Tears shed with news O¯ taki outlet store to close
Business to shift focus to e-commerce
Tears have been shed with the news a major retail store in O¯ taki is closing. Rising overhead costs were a key factor in New Zealand Natural Clothing owners Phil Grant and Julie Hedley making a decision to close the O¯ taki shop to focus on e-commerce, with an online sales platform already producing results.
It was a tough decision for the couple, and Grant said one not taken lightly. Of the three fulltime and three part-time staff at the O¯ taki shop, one has found another job, while another will take on a new position with the company focusing on online sales communications.
“It’s sad. We’re sad. But we’ve had to make this decision. It’s a lovely shop and we’ve had lots of praise from customers. If we were a big corporate we could probably throw dollars at it, but we’re not,” he said.
It has been nearly 20 years since the Norsewear store opened in O¯ taki and 16 years since the couple took over the New Zealand Natural Clothing brand.
The final trading day at the Otaki ¯ store will be Monday, November 27.
“We feel for the Otaki ¯ community which is really close to our hearts. And while we are sad, we are also proud we can make this decision and have been praised for planning and taking action.”
The company had to make similarly tough decisions in the past. In 2007, buoyed by record profits, they were running nine stores with 56 staff. A year later, during a sharp economic downturn, just the Norsewood and O¯ taki stores had survived.
Grant said the recent opening of the State Highway 1 traffic bypass of O¯ taki had a slight effect on customer traffic but was not a major factor in the decision.
“I was always of the view that this is going to be good for us because it makes it a nicer place to stop - no smelly stock trucks. It has affected turnover, but not hugely,” he said.
“And there’s nothing to say we can’t come back one day.”
The Norsewear brand would continue to be represented here and overseas with online sales complementing a solitary remaining outlet store in Norsewood. The now iconic Norsewear shop had been in Norsewood since 1968.
There was a database of 60,000 customers that had opted to continue receiving engagement from the company, and not just within New Zealand. The United States accounted for 10 per cent of summer turnover last year and Australia 70 per cent of winter turnover, figures that continues to grow post-Covid-19.
The Norsewood shop continues to act as the pack and dispatch centre for online orders and to employ a staff of nine. It had recently won the 2023 Big Commerce Global Strategy Award for its www.nznaturalclothing.co.nz website.
The huge US market remains largely untapped and an advertising snippet was to appear this week in a billboard in Times Square, New York.
Store rebates and credits remain valid.