Closure sign of retail change
THE closure of the Dunedin branch of transtasman clothing chain store Jay Jays reflects challenging times for retailers, the Otago Chamber of Commerce says.
The clothing store, owned by Australiabased retail giant Just Group, was in a prominent George St site, on the corner of St Andrew St.
The premises is now vacant apart from a few mannequins. A sign on the door advises customers to either visit Jay Jays’ nearest store, in Queenstown, or shop online.
The surge of online retail activity, particularly since Covid19 lockdown, had been detrimental for many retailers, Otago Chamber of Commerce chief executive Dougal McGowan said.
‘‘What we are seeing with chain stores now is that they are looking to see which retail stores they can close because they are doing so much in online sales, so they are rationalising some of those resources.’’
Mr McGowan suspected that the fickle domestic tourism market might also be a factor in some retailers closing.
‘‘It could even be something as simple as when does the lease expire being the deciding factor.’’
Just Group operates more than 1000 retail outlets in Australia, New Zealand, Singapore and Britain: its brands include Just Jeans, Peter Alexander, Dotti, and Smiggle.
Dunedin’s Smiggle store was briefly closed on Thursday but reopened soon after.
Noone from the Melbournebased firm responded to questions from the Otago Daily Times before deadline.
Mr McGowan said the number of vacant premises on George St had been static in recent times.
‘‘There has been a bit of variation but I think now that businesses are starting to look ahead and with the minimum wage increasing and rates increasing and other costs rising, some businesses may be thinking that if they get the opportunity to pull out they might do so.
‘‘It is challenging times, that’s for sure.’’
However, Mr McGowan said he remained confident George St was a profitable location for retailers.
‘‘It is still one of the few main shopping hubs on a main street in the country and it has proven to be effective.
‘‘There has been a shift to online, but we believe the main street still offers plenty to retail, as it is also a place for people to meet and connect, so it still has a strong future.’’