, thus ensuring that we continue to grow. As a result our people continue to benefit in changing environments and they have acquired the skills to allow us to continue to develop.

The Greek experience is a lesson for all.  Running a marathon was the epitome of human endeavour in days past, but there are now bigger physical challenges that demand more of us. A quote from that famous Greek Philosopher Aristotle is meaningful: “The roots of education are bitter, but the fruits are sweet”!

​ ​

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.

 

Michael Hill International posts $17m profit

  • News
  • August 22, 2019
  • Radio New Zealand
Michael Hill International posts $17m profit

Jewellery retailer Michael Hill International has reported a lift in profit but is feeling the pinch of lower sales and squeezed margins.

Read more
 
 

Dylan Mulder explores new digital frontiers in the fashion world

  • Design
  • August 22, 2019
  • Findlay Buchanan
Dylan Mulder explores new digital frontiers in the fashion world

“What might a Louis Vuitton or Off-White digital piece of clothing be like?” Matthew Drinkwater, head of the Fashion Innovation Agency at London College of Fashion, mused to Vogue in April earlier this year. The question came in the wake of Carlings, a multi brand Scandinavian retailer, selling out its first digital-only clothing line. The process saw fashion designers manipulate photos of customers, so it appeared as though they were dressed up in Carlings' apparel. Customers would then go on to share the photos of themselves on digital platforms, Instagram, Facebook, and the rest, without actually having to wear the clothes.

Read more
 
 

Gem Retail Hotlist: Be Free Grocer flourishes in Palmerston North

  • News
  • August 21, 2019
  • Sarah Dunn
Gem Retail Hotlist: Be Free Grocer flourishes in Palmerston North

Retail isn’t an obvious next step for a couple who met during five years’ volunteering at a Malaysian wildlife sanctuary, but Bronwyn Green and David Phillips’ passion for animals has led them to tackle waste management from the shopfloor. Green shared insights about their plastic-free grocery store Be Free Grocer with The Register.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
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 ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
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 ...
Sisterhood
Women in retail help one another. We spoke ...
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 ...
 

The bridal industry changes driving Karen Walker’s new Atelier range

  • Design
  • August 20, 2019
  • Sarah Dunn
The bridal industry changes driving Karen Walker’s new Atelier range

In the last couple of years, Kiwi fashion designers like Ingrid Starnes, Juliette Hogan and Paris Georgia have rolled out bridal ranges. Now they’ve been joined by Karen Walker. We asked Walker what’s behind the rise of designer bridal.

Read more
 
 
News

Are you on The Retail Hotlist 2019?

Join us in celebrating the vitality and innovation of New Zealand’s retail sector by voting for The Retail Hotlist. The NZ Retail team and Gem, ...

 

Shop with The Register: Dress up for New Zealand Fashion Week

  • News
  • August 19, 2019
  • The Register
Shop with The Register: Dress up for New Zealand Fashion Week

Retailers are busy, and busy people don’t have time to be constantly catwalk-ready. But if you’d like to shine a little brighter while checking out the new season apparel at New Zealand Fashion Week, here’s some great ideas for professional women.

Read more
 
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.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}