Brisbane retail strips are dying a slow death, but still there’s hope for the future

Brisbane’s once much-loved suburban shopping strips are dying, from Ascot to Bulimba and Wynnum to Wilston. But experts say they still have a future, it’s just not a future as we know it. So what’s killing them off, and what does the future hold?

IT’S midday in Wynnum’s main street. Pedestrian traffic is sparse. Cafes are near empty.

It’s school holidays and yet hardly any children are in sight. Tumbleweeds would not look out of place.

It’s a sad state of affairs that is a sign that retail strip shopping is on its last legs.

The same scenario played out earlier in the day at Wilston Village on the other side of the city.

At Oxford St, Bulimba it was slightly busier but far from hectic.

A restaurant is up 'for lease' in Wilston Village. It has been on the market for more than 12 months. Pic: Darren Cartwright

The same can be said for Racecourse Rd, Ascot where, opposite the front gates to Eagle Farm racecourse, Ascot Village was all but deserted.

Just two stores, of more than half a dozen, were open. A credit union and Racecourse Massage.

Directly across Racecourse Rd, once popular fashion stores Maggie T and Kym Hodges Designs and Hacienda Flowers and Furnishings, sit idle — and have done for more than a year.

The quartet of, once thriving, strip shopping hubs on either side of the Brisbane River are all dotted, some more heavily than others, with ‘For Lease’ signs.

Just two stores are open at Ascot Village which has been one of the hardest hit along Racecourse Rd, Ascot. Pic: Darren Cartwright

The bright yellow background stands out like a sore thumb between cafes, restaurants and ‘suburban service’ industry stores.

At Oxford St and in Racecourse Rd there are more than a dozen outlets in search of retail love.

It’s more likely than not they won’t return as retail outlets, but as a cafe, professional services business or even a gym, if they have any hope of gaining new tenants.

Strip retail shopping is basically dead as we know it, says Griffith University urban and environmental planning lecturer Dr Tony Matthews.

Three ‘For Lease’ signs adorn shops either side of a gym in the business centre of Wynnum where there are a number of vacancies. Pic: Darren Cartwright

A victim of digital consumerism, the shopping strips have been robbed of anchor and drawcard tenants such as banks, newsagents and post offices, over the past decade, he said.

“They’re suffering very badly because of the digital economy and without foot traffic it harms the viability of their business but that’s across retail nationally,” Mr Matthews said.

“If people are not attracted to the strip to do their banking because the bank has closed, then there’s every reason they’re not going to visit or do anything else there either.

“The retailers themselves will talk about local problems like parking and rent.”

Griffith University urban and environmental planning lecturer Tony Matthews said strip shopping precncts are going through a transitional stage. Pic: Griffith University

While the retail side maybe dying a slow death, the strips themselves have a future, but not as we know it, and it’s not all doom and gloom, said Mr Matthews.

With fitness centres, cafes, restaurants and professionals taking out new leases, strip shopping outlets can, and will, survive, he said.

“It will continue to survive in some fashion but what you might find is that a lot of shops that were once retail stores are becoming restaurants or cafes or filled with ‘suburban services’ businesses,” he said.

“They’re (shopping strips) becoming more about buying experiences. It’s just another transition associated with the digital economy and it’s now about buying experiences and not physical items.”

JLL’s head of retail leading Cameron Taudevin said strip shopping can still be a good investment. Pic: The Courier-Mail

As much as retailers have had to tailor their businesses around the digital economy, landlords need to as well, said JLL’s head of retail leasing Cameron Taudevin.

He said tenants are seeking shorter leases (three years) along with high incentives, commonly in terms of fit-out contributions which are “frequently in excess of 20 per cent”.

“There remains a divide between landlord expectation and retailer demand,” Mr Taudevin said.

“We see a number of landlords in market are working to meet the market however a number of private investors have bank pressure requiring a minimum return if locked away on a long term commitments.”

Little Gnome owner Bel Ellis said the area would attract more shoppers if there was a direct link between the foreshore and the business centre of Wynnum. Pic: Darren Carwtright

On the local front, Wynnum coffee shop and book store owner Bel Ellis, of The Little Gnome, blamed high rents for shop vacancies.

She said the area would also benefit by having a direct link between the foreshore, which sits just 300m away, and the retail centre of Wynnum.

“The only ones (stores) that are empty are the big ones, they’re too expensive for retail and too expensive for foodies,” she said.

“We also need something that attracts people that links us to the water, and the water to us, like paddle ski hire, bait and tackle shop or a BCF.”

The vacancy rate at Wilston Village has at least declined following the opening of Vinnies, in a long-vacated convenience store, and the arrival of Brooks & Stain kitchen and bar.

Bis and Steve Parry will soon celebrate Brooks & Stain’s first birthday and neither was spooked by the high vacancy rate when they signed the lease.

Brooks & Stain co-owner Bis Parry loves Wilston Village and it could benefit with more businesses. Pic Darren Cartwright.

They returned to the Village after an eight-year hiatus following the sale of Caffe Di Vita in 2011 which they had owned and operated for five years.

“It was empty, and had been for 18 months, but Steve had always liked this corner and the outside area,” Bis said.

“We are hoping the shop opens next door … because even the Vinnies, which just opened, attracts people.”

Unwind Bar and Kitchen on Racecourse Rd, Ascot has been vacant since the middle of the year. Pic: Darren Cartwright

Racecourse Rd business group president Kate Peereboom said the precinct was definitely going through a transitional period.

She said it’s tough for new retailers while established tenants like boutique clothes stores Joli and Harrison’s menswear were performing well despite the challenges faced by online shopping.

“The types of business here are changing,” she said.

“If they definitely don’t have a niche market with a strong following it’s very difficult for them to meet the rent but the ones that are here are quite established.”

The outlet next to George's Barbershop on Oxford St, Bulimba is one of many looking for some rental loving along the popular strip. Pic: Darren Cartwright

As for Oxford St, barber George Pelecas has seen it all in his 24 years running George’s Barbershop.

He said business has always been solid but that’s not been the case for many eateries.

“We have been here 24 years and I’ve seen a few restaurants come and go,” he said.

On the investor side, Mr Taudevin said it can still be profitable but landlords cannot just sit back and expect the rent to flow through like it has in the past. Landlords need to be more tactical.

“Strip shops in growth locations will remain relevant and in demand, especially for private investors, however they need to have clear plans when acquiring these assets,” he said.

“Market research and future capital works programs to attract specific tenants need to be future planned to align with tenant expiries to create capital growth.”