Locals shopping elsewhere: report
16 June 2016
An independent report shows major leakage out of Te Awamutu's retail sector as locals choose to shop out of town.
But the report's author says Te Awamutu's future is bright, as long as future development is well planned and meets the town's changing needs.
The independent report from Property Economics was commissioned by Waipa District Council to help plan the town's development, specifically the Te Awamutu hub based around the new library. It assessed Te Awamutu's retail sector to see how the hub could best add to, not detract, from town growth.
Results presented to councillors, local retailers and commercial property owners show Te Awamutu's core retail market generates nearly $220 million each year, drawing customers from beyond the town boundaries. Pak'N Save is a major factor in drawing non-residents into Te Awamutu to shop.
But local retailers face strong competition with the report suggesting 40 per cent of potential retail spend is going elsewhere, mainly to Hamilton. Clothing, footwear and furnishing retailers are impacted the most.
Property Economics director Tim Heath said while it was not unexpected some locals would shop out of town, Te Awamutu's "leakage levels" were high compared to other smaller centres. The report notes one in five retail stores locally are "unbranded" or second-hand stores that don't generate the same return as other retail stores. The food and beverage sector had the highest number of outlets in the town.
"It's a quality, not quantity story," Heath said. "This is not about providing more shops in town - there's already enough local retail space to service the population and to cater for expected growth," he said.
"But there's an opportunity for Te Awamutu to keep its retail spend local by encouraging stores to be higher quality ones. It's important local retailers understand the types, brands and price points people are seeking. That's where the opportunity is and that's what will make Te Awamutu a more compelling place to stop and shop in."
The report said Te Awamutu retailers must consider increasing weekend trading hours if they want people to shop locally.
"Some retailers may want to spend that time with their families. But if you want to be successful in retail you need to open when people want to shop and that's in the weekend; that's simply the harsh reality, " Heath said.
"Weekend shopping alone won't transform Te Awamutu's retail sector but it will provide a better platform for all local retailers to compete."
The report said Council should not focus on retail development at the hub and instead support complementary development like office provision, accommodation and potentially higher density housing. The new library would provide economic benefit because it would be well used by all age groups, throughout the whole day and across the entire week, the report said.
Waipa mayor Jim Mylchreest said the report provided a clear steer about where council needed to focus its energies in the development of the wider hub. Local business people were already working alongside council to shape the its development and identify and prioritise town projects over the next decade, he said.
"There's been quite a lot of town development work done since the town concept plan was finalised in 2010 with key projects like the library, Walk of Fame, Trust Waikato Te Awamutu events centre and street upgrades," Mylchreest said.
"But we need to ensure that future development will protect and promote Te Awamutu's long-term sustainability and see the town develop in such as way that it remains strong and vibrant."
You can find out more in the full report: Te Awamutu Hub Project Economic Overview
Media enquiries, contact Jeanette Tyrrell (on behalf of Council) 027 5077 599