RANT- The Demise of Australian Small Business

[schnookle]

Hi guys,
I am so disappointed. Earlier this year I found a really great framing shop, I dont get many things framed but they were so reasonably priced and were perfect customer service, I was so impressed I referred a few of my friends who were artists and they loved them too. They were in a large "home maker centre" which deceided to remodel and only allow large chain stores to lease shops. They couldnt afford to move so they packed up their shop and closed forever.

Now one of my favourite cafes has just been sold because after 20 years in the same location they cannot afford to pay the rent in Westfield.

And same goes for a jeweler that I go to. They were the old fashioned type where you go in and the place looks classy. They werent expensive and their jewellery was something special not this mass produced stuff you find in chain stores and their customer service was superior. They have been told by Westfield to remodel because their shop is "outdated" as well as hiking up their rent, they will be closing their doors in March.

Its so sad to see small retailers close their doors and being replaced by ridiculous, cheap and nasty chain stores

Sorry about that but I just needed to vent!

[Mandy]

That is bad, Alex, we've noticed recently that around here lots of smaller centres are opening up and they usually have a Woolworth s in them - we've got four all within a 10 to 15 minute drive - talk about stupid. I mean, each store has to have staff, tills security, connections, surely there cannot be enough business for all of them to survive? Our local shopping centre is Munno Para and its really great, I think it's a privately owned centre and has a lot of smaller shops and a great old fashioned jewelers in there. They do have K-Mart, Coles and all the other main steam brands, but the smaller guys also get a go.

We see it a lot in the craft business, shops start up, spend a fortune on shop fittings, stock etc and then have to pay and absolute fortune to get people into the shop. Advertising is just so expensive and unless you are so savvy and clever, it's hard to get it right. A few of our friends have had shops which have had to close their doors. If people don't support them, then they disappear and so many times, customers might visit once or twice a year which just isn't enough. Add to that the paper work, health and safety, theft, staff problems, personality clashes and the dreaded ATO sending letters re keeping good records and warnings re cash takings, it's no wonder they shut down after a few years.

My BIL in the UK works for a company that invests in Westfield centres, they make a lot of money, usually at the expense of smaller stores, preferring to have the larger brand names - I reckon one day this will back fire badly on them as it will all look same old, same and customers will be flocking to the smaller, customer friendly centres.

[Merry]

Alex, I have to agree this is so unfair for the small businesses. The rent that these people have to pay is just amazing. Especially those that are in the big shopping centres. My friend was working a small shop in one of these centres...that shop had to move out of the centre as it just could not keep up with the rent. Moved out into the street across the road but the owner could just not catch up on what she owed so the small business went into receivership. So sad as my friend parents had owned this shop for about 30 years prior. My friend often told me that rents were high but what got me was that the centre then took a percentage of their takings. And the shop owners were told when they had to be open i.e. public holidays etc. If this small business was out in a shop a street all they have to do is pay the rent....I can't understand how the centre can then take money from your profits. The Bindery that I work in has moved five times in ten years and four of those have been because of increases in rent. So support those little local guys.