CLOSING DOWN
Recession forces Whangārei CBD firms to shut up shop
The recession, rising costs and a lack of people through the door are forcing a number of businesses in Whangārei CBD to shut their doors. Fashion store Loftie Lifestyle Store, Christian bookstore Manna and beauty service Laser Clinics NZ — Whangārei have all closed the doors to their Cameron St stores in recent weeks.
Gift shop Beautiful Things is due to close in two weeks, while Trade Aid Whangārei in the Strand Shopping Centre is also closing as part of a nationwide move online.
Beautiful Things owner Fiona Matson said there were a number of factors involved in closing her Cameron St shop after 20 years.
Most pressing was her desire to retire so she could spend time with her mother, who has dementia, and her nine grandchildren.
But Matson admitted the lack of people in the CBD had a huge impact and she would not be closing down if the town was booming.
While businesses in Whangārei Town Basin are supported by events and busloads of cruise ship passengers, the CBD has been missing out, she said.
“You can bring more people to town if you make it more attractive, then more people in town would mean less trouble [and crime].”
“Town is dying while we’re making the Town Basin beautiful.”
Free parking, which was successful during Covid restrictions, or a shuttle bus to move people around the CBD, Town Basin and Okara Park Shopping Centre would help, she said.
“I won’t miss winter, I know that: it’s a struggle for every business.”
On top of the lack of customers in the CBD, retailers are struggling with their leases increasing in cost and rates — which are paid by the retailer not the landlord — are due to increase by a record 17.2 per cent.
Matson said online shopping is also having an impact on bricks-andmortar stores, which have to employ more people than online retailers.
“Online is huge and it’s not helping retailers.
“It’s not just the stores, it’s jobs gone too.”
Beautiful Things has two staff as well as Matson.
She admitted the store closures all at once are due to the financial year ending on March 31, when the culmination of difficult times over the last year are finally realised.
Matson said Beautiful Things is lucky to have a loyal customer base and its closing down sale is going well, with about half of the stock already sold.
North Chamber president and Bernina Northland owner Tim Robinson said the shop closured were not unique to Whangārei CBD, but were the story of retail nationwide.
Competing with online sales was part of the difficulty, he agreed.
“Retailers have really got to decide if you’re doing something which is unique and offering a genuine value proposition.”
He said his own store offers sewing machine repairs, courses, and longarm quilting, providing a service above what people can buy online.
Town is dying while we’re making the Town Basin beautiful.
Fiona Matson, business owner