Experts warn Margaret River of retail pain

Retail experts have warned Margaret River businesses to prepare for “serious and painful” changes as a result of the 15 new shop spaces available in the new Woolworths shopping centre.

The main Woolworths supermarket, Just Jeans and Red Dot opened a fortnight ago, with the Times reporting a campaign to recruit main street retailers to the centre where the remaining retail, cafe and fast-food spaces are yet to be filled.

Perth-based international retail consultant John Stanley and Margaret River Business Centre director Barbara Maidment warned that the new shops could create oversupply.

Dr Maidment said Margaret River’s population of 5500 was not enough to sustain three supermarkets.

She was also concerned the new retail spaces could be taken up by chain stores because rent would be too high for local businesses.

“Margaret River is a small town,” she said.

“Because of the level of activity in Margaret River you can be misled, particularly if you don’t live here.

“It’s a definite oversupply issue at the moment. We will grow … but in that period businesses can go broke and businesses can go under.

“There’ll certainly be some changes. Some could be serious and painful.”

Mr Stanley said the opening of Woolworths was an extra challenge for businesses on top of the threat posed by online shopping.

He said it would also draw shoppers away from the town’s main street.

“Retailers are going to have to rethink how they attract customers in a more intense and competitive environment,” he said.

“The natural human reaction when something’s new is to see what’s happening.

“So in the short term, people are going to go to the new complex.”

Mr Stanley said business owners had to turn to new methods to thrive.

Improving the customer service experience was important, including using social media to engage people before and after they visited stores.

Last month, a Woolworths spokeswoman told the Times rents at the centre were appropriate for the market and reflected the amenity of the centre.

Margaret River Chamber of Commerce president Pauline McLeod said the chamber was considering ways to monitor the impact of the centre.

However, she said more shops would bring positive effects such as more jobs and keeping business in the town.