Retailers shutting shop Author: By TREVOR HULM Date: 01/06/2006 Publication: Illawarra Mercury Section: News Page: 9
SMALL retailers in Wollongong Central shopping centre are being forced out by increasing rents and high parking costs for customers.
Long-term tenant OHM Music recently shut its doors, while national fashion outlet Esprit will close on June 18 after five years in the centre.
At least two other fashion retailers, Wombat and Florentine Collections, are stalling on lease renewals seeking rent increases.
Tenants in the shopping complex are particularly concerned at the cost of car parking for customers.
They claim many shoppers are heading to suburban shopping centres, where parking is free.
"Who is going to pay for five hours' parking to shop in Wollongong?" Florentine Collections owner Carmen Jovanovski asked.
Centre manager Quentin Dennis conceded that retailing had "moderated". He blamed the decline on the weaker housing market and the impact of high petrol prices on consumer spending.
But Mr Dennis said general economic conditions remained stable.
"We expect to see a return to stronger sales growth in the medium term," he said.
He dismissed rental levels as a reason for tenants not renewing leases and also claimed car parking was not a problem in the city centre.
"With 1500 car parking spaces at Wollongong Central, we have seen no noticeable change in car parking at the centre," Mr Dennis said.
However, OHM Music owner Bill Delaney said the rent increase sought by Wollongong Central for a new five-year lease was not justified by the trade generated.
"I'm tired of working for the centre and the banks," he said.
Mr Delaney's decision to shut shop ends an 11-year association with Wollongong Central.
He claimed 20 per cent of traders in the centre were planning to relinquish leases when they fell due.
"I went around and dropped a letter in to each shop to let them know I was closing," he said.
"I was ... surprised how many wanted to get out."
Staff at Wombat fearing closure have collected several hundred signatures on a petition calling on the parent company, Pretty Girl Fashion Group, to retain a presence in the Illawarra.
A spokeswoman for Pretty Girl said Wombat was committed to its customers.
"Wombat is ... negotiating the ongoing tenancy at Wollongong Central ..." she said.
Mrs Jovanovski is yet to decide if she will renew her lease on Florentine Collections.