15 December 2008

Canberra retail?

| johnboy
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The Canberra Times has a bit on the weakness in Canberra’s retail sector.

Who would have thought that opening vast acreages of shopping space could have consequences?

Who could have predicted that there wasn’t actually unlimited numbers of consumers in Canberra just waiting for sufficiently salubrious retail opportunities in which to splurge?

Pretty much anyone with a brain actually.

Having said that. Canberra Centre on Saturday, madness eh? It certainly felt like a limitless pool of slack-jawed yokels milling aimlessly in every choke point.

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I applaud you peterh. I should have written that there are a hell of a lot out there who do have to have the latest.

speaking as one who saves, then buys “widescreen TV’s” etc, I still have a VERY old computer, a VERY old Car, but I do have fancy prams, high chairs etc. Beats having to feed the kids on the floor, or carry them everywhere. BUT, we saved for these items and purchased them with cash, not credit.

I haven’t blindly spent like a moron. I am more cautious, and will take my time to buy things.

the inference that the $1,000 per child was used on luxury items is way off the mark. we have used it as a buffer, in case we need to pay the mortgage, buy food etc.

You got it. Everyone’s got to have the latest plasma or LCD widescreen and a nice new car and it’s all on credit.

VYBerlinaV8_the_one_they_all_copy10:37 am 17 Dec 08

I believe the problem at a very high level is that we’ve been blindly spending like morons for years

Which is one of the reasons people struggle to buy a home…

And I agree.

poptop said :

Tarantula? http://www.coolthings.com.au/rc-tarantula-p-620.html

Legend! Now one present is out of the way. And I won’t have to brave the prams at Screaming Babies R Us.

The idea with ebay is to buy from US and/or European sellers who’ll ship internationally. Ebay is cheaper and if you realise a too good to be true bargain is a fake, you usually save a fair whack.

I see in a recent photo that Ivans is still selling all his gear for half price. Good if you want decent Drizabone Wallabies coats!!

I really have to agree with footlose’s post #2, the choice, particularly in menswear, is pretty dire. The choice of higher end menswear is really bad. Before Boss there was really only Blades, John Hanna and Ken Cook. Not very good for the capital.

try myer, kmart, target, David jones, etc, etc. The Discovery Channel RC Tarantula is pretty good fun…

info here:

http://shopping.discovery.com/product-63504.html

Excellent! Thanks again. I know there must be RC spiders out there soemwhere and I intend to find one.

Thinkgeek.com is great; locally you could do far worse that http://tesora.com.au/. As they’re are based in Mitchell, their stuff usually arrives the next day.

Nice leads on the spider, thanks folks. I’m running out of time to find these things! I got a nifty RC helicopter off Zazz last year, and figure a spider or soemthing of that nature would be even better for chasing the pets with.

ant said :

Jim Jones said :

What’s wrong with eBay?

It’s infested with Robber Barons.

Anyone know where I can find a remote-controlled spider, or something more interesting than a helicopter/car?

Were you listening to Mike Jefferies this morning? Some computer geek chick (I think she’s the editor of the news.com.au IT section) mentioned a remote controlled spider that was the size of a remote controlled car. I can’t remember if she mentioned where to get it. You could try contacting her through news.com.au or maybe look at http://www.lifehackers.com (a website she mentioned).

tylersmayhem said :

What’s wrong with eBay?

eBay used to be a polace to score great bargains for stuff, both new and old. these days, if you want to buy something on there hich is brand new for instance, you can usually track down the same item locally for the same price once you include the ridiculous cost of shipping that many sellers charge. I don’t even bother with them any more.

i get a lot of stuff from overstock outlet and deals direct. worth a look for remote control devices. http://www.dealsdirect.com.au & http://www.oo.com.au

tylersmayhem11:41 am 16 Dec 08

What’s wrong with eBay?

eBay used to be a polace to score great bargains for stuff, both new and old. these days, if you want to buy something on there hich is brand new for instance, you can usually track down the same item locally for the same price once you include the ridiculous cost of shipping that many sellers charge. I don’t even bother with them any more.

ant said :

Anyone know where I can find a remote-controlled spider, or something more interesting than a helicopter/car?

