A new report has found one in every eight central Auckland retail stores is empty.
Bayley’s New Zealand Retail Market Update reported a 13% vacancy rate within the Auckland CBD, far exceeding Wellington’s 5.3% and Christchurch’s 3.3%.
Bayley’s national director for retail sales and leasing Chris Beasleigh told RNZ the city had been through the wringer.
“If you look at Auckland, it’s gone 12 rounds with Mike Tyson. It had [City Rail Link], Covid-19, work from home, and interest rate increases that have dented consumer confidence,” he said.
That vacancy figure included former retail giant Smith and Caughey’s, which closed in July and was now listed as a “historical landmark” on Google.
“The top end of Queen St has been hit harder than the lower end,” Beasleigh said.
“Tourists coming into Auckland normally start at the waterfront and walk up to Victoria St, maybe go up to SkyCity. As you go up Queen St, it gets harder.”
But with the CRL set to open next year and interest rates decreasing, Beasleigh said the situation was improving.
“There are new developments coming along, there’s 280 Queen Street, there’s the Raddison Hotel, Timezone have just opened… There’s still confidence out there,” he said.
He also pointed to the NZ International Convention Centre, which was due to open in February 2026.
“That’s going to be a great boost to Auckland, it will take time for those big conferences to get booked in, but that’s a positive.”
Visitor numbers were a mixed bag, Beasleigh noted.
“Tourism numbers last year were not bad, but not pre-Covid levels,” he said.
“Cruise ship numbers are going to be down, which is a shame because that’s a big benefit over the summer months.”
Though retail performance had been patchy over recent years, and a high vacancy rate appeared grim, Beasleigh said retail remained an important part of doing business in New Zealand.
“If you just retreat and you’re just online, you’re a one-show-pony,” he said.
“For example, Kmart, a fantastic retailer, expanding [retail] and as they expand their online sales go up. Both correlate together, if you give up on bricks and mortar… It’s still an essential part of that strategy.”
rnz.co.nz
