Fiji’s capital Suva is likely to see more vacant retail shops in the coming months as a downturn in business brought about by economic and political uncertainty start to bite.

A survey last week found several retail stores in various parts of Suva continue to remain empty and the take up of empty spaces quite slow. Some shops are also closing down due to various other factors.

The new Mid City Plaza, developed by Candlelight Investments in Cumming St in midtown Suva and which was completed in mid 2007, has nine empty retail spaces almost one year on.

However, Candlelight Investments general manager Kowtil Jogia said that some areas of the building have been kept unattended due to delays in construction works

On the reason why the take up of retail spaces in Suva appear to be quite slow, Jogia believes this is due to caution in the market place in view of the current economic and political uncertainties.

On their part, he said they have been particular about the tenancy and product mix rather than simply filling spaces.

“We considered it prudent to obtain quality tenants and be able to provide customers with the range of services and to help create an attractive shopping and business precinct in line with international best practice.”

Still he said, the plaza is 70 per cent already occupied in the shopping areas with icon and other well known tenants such as Adidas, Chicken Express, Gloria Jeans, Copper Chimney, Vodafone, Central Pharmacy and many more.

He said the Level 2 office areas have recently become ready for occupancy and are currently at about 60 per cent.

In Marks St, Nitina and Co is closing down its sari and salwaar kameez side of the business and going into ready made clothing.

The company said the competition was too much in this particular sector of the market, and more so with traders coming from India.

Beside Nitina, the general clothing store, Rose Wear also has a “closing down sale” currently going on. The storeowner refused to comment, but sources say that the company has suffered a severe downturn in business (almost 50 per cent since the coup). The company has four stores (within walking distance of each other) of which two are expected to close.

If this goes ahead, Suva would be seeing two other vacant stores soon.

On Waimanu Rd, Shailesh Trading has closed down but owner Surendra Patel said it has nothing to do with any downturn in business. His reasons are simple. For one, all his children are overseas and he says he is too old (75 years now) to run the business. In addition, the landowner has upped the rent which he believes is too much at this particular time when the economy is struggling.

But the business is not totally closed for he is doing wholesaling from the basement of his house. “I am certainly not closing down my business,” Patel said.

Still, that leaves another empty retail space in Suva.

Elsewhere in the city, the former Lords Jewelers stop at The Triangle (opposite Caines Janiff) has remained empty since it was vacated almost a year ago. But this is expected to be taken up soon by Vodafone Fiji.

On Cumming St, a branch of Dominion Fashion has a “closing down” sign outside but the company refused to comment when contacted.

In the mall beside the former NBF complex on Victoria Parade, there are three vacant retail spaces. It is unclear how long this has remained empty.

At the newly built MHCC (opened in December last year), all retail spaces have been taken up. Managing director of Carpenters Properties Ltd Daniel Whippy attributed this to “good location”.

The old wooden store that the company vacated (opposite the MHCC and which is owned by Sundarjee) is expected to be taken up by another retailer, S Nagindas that is expected to sell ready made clothing.

Suva Retailers Association president Himmat Lodhia said the retail offices remain vacant because of the general downturn in business.

And he also claims that Indian traders from India are making it even worse by taking their business away. “It does not help matters at all.”

He believes that a turnaround in retail business “still looks to be far off”.

However, observers believe that by the third quarter of the year a clearer picture should emerge regarding the take up rate of retail spaces.


Fijilive