“Use it or lose it” has gone from hypothetical to reality on Motueka’s High Street, with many of the town’s retailers struggling to stay afloat.
The Guardian talked to businesses up and down High Street, and while some were holding steady with their sales, most were feeling the tight pinch of the economic downturn.
“Could be better” is as good as it gets, with some owner/operators losing sleep over the future of their business.
Stock and staffing levels have been significantly reduced in places, with some businesses reporting that they are months behind in rent.
Popular High Street retailer Floral Affaire closed its doors for good in September because its owner did not see a viable future, with the economic struggles that individuals and businesses alike are facing.
Sarah Amyes, the owner/operator of Paper Plus, agrees that people in town are doing it tough, and her message is a simple plea to “try locals first”.
“If we could just be the first point of call if they need anything,” she says. “We have all hit hard economic times, but please try local first.”
She is deeply concerned about the future and is scrambling for ways to adapt so that her business can stay afloat.
“I’m responsible for seven families.”
She explains it is the folly of retail that because the stores are well displayed, immaculate and tidy, customers do not always see the struggle until the “closing down sale” signs appear.
“It’s all smoke and mirrors.”
However, Motueka’s retailers will generally do the best they can for their locals, Sarah says, because they have to face them the next day.
“We have an ethic. We will never ever do you wrong.”
She says that because her business is a franchise, customers assume that she is being buffered by an umbrella organisation and don’t understand that the costs – including the additional franchise fees – fall directly onto her.
It is a similar message from Stirling Sports’ Martin and Susanna Thompson.
“People don’t think that we are local owner/operators. We’re a franchise, but it’s all our money, every last cent of it is our money.”
The couple have just had the worst November of sales in the 20 years that they have been in business.
Susanna said that they no longer employ any staff.
“People don’t get it that if you don’t support the local businesses, we’re not going to be able to supply the jobs.”
Her husband Martin says that he understands that people are struggling to find discretionary income.
“It’s tough,” he says. “I think it’s probably been the worst lead-in to Christmas in all the time we’ve been in business, to be honest. There’s just not the vibe. The town just isn’t as lively as it normally is at this time of year for Christmas trade.”
He asks customers to overcome their assumptions that because Motueka is a small town, its stores won’t have much product range, as many customers are pleasantly surprised by the town’s offerings.
The same goes for the prices, with people expecting a “small town surcharge”.
“The price for all our product is national. We don’t have a surcharge because you’re shopping in a smaller shop,” he says. “Don’t just assume. Try us.”
“We’re keeping our head above water, but that’s about the best
we can say. The water’s rising steadily, and if we have a bad summer, we’ll probably be in the s***, but so will a lot of other businesses in town.”
Gabriella Alessi Petrie, who owns and operates Taman Bay Jewellers alongside her husband Nigel, agrees that margins are lean.
“We want to be here for the long term, but there is no fat left in the system.”
She asks Motuekeans to “cherish and enjoy what you have”.
“We shouldn’t disappear into mediocrity, because what we have here is really special. We have a vibe here in Motueka that doesn’t exist [just] anywhere.”
Kuwallah owner/operator Prade says that although December sales started slow, she feels like she is still “standing strong”.
“It hasn’t been the easiest year, and I anticipated it because of the economic picture.”
She says that people appreciate the “great shopping experience” that shopping local can provide, and asks that if customers want their town to remain attractive, they should continue to support their local businesses.
“Shop local. Keep us alive,” she says.
Health 2000’s Carmen Pearson says that her costs have risen significantly since Covid, and while she is doing everything she can to keep prices down, it means that her own margins are decreasing.
The busy season had also shortened since she took over the business five years ago, from about four months to about six weeks, she says.
The e-buses, which have operated between Motueka and Nelson since August, have proved to be a blessing for some operators, by bringing out-of-town customers into their stores, and a curse for others, by taking their local customers elsewhere.
Motueka retailers are also acutely aware that they are competing against online sales.
“We do actually have some amazing details in here that you don’t have to go online for,” Carmen says. “It’s here now.”
Claire Hutt, coordinator of business promotion group Our Town Motueka, says that “it’s definitely a case of ‘if we don’t use it, we’ll lose it’.”
She asks people to think of the complete shopping experience that they receive from local businesses, which includes the friendly customer service, the pre-purchase advice and the after-sales care and accountability.
Also, “where’s the input into the local economy?” she says.
“A comment that I heard recently from a shop owner was, ‘isn’t it funny that when local people want support for their raffles or fundraising for a community or sports group, they ask for donations and prizes from their local businesses. Some of these people I have never seen in my shop before’.
“The retailer said that they were happy to support these groups and
donate prizes, but commented that ‘it would be nice if it worked both ways’.”