Spider, no.
But otherwise, yes.
http://www.thinkgeek.com/geektoys/rc/

Jim Jones said :

What’s wrong with eBay?

It’s infested with Robber Barons.

Anyone know where I can find a remote-controlled spider, or something more interesting than a helicopter/car?

imhotep said :

Wow. I didn’t realize that I shared this forum with so many refined upper-class intellectuals. So what were you lot doing at the mall amongst us ignorant plebs?.
.

it is nice for them to see who the “common folk” are. if they want to rub elbows with the commoners, let them.

I always thought that the canberra centre was trying to attract the upper class, many of the staff in some of the stores make me feel poor and common when i walk in. I don’t spend my money, I just walk out…

farnarkler said :

I think some retailers must be sh*tting themselves about the growth in online shopping. It’s a great way for smaller retailers who can’t afford the rents of the big centres can still compete.

Damn straight. I worship at the alter of online capitalism. Now if only we could get an Australian Amazon (or cheaper shipping from the US version).

What’s wrong with eBay?

tylersmayhem10:50 am 16 Dec 08

If only eBay was still a competitive and viable option!

I think some retailers must be sh*tting themselves about the growth in online shopping. It’s a great way for smaller retailers who can’t afford the rents of the big centres can still compete.

popgoescanberra10:40 pm 15 Dec 08

“(johnboy) “…a limitless pool of slack-jawed yokels”

(Heavs)”…there were an awful lot of mouth breathers wandering around”

and this gem

(footloose)”…It’s no surprise that most of us with style, taste and money all save our pennies to shop in Sydney, Melbourne or online.”

Wow. I didn’t realize that I shared this forum with so many refined upper-class intellectuals. So what were you lot doing at the mall amongst us ignorant plebs?.”

The difference between we intellectuals (well, for me anyway), is that they hang around there and look like they are enjoying it and as though they’ve got nothing better to do. We get in and get out as fast as we can, because the place smells like plastic, it’s too easy to spend hard-earned money there, and it’s generally a nice summer day outside.

Only when they’re babies. When they’re big they knock the shack foundations around! :]

I-filed said :

Hey! Canberra Times had a community ad for WSPCA wiv a big sad bear when I opened the link. Any chance of some warm&fuzzy animal charity type ads on RiotAct? Have they come a knocking?

Don’t you like baby wombats?

Hey! Canberra Times had a community ad for WSPCA wiv a big sad bear when I opened the link. Any chance of some warm&fuzzy animal charity type ads on RiotAct? Have they come a knocking?

imhotep said :

(johnboy) “…a limitless pool of slack-jawed yokels”

(Heavs)”…there were an awful lot of mouth breathers wandering around”

and this gem

(footloose)”…It’s no surprise that most of us with style, taste and money all save our pennies to shop in Sydney, Melbourne or online.”

Wow. I didn’t realize that I shared this forum with so many refined upper-class intellectuals. So what were you lot doing at the mall amongst us ignorant plebs?.

.

.

They like to slum once in a while just to show they haven’t lost the common touch.

…at least that’s what I do.

(johnboy) “…a limitless pool of slack-jawed yokels”

(Heavs)”…there were an awful lot of mouth breathers wandering around”

and this gem

(footloose)”…It’s no surprise that most of us with style, taste and money all save our pennies to shop in Sydney, Melbourne or online.”

Wow. I didn’t realize that I shared this forum with so many refined upper-class intellectuals. So what were you lot doing at the mall amongst us ignorant plebs?.

.

.

Ahem. “a room”.

