Ben’s Thoughts: David Jones in Manukau within next 2-5 years? #BetterAuckland

I don’t see why not when we have the land space

What if or Could We?

As part of the refocus of the blog and in the prelude to #Auckland2016 I will from time to time pen some thoughts on ‘What If’ or ‘Could Southern Auckland’ have or do XYZ. The idea behind this to:

  1. Kick start a conversation on the South and what is might want
  2. Through collaboration possibly getting the very good ideas going and implemented (the Manukau Parklet being one example)

If you have an idea of thought on ‘What If‘ or ‘Could Southern Auckland…‘ contact me (https://voakl.net/contact/  or @BenRoss_AKL on Twitter) and we will see what can be arranged.

Ben’s Thoughts

Ben’s Thoughts: “A David Jones store in Manukau City Centre within the next two to five years?”

From the NZ Herald

David Jones ‘have to look at Auckland’

By Holly Ryan,  5:00 AM Saturday Jun 6, 2015

Aussie retailer will need economies of scale and population offered by Super City to boost purchase in the capital: retail expert.
In Australia, leading retailer David Jones has 1700 brands and the company's biggest department store is 55,000sq m. Photo / Bloomberg
In Australia, leading retailer David Jones has 1700 brands and the company’s biggest department store is 55,000sq m. Photo / Bloomberg

Don’t be so sure Australian retail giant David Jones won’t be coming to Auckland, despite the company’s efforts to downplay such suggestions, says one senior retail analyst.

David Jones department store is planning to launch in Wellington next year with new brands and a complete building revamp for the old home of Kirkcaldie & Stains.

The retailer announced on Thursday that it was buying out the struggling Wellington institution Kirkcaldie & Stains for A$400,000 ($431,000) with an option to purchase its fixed assets for A$500,000 following a seven-year period of losses for the Wellington company.

David Jones chief executive Ian Nairn says the company is not planning on expanding beyond Wellington within the next few years but retail analysts say it is likely Auckland will see a David Jones store in the near future.

“We believe they will have to look at Auckland,” says First Retail Group managing director Chris Wilkinson.

“So if it was a commercial decision I would suggest that they would have to be looking fairly shortly at something else within the country – which is most likely to be Auckland. Within the retail sector it’s tipped that that would be in the downtown complex in Auckland. Almost certainly.”

…..

Nairn says the company is planning on retaining a number of the brands that are currently stocked in Kirks but New Zealand should expect to see some of the brands that are stocked in Australia’s David Jones’ stores and which might not be available in New Zealand.

He will not give an indication which of these brands might be likely to hit the store but says it will be an edited version of what the company stocks in Australia, and will be decided on after speaking to the local Wellington market.

“[David Jones] have 1700 brands and our biggest store is 55,000sq m. The [Kirks] store we’re taking on is only 6000sq m so we have to edit our collection down, and the key will be obviously bringing the brands the customer wants,” Nairn says.

“It’s not a huge store so if anything we’ll err to the premium end, and putting that collection together is going to be pretty exciting.”

New Zealand Retailers Association chief executive Mark Johnston says the smaller store size could prove difficult for the company.

“The footprint here is a lot smaller than in Melbourne or Sydney so it’s a question of how do you make that work,” Johnston says.

……..

Full article: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11460739

Given that Melbourne and Sydney are much bigger than Auckland population wise I don’t quite think we need 55,000m2 in floor space for a flagship store in Downtown Auckland.

HOWEVER, given that Auckland is growing and is a World City competing on the international stage where Melbourne and Sydney sit then six levels (so that 55,000m2) in the new (soon to be developed) Precinct Properties development opposite Britomart would be a prudent investment for David Jones.

But David Jones does have stores in the suburbs of Sydney and Melbourne. One such store is in Parramatta (ironically in a Westfield Mall) as seen here: http://www.davidjones.com.au/store-locations-and-trading-hours/Parramatta . Remembering that Parramatta Evolving to Become Sydney’s Second CBD. Hint to Auckland Council on Manukau City Centre.

So they/we establish the flag store in Downtown Auckland opposite Britomart which would be a given (in any case) if we are following the Herald piece above. But the question for economies of scale is where to locate the second store. Takapuna is a “no” as it is too close to the City Centre. The best site I can think of straight away for the second store is Manukau City Centre. Specifically the portion of land set aside on Lot 59 where the Bus Interchange and Parklet is going.

Yellow is the bus interchange, Red the land set aside for passive recreation, the cyan is designated for urban development
Yellow is the bus interchange, Red the land set aside for passive recreation, the cyan is designated for urban development
Yellow is the bus interchange, Red the land set aside for passive recreation, the cyan is designated for urban development
Yellow is the bus interchange, Red the land set aside for passive recreation, the cyan is designated for urban development

The potential ground area in Manukau City Centre is around 6,200m2. Given that the area is Metropolitan Centre zoned there is nothing stopping an 18 storey (72.5m) development going in at Lot 59 (for comparison the two apartment towers on Ronwood Avenue are around 15-18 storeys).

Thus we go mixed development on Lot 59. Give David Jones the option of four levels of the complex which would give a maximum floor area of around 24,800m2 or just under half of a flag store pushing 50,000-55,000m2. From there your other 14 storeys can be other retail, office and residential apartments (especially on the top one-third of the complex). In essence a full multi-use tower right by motorways, the rail station, and a bus interchange.

Other reasons to support the second Auckland David Jones in Manukau City Centre can be seen from this 2013 post South Auckland – The Rising Jewel in Auckland’s Crown. Also given that continuing “money’ is flowing to the South as it grows from housing 38% of Auckland’s population to around 45% (estimate) and Manukau services Southern Auckland and the northern Waikato I don’t see why we should not encourage a David Jones down here.

The land is there, the transport links is there, the people are here, and the discretionary spending (and also more jobs) is becoming more prevalent.

So then what are your thoughts. Do you think the South can do its part for a #BetterAuckland and house a David Jones?

Put it this way if I was Council or a Councillor I would be making sure that there were no “unnecessary” hurdles in encouraging David Jones down here. That said no subsidies either, the case either stacks or fails on its own.