Always
think first about the people who’ll use this place – then think about the
building.
Wise
words from a person who saw value in society and what really endures. Buildings may crumble and burn, and then
what? People passing on stories, trading
goods, creating communities, passing on skills and values – these things
endure.
By now
the Myer story is well-known to all Hobartians.
For those of you outside of Hobart, the Myer building in Liverpool
Street burnt down seven years ago. Over
the years, Myer’s retail was a institutional drawcard in the city, more so as
Charles Davis and Fitzgeralds disappeared to be replaced by cheaper quality retail. With all the attempts to get it rebuilt
quickly, under enormous public and trader pressure on the Hobart City Council
and the State government, those seven years have seen a change in retail, while
construction has barely commenced. Myer
has operated with a smaller, cramped front in Murray Street, and a bulky
goods/homewares store in Macquarie Street.
It’s not optimum, as you just no longer get the range of goods once
available.
The
question is, after Myer officially released its Myer ASX & Media Release / Thursday
11 September / Myer Full Year Results ending 26 July 2014, will we ever get
the same Myer retail back? Myer having
promised and promised an opening by Christmas 2015, we now find it pushed back
another year.
To say
this is disappointing, is to underestimate the depth of the
disappointment. And how must the small
retailers in the CBD be feeling, having borne the brunt of a burnt site and
lack of people traffic?
So what’s
going on? We all now shop differently. The rise of on-line retail is hurting big
department stores. There has also been a
deliberate shift in thinking at the Myer CEO/Board level.
Financial
reporters write that it is now more profitable for Myer to operate off-line
than through a brick and mortar site. It
is shifting away from building flagship stores to free-standing stores (FFS
Retail), a process that Bernie Brooks and two other Directors have spearheaded
in changing the way retail is done.
It has been reported
that FSS Retail is potentially being positioned to help Myer expand from its
network of 67 department stores around the country by building free-standing
stores that might be placed within shopping centres or along suburban retail
strips. Last financial year Myer's
exclusive brands grew its sales by $40 million and now account for 20 per cent
of the department store's $3.1 billion in annual sales. The retailer has set itself a target of 1 per
cent growth in its Myer exclusive brand category over the next few years and
the bulk of that is expected to come from acquiring new fashion labels that
bring with them a portfolio of free-standing bricks-and-mortar stores. Read more at: http://www.smh.com.au/business/myer-move-to-extend-its-retail-options-with-fss-retail-20140302-33tyb.html#ixzz3BZYlj6XJ
At the
same time, it is public knowledge and well reported in august journals such as
the Financial Review that Myer has been in difficulties, that it was roundly
slapped down over its bid for David Jones, and that it has announced the
closure of a number of retail outlets and stopped or delayed the upgrade of
others. Myer expected to have 80 stores
opened by 2013. It currently only has
67.
The
recent announcement of delaying opening in Hobart should then come as no
surprise for those who join the dots and read the annual reports.
It is,
however, enormously disappointing. A lot
of us grew up shopping at Myer, either in Hobart or Launceston. The Liverpool Street store offered choice and
good quality merchandise, even as retail offerings changed rapidly in the
nineties and noughties. At its peak, customer
loyalty was incredible.
Yet
given what is reported in the press, does Myer, as personified by the much
anticipated new building, have any loyalty to Hobart? Or will there be further changes announced?
It is
time now for all of us to consider a rethink in how we do retail in the absence
of anchor department stores in Hobart.
It is time to reconsider how people use the City, and then worry about
the buildings.
In an
unashamed reverse of build it and they will come, this is the time for all of
us, elected people, ratepayers, traders, to rethink our CBD.
Yes, we’ve
all talked about inner city living and there are opportunities with this. But be aware, noise is an increasing problem
for inner city living and there will be trade-offs with quality of life. Yet that is also an opportunity to redesign
how we build, and how we manage traffic and people activity.
It’s time
for Hobart to move into top gear as a university and research city. The anticipated UTAS building at Melville
Street will bring more people and breathe new life into how people use and live
in our city. Already the Menzies Centre
buildings have shifted people around from Sandy Bay up into the CBD.
Council
has some great plans for people places derived from the Gehl Report – we’ve already
made some changes, but it is time to bring more projects that attract people to
both live and work in the city forward.
It’s time
for Hobart to stop placing all its hopes in major projects and start to focus
on smaller enterprises. Nice if we get
the big projects, but seriously, people come not only to shop, but also to eat,
to meet, to celebrate. We need to think
more about what makes Salamanca such a good place for these activities, and
apply these learnings to the CBD. More
activity such as Farmers’ Markets and Night Markets. And let’s keep on encouraging small-scale festivals
that are not afraid to offer limit-breaking entertainment.
It’s
time for a roundtable of all of us, to contemplate a future that may have Myer
in it, but is not dependent on it.
Tasmania, and Hobart, are small enough we can be different and create different
opportunities for people.
If you
want to renew the City Centre and help make a new future for Hobart as a real
people place, how you vote in the upcoming postal ballot elections will affect
this. Hobartians, choose your future!
Authorised by Eva Ruzicka, 10 Congress Street, South Hobart
Authorised by Eva Ruzicka, 10 Congress Street, South Hobart
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