Business

'You're going to lose Cuba Street' - rent hikes force smaller shops out

18:25 pm on 10 March 2023

Madame Fancy Pants owner Claire Terry says she has seen Cuba Street's sparkle fading for a long time. Photo: RNZ / Lauren Crimp

Shop owners on Wellington's Cuba Street are blaming hikes in rent for a domino of closures.

A series of independent retailers are shutting up shop and owners say they simply cannot afford to do business there, and the famous street is losing the charm that once drew crowds of shoppers.

Madame Fancy Pants, Rex Royale, V1 Vegan Store, Everyday Wine, Rough Peel Records and Carly Harris had either closed in the past few months on the street, or were about to.

Some owners said the pandemic, parliament protest, cost of living crisis and labour shortages have not helped - but rent hikes were the final straw.

Madame Fancy Pants was a Cuba Street mainstay for 16 years.

Owner Claire Terry said she had seen the street's sparkle fading for a long time, with bricks and mortar stores becoming less viable.

"I emailed Justin Lester when he was mayor.

"Saying look, you're going to lose Cuba Street."

That was two mayors ago. Terry never heard back - and said they were now being priced out of the market.

"There's no kind of support for those small businesses who are making it what it is.

"All those small businesses are making that space a place where you are proud to say 'come to Cuba Street, it's filled with all of this'.

"You're not going to say in a couple years' time, 'come to Cuba Street, come and see the Spark store', you know, or 'come and see the Glassons'."

The V1 Vegan Store is closed on Cuba St, in central Wellington. Photo: RNZ / Lauren Crimp

Other store owners spoken to by RNZ said foot traffic was diminishing, there was more antisocial behaviour, and the street was looking shoddy and in need of a spruce up.

Wellington Chamber of Commerce chief executive Simon Arcus said recent closures in Cuba Street had been sudden and dramatic - indicating it was more than just a changing retail environment.

Wellington City Council needed to come to the party to make it more affordable to do business, Arcus said.

"In terms of how we fix it, one of the things is that we look at how we're spending at council level, because that immediately affects rates, and those rates are put on to commercial landlords.

"Ultimately, really all roads lead to Rome and that's back to the council, and how they've been spending in their projects."

A shop closed on Cuba St, in central Wellington. Photo: RNZ / Lauren Crimp

Wellington City Council said it was currently undergoing a rates review looking at affordability for residential and commercial ratepayers.

That is due in July next year as part of the next long-term plan.

In the meantime, Wellington City Council economic wellbeing manager Anna Calver said council was working hard to give businesses confidence to stick around.

Calver said its biggest part to play was getting more feet on the streets by investing in tourism and events - and increasing housing density, so more people were living and spending in the CBD.

"Our independent retailers and eateries are like taonga for the city, they're what give Wellington it's amazing colour and vibrancy and character.

"We want them to stay around desperately, you know, they're so important for the vibe of Wellington."