Chapel St traders losing thousands of dollars with rising rent costs and lack of customers
It was once touted as Melbourne’s hottest shopping strip, but desperate Chapel St traders say they are barely “hanging on” in the struggling retail precinct, with almost 70 shops closed, vacant or boarded up. So what’s the answer for the once-thriving street?
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Traders along Chapel St are begging shoppers to support the once-thriving shopping strip, with dozens of shops closing their doors as trade continues to slump.
The Stonnington Leader visited the retail strip last week and found almost 70 shops and eateries closed, vacant or boarded up.
Fashion boutique employee Savanna Fanfulla said the once-bustling strip wasn’t what it once used to be.
“It used to be known for being Melbourne’s destination of high-end shops but now most of those shops can be found at nearby shopping centres,” Ms Fanfulla said.
“I think it would be great if more niche boutiques came into the area — that would really work — especially activewear and fitness brands.”
Fashion boutique owner Penny Spyrou, who has worked on the strip for the past 12 years, said surging rent was leading to shops shutting their doors.
“This is the worst it’s ever been and it’s only going to be a matter of time before we’re all gone — people are hanging on,” Ms Spyrou said.
She said her shop had lost thousands of dollars because of the slump.
“It’s still a great strip — street shopping is great. I really hope people get out more and stop buying online and support local businesses.”
Thais, who works at a designer boutique, said she had seen dozens of shops shut their doors during winter.
“I think Chapel St is becoming more popular for restaurants and bars — it’s been so quiet for our shops especially earlier on in the week,” she said.
But Chapel Street Precinct Association general manager Chrissie Maus said more than six of the shops that had for lease signs on them were currently under contract.
“The entire street has had a 3 per cent reduction in vacancy rates, whereas if you look at one segment only it will be a different number,” Ms Maus said.
She said there were sections of the street struggling and other areas doing well, which had been the case for the past 30 years.
“10 to 15 years ago Windsor was struggling and South Yarra was booming, rents in Windsor dropped and is now booming with very low vacancy.”
Ms Maus said the precinct’s tough economic climate had positive times ahead.
“We have seen record numbers of new businesses opening in the last quarter. The business mix is changing to reflect global trends, mainly in the fashion business sector.”
Retail expert Dr Gary Mortimer said inner-city shopping strips faced several challenges.
“One of the biggest issues that shopping strips face is parking and this is why consumers have turned to shopping centres because accessibility is key,” Dr Mortimer said.
Stonnington Council chief executive Jacqui Weatherill said the council’s $60 million investment in the Chapel St precinct’s Prahran Square was nearly complete.
Ms Weatherill said the 500 bay car park was due to open within days and the ground level parkland by late September.
“A six-day celebration of the new space is planned for late October, when we expect thousands of people to visit the square and surrounding Chapel St area.”
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She said the council was developing a Vacant to Vibrant action plan because diverse and vibrant shopping precincts and strips were integral to the area’s identity and liveability.
“Working with local businesses, property owners, real estate agents, retail experts and business associations the plan focuses on attracting new tenants, helping existing tenants be commercially successful and activating vacant spaces to improve the experience of shoppers.”