NZ retail space attracts global tenants
Global fitness brand Orangetheory has opened its first studio on Moorhouse Avenue, near Hagley Park in Christchurch. Photo / Supplied
New Zealand is proving extremely attractive for international retail tenants looking to extend their reach, says Chris Beasleigh, national retail sales and leasing director for Bayleys Real Estate.
“Our retail scene is viewed as a ‘good news story’ internationally,” Beasleigh says. “With a solid and reliable retail spend, sound economy and informed consumer base, demand for new retail space is at historical highs despite competition from e-commerce.”
He says a growing number of global retail brands are showing confidence by establishing here - adopting a highly-sophisticated approach to understanding the local consumer base and optimising locations.
“Large-format retailers and entrepreneurial brands are eyeing up future locations based on population projections and infrastructural initiatives using demographic software to pinpoint locations that fit their business model and aims. While not a perfect forecaster, this software can analyse traffic patterns, pedestrian counts and even sociographic data to find the optimal place to establish or expand a business operation.”
Beasleigh says Bayleys’ retail teams are working throughout the country with a number of global brands to help them identify sites to establish or grow their presence.
Recent examples have included leases for fitness brand Orangetheory and US-headquartered doughnut chain Krispy Kreme.
With a lease brokered by Bayleys, Orangetheory opened its first studio opened over the summer in a commercial development on Moorhouse Avenue, near Hagley Park in Christchurch.
Orangetheory is a global fitness brand with around 1250 studios operating in 24 countries.
Krispy Kreme doughnuts can be found in more than 35 countries and now has three dedicated outlets in Auckland. Photo / Supplied
Headquartered in Florida, the fitness studios promote a one-hour, full-body workout, focused on endurance, strength and power.
Kiwi Fitness Limited, a wholly-owned subsidiary of Apollo Projects Group Limited, holds the rights to Orangetheory Fitness in New Zealand.
Paul Lloyd, area developer for Orangetheory New Zealand, is a Kiwi who chanced upon Orangetheory while visiting Florida.
“My partner is from Florida and, when I asked where we could go to do some workouts, she mentioned a cool place called Orangetheory,” explains Lloyd.
“Afterwards we looked into whether they had a presence in New Zealand and found they didn’t. We went and had a chat and, one year later, opened the first Orangetheory studio in Christchurch.”
Lloyd was confident the model would work well in Christchurch and Orangetheory agreed.
“Orangetheory uses very sophisticated demographic software to assess potential locations regardless of the market they’re considering.
“While New Zealand is a smaller market internationally, it has many suitable locations – as assessed through the software programme – with a first requirement being that it broadly meets the demographic profile Orangetheory has established of mid-to-higher income earners, aged 30-55.”
Premises must have good parking or high foot traffic, a floor area of 260-300sq m , preferably be single-level and located among bulk retail or similar high-profile tenants.
“The Orangetheory client demographic brings proven additional foot fall into retail areas while leveraging off existing successful retail operations,” says Lloyd.
The agreement with Orangetheory is to open 24 studios over the next seven or so years.
“Another is under development in Auckland and we are finalising the lease on a third studio.”
Recently entering the New Zealand market is another international brand - Krispy Kreme doughnuts.
Founded in North Carolina in 1937, Krispy Kreme doughnuts is in 35 countries and has three dedicated outlets in Auckland along with a national wholesale client.
Last February, Krispy Kreme opened its first New Zealand manufacturing and retail operation in purpose-built premises in Ronwood Ave, opposite a Westfield shopping centre in Manukau.
Working with Bayleys to secure a new lease, it has since opened a CBD store in Chancery Square with another opening Auckland Airport. Krispy Kreme doughnuts are also sold in more than 40 North Island BP service stations.
Edwin de Guzman, Krispy Kreme’s Australasian development manager, says the brand was
overwhelmed by the public’s response to the Manukau opening a year ago.
“This gave us confidence to open two more retail stores in our first year,” says de Guzman.
He says the Manukau location proved ideal. “We needed enough space for a factory and retail store; drive-through capability and customer parking.
“This facility employs over 100 staff across retail, logistics and manufacturing and can create 4320 doughnuts every hour.”
Close to motorway on-ramps, it can quickly deliver doughnuts to other stores. “We’ll continue to look for opportunities to expand our store network in other parts of the country,” he says.