Get room, you two.

tylersmayhem said :

If I called someone a dickhead with no provocation, I’d expect to be punched – but just so you know, that’s an expression of my particular sense of humour, not me picking a fight Jakez.

Thankfully the provocation has been adequate.

Oh okay well I completely misunderstood. That’s pretty funny, I fell for the very misunderstanding that I set out to avoid.

Sweet, I’m glad we are all good then.

tylersmayhem3:17 pm 15 Dec 08

I don’t have animosity Jakez. Like I told you anyway – that’s an expression of my particular sense of humour, not me picking a fight Jakez.

tylersmayhem said :

I dare say that no amount of “market planning” could have planned for the massive downturn that retailers are now experiencing.

Well when you aren’t being such a dickhead, I actually quite like you.

Just so you know, that’s an expression of my particular sense of humour, not me picking a fight.

If I called someone a dickhead with no provocation, I’d expect to be punched – but just so you know, that’s an expression of my particular sense of humour, not me picking a fight Jakez.

…it was just a joke tylersmayhem, I don’t share the animosity you have towards me. I guess we just aren’t meant to communicate with each other.

tylersmayhem2:39 pm 15 Dec 08

I dare say that no amount of “market planning” could have planned for the massive downturn that retailers are now experiencing.

Well when you aren’t being such a dickhead, I actually quite like you.

Just so you know, that’s an expression of my particular sense of humour, not me picking a fight.

If I called someone a dickhead with no provocation, I’d expect to be punched – but just so you know, that’s an expression of my particular sense of humour, not me picking a fight Jakez.

i work in retail, and am not dead yet.

..but am close to it??

(seriously, it is just plain old ridiculous this year. arrrgh.)

chrispy said :

Hi Mr Shab, the point I was trying to make was that potential new retailers need to do some research. Find out first if they can make a decent profit with a product in a particular location. It seems like the extising model is just “Borrow money, open a store, and see what happens” (eg ABC learning) which is just reckless. I certainly don’t think the government should be regulating what shops can open where because they aren’t smart enough to know how many shops are required and where. The market is always changing and vastly more complex than we think. anyway I digress.

I have pointed out in the past that the small store I enjoyed working at was placed as a result of market demographics and having a particularly trendy modern technology product. Its sister store in another location wasn’t researched, and as a result, it ended up being shut down, with the rest of the company.

demographics save bad decisions re location. The market in the bad location wasn’t there. it was a drain on resources, and killed the company.

tylersmayhem said :

Post #18: I can’t believe we agree on something Jakez. Doom and gloom topics are bringing us together 🙂 Bring on more doom & gloom I say 😛

Well when you aren’t being such a dickhead, I actually quite like you.

Just so you know, that’s an expression of my particular sense of humour, not me picking a fight.

For all my defence of materialistic havens such as the Canberra Centre, I’m actually not that materialist myself. Plus I hate people and their financial choices are often a good catalyst for my rageaholism.

Hi Mr Shab, the point I was trying to make was that potential new retailers need to do some research. Find out first if they can make a decent profit with a product in a particular location. It seems like the extising model is just “Borrow money, open a store, and see what happens” (eg ABC learning) which is just reckless. I certainly don’t think the government should be regulating what shops can open where because they aren’t smart enough to know how many shops are required and where. The market is always changing and vastly more complex than we think. anyway I digress.

tylersmayhem1:09 pm 15 Dec 08

Post #18: I can’t believe we agree on something Jakez. Doom and gloom topics are bringing us together 🙂 Bring on more doom & gloom I say 😛

Feathergirl said :

Woden was also busy on Saturday. With a few of those people who park in the corridors to talk to friends and spread right out. Then there are the ones who make loud, rude comments about the people who spread out and get in the way. I don’t know who is worse. On a good shopping note I look very pregnant now I get a lot of people talking to me about the baby, especially since I have lots of sitting breaks. It is sweet of them to care.

