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Cape Town CBD retail and development

Office, Retail, Industrial, Hotels and Residential
Posted On Wednesday, 30 January 2002 03:01 Published by
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Retailers in general are beginning to realise they have underestimated the market'
Retailers in general are beginning to realise they have underestimated the market'

CAPE Town's central business district (CBD) is showing signs of rejuvenation, says Cape Town Partnership CEO Michael Farr.

His comments follow Pick 'n Pay's decision to open its first store in the CBD, a move seen as a vote of confidence in the city. The area has seen little decline in economic activity compared with other CBDs around the country, some of which have come close to collapse.

Farr says retailers in general are beginning to realise that they have underestimated the market in the Cape Town CBD after bad experiences in other city centres in SA.

Another national retailer, Spar, is to launch shops in the CBD, with a planned 2500m² Superspar and two Kwikspar outlets.

Pick 'n Pay says that, if the initial store performs well, it will look at opening others as soon as suitable trading space becomes available.

Farr, quoting a survey of office workers and shoppers conducted in November by Market Decisions, says Cape Town's CBD is ready for more retailers. The survey shows that 31% of city workers wanted more grocery retail stores, 18% more clothing stores, 15% speciality retail shops, 10% more restaurants and fast food outlets, 8% more entertainment and 5% wanted more convenience stores.

Farr says that the survey showed the CBD had two 'wealth belts' Parliament Street and the Foreshore areas, frequented by upper-level income earners who want more upmarket retail shops.

Cape Town is not providing for these markets. 'Our retailers need to be more competitive.' Retailers must address people's need to shop outside office hours, and the Cape Town Partnership is talking to major retailers to convince them to extend shopping hours, he says.

Meanwhile, Cape of Good Hope Bank and Wesgro have issued a report which points to a great deal of construction activity around Cape Town this year, signalling a healthy regional economy. The report lists the R520m Convention Centre, Westlake Business Park and related residential development, Century City, N1 City, Tyger Valley Waterfront and the Clock Tower precinct developments.

There will also be big investment opportunities at Cape Town International Airport. Apart from expansion at the airport, related industrial, office, accommodation and trade opportunities are expected.
Publisher: Business Day
Source: Property Editor
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