Retail News

Lake Haven achieves marketing recognition
The prestigious 2009 Australian and New Zealand Shopping Centre Marketing Awards finalists were recently announced by Shopping Centre News, the journal for the Australian shopping centre industry.

Lake Haven Shopping Centre was the only centre from the Central Coast to reach the finalist listing. 41 shopping centres from around the country and New Zealand were named as finalists for the 12 category awards on offer.

Up against Sydney heavyweights, QVB and Wintergarden, along with a couple of Centro centres in WA and Victoria, Lake Haven's Time Well Spent marketing campaign featured among the ‘best of the best’ in the category of Little Guns Branding and/or Repositioning (‘Little Guns’ are centres up to 45,000sqm in size).

The Time Well Spent brand position provided a communication platform that could be integrated successfully into various Centre communication channels and marketing activities. The brand position identified how Lake Haven provides a shopping experience where shoppers can make the most out of their shopping time – convenience, quick, efficient, value for money and friendly service – giving them more time to spend with their family. The campaign also reinforced the Centre’s commitment to the community through various community and charitable activities.

“This is a fantastic result for Lake Haven” said Centre Manager, Mike Cochrane. “Professional recognition must go to the Centre’s Marketing Manager, Katrina Cooke, along with all of our retailers who firmly supported this important marketing strategy.”

Michael Hill opens at Lake Haven
One of Australia’s leading retail jewellery brands has opened a new store at Lake Haven Shopping Centre. Michael Hill Jeweller has leased a 60sqm tenancy on a six year term.

Centre Manager, Mike Cochrane said, “The centre continues to attract quality tenants despite the turbulence in the market at present. We are pleased to welcome a new retailer of the calibre of Michael Hill.”

The New Zealand-based Michael Hill International Limited opened its first store in Australia in 1987 and now has about 140 stores nationally. On the Central Coast, Michael Hill also has stores at Bay Village, Erina Fair and Westfield Tuggerah. The company has stores in New Zealand, Canada and USA.

Shopping centre owners don't get it
Many shopping centre owners have not woken up to the downturn in retail turnover and are demanding higher rentals. While the industry overall is reporting satisfactory sales, the truth is that turnover is only holding up for the major supermarket chains and lower level department stores like Target and K-Mart.

According to business broker Graham McMullen of Argyle Estates Business Brokers, most small retailers (the mums and dads) in shopping centres are being exploited with around 40% paying over half their turnover in occupancy costs. “It is unsustainable and many are just walking away. These businesses are simply unsaleable,” said Mr McMullen.

Some shopping centre owners coerce tenants into paying higher rents by unethically encouraging a prospective tenant to sign-up for space at an unrealistic rental and then using that against the current tenant who is seeking a rent reduction. Further, all tenants are required to sign confidentiality clauses preventing them from talking to anyone – particularly other tenants. “It’s unethical and it’s wrong,” said Mr McMullen.

These centres are also using a new method of calculating rent increases following changes introduced last year. Under the new ‘Defined Method’ system leases now contain fixed escalation clauses which do not take account of the CPI. Some leases now contain automatic annual increases of up to 5%, which, when taken exponentially over the years pushes rents up to unsustainable levels. “Shopping centre rents are off the planet,” concluded Mr McMullen.

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