Ann-Marie Johnson: Retail NZ on a new report showing retail supply isn't keeping up with population growth

A new report from JLL says almost 255-thousand square metres of new retail space is needed over the next five years, to meet demand.

It says Kiwi consumers still value in-store shopping, despite the rise of online shopping.

Retail NZ's Ann-Marie Johnson says told Ryan Bridge this shows there's a positive future for retail following a tough period for the industry.

She says we've been through cycles like this before - and it will eventually end.

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Episode Transcript

Speaker 1 (00:00):
So it seems that Keywi's Apparently we still favor the
old fashioned in person shopping experience. There's a new report
from the consultancy JLL saying we need nearly two hundred
and fifty thousand square meters of new retail space in
the next five years to keep up with demand. Which
when I go down Main Street and I look at shops,
even in nice areas, there's shops boarded up, shops with

(00:23):
rent signed four leaks on the side of them. Ann
Mary Johnson Retailings ed with me this morning, Emory, good
morning or a it? So how does this work? Because
you do see shops that are sitting empty. Are we
talking about we need new retail space in a particular
area or a particular type.

Speaker 2 (00:39):
Look, it's really good to see some positive prospects for retail.
I've got to say things have been tough for a
long time for our retailers. But I guess the thing
is that we've been through these cycles before. We know
that eventually the cycle is going to end and retail
will pack up. So my read of this report is
that it's the towards the future, to the medium term

(01:03):
when there will be demand for retail and retail space,
and so we need to be ahead of that curve.

Speaker 1 (01:10):
What about the online situation? Does this take into account,
because it's obviously looking at population growth and saying you've
got x number of people, you need x amount of
retail space. Does it take into account how much shopping
New Zealand is culturally, how much we do online?

Speaker 2 (01:27):
Yeah, we know certainly from our own research and this
this report reflects that that bricks and water stores are
still way more popular. People might do their research online
before they go to do their shop, but the majority
of key we still prefer to actually go into a
shop to buy the goods that they're looking for, and

(01:51):
we seem to be a little bit different from the
rest of the world on that. But it's hard to
see that trend changing significantly.

Speaker 1 (02:01):
I can probably count on one hand how many things
I've bought online in my entire lifetime. Like I just
don't Yeah, I just don't do it. And you need
to especially clothes, you need to try them on, don't you.

Speaker 2 (02:12):
Well yeah, I was just going to say, especially for
things like clothes and some of those big purchases as well,
you like to touch them and see them before you
actually buy yeah, all.

Speaker 1 (02:23):
Right, Emory, Well, let's hope that this rings true and
that we get some more Well, well, first of all
that retail gets a bit of a reprieve because I
know trading is still flat, and also that we get
some more retail spaces. About twenty three minutes after five,
you're on News Talks, you'd be Yeah, I think I
could probably count, literally count on one hand how many
items are clothing, How many items period I've bought online,

(02:46):
especially clothing. And you know, if you you know, during
winter you put on a little bit of weight and
then in summer you ideally lose a little bit of weight.
Coming into summer, it gets very hard to try and
decide what size you are. You know, you need to
actually try them on, get them round.

Speaker 2 (03:01):
You For more from Early Edition with Ryan Bridge.

Speaker 1 (03:05):
Listen live to News Talks it be from five am weekdays,
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