Big name fashion retailers Zara and H&M coming to Christchurch?

Thursday, 6 October 2016

Shoppers queue at the opening of H&M at Auckland's Sylvia Park mall on Saturday.

Two of the world's biggest fashion retailers are understood to be close to committing to stores in central Christchurch.

Global brands Zara and H&M have 6000 stores between them worldwide and property industry insiders confirm both have been in talks with Christchurch's property developers.

The European-owned companies are said to be looking for large, flagship premises fronting onto Cashel St at the eastern end of the city's new retail precinct.

Both opened their first New Zealand stores in Auckland in the past week, drawing big crowds.

Construction work in Christchurch's new retail precinct.

An artist's impression of how the completed The Crossing complex will look.

* Christchurch retail precinct on track for Christmas shoppers

* Zara, H&M and Topshop the future for New Zealand malls

* H&M opens its first NZ store in Auckland**

H&M is said by sources to be close to a deal to take space in the Carter Group's $140 million The Crossing complex under construction between Cashel, Colombo and High streets.

Zara is also said to be keen on The Crossing but has not ruled out nearby developments.

Both brands sell women's, men's, teenage, and children's fashions.

New Zealand H&M spokeswoman Kiri O'Brien said they could not reveal any future plans for Christchurch.

'We definitely want to be present in various cities in New Zealand but we don't have any plans to announce at this stage.'

No Zara spokesperson was available for comment on Thursday.

Carter Group owner Philip Carter confirmed some major leasing success but said he was unable to give details because of confidentiality deals.

'It's not for me to say. The tenants will say something when they are ready,' he said.

Fellow developer Peter Guthrey, who has rebuild plans for his Guthrey Centre site on Cashel St next to Ballantynes, said he was 'talking to tenants at the moment, but we really don't what the end result will be'.

He declined to say whether any of those negotiations were with major fashion retailers.

Already signed to the retail precinct is British-based Topshop/Topman, which will open a 1200-square metre store in The Crossing next year.

Until recently, almost all fashion stores opening in Christchurch have been New Zealand or Australian owned. In the retail precinct, ANZ Centre developer Tim Glasson has signed New Zealand fashion retailer Superette plus his own Glassons and Hallensteins brands, while New Zealand owned Repertoire is going into Nick Hunt's BNZ Centre.

Christchurch leasing agent Brendan Chase of Chase Commercial said that having arrived in New Zealand, the big fashion brands needed to open other stores around the country to ensure economies of scale.

He said large retailers such as Zara and H&M would want 2000 to 2500sqm over two levels, and were a drawcard rather than a lucrative tenant for landlords.

'They drive a hard bargain on rent and conditions and they take big spaces. Developers make their money on the smaller spaces.

'A developer can probably afford to do maybe only one of these big deals because they are so hard.'

Evan Harris, the Christchurch-based national retail director for real estate firm Colliers, said there had been a big upsurge in tenant interest in the retail precinct recently.

'A lot of the retailers had been hanging off coming to see what was going on in Christchurch. But in the last six weeks we've seen a lot of people coming to town to have a look, some very significant large ones are seriously looking.

'Now they can actually be taken through and see how these developments will look. They are pretty impressed.'

Harris said that while retailers' rents in central Christchurch were considerably higher than before the earthquakes, 'they are happy to pay them, and they're a lot less than in Auckland and Wellington'.

Australian department store chain David Jones recently opened in Wellington after buying out fellow retailer Kirkcaldie and Stains, but is thought to want to open in Auckland before Christchurch.

WHO ARE THEY?

H&M

- World's biggest clothing retailer

- Based in Sweden

- 4100 stores in 64 countries.

- Company name H&M Hennes & Mauritz

- Annual revenue US$21.73 billion (NZ$30b)

Zara

- Owned by distribution group Inditex.

- World's second-biggest clothing retailer.

- Headquarters in Spain.

- Over 2100 stores in 88 countries

- Annual revenue US$15.9b (NZ$22b)