41 minutes ago

Green shoots after central Wellington retail struggle

41 minutes ago
Belén founders Mica Calle, a pastry chef, and her software developer husband Chris.

Professional pastry chef Mica Calle and her software developer husband Chris founded Belén from their home kitchen, before going full-time with the shop in 2022. Photo: Supplied

Wellington's Golden Mile has done it tough this year, with grim financial times leading to the closure of about 50 stores.

But some businesses are staying the course and even expanding, while big brands are returning to Lambton Quay.

Retailers and the hospitality industry are far from out of the woods, but there are some green shoots amid the downtown's downturn.

Plant-based bakery Belén is at the Beehive end of Lambton Quay, where public service cuts and working from home have made the central city strip noticeably quieter this year.

Despite this, Wellingtonians can not get enough of their award winning donuts and buttery croissants - all of which are vegan.

Professional pastry chef Mica Calle and her software developer husband Chris founded Belén from their home kitchen in April 2021, before going full-time with a shop in 2022.

Earlier this year Belén opened two more stores - on Courtenay Place and at Wellington Airport - and this weekend its Lambton Quay flagship site expands into a larger cafe-style eatery.

A fourth shop is planned for Petone later this summer, while next month the couple - who now oversee 30 staff and a 24/7 operation - are also expecting their first child.

Wellington hole-in-the wall coffee shop Dylan's.

Hole-in-the wall coffee shop Dylan's in Wellington. Photo: Supplied

Chris Calle said it had been a crazy year, and their hardest financially, but with summer coming he was optimistic.

"We've still seen the dips that other people have seen but we just try and work around them, in whatever way they can. I think it just comes back to the fact people are enjoying our products and service, that they still come and support us."

Further down Lambton Quay, hole-in-the wall coffee shop Dylan's has scores of office workers lining up for their caffeine fix.

Dylan Schmidt and his business partner Ash Radaich celebrated a year in business last month. Ash's daughter Laura Radaich is the third member of the team, working front-of-house.

Schmidt said he always wanted his own place that was small, simple but served good coffee.

But he admitted that he had worries about opening in the middle of a cost of living crisis.

"But I think you just have to take the plunge... my first idea, Covid happened, I waited that out, then this happened. There's always going to be issues but we just took the plunge and it worked. It's doing better than we anticipated and I couldn't ask for anything more."

Next month third-generation furniture design store Backhouse moves back into the Courtenay Place area where it started 76 years ago.

Co-director Michelle Backhouse said moving into central Wellington was risky, but will be better for business, particularly as the Allen St precinct where Backhouse was moving to was vibrant.

Michelle Backhouse from retailer Backhouse.

Michelle Backhouse. Photo: Supplied

Backhouse said the small-to-medium operators who were surviving offered something unique.

"Businesses that have survived have a unique proposition, whether it's a unique product or amazing service.

"Cities need to thrive, and part of that is you need to have lots of different types of businesses."

This week's third-quarter Retail Radar survey found many retailers were still struggling to meet sales targets, but their optimism was up.

Sixty-five percent of retailers surveyed felt confident or very confident their business will survive the next 12 months, compared to 58 percent last quarter and 57 percent this time last year.

Retail commentator Chris Wilkinson said Wellington's Golden Mile was seeing an influx of big brands like luxury beauty retailer Aesop launching on Lambton Quay today, and shoe brands Mi Piaci and Overland moving back to the thoroughfare.

But he said local retailers were still finding it challenging and few had the ability to expand right now, with "smaller businesses remaining fairly conservative in what they're doing and hunkering down".

But he said there had been a "noticeable difference - both financially and visually" around the central city since Public Service Minister Nicola Willis called public sectors back to work a month ago.

"The cafes are busier on Fridays, the vibe has made such a big difference to the city, the city is getting its mojo back."

Hospitality NZ's Sam McKinnon said most members felt positive about the coming months, but needed a good summer.

"The past winter was especially difficult so a lot of our members need a really strong summer to get through the next season."

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