Cup could lift retail by $200m

Big name pop-up stores to feature at team bases around harbour

The America’s Cup could bring an additional $200 million in retail spending and attract international brands to the Auckland market, according to a report.

International real estate services firm CBRE looked at the potential impact of the event on the Auckland economy and property market.

The sailing regatta is to be held in Auckland in 2021, and CBRE forecasts direct spending of between $142m and $253m.

Of that, $145m is expected to be spent on groceries, clothing and other general merchandise, and food and beverage accounting for $52m.

This equates to a 3.2 per cent boost in core retail sales compared to a typical retail spend in Auckland over a comparable three-month period and a 5.6 per cent boost in the food and beverage sector.

CBRE New Zealand director of retail Tim Male said the additional spending would mainly support existing outlets and pop-ups around the America’s Cup village.

Male said the high-profile event would attract interest for brand exposure and provide a “good” initial trading period for new entrants.

Pop-up stores for local and international brands would be there through the event, he said.

“Since the syndicate bases are likely to be dispersed in Wynyard Quarter and Viaduct Harbour, foot traffic will not be concentrated near any current retail offering and as such, some brands are likely to establish a presence through the likes of pop-up stores,” Male said. “While we don’t expect this to result in long-term leases of retail space in these locations, if there are suitable opportunities these retailers may establish a permanent presence in the more traditional CBD retail core.”

Retail NZ general manager of public affairs Greg Harford said international events hosted locally, such as the Lions Rugby Tour, had positive flow-on benefits for the retail sector.

“It seems likely that an influx of visitors to Auckland for the America’s Cup will provide a welcome boost to retailers,” Harford said.

“The impact will be felt most in Auckland, but retailers outside Auckland will be hoping that visitors coming for the America’s Cup will take the opportunity to travel around the country while they are here, making the most of our varied retail experiences.”

The last regatta held in Auckland in 2003 brought in an estimated $136m of additional direct spending to the local retail economy, equating to 27 per cent of net expenditure generated by the event, according to CBRE’s report.

Retail consultant Chris Wilkinson said $200m was a highly achievable amount from the America’s Cup “given the audience” it would bring.

“We know this is on radar with many of the big international retailers who are developing strategies for their stores now,” he said.

Viv Beck, chief executive of Heart of the City, said the regatta would be beneficial for city retailers.

“Those here for the Cup — whether in the team, on their superyacht or here just for the event will be looking to dine out, buy their groceries and go shopping,” she said.