Octagon closure hurting retailers’ trade

The trial closure of the Octagon has angered retailers who say they are already hurting financially and some are even considering their future existence. Business reporter Jacob McSweeny spoke with some of them about how the first days of the trial have gone. 

The "Octagon Experience" is becoming unforgettable for the wrong reasons for several retailers in the city centre and some say the trial closure has cut revenues by more than half.

The Dunedin City Council is carrying out the trial closure, called the "Octagon Experience" until February 16.

From that date to March 23 it will also hold partial closures.

Cruise ship buses have been dropping off and picking up tourists in Princes St, just past the Octagon.

There were some people around the Octagon but not as many in the shops  as retailers would have...
There were some people around the Octagon but not as many in the shops as retailers would have liked. Photos: Gerard O'Brien
The council has spent much of this week setting up the closure, putting in a stage, small trees and plants as well as other decorations to make it pedestrian-friendly.

Many of the business owners in the Octagon were unaware of how long this would take and were upset with the area looking like a construction site.

"It’s just taken longer than what we thought it would be to get it all set up," Ratbags and Innocent Bystander general manager Phil Ellis said.

"We’re now four days into closing off the Octagon and they’ve still got trucks and forklifts and everything still running around.

"Nobody told is it was going to take a week to set up. The communication’s been very poor."

"It’s a wait-and-see for me now ... let’s get in behind it and see if we can make it work," Mr Ellis said yesterday.

Ratbags and Innocent Bystander general manager Phil Ellis said setting up the trail closure took...
Ratbags and Innocent Bystander general manager Phil Ellis said setting up the trail closure took far too long.
One of the owners of the Stuart St Mac's Brew Bar, Mark Fraser, was positive about the trial and said it should be allowed to take its course.

Just down from the Octagon at The Scottish Shop, outgoing owner Erin Hogan said her revenue was down 50%.

"The first days of the trial have been an absolute disaster.

"I’m not being a grumpy business owner, I’m being realistic. I have figures to prove the turnover was down the first three days of the trial."

The trial closure and doubts around it had put the sale of her store to Sharon Hannaford at risk, she said.

The Scottish Shop outgoing owner Erin Hogan (left) and new owner Sharon Hannaford discuss the...
The Scottish Shop outgoing owner Erin Hogan (left) and new owner Sharon Hannaford discuss the trial closure and its impact on customer traffic.
She was certain the trial disrupted and severely reduced car and foot traffic.

That might lead to businesses having to let staff go, she said.

"It’s a big concern. How can you just say, ‘I’m sorry we’ve got no business today, so I’m sorry we’ll have to put you off’. It could come to that for some people."

That scenario had already come to pass for I Love Merino owner Colin Lim.

"Today I was supposed to have two staff members on, after what I saw on Monday, Tuesday and yesterday I had to put one off ... for today.

"I’m looking at next couple of week’s rosters where there’s cruise ships where I have extra staff, most probably I won’t have them [working]," she said.

Mr Lim’s drop in revenue was on par with what had happened at other retailers.

"Yesterday we had the Celebrity Solstice here. It’s been here five times already this season. I averaged out the sales over those five visits and yesterday we were down 50%, so what does that tell you?

"Our core business is cruise ships and tourists and there’s only tumbleweeds out there at the moment.

"When I saw what was happening out there on Monday and Tuesday I was crying. It was ... like it was a ghost town. It was worse than Christmas Day and if you’ve been in town on Christmas Day, you’d know what that was like."

Mr Lim was desperate for the council to listen to the plight of retailers like him.

"My fear is they’re going to put a positive spin on it ... then they’ll just make it permanent. And then, well, I’ll be gone."

In the same block, Linzi Irving’s Seriously Twisted shop had a revenue drop of as much as 75% on one day this week.

"That means the death of our business," she said.

"We are expecting to be 50% down, average. Once the event [Masters Games] starts the turnover should be up. But we’re expecting to be 50% down for the duration of the Octagon closure."

She was concerned council planners were focused on turning the Octagon into an entertainment precinct.

"It’s where cruise buses land and where they walk down to Toitu... and where they walk down to the main street.

