Food the winner in Christchurch CBD retail spend

Friday, 28 September 2018

People are spending more in the CBD - but mostly at supermarkets and specialty food stores.

Supermarkets and specialty food stores are the retail kings in central Christchurch, edging out other retail shops.

The latest quarterly economic report commissioned by ChristchurchNZ, shows supermarket and specialised food outlets have the largest share of retail spending within the city's four avenues, at 27 per cent.

Spending on food and beverage is second at 25 per cent, followed by department stores shopping (11 per cent) and accommodation (7 per cent).

Inside Fresh Choice City Market, the city's most central supermarket.

The least amount was spent on hardware/homeware and electrical appliances – both categories receiving less than 5 per cent of total spending in Christchurch's centre.

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Heather Brown and Neville Brown, owners of the Fresh Choice City Market at The Crossing.

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People are spending more money at specialty food stores and supermarkets in the central city.

The ChristchurchNZ report said there was a 'significant increase' in overall retail trade within the CBD in the past six months, with most of the growth happening in the food/beverage and clothing categories.

Compared to spending in 2009, only spending in the food and beverage, supermarket and specialised food, and fuel sectors had increased.

University of Canterbury associate professor in marketing Ann-Marie Kennedy said the spending patterns could be due to convenience.

'[It's] generally a reflection that many people work in the CBD and so purchase breakfast, lunch, dinner and groceries while at work or after work because of the convenience.'

The CBD needed to have a different mix of shops compared to other parts of Christchurch in order to draw more people in, she said.

'The lack of spending on other types of retail in the CBD could mean that the mix of retail is not a big enough drawcard for consumers yet, possibly because some or most of those retailers are elsewhere.'

Shoppers interviewed by Stuff outside The Crossing shopping complex said they spent more on food than other items in the CBD.

Millie Dunn, of Merivale, said she bought food in the city more than anywhere else as there was 'a lot on offer'.

'There are so many new cafes, there's a bigger range of food rather than clothes.'

Terry Vine moved to Christchurch six weeks ago from Australia and said he spent money on coffee and food in the CBD, but the clothing and apparel stores there were 'too sporadic'.

'It's a shame they haven't got one of those big Westfield shopping centres plonked right in the middle of the city.'

Nick Doig, director of retail leasing at real estate firm Colliers International, said food and beverage was driving foot traffic in the CBD and retail shopping was important for the city's recovery. Some, following international trends, were enhancing the experience to get customers in the door.

Online spending now accounts for 7.8 per cent of New Zealand's total retail sales, or 11.2 per cent not including food and liquor sales.

There are four major supermarkets in the four avenues - New World, Pak'n Save, Countdown and Fresh Choice. Specialty food stores in the CBD include Mediterranean Food Company, Piko Wholefoods, Yogiji's Food Mart and Bombay Bazaar.

Foodstuffs is planning to close its South City supermarket and build a new supermarket across Durham St, within the entire block from Wilmer St to Moorhouse Ave. It is scheduled to open next year.

Fresh Choice City Market, which offers specialty food, is the city's most central supermarket.

Owner Heather Brown said she was happy with how well the business was doing since it opened in August last year.

'We are looking forward to more non food retailers opening … to create more variety and a better mix of stores to enchance the experience.'

Hospitality New Zealand Canterbury branch president Peter Morrison said he did not believe food and beverage being second in the spending share was accurate, as business was 'pretty tough'.

'It'll pick up … everyone's had such a tough winter.'