Editorial: Revival of NZ’s urban centres hinges on innovation and diversity

The recent closure of flagship stores such as Smith & Caughey’s signalled a critical juncture for Auckland's primary shopping district. Photo / NZ Herald

Opinion

EDITORIAL

The narrative of New Zealand’s high streets is one of transformation, resilience, and inevitable change. Once bustling centres of commerce and community, these streets now face challenges reflecting broader global trends.

From the small town of Balclutha to the urban expanse of Auckland’s Queen St, the story is consistent: a struggle against the tides of economic downturns, the rise of online shopping, and shifting consumer behaviours. Yet, amid these challenges, there lies an opportunity for reinvention and revival.

In Balclutha, the quiet streets and empty shops are stark reminders of the economic pressures faced by small-town retailers. The closure of long-standing businesses, such as the BNZ Bank in 2021, underscores the severity of the situation. Retailers and service providers, like Annalise Mitchell of Face, Body and Beauty, emphasise the need for creativity and adaptability to survive in the new landscape. This sentiment is echoed by Tim Hunt of Powerzone Motorcycles, who notes a noticeable decline in foot traffic – a pattern replicated in towns and cities across the country.

Once the epitome of urban retail glamour, Auckland’s Queen St has also been affected.

The recent closure announcements of flagship stores such as Smith & Caughey’s and Sephora signal a critical juncture for the city’s primary shopping district. The ongoing construction of the City Rail Link and council projects aimed at pedestrianising the area have exacerbated challenges for retailers, leading to a significant drop in foot traffic. As Viv Beck, chief executive of Heart of the City, points out, the current vision for a “people-friendly” Queen St has yet to materialise, leaving the CBD with vacant storefronts and a palpable sense of uncertainty.

Wellington’s Lambton Quay and Tauranga’s city centre face similar struggles, with businesses grappling with the economic realities of a post-Covid world.

The shift towards online shopping and significant infrastructural changes such as removing private vehicles from key shopping areas have further strained traditional retail models.

In Tauranga, an ambitious $1.5 billion redevelopment plan seeks to transform the city centre into a vibrant hub, but the success of such initiatives hinges on attracting a steady flow of people and businesses.

These transformations are not unique to New Zealand. Globally, high streets have been in flux, adapting to changes in consumer behaviour, economic conditions, and technological advancements.

In Britain, the Centre for Retail Research reported a record number of store closures in 2020, with more than 11,000 shops shutting their doors. In the United States, iconic shopping destinations such as New York’s Fifth Avenue and San Francisco’s Union Square have also seen a decline in traditional retail activity as more people turn to online shopping.

The real takeaway from these observations is the necessity of a paradigm shift in how we view and utilise our urban centres. The traditional model of high streets as purely retail-centric spaces is no longer viable. Instead, there is a pressing need for diversification and innovation.

High streets must evolve into mixed-use environments that offer shopping, dining, entertainment, and cultural experiences. This multi-faceted approach should create a dynamic and engaging urban space that attracts diverse visitors.

Moreover, local governments and business communities need to work better together to create supportive environments for small businesses – often the lifeblood of high streets. This includes providing incentives for new businesses, investing in public infrastructure, and enhancing safety and accessibility. As seen in Rotorua, where community safety initiatives have reduced crime, proactive measures can significantly improve the attractiveness of a city centre.

While the challenges facing New Zealand’s high streets are formidable, they also present an opportunity for reinvention.

By embracing a holistic approach that integrates retail with other urban functions and fostering a supportive ecosystem for businesses, we can reimagine our high streets as vibrant, inclusive, and resilient spaces. The future of our cities depends on how well we navigate this transition, ensuring that our high streets continue to be vital, thriving centres of community life.