"Our businesses have evolved on that tourist trail because of that. There must be 30 or 40 businesses along that tourist trail whose livelihoods are all threatened by the removal of the cruise ship buses and the emphasis on entertainment in the Octagon."

Dunedin City Council principal urban designer Kathryn Ward said the trial and the construction in setting it up was not driving people away from the Octagon.

"We do not believe the construction is driving people away, in fact there appears to be more people in the Octagon using it as a pedestrian-only space.

"Many of the bars and cafes have extended their premises on to footpaths and patrons (both locals and visitors) are sitting outside experiencing the trial."

She said there was a survey under way to gauge the trial’s popularity and attempts were being made to keep in contact with businesses throughout the trial.

"We do, however, believe that this trial will provide many opportunities for locals and visitors to support the retail/hospitality businesses in and around the Octagon as they walk through the area."

Comments

View all

Not much point having a pedestrian friendly zone to facilitate easy shopping, when all your shops have closed down!
Allowing a council with such a miserable record of poor management and wastage of rate payer funding to make commercial decisions, is tantamount to asking your 5 year old to run your candy shop.

Why an article on angry retailers when this trial has only begun and the main influx of visitors is not until next week?
What about an article on the pedestrians who frequent the streets or is this newspaper suggesting we should be entirely governed by the needs of retailers?
These same grumbling retailers need to wake up to the fact that things don't always stay the same, that change for the benefit of many supercedes their selfish out cries!
Move their shop...stop threatening with closure and job layoffs . Emotional clap- trap.

Kathryn Ward just doesn't get it - she's too into her own hype.

That's mean and unnecessary. I know Kathryn personally and she is a joy and such an asset to the city. Her intention is only to make the city a more vibrant and modern place whilst doing so under order from locals, superiors and counsellers. She is being hung out to dry. The amount of hate she is getting for proposing a trial is heartbreaking. I'm ashamed of our city and the people of dunedin. You might fit in fine here.

Very well said.

It's about time the Council pumped some money into a tram system that runs the length of George St (and beyond) to regenerate the main road and make the Octagon a focal point. Christchurch have done remarkably well within their new Terrace Precinct with the trams passing through, cohabiting with pedestrians and no vehicles).

I believe these business could be successful with an Octagon closure but you need a mechanism for drawing the people/tourists there.

Dunedin needs to be bold and start making real change. Those cruise chips can easily remove this boring city from their itinerary...

Having returned to Dunedin after 20 years abroad the only real change (apart from the stadium which is an amazing asset but the oldies hate) is the additional traffic on the roads. Dunedin has had a succession of the same types of mayor, from Turner to Chin, Cull to Mr Green - voted for by Dunedin It's a case of reap what you sow...

I won't be staying long; like for me, there is nothing here for my children post education!

SH_888 100% agree with you, you have obviously lived in other cities and understand that. the Mayor/s have no clues. We returned 5 years ago after being away since 1988 we bought a house lasted 18 months and was disgusted how Dunedin wasn't being run and progressed. it was the same as 1988 with the odd change. You are right about the Tram if the DCC had a vision of that in stages it would be fine instead they are severing everything into the area and hoping for the best. A two line tram from S/Dunedin to the Octagon and one from N/Dunedin to Octagon. with stages of St Kilda , St Clair, Caversham and possibly out to Green island and Mosgiel doing a loop. I'm not sure about how the hill areas would get trams etc. Similar to the Gold Coast. That would be better than that water from development at this stage. The Octagon needs a canopy over it with wind shelters, China town in Singapore has a good canopy to stop the rain.

How absolutely typical of DCC planners. Just totally ignore what retailers are saying, their turnover data just can't be real. So long as we have a tatty new car free space everything will be wonderful. Just how blinkered can a seat warmer be?

This stupidity will result in retailers leaving the area. Followed not too long afterward by retailers from the rehashed George St. So long as the greens get their way and cars are removed from the CBD all will be good. Who cares about business owners. Certainly none of the greens councilors.