I thought Woden was a bit dead on Saturday actually but I share your pain at people who block off thoroughfares. The worst ones are the people who decide the bottom/top of an escalator is the best place to have a group meeting.

Woden was also busy on Saturday. With a few of those people who park in the corridors to talk to friends and spread right out. Then there are the ones who make loud, rude comments about the people who spread out and get in the way. I don’t know who is worse. On a good shopping note I look very pregnant now I get a lot of people talking to me about the baby, especially since I have lots of sitting breaks. It is sweet of them to care.

Anyhoo, there does seem to be a lot of similar shops about, but yeah, nothing really jumps out at me anymore as original and “worthy” of my dollars. Maybe there is just too much choice?

Mr_Shab said :

Who said anything about freezing the world Jakez? Competition isn’t a bad thing – but the regulatory environment we have ensures that we won’t get a free market in retail.

I absolutely support removing bad regulations that end up favouring big business, however I don’t think that was the topic and I don’t think that is what is really hurting the businesses in Bailey’s et al (read Garema and the older parts of Civic). The Canberra Centre has grown much bigger and that brings a great number of new businesses. Competition isn’t a bad thing, it is a great thing, however yes some businesses will lose. If you have a bad location, or a product that no longer represents the best option, you will lose. This is how it should be. Like I said, I have nothing but sympathy for people in that situation. The only way to stop it is to freeze the world, and I oppose that on economic and moral grounds.

I don’t work in retail – but I see many who are paying too great a price for government bungling and the predation of QIC. I take issue with the malfeasance of government in releasing so much retail space, even when more than sufficient amounts were already available. QIC are simply doing what developers do in screwing everyone they can to make a buck.

Please specify your allegations, I’d love some things to throw at people.

There aren’t enough dollars in Canberra to go round.

That’s correct and this is what drives competition in a monopolistically competitive market.

Most of the ones who will suffer in an economic downturn will be people who should not be in business, as they got into business when they really shouldn’t have; setting up one-lung operations. But some reasonably canny and very hard-working places will go to the wall because the pie is simply cut too thin. You might call that the invisible hand of the market; but you’re ignoring the fact that we have anything but free market conditions prevailing.

Well I think you are playing favourites and you can absolutely do that as an individual. I prefer borders to Angus and Robertson for numerous reasons. I prefer Impact Comics to Borders though for other reasons. However on a macro (not in the economic sense) level, it is wrong to make policy on that basis. Consumers as a collective, will determine who will struggle and who will thrive. Some of my personal choices will win, some of my personal choices will lose. I’m not the kind of person that thinks I can rule others (I’m not accusing you of this).

Specify your claim that we do not have a free market (I’d say this will be as the above request anyway).

There were an awful lot of mouth breathers wandering around the mall yesterday. Many sub-genres as well. The Slow Walkers. The Swervers. The Sudden Stop brigade. Love it.

Who said anything about freezing the world Jakez? Competition isn’t a bad thing – but the regulatory environment we have ensures that we won’t get a free market in retail.

I don’t work in retail – but I see many who are paying too great a price for government bungling and the predation of QIC. I take issue with the malfeasance of government in releasing so much retail space, even when more than sufficient amounts were already available. QIC are simply doing what developers do in screwing everyone they can to make a buck.

There aren’t enough dollars in Canberra to go round.

Most of the ones who will suffer in an economic downturn will be people who should not be in business, as they got into business when they really shouldn’t have; setting up one-lung operations. But some reasonably canny and very hard-working places will go to the wall because the pie is simply cut too thin. You might call that the invisible hand of the market; but you’re ignoring the fact that we have anything but free market conditions prevailing.

tylersmayhem said :

I believe the problem at a very high level is that we’ve been blindly spending like morons for years, with no consequence – and fooling ourselves that there never would be a consequence. Well it’s here now.

