More shops, big marketing push urged for central Christchurch

Saturday, 24 August 2019

Efforts are being made to get more shops - and shoppers - back into central Christchurch. (Video first published August 24, 2019)

Christchurch's city centre is the most modern in New Zealand but it needs more popular shops and a marketing push to succeed, a new report says.

The report, commissioned by the city council, called for urgent action to help central Christchurch win back trade lost to the suburbs after the earthquakes.

While new stores were opening in the city's new retail core in anticipation of growth and recovery signs were promising, 'retail sales growth in reality has been much slower than expected', it said.

The report, written by Premier Retail Marketing, said central Christchurch's strengths included fashion retailing, bars and restaurants, and Ballantynes department store.

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However, the central city must 'lure in' large mid-prices retailers such as Farmers, Kmart, Whitcoulls and Noel Leeming, international brands, more small independent retailers, and professional services such as dentists and opticians.

'Immediate action' was required to boost patronage, it said.

'The city retailers must work together as a collaborative group to wrestle back some of the tightly-held market share as the suburban centres will not just hand it back to the city.

'New businesses must be attracted to enhance the mix … but now is the time to act.'

The report said the central city 'urgently' needed an 'intense marketing campaign' to stabilise the retail sector and boost shopper numbers, funded by the Cental City Business Association, the city council and promotions and economic development agency ChristchurchNZ.

'A prosperous retail core can underpin a sustainable economy for the city,' it said.

The corner of Cashel and Colombo streets, in the heart of Christchurch.

Current marketing was broad but a campaign should focus on changing people's perceptions and informing them what stores, services and car parking were available, the report said. It suggested a regular magazine, pocket guide, and dedicated central city website.

Well known brands in the process of re-establishing in the central city include Kathmandu and KFC, both with new buildings going up on Colombo St, while cosmetics store Mecca Maxima is expanding into new High St premises this week.

The Riverside Farmers Market, due to open next month with 70 tenants, is expected to boost foot traffic at the western end of the city's new retail precinct.

However, many of the big-name stores are waiting for more foot traffic, tourists, or inner city residents. Fast food giants McDonald's and Burger King have both said they have no plans yet to return to the central city.

Farmers central Christchurch department store before the earthquakes. The retailer has not returned to the central city.

A June survey of more than 900 Christchurch residents found the central city was most valued more as a place to eat and drink and find entertainment than to buy general items. It was also the preferred destination to find fashion, while Riccarton was preferred for family clothing.

Northlands Shopping Centre is among Christchurch suburban malls to have expanded in recent years.

The latest economic analysis from ChristchurchNZ showed spending in the central city rose 14.3 per cent in the year to March.

ChristchurchNZ economist David Dyason said the biggest increases were in cafe, restaurant, bar and take-away food spending. There was a much smaller increase in spending on clothing and personal items.

The Premier Retail Marketing report said more patrons were needed for the central city's hospitality sector to grow. It said that while shopping was the main attraction in most central cities, in Christchurch this came behind sightseeing, leisure and work.

While 30 per cent of businesses in a typical central city offered professional services such as doctors and pharmacists, in Christchurch they only accounted for 12 per cent.

Other suggestions in the report included improving the appearance of vacant land and buildings, using bylaws or financial incentives and perhaps a school competition to paint hoardings.

This ChristchurchNZ video is part of the agency's Baby Come Back promotional campaign for the central city.

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