News & Discussion: CBD Retail

[Brucetiki]

Also, another Krispy Kreme is opening in Tea Tree Plaza.

At least that's in a place that doesn't already have one.

In a CBD, a few hundred metres is the equivalent of a few kilometres in the suburbs. That said, the fad will die out just as it did everywhere else in Australia, I believe Melbourne CBD now only has two Krispy Kreme outlets in the CBD itself and the remainder of sales are done through 7Eleven?

Whilst I don't really believe that those who frequent Rundle Street are the target market for Krispy Kreme, I still think that if and when it coms to downsizing the number of these KK shopfronts, Rundle and Gouger Streets will probably be all that remains because they do surprisingly well in the food districts.

Gouger St's already been rebadged as an OTR.

[SRW]

To add weight to the theory that Zara may end up in City Cross, I heard through the grapevine that Mecca Cosmetica is negotiating to move into the Strandbags spot on Gawler Place in its Maxima format.

[Patrick_27]

To add weight to the theory that Zara may end up in City Cross, I heard through the grapevine that Mecca Cosmetica is negotiating to move into the Strandbags spot on Gawler Place in its Maxima format.

I'd say that's more out of convenience for them rather than because they're being shafted from CityX. I'd say the commentary on Zara taking up the site of the Woolworths in Rundle Mall holds the most weight, considering Woolies lease runs out in 2021.

[normh]

To add weight to the theory that Zara may end up in City Cross, I heard through the grapevine that Mecca Cosmetica is negotiating to move into the Strandbags spot on Gawler Place in its Maxima format.

I'd say that's more out of convenience for them rather than because they're being shafted from CityX. I'd say the commentary on Zara taking up the site of the Woolworths in Rundle Mall holds the most weight, considering Woolies lease runs out in 2021.

I'm not so sure that Woolies will be leaving, the growth in that end of town from a population level will increase substantially in 2020 with the Adelaidean, East End Living, Realm, Student living next door to Adelaidean coming on line.

Also if they left it would leave Coles and Foodland and I can't see Woolies giving in that easy to the competition.

[Ben]

I also would be surprised that anyone would be looking to rent a space in 3 years time. I would think it would happen sooner than that especially now H & M are open although they may wait to see how successful it is first.

[Nathan]

San Churro on Rundle St has gone bust. They had a sign up the past week or two that they were doing some minor remodelling, but it's apparently permanent.

New Rundle St casualty as San Churro closes
https://indaily.com.au/news/business/20 ... ro-closes/

Rundle Street dessert café San Churro has gone out of business, becoming the third chocolatier to vacate the East End street this year

The Spanish churros and chocolate franchise had been trading on the corner of East Terrace and Rundle Street since early 2013.

It was unable to make it through this year to Adelaide Fringe season, when it traditionally earns the most revenue.

Liquidators were appointed last week.

The San Churro company has indicated it may take over and re-open the store – re-employing its workers – but for now 15 casual staff members have lost their jobs.

It is the third Rundle Street chocolate-based store to go out of business this year.

Adelaide hills chocolate maker Cocolat closed its Rundle Street store earlier this year, while a Max Brenner outlet located a few metres west became a casualty of that company’s Australia-wide collapse last month.

The last chocolatier standing

Steven ter Horst Chocolatier is now the last chocolate outlet standing on Rundle Street, and owner ter Horst acknowledged that trading in the East End is difficult at the moment.

“I’m just very lucky that I have got a very understanding landlord … to get through quiet times,” he told InDaily.

“Rundle Street is strange right now … it isn’t the hub that it used to be.

“Even when [the immediately parallel, semi-pedestrianised streets to the south] Ebenezer Place and Vardon Avenue are pumping, Rundle Street is not.”

He said the closure of the old Royal Adelaide Hospital – moving thousands of regular customers to the western corner of the CBD – and the disruption caused by various nearby infrastructure projects, including the North Terrace tram, the O-Bahn and the Frome Street bikeway, had had a significant impact on trade.

Nonetheless, he told InDaily a loyal customer base for his locally made chocolate products meant he could expect to keep trading for the foreseeable future.

“As long as people support us we’ll … hopefully keep making the products that they want to consume,” said ter Horst.

“We aren’t looking to close up any time soon.”

The San Churro closure also comes two weeks after the liquidation of short-lived Rundle Street café Bean Bros.

The Rundle Street San Churro posted on social media earlier this month, saying it was closed for a “mini makeover”.

San Churro liquidator Andre Strazdins told InDaily that “the turnover was just not there” to sustain the business.

Revenue was declining and the cost of rent was high. InDaily understands rent on the property was about $15,000 a month.

“They were keen to get to the Fringe season,” said Strazdins.

“[But] they couldn’t manage any more and didn’t want to keep pumping money into it.”

He said franchise owner Jagjit Thandi was also concerned about the impending construction of a 20-storey planned apartment building – the “Monument” development – behind San Churro, and the impact it would have on her business.

Strazdins said the San Churro company may take over the franchise and re-open it – but that was yet to be confirmed.

“We’re talking to San Churro head office,” he said.

“They have an option to take it back and run it themselves, which it appears they’ll probably do, but that hasn’t been confirmed.

“They want to freshen it up and re-open it … hopefully they’ll re-employ everyone.”

InDaily contacted Thandi for comment.

[HiTouch]

They always seemed to be busy so that is a surprise.

[SRW]

New Rundle St casualty as San Churro closes
https://indaily.com.au/news/business/20 ... ro-closes/

Moderately surprised as it always appeared to be relatively busy. Whatever happens, I hope it is tenanted come festival season.

[Nathan]

I'd say this was a pretty key factor:

Revenue was declining and the cost of rent was high. InDaily understands rent on the property was about $15,000 a month.

Seems that since the hospital moved, foot traffic has obviously dropped but rents have not.

[timtam20292]

Very sad to hear about this

[Brucetiki]

New Rundle St casualty as San Churro closes
https://indaily.com.au/news/business/20 ... ro-closes/

Moderately surprised as it always appeared to be relatively busy. Whatever happens, I hope it is tenanted come festival season.

Hopefully it reopens as a company run outlet.

[normh]

ouch about $890/sqrm/annum, (thats on approx. 200sqm tenancy) I'm not sure if that reported $15,000/mth is net however but assuming all in and not net it is still a lot of chocolate to sell each month before paying staff, product, Franchisees fees and yourself.

[crawf]

Could it also be due to this?

https://www.sensational-adelaide.com/fo ... &start=135

[Allkai]

La Provence in Pirie St is also empty.

Never saw more than two people in there....

What a dead spot.

[Nort]

Could it also be due to this?

https://www.sensational-adelaide.com/fo ... &start=135

That was mentioned in the article.