As consumers, we’ve accepted prices with continue to inflate, so up they keep going. Here we are paying up to 5 or 6 dollars for something made out of flour, water and maybe a bit of mixed grain.

We are the creator of this mess as consumers. We’re heading into a time of if you still have some disposable cash laying around, enjoy the the bargains. If you’re in debt up to your eyeballs you’ll need as much luck as you can get.

I agree, the amount of silly debt people have racked up on depreciating assets is truly ridiculous. That’s a recipe for financial ruin.

Mr_Shab said :

Chrispy – how about the existing retailer? The one that set up shop 8-10 years ago with a sound, conservative business model who was making a reasonable profit until the rug was pulled out from under them by the grotesquely outsized redevelopment of the Canberra Centre? What about them? Were they imprudent?

A lot of them can’t simply close the doors and start again – they’re in their 50’s and 60’s. Thier shop was their superannuation.

It’s not all folly. There are faces and names.

Who promised them that we were going to freeze the world? This argument is no different to the argument that the cotton makers put forward when they invented the mechanised textile machines.

http://en.wikipedia.org/wiki/Luddites

The world changes and just because you had a really good market niche 10 years ago doesn’t mean it should be protected. I honestly feel sorry for them. I don’t like walking through Bailey’s Corner (an area that is absolutely struggling right now) and seeing empty shops where a business used to be. However at the end of the day that has happened because a better product has been offered. The consumers make the ultimate decision and that is how it should be.

Mr_Shab said :

What about the folks already shopping at the lower end emd? They’re dropping off because they’re no longer quite so keen to max out their credit cards (shovel enough cheap money at a poor guy and he’ll think he’s rich). Your net result is less dosh in at the lower end too (there are a lot more people at the lower end curtailing their spending than “sliding” from the top end).

It’s not going to “balance out” in the end. It’s going to be ugly – only the most resilient retailers are going to stay standing.

My point was not that an economic downturn will not be ugly. Just that there are some retail businesses who will be affected far more than the average, while some other retail businesses are not severely affected (provided it’s not a repeat of The Great Depression) because they offer products or have a business model that is appealing to people who are budgeting carefully. For example, people will always need food – but we might see farmer’s markets picking up new customers while the gourmet deli loses sales in 2009.

Jonathon Reynolds11:50 am 15 Dec 08

I was in the Belconnen Mall briefly on Friday night… I was surprised how busy it wasn’t.

I have a sneaking suspicion that the “Christmas pennies from Kevin” will be going toward reducing debt rather than bolstering the retail economy.

tylersmayhem11:49 am 15 Dec 08

I believe the problem at a very high level is that we’ve been blindly spending like morons for years, with no consequence – and fooling ourselves that there never would be a consequence. Well it’s here now.

As consumers, we’ve accepted prices with continue to inflate, so up they keep going. Here we are paying up to 5 or 6 dollars for something made out of flour, water and maybe a bit of mixed grain.

We are the creator of this mess as consumers. We’re heading into a time of if you still have some disposable cash laying around, enjoy the the bargains. If you’re in debt up to your eyeballs you’ll need as much luck as you can get.

VYBerlinaV8_the_one_they_all_copy11:38 am 15 Dec 08

Retail is one of those areas that always seems to do well during the good times, but suffer badly during the downturns. Australia is coming off a really strong decade (economically speaking), and so it’s only natural that retail is going to see some hard times.

Of course, that doesn’t make it any easier for those whose lives will be impacted.

retailers who have the ability to run crazy discounts on stock will still attract the punters. There will be less spending though, as people are trying to sock some cash away for next year.

I know I am. I am not a high income earner. I am grateful for any money i get, as well as the bonus from the govt. It is sitting (happily for me) in the bank.

Chrispy – how about the existing retailer? The one that set up shop 8-10 years ago with a sound, conservative business model who was making a reasonable profit until the rug was pulled out from under them by the grotesquely outsized redevelopment of the Canberra Centre? What about them? Were they imprudent?

