The problems facing Merimbula are well documented. High rents, online shopping, tired infrastructure, lack of parking, limited trading hours, seasonal tourism, poorly run businesses, small population base, seasonality of tourism, the list goes on. The reality is the figures are actual much worse that documented. There are currently 24 empty shops in the CBD and I know of another dozen that are either for sale or could close in the near future. But it’s not just a local problem. Just last week the NAB reported that the Retail Sector was in recession so retailers are hurting right across the country.
Last year I project managed a contract with Bega Valley Shire Council which was called Bega Future Towns. This provided funding to help support local businesses implement technology into their businesses so they could increase sales and reduce costs. In one case study with Furniture One we were able to help them implement a new online accounting system and a fully computerised Point Of Sale system with online sales capability. The accounting system saved them around 16 hours per work, which allowed them to focus on increasing their sales with dramatic results. The other part of the equation for retailers is adapting to the changing environment. In the past you could open a shop, put in some products, a cash register, open the door and expect to make money. Sadly, those days are long gone and retailers need to create “an experience” that people want to come into their store for. The difference between online shopping and shopping in a physical store is the sensory and tactile experience that you can create. Being able to touch, feel, smell, taste, hear and engage with your products is part of the experience and the more vibrant that experience is, the more likely you are able to get people into your store. In 2015 I ran a series of courses for Eurobodalla Shire Council called the Future of Retailing which showed retailers how to adapt to the many changes that were occurring in retail. Unfortunately, many retailers across the country have failed to adapt with obvious consequences.
So what’s the solution to high rents? Well this is a bit more complex, but it can still be tackled. For instance, you can start by creating a rent register for all the empty shops in town. This would give potential retailers a good look at what is available and the prices of each property. Highlighting properties with lower rents, or that are offering rent free periods, or contributions to fit out would provide an incentive to active landlords. Calling out landlords with high rents, or properties in need of repair, would make landlords consider improving their offerings. Local council also need to put some onus on landlords to ensure empty shops are not left an eye sore with fittings and fixtures inside, stickers and signage on windows and generally looking like something out of a ghost town. This is not a good look for the street. There has been some calls recently at a national level to implement a Vacancy Tax for landlords that leave properties empty because their property values are higher if it is untenanted than if it is tenanted at a lower rental income. Addressing the rent and online shopping will go some of the way to fixing the problem, but it really requires more of a multi-faceted approach. Town planning needs to be improved and issues need to be addressed such as lack of parking and facilities and a tired streetscape. Some of this work is already underway with Council but it still needs input from the business community. Supporting businesses with training, education, mentoring, customer service training, awards programs, networking opportunities and events is required. A well organised Buy Local campaign and incentive cards encourages locals to support businesses as well. But one of the biggest issues to tackle is resourcing the solutions. These solutions require both money and people power and this is too big a job for a handful of volunteers. It requires funding for someone to manage and implement the solutions, but finding funding is not really the challenge. I have been able to identify funding that would enable a large amount of this work to be undertaken. I have created a framework for the implementation and a vision for the town moving forward, but I can’t do it alone. It requires buy-in from the local Chamber of Commerce and the Bega Valley Shire Council to begin with, then Landlords and local businesses. All of the stakeholders need to recognise that there is a problem and that something needs to be done about it, otherwise it is not going to work. My biggest concern now is, that if we don’t act soon it may be too late to save “Our Merimbula” and I hate to think of what the consequences are then. About the Author. Nigel Ayling. I own and operate Solutions 4 Biz, a Business and Marketing Consultancy in Merimbula. I have lived in Merimbula for the past 14 and worked in retail for over 20 years. I have run a number of Small Business training and mentoring programs and was the President of the Merimbula Chamber of Commerce from 2010-2012 ![]() |