Vicinity Centres responds after shop owners, resident speak out over Chatswood Chase store closures

High rents and a major redevelopment works are being blamed for a string of prominent shop closures at Chatswood Chase as locals vow to ‘boycott’ the retail centre and take their dollars elsewhere.

Vicinity Centres has issued a response about a string of major shop closures at the site.

High rents and a major redevelopment works are being blamed for a string of prominent shop closures at Chatswood Chase as local residents vow to “boycott” the retail centre and take their shopping dollars elsewhere.

Food outlets, a newsagency, toy store, a fruit and vegetable market and a butcher shop are among the list of long-running businesses which have recently closed their at the north shore shopping complex.

Max Filipe – a prominent business owner who ran the Fruitezy fruit and vegetable store at the centre for 22 years – has now spoken out about the store’s closure, claiming the process which led to the decision to shut the shop was a “kick in the guts”.

Two other shop owners – who asked not to be named – both told this publication they made the decision to close after failing to secure lease renewal agreements with the owner and operator of Chatswood Chase, Vicinity Centres.

One of the shop owners claimed he made the decision to close after an increase to the cost of the lease renewal for the retail outlet.

Max Filipe is the founder of Fruitezy: Photo: Facebook

Sutcliffe Meats also announced its closure at the weekend with customers now being told to shop at the business’s other north shore outlet in North Willoughby.

A spokesman for the company said: “We were advised by the centre that we would not be offered a new lease when our existing lease expired in June this year”.

A concept image of the redeveloped shopping centre.

The closures are being partly attributed to a major redevelopment of the centre which includes reconfiguring large sections of the lower levels of the site to make way for an upgraded food court, fresh food precinct and retail outlets.

Vicinity Centres is planning to add more luxury retail stories and a “premium fresh food market” to the site – fuelling criticism from residents that small traders and shops offering day-to-day essentials are being “pushed out” to make way for higher-end tenants.

Mr Filipe said the decision to close Fruitezy came after Vicinity Centres rejected an offer for the business to take on a new retail lease within the upgraded fresh food precinct.

Vicinity Centres last month announced LoSurdos Fresh Food Grocer – which currently operates a store in Northbridge – had secured an anchor tenancy within the precinct.

Fruitezy closed its doors to the shock of shoppers.

“It wasn’t our choice to close,” Mr Filipe said. “We were there for 22 years and the centre decided to give the new store to a new person.

“Obviously Vicinity Centres promote themselves as being customer focused and community minded but I didn't see any of that. In my view, if anything the community became last on the list.

“If you close down the shops that people come to the centre for, then why will people still shop at the centre? They’ll go somewhere else.

“We always believed we were doing the right thing and we supported the community through fundraising. The whole process was a kick in the guts.”

A photo of the Fruitezy store prior to the closure.

Vicinity Centres has declined to publicly comment on individual lease arrangements.

A spokeswoman for the company said the redevelopment of the complex would offer “a wide variety of fresh and specialty foods and a mix of new and existing retailers’’.

The company’s development plans states the “evolution” of Chatswood Chase would also “better serve the affluent and modern community in which it is located”.

“Vicinity understands that construction works can be disruptive for tenants, retailers and the community and we appreciate their support as we work towards delivering on our commitment to bring the best brands and offerings and exceptional customer experience for our community,” the spokeswoman said.

LoSurdos has been announced as a main tenant for the redeveloped Chatswood Chase food precinct.

“Once complete, customers can expect a destination that has been reimagined for the community, with an elevated selection of specialty fresh foods, a new dining precinct and market hall and refreshed retail offer.”

It is understood Vicinity Centre is currently undergoing further leasing arrangements and announcements are expected to be made later this year.

In an ASX statement last month, the company states “tenant de-fit works” are continuing for the initial stages of the redevelopment which is due to be completed by March 2024.

Many residents have meanwhile taken to social media to comment about the recent closures with one local lamenting: “All my favourite shops have closed down.”

Another resident wrote: “all the small shops are closing, one after another in Chatswood Chase and the only shops opened are national giants like Coles, Kmart, Priceline.”