'Fashion Islands' to test power of brands

The pulling power of big brand clothing chains outside of shopping malls will be tested when a new retail concept opens in the Bay of Plenty next month.

With 25 large format specialty retail stores, the "Fashion Island" hub in Papamoa is a one-stop fashion destination.

It will open mid-May alongside the Centa Max complex being built by Auckland retail property developers Prime Retail.

Prime director Mark Schiele said the new shopping centre brand followed overseas trends that were seeing retailers move away from malls.

The pioneers of the Dress-Smart group of factory outlet stores plan to open a second Fashion Island in Nelson by the end of the year.

For the fashion retailers taking tenancies - among them Hallensteins, Glassons, JayJays, Max Fashions, Just Jeans, Nevada Surf, Hannahs Shoes and Overland Footwear - it will test their ability to cluster independently of major shopping malls and retail strips for the first time.

Hallenstein Glasson managing director Cliff Kinraid said the trend away from shopping malls had already started with large-format retail centres in Albany and Te Rapa.

If the Fashion Island concept succeeded, it would make rental costs for retailers "far more palatable" and provide chances in smaller towns.

Whether it would prove fashion brands such as Hallensteins and Glassons did not need the umbrella of malls to succeed - "We are going to find out," he said.

Schiele anticipated Fashion Island, 7km from the Bayfair Shopping Centre in Mt Maunganui, would be a "pretty powerful destination".

International trends suggested retailers were increasingly moving away from internally focused retail environments.

"Shoppers are wanting to return to neighbourhood shopping where parking's easy, the environment's relaxed and where they can find what they're after without having to walk for miles."

The concept was similar to "lifestyle centres" overseas - specialising in fashion, homeware, pharmacies and books. Schiele said he thought Fashion Island would attract shoppers from as far away as Whakatane and Rotorua.

Centa Max is the third major retail centre to open in the Tauranga suburbs in three years, behind Fraser Cove and GatePa, which will be completed in June.

The precinct houses Mitre 10, Bank of New Zealand, United Video, a medical centre and a Pak 'n Save supermarket is to open next year.