How to open a store, part 2: Shopping centres

  • Property
  • September 22, 2016
  • Sarah Dunn
How to open a store, part 2: Shopping centres

Shopping centres hold their own set of benefits and drawbacks for a green operator. They offer guaranteed heavy foot traffic, rain or shine, plus built-in security, good neighbours and predictable hours, but also a certain amount of paperwork.

I have a feeling that most of New Zealand’s shopping centres frown upon large numbers of cats in retail stores, but just in case, I had a chat with Scentre Group’s regional leasing executive Fiona Cameron and national retail design manager, Gabrielle Bevin-Smith.

Scentre Group operates the Westfield brand and controls around 300,000 square metres of retail space in New Zealand.

The first thing Scentre Group would need to know about a prospective tenant, Cameron says, is the square footage it needs and the service or product it requires.

“We’re very careful about where we put people in our centres so everyone sits in the right precinct.”

From that point, Scentre Group would send the retailer its commercial terms and provide the centre’s demographic information. This would cover the centre’s size, its customers and its sales.

It’s then up to the prospective tenant to see if this matches their ambitions for their store. Cameron recommends going to the centre you want to locate your store on, spending time there, looking around and carefully considering what you see.

“See the type of person that’s coming to the centre and see if that’s the type of person they want to market their shop to.”

Cameron says the potential lessee can expect a high level of transparency from Scentre.

“It’s very important they understand what they’re required to do in terms of fit-out, paying rent, that kind of thing.”

“We’re very upfront about that, we don’t want any surprises.”

Centres are necessarily invested in the kind of fit-out their retailers choose to install. Bevin-Smith says lessees aren’t required to employ Scentre’s retail designer, but the fit-out must meet Scentre Group’s standards.

The concept design will be reviewed by Scentre Group. It must be contemporary and meet any site-specific requirements.

As much as critiquing, Bevin-Smith says, the design team will also be guiding and educating lessees. They project-manage the timeline so that the retailer will open on the day they’ve agreed to open on.

Bevin-Smith says Scentre’s design team will provide a retailer with a programme and work backwards from the trade date. She says some retailers, especially green ones, have been known to underestimate how long a fit-out will take.

Retailers should consider how their fit-out fits with their store’s branding.

“A retailer needs to give themselves a good amount of time and think about, ‘What actually do I want to portray to my customers? What is my brand?’”

Customers demand more in the way of in-store experiences now, Bevin-Smith says.

“People can easily shop online, so if you’re presenting a store that’s just got stuff in it, that’s no different from going online.”

Standard leases at Scentre Group malls are five to seven years. The fit-out needs to last the duration of that lease, which is difficult in a high wear-and-tear mall environment. Retailers need to make sure the finishes and products are going to last the distance, and not look shoddy in six months’ time, Bevin-Smith says.

She recommends retailers take the time to seek out a reputable store designer, saying it’s important to invest in somebody that understands retail and has experience in designing retail stores.

“It is an investment, but for a five to seven year lease, it’s worth it.”

Leasewise, Cameron says prospective tenants need to take the time to make their solicitor and accountant fully aware of what they’re committing to.

“We would never accept a lease agreement that someone took away and returned the next day if they were new retailers.”

She also recommends retailers consider how they will use their marketing strategy to entice that bountiful shopping-centre foot traffic into their store. They will be able to access support from the centre’s marketing manager and can get on board with centre-wide campaigns.

“Just because you open a shop in a shopping centre doesn’t mean people are automatically going to go.”

“It’s important to take opportunities, provided it fits with your brand.”

This story originally appeared in NZ Retail magazine issue 745 August/September 2016

​ ​

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.


Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

  • News
  • March 20, 2019
  • Sarah Dunn
Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

In the wake of the attack on Christchurch’s Muslim community on March 15, strong calls for changes to New Zealand’s gun last have been made. Trade Me was the first retailer to act, halting the sale of all semi-automatic weapons on its platform, and it has now been joined by Hunting & Fishing New Zealand.

Read more

Superette to open new concept store showcasing international brands

  • News
  • March 20, 2019
  • The Register team
Superette to open new concept store showcasing international brands

Apparel boutique Superette has announced it will open an ‘international flagship’ in Newmarket on April 4. The store will feature handpicked products from both established and emerging international designers.

Read more

What businesses can do to help support Christchurch and the Muslim community this week

  • Opinion
  • March 19, 2019
  • Rosie Collins
What businesses can do to help support Christchurch and the Muslim community this week

As many New Zealanders go back to work for the first time today since Friday’s attacks, feelings of anger, sadness, numbness, apprehension, and confusion will be shared around the country. Rosie Collins is the managing director of Step Changers, a registered charity working to normalise corporate social responsibility in New Zealand. In the wake of the Christchurch terror attack, she shares three ways businesses can help both their staff and the wider Muslim and Christchurch community this week.

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.

Concept to closet
Business coverage of New Zealand Fashion Week.
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 ...
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 ...
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 ...
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 ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
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 ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...

China and New Zealand’s year of tourism

  • Opinion
  • March 19, 2019
  • Juanita Neville-Te Rito
China and New Zealand’s year of tourism

Think about how to best welcome Chinese tourists into your store this year.

Read more

Coca-Cola reveals how much plastic it uses

  • News
  • March 19, 2019
  • Radio New Zealand
Coca-Cola reveals how much plastic it uses

For the first time, Coca-Cola has revealed it used three million tonnes of plastic packaging in one year.

Read more

Profits for The Warehouse on the rise after restructure

  • News
  • March 19, 2019
  • Radio New Zealand
Profits for The Warehouse on the rise after restructure

The Warehouse has made a solid first half profit as it continues to restructure and invest in digital services.

Read more
Next page
Results for
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.

The Register

Content marketing/advertising? Email or call 022 639 3004

View Media Kit