A new report has found one in every eight central Auckland retail stores is empty.
RNZ has reported that Bayley's New Zealand Retail Market Update revealed a 13 percent vacancy rate within the Auckland CBD, significantly higher than Wellington's 5.3 percent and Christchurch's 3.3 percent. Bayley's national director for retail sales and leasing, Chris Beasleigh, told Nine to Noon that Auckland’s retail landscape had endured major challenges.
"If you look at Auckland, it's gone 12 rounds with Mike Tyson. It had [City Rail Link], Covid-19, work from home, and interest rate increases that have dented consumer confidence," Beasleigh said.
The figure includes the former retail giant Smith and Caughey's, which closed in July and is now listed as a "historical landmark" on Google.
According to Beasleigh, the upper end of Queen Street has suffered more than the lower end. "Tourists coming into Auckland normally start at the waterfront and walk up to Victoria Street, maybe go up to SkyCity. As you go up Queen Street it gets harder," he explained.
Despite the challenges, RNZ reported that Beasleigh remains cautiously optimistic. With the City Rail Link set to open next year and interest rates easing, he believes the situation is beginning to improve. "There are new developments coming along, there's 280 Queen Street, there's the Radisson Hotel, Timezone have just opened... There's still confidence out there," he said.
The NZ International Convention Centre, scheduled to open in February 2026, is also expected to provide a boost to Auckland’s economy. "That's going to be a great boost to Auckland. It will take time for those big conferences to get booked in, but that's a positive," Beasleigh said.
However, tourism remains inconsistent. "Tourism numbers last year were not bad, but not pre-Covid levels," he noted. "Cruise ship numbers are going to be down, which is a shame because that's a big benefit over the summer months."
While retail performance has fluctuated in recent years and vacancy rates remain concerning, Beasleigh emphasised the enduring importance of physical retail. "If you just retreat and you're just online, you're a one-show pony," he told RNZ.
He pointed to Kmart as an example of a retailer thriving by balancing both physical and digital spaces. "Kmart, a fantastic retailer, is expanding [retail] and as they expand, their online sales go up. Both correlate together. If you give up on bricks and mortar... It's still an essential part of that strategy."
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