In the last two decades, the retail sector has experienced unprecedented upheaval, having severe implications for economic development and sustenance of traditional inner-city retail districts. In the city of Christchurch, New Zealand, this effect has been exacerbated by a series of earthquakes in 2010/2011 which destroyed much of the traditional retail precinct of the city. After extensive rebuild activity of the city’s infrastructure, the momentum of retailers returning to the inner city was initially sluggish but eventually gathered speed supported by increased international visitation. In early 2020, the return to retail normality came to an abrupt halt after the emergence of the COVID-19 pandemic. This study uses spending and transaction data to analyze the compounding impact of the earthquake’s aftermath, shift to online shopping, and the retail disruption in the Christchurch central retail precinct because of COVID-19. The findings illustrate how consumers through their spending respond to different types of external shocks, altering their consumption patterns and retail mode (offline and online) to cope with an ever-changing retail landscape. Each event triggers different spending patterns that have some similarities but also stark differences, having implications for a sustainable and resilient retail industry in Christchurch. Implications for urban retail precinct development are also discussed.
The Christchurch earthquakes brought to an abrupt halt a process of adaptive reuse and gentrification that was underway in the south eastern corner of the central business district. The retail uses that were a key to the success of this area pre-earthquake could be characterised as small, owner operated, quirky, bohemian, chaotic and relatively low rent. This research reports on the progress of a long term, comprehensive case study that follows the progress of these retailers both before and after the earthquakes. Findings include the immediate post-earthquake intentions to resume business in the same location as soon as possible were thwarted by government imposed cordons of the CBD that were only lifted nearly three years later. But, businesses were resilient and generally reinvented themselves quickly in alternative suburban locations where government “rebuild” restrictions were absent. It remains to be seen if this type of retail will ever return to the CBD as government imposed plans and the rents demanded for retail space in new buildings appear to preclude small owner-operated businesses.
The city of Christchurch, New Zealand, incurred significant damage due to a series of earthquakes in 2010 and 2011. The city had, by the late 2010s, regained economic and social normalcy after a sustained period of rebuilding and economic recovery. Through the concerted rebuilding effort, a modern central business district (CBD) with redesigned infrastructure and amenities was developed. The Christchurch rebuild was underpinned by a commitment of urban planners to an open and connected city, including the use of innovative technologies to gather, use and share data. As was the case elsewhere, the COVID-19 pandemic brought about significant disruptions to social and economic life in Christchurch. Border closures, lockdowns, trading limitations and other restrictions on movement led to changes in traditional consumer behaviors and affected the retail sector’s resilience. In this study, we used CBD pedestrian traffic data gathered from various locations to predict changes in retail spending and identify recovery implications through the lens of retail resilience. We found that the COVID-19 pandemic and its related lockdowns have driven a substantive change in the behavioral patterns of city users. The implications for resilient retail, sustainable policy and further research are explored.
Prior to the devastating 2010 and 2011 earthquakes, parts of the CBD of Christchurch, New Zealand were undergoing revitalisation incorporating aspects of adaptive reuse and gentrification. Such areas were often characterised by a variety of bars, restaurants, and retail outlets of an “alternative” or “bohemian” style. These early 20th century buildings also exhibited relatively low rents and a somewhat chaotic and loosely planned property development approach by small scale developers. Almost all of these buildings were demolished following the earthquakes and a cordon placed around the CBD for several years. A paper presented at the ERES conference in 2013 presented preliminary results, from observation of post-earthquake public meetings and interviews with displaced CBD retailers. This paper highlighted a strongly held fear that the rebuild of the central city, then about to begin, would result in a very different style and cost structure from that which previously existed. As a result, permanent exclusion from the CBD of the types of businesses that previously characterised the successfully revitalised areas would occur. Five years further on, new CBD retail and office buildings have been constructed, but large areas of land between them remain vacant and the new buildings completed are often having difficulty attracting tenants. This paper reports on the further development of this long-term Christchurch case study and examines if the earlier predictions of the displaced retailers are coming true, in that a new CBD that largely mimics a suburban mall in style and tenancy mix, inherently loses some of its competitive advantage?
The major earthquakes of 2010 and 2011 brought to an abrupt end a process of adaptive reuse, revitalisation and gentrification that was underway in the early 20th century laneways and buildings located in the south eastern corner of the Christchurch Central Business District. Up until then, this location was seen as an exemplar of how mixed use could contribute to making the central city an attractive and viable alternative to the suburban living experience predominant in New Zealand.
This thesis is the result of a comprehensive case study of this “Lichfield Lanes” area, which involved in depth interviews with business owners, observation of public meetings and examination of documents and the revitalisation research literature. Findings were that many of the factors seen to make this location successful pre-earthquakes mirror the results of similar research in other cities. These factors include: the importance of building upon historic architecture and the eclectic spaces this creates; a wide variety of uses generating street life; affordable rental levels; plus the dangers of uniformity of use brought about by focussing on business types that pay the most rent. Also critical is co-operation between businesses to create and effectively market and manage an identifiable precinct that has a coherent style and ambience that differentiates the location from competing suburban malls. In relation to the latter, a significant finding of this project was that the hospitality and retail businesses key to the success of Lichfield Lanes were not typical and could be described as quirky, bohemian, chaotic, relatively low rent, owner operated and appealing to the economically important “Creative Class” identified by Richard Florida (2002) and others. In turn, success for many of these businesses can be characterised as including psychological and social returns rather than simply conventional economic benefits. This has important implications for inner city revitalisation, as it contrasts with the traditional focus of local authorities and property developers on physical aspects and tenant profitability as measures of success. This leads on to an important conclusion from this research, which is that an almost completely inverted strategy from that applied to suburban mall development, may be most appropriate for successful inner city revitalisation. It also highlights a disconnection between the focus and processes of regulatory authorities and the outcomes and processes most acceptable to the people likely to frequent the central city. Developers are often caught in the middle of this conflicted situation. Another finding was early commitment by businesses to rebuild the case study area in the same style, but over time this waned as delay, demolition, insurance problems, political and planning uncertainty plus other issues made participation by the original owners and tenants impossible or uneconomic. In conclusion, the focus of inner city revitalisation is too often on buildings rather than the people that use them and what they now desire from the central city.
