Queensgate mall looks to turn tide

Eleven months on from the Kaikoura earthquake, Lower Hutt’s Queensgate Shopping Centre is still feeling the financial aftershocks.

At least 20 of the mall’s retail spaces sit empty since the magnitude-7.8 quake on November 14 forced its temporary closure. Hampering its return to commercial viability is the loss of its car park building and Event Cinema complex due to structural damage.

Meanwhile, the boom in neighbouring Petone is drawing customers about 3 kilometres up the road.

The mall is pinning its recovery hopes on mega fashion store H&M, which is expected to open in November – but some fear it might be too little too late.

Shop owners within the mall are questioning the site’s future.

One retailer, who didn’t want to be named, said you only had to ask around to see how the situation was looking.

‘‘It’s pretty bad all around. The picture theatre’s not coming back, the car park’s not coming back.’’

He said many shop owners were struggling to make ends meet, with reduced foot traffic and fewer car parks hitting them in the pocket.

‘‘Your wages go up and your power bills are never going to go down. Your lease goes up by a minimum of 2 per cent a year, and there’s no growth.’’

Another shop owner said the situation was so bad he had heard that one big chain was considering leaving when its lease expired. ‘‘That seems pretty par for the course. Everyone’s lease is up, they’re gone.

‘‘It’s not like [shopping centre management] aren’t aware of what’s going on, we have to give them our trading numbers every month. The foot traffic is down, I think, at least 15 per cent ... I’m down about 10 per cent since I opened.’’

Stride general manager for shopping centres Roy Stansfield said he could not comment on foot traffic or rents, due to commercial sensitivity.

‘‘The presence of a hoarding does not necessarily indicate a vacancy, but is often the sign of works taking place to prepare a site for new, relocating or upgrading stores,’’ he said.

He was expecting H&M to be a major drawcard, and said the mall was also getting other stores, including Skechers, Portmans and Bed Bath & Beyond.

‘‘As we prepare to open H&M, we are also preparing sites for new stores, as well as others that are returning, relocating and upgrading. We expect many of these to be completed before the busy Christmas period.’’

Hutt Valley Chamber of Commerce and Industry chief executive Mark Futter said tenants had left the mall in search of a more sustainable locations.

‘‘That’s not necessarily a bad thing.’’ Instead, it could help rejuvenate a flagging city belt.

‘‘If you walk the streets, the south end of High St is doing quite well. I’m not a big believer in having all your eggs in one basket or one mall.’’

Lower Hutt Mayor Ray Wallace wanted to see Queensgate being successful but noted it was not the only retail centre in the district. ‘‘It’s a great asset for our city. Other shopping areas, like rest of the CBD and Petone, also continue to attract people to Lower Hutt for shopping and entertainment.

‘‘Despite the earthquake, retail spending remains strong in Lower Hutt. In the August 2017 quarter, electronic spending was up 7.1 per cent, compared to the same period in 2016.’’

First Retail managing director Chris Wilkinson said the changes going on at Queensgate were indicative of an ‘‘evolution’’ of shopping centres. ‘‘Once upon a time, these [malls] had a lot of smaller stores.’’

But today, larger spaces were often created for bigger retailers. Lower Hutt’s city centre had been quite fragile, but an ‘‘evolution’’ of Queensgate would be useful for Lower Hutt.

‘‘H&M will be a regional draw. We know it will happen.’’

Makeup giant Mecca Maxima is also planning to join the mall’s tenants. In mid-August, the company announced its intention to open a store in Queensgate through its Facebook page.