Southland retail booms despite national slump
Southland is dodging the national retail slump with growth, regional retailers say.
Nationally, retail spending has been low in an eighth consecutive quarter of “retrenchment, with volumes down 4.1% over 2023”, ASB’s retail trade review report for Q4 2023 said.
The only areas without a drop in spending were supermarket and grocery stores, pharmacies, accommodation, and food and beverage services.
But in Southland, shoppers were actually spending more.
Invercargill Central mall manager Kelvin Mooney said it registered 8% growth in December 2023, and 4% growth in January this year.
“We're not seeing the same downturn [seen nationally], but we do understand that retail is a hard game to be in right now,” Mooney said. “Everyone's working very hard for the sales that they do make.”
He believed there were a couple of reasons behind this growth.
“A lot of retailers are new to Invercargill, so there's a novelty factor of visiting new retailers and having an extended offer.
“We're also conscious that with the closure of H&J Smith, there's less selection, but that has benefited other retailers in Invercargill Central who have a similar range of product.”
And in the face of a decline in department stores, Christchurch-based retailer Ballantynes opened its Select store in the shopping precinct last week, offering fashion, accessories and gifts.
The Invercargill Licensing Trust reported 4% growth in its total sales for the five-week period to December 31, 2023, from off premise and distribution sales, compared to the same period in 2022.
Invercargill Neighbouring Retailers Group chairperson and managing director of Shoe Clinic Invercargill, Ben Fokkens, said the ASB report did not reflect what was happening in Invercargill’s clothing sector.
“We’ve just come out of a long extended period of CBD redevelopment. We've been obstructed, whereas other places around the country probably haven't been as obstructed for the last three years.”
Fokkens said that being a small region, Southland had a smaller customer base and loyal customers, and also benefited from a positive outlook.
Fiordland Business Association chairperson and Shakespeare House B&B co-owner Nathan Benfell said he had noticed a real buzz around the area.
“The vibe about the town is we're as busy as ever, which is really great, because the restaurants seem to be full every night.”
“Most of our business that I can see around the town would be related to international tourism,” he said.
He said he believed Southland’s growth was because people had come to appreciate the vast landscapes that New Zealand and particularly Fiordland had to offer.