KeithMcC, you're ignoring the fact summer is finally here, people aren't interested in wool products. Of course turnover will be down. Lack of wool product sales has naught to do with traffic closure. For goodness sakes, the shops there aren't 'drive through', nor is there actually much parking in the Octagon area. It has been reported the Octagon has had more people walking into it than usual. They don't want to buy woolly gloves and hats, they want to sit in the great outdoors, eat ice cream, take in the city vibe, gaze at our historic buildings, without the noise and fumes from traffic for a change. I hate sitting outside sucking in diesel fumes when having lunch or dinner. Can hardly talk to others at the table for the noise of engines. Not a great experience.
Funny too, just a few weeks ago I commented that the buses dropping off cruise ship passengers at Toitu to allow for the Octagon closure shouldn't be an issue, as the tourists will walk up into town. In this story, those very same retailers now say "It’s where cruise buses land and where they walk down to Toitu, and where they walk down to the main street." So they know very well that the tourists will walk either way!

I think the closure area looks so amateurish. But aside from that the council seems to have the erroneous belief that this closure idea is working and therefore beneficial for the occupants of the enclosed area, even though the occupants/retailers are telling them its not working!

ODT, can you please stop publishing stories about whining shop owners for a while and give this trial a fair chance! At least there were some positive comments from shop owners in this article but the negative headline alone is enough to pull everyone down. Of course the construction in the first days is of-putting to people and yes it is unfortunate that it has taken so long. But every change takes some getting used to so lets just wait and see how this goes please. In the meantime maybe shop owners could stop the whining and think about strategies how to make their business attractive to people without relying on busloads being dropped off at their doorstep! You don't own the Octagon, it belongs to all of us!

Genuinely curious, why does making the area pedestrian only, decrease the number of pedestrians visiting? It seems like businesses are suffering quite immediately but as I'm not an owner I can't figure out why the numbers are dropping. The Octagon has been busier than I've seen it around this time of year and tourists seem to be enjoying it.

Mr Lim : ""Yesterday we had the Celebrity Solstice here. It’s been here five times already this season. I averaged out the sales over those five visits and yesterday we were down 50%, so what does that tell you?"
It tells me that being a hot sunny day in Dunedin, 'tumbleweeds' and tourists aren't wishing to buy winter clothing. Until recent days, weather has been poor. Has Mr Lim compared sales to similar period for the past five summers? When sales are up 50% above normal, what were the conditions at the time? Compare apples with apples. This isn't rocket science. Coupled to the fact people like to be outside on a summers day, not so much browsing shops, more likely eating and drinking, enjoying the outdoor experience that the closure of the Octagon has offered. hence the reason food and beverage business's are so positive. Suddenly we all had something else to do in the Octagon....enjoy it without traffic and fumes!
Mr Lim, It just so happens the Octagon closure to traffic coincided with a hot summers day. Please don't blame the DCC or put staff off just because the sun shines! The angry stance taken by a minority of local business paints a poor picture of a vibrant Dunedin.

These retailers are basically putting two fingers up at locals and prioritising the cruise ship customers. Who's buying wool sweaters and tartan socks in summer? The guys crying about his business. He should be checking his prices and fixing his broken signage. A lick of paint wouldn't go amiss.

I haven't seen any 'drive through' businesses in the Octagon, has anyone else? With the Octagon open to traffic, you're lucky to find a park, and when you do, there aren't many of them! So, I really don't understand why there would be less customers. It seems to me a certain shop is too expensive for 'normal retail' anyway, simply focused on cruise ship customers. And yes, the makeshift arrangement is a tad messy, but hey, it is but a trial, let's give it a chance, don't punish your staff over it. As others have said, maybe a change of strategy. Example, Rundle Mall Adelaide, did some shop refitting there a few years back. Closed daily to traffic, shops prospering well, people out and about, food, entertainment, good shopping, and the closed area far larger than the Octagon area! Delivery trucks etc get the work done at night, then 7am, closed to all traffic. And Rundle Mall isn't the centre of the city either, nor do buses deliver cruise ship passengers there. Seems to me some here are afraid of change. Octagon belongs to ALL of us.

It's funny isn't it. You can't drive a car through Meridan Mall either but I don't hear the shops there complaining. A good shop owner would make the most of increased pedestrian traffic in a tourist city like ours.

View all