You could be right,but after paying Mall % rents and other horrendous overheads the largest profits will be coming from stores outside of Malls and online sales.
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Issue will be they are locked into long term leases with malls in major centres so they either choose to go online in the major centres or live with the status quo and pay more and more for rent in malls with likely compressed margins as a result of more price competition with new players. The sustainability of the divi is the big risk here and once that is lowered the SP will react accordingly.
Research indicates wave of foreign retailers will grow - CBRE research
http://www.propbd.co.nz/research-ind...ers-will-grow/
No you are not wrong. But even in a major center like Auckland, is someone going to make a special trip to a particular mall just because Zara has a store there?
How many malls are there in Auckland?
How many have both HLG and these new brands?
How many other clothing stores are there in those malls?
Overall, the difference that these new brands can make will be tiny.
With respect jantar people wait hours in lines to enter these shops having travelled from all over Auckland (read news articles from opening of h & m and Zara this week at Sylvia park)Might be 6 main shopping malls in Auckland with a similar number of suburban malls dotted around. I think you will find the impact of trading on the likes of HLG, country road, witchery etc will be impacted big time. Why would you now go to HLG if cheaper, better quality and range of products were available in the same mall?
Mr Moricz said rental pressure could push some local retailers back to secondary malls, especially in the sectors where the international brands were trying to dominate, such as fashion.
Anecdotal - chat from David Jones staff
They not doing that well as they stocking the wrong stuff - they just don't understand what NZ woman want - thinking they just like aussies
Farmers across the road who were going to be smashed doing quite well I'm told
With all due respect an opening is not an everyday occurrence.
Here in the the civilized world we have had all these shops that some of you guys out beyond the Tasman are getting so excited about.
Occasionally a new one opens, they queue to have a look inside and maybe buy something and then it settles down as just another shop, some of which are not turning a profit (location and the Malaysian economy is a little down).
Best Wishes
Paper Tiger