The majority of people that we speak to agree that it’s about time that we see a fairer treatment and protection of our own retailers and economy and if all retailers are treated the same then it’s an improved playing field for all. In the USA alone it’s reported that 3,800 retail stores are estimated to close during 2018. This is compared to over 10,000 retail stores closing in the US in 2017 alone.  Below is a list provided by Business Insider from data on the US retail market.

As somebody who has been involved in the Bricks and Mortar Property Industry for over 25 years, the above information on face value would likely send a shiver up my spine and the spine of dedicated bricks and mortar property owners.
However, despite an increase in online shopping, our research tells us that there is little if any impact on the bricks and mortar growth of retail developments in New Zealand. In fact, it’s fascinated to discover that currently under construction in Auckland is in excess of 150,000 sq metres of new retail space and a substantial amount beyond Auckland in the regions. A quick summary of development activity is outlined below;

• Commercial Bay, Auckland – Over 18,000 square metres of new retail space with 100 plus retail stores including top brands such as H&M, Furla, Herschel Supply Co, Superette, Burger Burger and Saxon and Parole. The retail opening is anticipated for late 2018.
• Westfield Newmarket, Auckland – $790 million development anchored by David Jones, Farmers, Countdown, Event Cinemas and over 230 speciality stores, to be completed late 2019.
• Sylvia Park, Auckland – $200million extension of NZ’s largest shopping centre expanding the retail mix to finally include a Department Store (Farmers), 80 new retail stores, more carparking and office developments making Sylvia Park the largest retail centre in NZ  with an expected value of over $1 billion dollars once completed.
• Silverdale Mall, Auckland owned and developed by the Pascoe Group that also own Farmers, Pascoes, Stevens, Whitcoulls and Stewart Dawson opened in March 2018 with 30 stores and 400 caparks.
• Botany Town Centre,  Auckland  $78m development which will expand the centre to more than 60,000sqm and over 200 retailers. This is scheduled to be completed mid 2019.
• Milford Shopping Centre,  Auckland, undertaking a $50 million expansion which will add an additional 20 stores with future opportunity for residential with consent already gained for around 300 apartments
• Long Bay, Auckland – Todd properties $70 million Town Centre as part of its 162 hectare housing development.
• Ownership changes in Centres at Westcity in Auckland and North City in Porirua Wellington, also suggest redevelopment times ahead for these centres.
• Outside of Auckland, there is also major activity including Tauranga Crossing stage two – due to open Oct 2018 with 20 new stores plus Cinemas and an entertainment precinct. In early 2019, Bayfair at Mount Maunganui expect to complete a $115m expansion  – including an  additional 50 stores plus a  7 screen United Cinema  with over 13,000 seat capacity,  Excelsa Centre in Papamoa Tauranga will include an Art house Cinemas and new food and beverage facility; Trade Central, Rotorua expanded its offering in March this year with a new K Mart and speciality stores, and in Christchurch this year – Northlands is planning a $20m development called Langtons Quarter, Merivale Malls long overdue $10million upgrade is planned, Whilst in Queenstown the O’Connell Mall is undergoing a redevelopment , Five Mile and Queenstown Central K Mart and other retail are due to open late 2018.
  On reflection, any media coverage of an increase in online shopping should be tagged with information relative to any increase in bricks and mortar retail facilities to ensure that there is a balance to the thinking.

It is abundantly clear that despite what may have happened in the USA, the NZ increase in population continues to demand the physical increase of retail bricks and mortar facilities.

In my view, there has been no significant major erosion of Category A shopping centre facilities, despite growth in online shopping. It is apparent that in the foreseeable future, the potential for well-located and presented category A retail environments will continue to be successful.