A lot of them can’t simply close the doors and start again – they’re in their 50’s and 60’s. Thier shop was their superannuation.

It’s not all folly. There are faces and names.

Mr_Shab said :

The one saving grace of the economic downturn for the retail sector is that it might put the brakes on the redevelopment of Belco Mall into another Canberra Centre-esque monstrosity.

Yeah why have choice and access when you can have….well I guess it has a Toys R’ Us. I may be 25 but goddamn that store is still magical.

What about the folks already shopping at the lower end emd? They’re dropping off because they’re no longer quite so keen to max out their credit cards (shovel enough cheap money at a poor guy and he’ll think he’s rich). Your net result is less dosh in at the lower end too (there are a lot more people at the lower end curtailing their spending than “sliding” from the top end).

It’s not going to “balance out” in the end. It’s going to be ugly – only the most resilient retailers are going to stay standing.

As background – my friends in the local retail sector say that people are spending; just less than last year and they’re buying smaller things. If you look in the shops, you’ll see that the decorations and stuff on offer is a whole lot less extravagant than in more recent memory.

We have such an excess of retail in this town because it’s a quick way for the Govt. to get some developer’s cash in the coffers; and a development minister willing to bend over backwards to accomodate every shonky proposal from QIC.

The one saving grace of the economic downturn for the retail sector is that it might put the brakes on the redevelopment of Belco Mall into another Canberra Centre-esque monstrosity.

DFO was busy on Sat AM….and I shudder to think how many people weren’t at Brand Depot.

I reckon DFO will be looking forward to tighter times – more people will consider buying “seconds” when times are tougher.

Having said that if I had got one of Kevvie’s bonuses I would have shopped up a storm at the new BCFs and Ray’s….

Someone built a shopping centre somewhere so I was forced to open a shop there and hire people at below award wages. Then I was forced to sell the exact same thing as the shop next door at an inflated price even though it was imported from china at bugger all per container load. Market research and innovation is for commoners, not for executive thinkers like me. I might have to close soon unless the government lets me get cheaper workers from overseas because there are no workers with the skills I need, willing to work for the money I want to pay them.

The consequences of too many retail stores is that those who have made a malinvestment will lose money. I don’t like it when a business fails but until somebody can solve that pesky ‘scarce resources’ thing, creative destruction will be the driving force of our advancement.

Footloose said :

Canberra has a terrible retail sector because the Overlords of Retail have looked at some demographic figures and decided that we’re all robots with no taste, thus we can have 100 stores all selling the same crap just at varied prices.
It’s no surprise that most of us with style, taste and money all save our pennies to shop in Sydney, Melbourne or online.

The overlords of retail in Canberra would love for those businesses to come to Canberra. The overlords of retail that are the places you think have style, think Canberra is not a viable market at this stage. I don’t know who is right, you or them.

I don’t think all retail can be lumped together so easily.
I think that some areas, like high-end clothing labels, will find that sales fall dramatically if interest rates rise. But other areas, like brands at the lower end, or second-hand sellers, will find their sales rise because they’re picking up customers who can no longer justify shopping at the more expensive end of the scale.

The yokels were all standing around gawking cause they could not figure out what to spend the free $1000 Rudd had thrown at them on.
It was the same on Sunday at Woden. Big W was wall to wall with people who were spending like mad on crap they didn’t need with the kids all getting some nice new toys.

Canberra has a terrible retail sector because the Overlords of Retail have looked at some demographic figures and decided that we’re all robots with no taste, thus we can have 100 stores all selling the same crap just at varied prices.
It’s no surprise that most of us with style, taste and money all save our pennies to shop in Sydney, Melbourne or online.

Xmas Mall Rage has started in earnest all over.

People my not be spending, but they are certainly turning up in droves and milling around endlessly.

If I have a job, a credit card and a commitment to spend, shouldn’t I be getting preferential treatment?

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