Easter is over for another year, and it seems that we all survived the lack of retail trading days available. How did it feel not to be able to go shopping on Good Friday and Easter Sunday? A bit bizarre though isn’t it that you can go out and have a drink at cafe or bar and something to eat, but not be able to shop for general merchandise?
We suspect the Government will make a real effort to clean this up over the next year, so that retailers who want to open can. Ultimately peer pressure will force everybody to open 365 days a year, regardless of beliefs.
Given the move by Infratil with others to acquire Shell throughout New Zealand, we expect to see a significant “tune up” of the Shell service station offerings. This is likely to include a better general merchandise offer, smarter presentation, and as a result a significant increase in general merchandise sales. This is where the profit is, not in petrol, which is effectively a traffic generator for wider sales.
Therefore the new owners will be encouraging a far better overall image than that presently produced. As consumers, we visit service stations more frequently than most other consumer facilities, and petrol stations, like supermarkets are very much represented as a “destination visit”. What better opportunity than to gain further spend from these visitations?
We wonder if the supermarkets will continue to offer discounted petrol rates based on consumers spend on groceries. Is this the end or a new beginning of this level of discounting? It will be interesting to watch, as there are significant benefits to be gained for both the Supermarket operators and the relevant petrol brands. The consumer must benefit, watch this space.
We noted that “Livingstone’s” has finally merged with Colliers. Now this has been known to most of us in the Property industry for some time, but the former name is now history, which is a pity. Business is developed through the brand identity and the efforts of the individuals associated with it. Colliers is an excellent brand, but the property management offered through Livingstone’s will now come through the Colliers brand. It will now be up to the individuals to retain that special service offered previously.
DNZ (Diversified NZ Property fund) announced their development of a new $9.0 million building at Remarkables Park Town Centre in Queenstown. This property will undoubtedly lease quickly given the location and the indicative demand. Queenstown fundamentally is built around quality developments and this announcement is an addition to the quality stable of property at Remarkables Park.
Meanwhile, news in respect of the Kawarau Falls Development and its future remains murky. It will be a great pity if at least the first stage of this development is not open for the Rugby World Cup. But will it happen? The silence emerging from this project is deafening!
Similarly, it seems the Queens Wharf proposed redevelopment in Auckland has also gone silent. The best we could hope for prior to the Rugby World Cup now is a small remodelling of the wharf with a couple of screens for viewing! Probably rightly so.
We thought the comments by a Cruise Ship operator last week were appropriate when he asked, ” just give us a wharf, we don’t care what’s on it, but we need to know we have somewhere to berth” Poetic comments we thought. For those who have cruised, how long do you spend on the arrival/departure wharf anyway?
Our piece is last weeks issue suggested that Westfield hadn’t changed their banners from “Merry Christmas/Happy New Year” located on the feeder roads at Pakuranga. The banners remain up, but Westfield have informed us that Manukau City Council are responsible and they have ignored requests to have them removed or replaced. C’mon you chaps, somebody surely can get their act together?
Finally, those of you who emailed us last week about Harrods arriving. Don’t worry, to our knowledge their not coming, it was a 1st April test!! But it proves how well read this weekly “News in Brief ” is.
Westfarmes Share Prices - 2008-2010
Wesfarmers is an Australian-listed company that owns Coles, Target, Kmart, Officeworks and Bunnings. Bunnings and Kmart operate in New Zealand as well as Australia. In the latest half-year report, Wesfarmers increased sales and EBIT for most of its retail businesses.
Bunnings reported an EBIT of $422 million across Australia and New Zealand, up 14.1% from 2008. Kmart posted $154 million, an increase of 105.3% from the same period a year before.
Tighter inventory management, refurbishment and network expansion seem to be the key to their success. Wesfarmers’ share prices took a heavy dip in early 2009, but they are climbing back to full recovery.
NZ Retail News
Merino mission
Merino clothing manufacturer Icebreaker hopes to open 50 retail stores around the world within the next three to four years.
The darling of the fine wool garment sector has just opened a flagship store on Newmarket’s Broadway, its first local high street operation.
(Source: NZ Herald)
Changing tastes put squeeze on ethnic restaurants
Ethnic restaurants in Auckland are being forced to think beyond sweet and sour pork, fried won tons and sushi – and those which do not keep up with the times are facing the curtain.
Auckland’s oldest Chinese restaurant, the New Orient, closed this month after nearly 40 years in business.
(Source: NZ Herald)
Bunnings takes over NZ Mitre 10 site
Bunnings has opened for business in Tory St in central Wellington – bringing to an end rival Mitre 10′s occupancy of the high-profile city site.
The store opened in time for Easter Saturday, which is traditionally Bunnings’ biggest day of the year.
(Source: www.insideretailing.com.au)
Business confidence soars in latest survey
A key measure of business sentiment surged in March, but economic recovery is moving at a slower pace.
The New Zealand Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion recorded a net 36 per cent of firms expecting conditions to improve over the next six months, on a seasonally adjusted basis. That compared to 23 per cent in the December quarter.
(Source: NZ Herald)
Coming to an airport near you
Yet another Australian retail brand will move into the growing airport retail arena.
Just Group’s stationery offering, Smiggle, will open three airport stores at Adelaide, Gold Coast and Melbourne airports.
The stores will open under an agreement between Smiggle and travel retail specialist, Lagardère Services Asia Pacific, giving the Lagardère scope to open Smiggle stores within airports and transport hubs around the Asia Pacific.
(Source: www.insideretailing.com.au)
Sav Blanc dominance a concern
Sauvignon blanc accounted for 62 per cent of last year’s grape harvest and 81 per cent of exports by volume with 91.5 million litres.
Wine writer Michael Cooper says the dominance of one variety is a huge risk.
“It is very much a danger of having too many eggs in that basket but it is a danger that the industry is very aware of and working hard to counteract.”
(Source: NZ Herald)
