Opinion
Paul Keane's picture
Paul Keane

Operators targeting the ageing population?

I went into Auckland's Viaduct on Easter Sunday to meet some friends and have lunch. There were very few people about and the restaurant we went to didn't charge a "surcharge" for eating out on Easter Sunday. Maybe people are happy staying home at Easter with their families?

While chatting over lunch, one major issue that we stumbled upon was the major occupations that have contributed most to wealth over the past couple of years over all others.

In discussion, we decided that Real Estate Agents and Funeral Directors would be way out in front of money earned during the past couple of years.

So what's the common denominator with these two occupations?  The answer is the aging population.

Suddenly this group of mainly retirees is being targeted by all types of commercial operators for access to the wealth that they possess.

There is however a limitation on the type of spend that this group generates. Food and entertainment are high on the list, as is travel and accommodation. Thereafter, the spend by retirees diminishes. Apparel purchases are a typical example of how changing times impacts on various merchandise categories. Work attire is far more casual now than it was just 10 years ago, and retirees simply don't have to dress up anymore. "Casual" is the dominant dress word. Formal is infrequent and maintained as the standard for very special occasions.

This group has by far the biggest spend 'opportunity' over any other group.

No longer do they have to worry about their finances as they once did, and although still cautious, it is apparent that they have a desire to smell the Roses while they are still able. Added to this is the benefit they receive from the value that their homes have created driven by the surge in the property marke. Selling a home in Auckland and retiring to an alternative regional location is now the norm and the capital gain derived from that sale and relocation sets many people up in a very comfortable retirement economic environment. 

Consequently, this group of consumers dominate the market spend. Living longer will also ensure this group continue to remain dominant. So, who can tap into this wealth for commercial gain? Already, the Real Estate industry Professionals are benefitting, but the knowledge base that this group of retirees possess is truly an opportunity that must benefit companies looking for reliable, responsible and knowledgeable employees. No longer does this group retire early, they want to continue contributing to society and companies could do a lot worse than engage them in on-going business activities. Who cares about the age, provided the skill base remains intact? Aging will be a serious employment opportunity for companies in the future. Why wait for the Funeral Director to turn up when opportunities for the future are significant.

by Paul Keane, director


Sharewatch | Event Hospitality and Entertainment 

Event Hospitality & Entertainment runs the Event Cinemas chain, and operates hotel brands including Rydges and QT.

Event Cinemas seems to be chugging along nicely in New Zealand. The group recently bought the Downtown Cinemas business, with three cinemas in Palmerston North, Havelock North and Paraparaumu. On the other hand, the Queensgate cinema closed late last year as a result of the Kaikoura earthquake, and will need to be rebuilt.

On a like-for-like basis, box office sales dipped 3.0% for the six months to December 2016. The number of attendees seems to have risen, since average admission prices dropped by 5.9% with a more competitive Auckland market. Overall, profits (in $AUD) rose 1.4% to $4.36 million.

Event don’t separate out their hotel results for New Zealand, but across their total hotels business the picture is looking rosy. Profits for the last six months were lower, due to a few one-offs, but the New Zealand business most likely performed well, driven by the tourism boom.

Event purchased Wellington’s Museum Art Hotel in 2015, and is currently refurbishing it under the new name “QT Wellington”. QT Queenstown is also in progress, and of course Rydges is already a well-known hotel brand in New Zealand.


In the press

Local media highlights 11 Apr - 18 Apr 2017

Hamilton Airport welcomes increased passenger numbers 
Hamilton Airport's passenger numbers are soaring, reversing the previous trend of passenger decline with growing Auckland congestion playing a part. The regional airport is experiencing the strongest year-on-year growth in any given month in the last four to five years. March had the highest monthly passenger numbers recorded within the last four years at 32000 flying from the airport.
(Source: Stuff

Invercargill public react to proposed street changes

A new plan to transform Invercargill has had a mixed response from CBD business and industry leaders. A new strategy, developed after months of business input, was adopted by the Invercargill City Council last week. It aims to combine the work of all previous CBD strategies to build a better business and retail precinct. 
(Source: Stuff)

Art gallery struggles with recovering central Christchurch

Christchurch Art Gallery visitor numbers are about a third lower than pre-quake levels as the attraction struggles with the recovering city centre. The gallery attracted 317,000 visitors in 2016 after reopening in December 2015 following nearly five years of closure, compared to 468,000 in 2009 and 527,000 in 2010. Monthly visitor numbers for 2016 are about a third lower on average than the same month during 2009 and 2010. 
(Source: The Press)

Warehouse Group to sell Newmarket property for $65 million

Warehouse Group has entered into an unconditional contract to sell its Newmarket property in Auckland for $65 million and said the proceeds will be used to reduce debt. Settlement of the property sale is expected to be completed in July 2017 and the sale proceeds of $65m will generate a pre-tax gain of approximately $12m, the Auckland-based company said in a release to the stock exchange. Further details will be provided when it announces its full-year result on September 22.
(Source: NZ Herald)

 

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