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Management Responsible for Top Shop Closure

Paul Keane
Queen Street

As usual, local commentators discussed the receivership of Top Shop in New Zealand with a wider view as to the future of bricks and mortar stores and the general opinion that the potential closure is bought about by the impact from online shopping. Sorry, I don't believe either of those scenarios is to blame.

Regardless of the experience of the owners, the logical answer is that management are to blame for the closure, regardless of a wider opinion. Any business is driven by daily then monthly then annual performance. Couple this up with a sensible long term strategy and the business will either fail or survive dependent on that level of performance. There have been many instances in recent years of Retailers closing in the country after just a few years of operation. There are too many to discuss, but in all instances, management have been to blame rather than on line shopping.

"Top Shop was located in two excellent locations in Auckland and Wellington with superb exposure to pedestrian counts."

As a result, one would expect that the stores would have traded well and achieved a high level of sales.

Maybe, it really was a case of negative customer response driven by a level of merchandise that may have been less than appealing, both as to value and range. Most possibly, the merchandise was a far call from what the discerning New Zealand customer, who is well travelled would have expected from a typical Top Shop offering.

"I am also of the view, that possibly the decline and quick exit of Top Shop may well be due to the success of outlet stores."

A visit to the likes of Dressmart in Auckland's Onehunga will quickly reveal that most retail brands (and more) are represented, all of which are selling merchandise at less 70% of normal retail. Further most of these stores trade very well, which suggests that they have a following. So what's the message? The answer is value!! If you consider the merchandise sold by Top Shop, there is little that gives value to both price and range. Add to that the comparison to the range between the NZ brand top Shop and that of the U.K and the answer is apparent.

I said earlier that NZ customers are discerning and are hard to fool. That is one of the principal reasons why Top Shop did not necessarily appeal to its New Zealand audience. Let's not blame closures on either online shopping or the decline of bricks and mortar retailing. Sometimes the cause is more apparent.

RCG Crafting New Spaces - Wai Ariki Spa

RCG are the Architects currently working on developing a world class $30m spa complex, the first of its kind in New Zealand.

The Wai Ariki Hot Springs and Spa - is situated in Rotorua on the lakefront and was launched to the public Friday 8 September. Wai Ariki is the Maori name for the Bay of Plenty and also means Waters from the Gods.

Some of the features include geothermal terraced pools with lake views, private tubs and mineral rich mud baths. Takohu Mist Caves - are a Maori version of a sauna with flax mats over hot stones and native plant wraps with medicinal qualities.

We will be putting out regular updates and reveals, so watch this space and our LinkedIn page.

You can also read more details about the spa development by clicking on the link below.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11919601

 

Spa

RCG - Wai Ariki Spa Development

In the Press

Local Media Highlights 4 September to 11 September 2017

 

Only a year's supply of apartments left in Auckland

Auckland could be headed for a multi-year shortage of new apartments after a bulge of new projects comes to completion next year. Research by Colliers International shows that there is only 12 months' supply of apartments in the pipeline.

(Source: Stuff)

Consumers offered new ways to buy now, and pay later

Shoppers are being offered more ways than ever to get the latest clothes, technology and trendy homewares without having to pay the full cost up front. But consumer advocates are warning buyers to be wary about getting into debt without being aware of the consequences if they cannot pay.

(Source: NZ Herald)

Plan to get builders jumping to NZ

Bungy jumping, fishing, and weekend trips to Waiheke Island are being dangled in front of overseas builders to get them to move to New Zealand. A group of private companies and public organisations, including Auckland Transport, will launch a new campaign in October to entice builders to immigrate to this country to meet the growing demand for construction workers.

(Source: NZ Herald)

Grand central station: Railway to stadium plan

An ambitious plan for an indoor arena, along with a huge tower, hotels and a retail park in downtown Wellington has been outlined to senior figures in the Government. Dubbed Project Kupe, the $1 billion project would stretch from the Wellington Railway Station, to near the existing Westpac Stadium.

(Source: Stuff)

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