In this new Ragtrader series, we investigate how capital cities are planning to revitalise CBD traffic after the COVID-19 pandemic.
Adelaide’s Rundle Mall has seen four retail brands open flagships over the past six months, including Glue and Rebel. International apparel brand Uniqlo will be the fifth addition by the end of 2022.
This news is echoed by an increase in foot traffic, noted through figures released by the Adelaide Economic Development Agency (AEDA).
AEDA MD Ian Hill said that footfalll in the CBD and North Adelaide was up five per cent in July from June figures, while Rundle Mall footfall was up 10 per cent over the same period.
“Total spend in the City of Adelaide was [also] up seven per cent from June to July – up from $342 million to $365 million – making July the strongest month so far this year,” Hill said.
The growth in sales and footfalls are attributed to past and current initiatives, with upcoming events expected to draw more people into the city.
Earlier this year, the AEDA implemented a $30 Eats program where diners entered a ballot to win one of 25,000 $30 food vouchers to spend at over 270 eateries across the city. The promotion ran from March 23 to June 1.
“It put $1.2m into the tills of local hospitality operators upon its conclusion,” Hill noted.
The ballot saw 45 people per minute signing up in the first 24 hours, reaching a total of 97,799 people.
The initiative was funded by the State Government of South Australia and the City of Adelaide, each contributing $250,000 towards the incentive.
Then in June, the AEDA unveiled Salvador Dali’s Triumphant Elephant sculpture in Rundle Mall, which continues to attract visitors. The sculpture is on loan from the d’Arenberg Cube until June 2023.
Currently, there are a number of privately funded developments across Adelaide that Hill said will boost the city’s retail sector.
“Adelaide's City Cross is undergoing a $25 million transformation, with Sheike and Vans both flagship tenants,” Hill revealed.
“In North Adelaide, the $250 million Eighty Eight O’Connell development will include retail outlets, including iconic SA brand Mercato.
“The Southern Cross Arcade is also undergoing a $450 million redevelopment, expected to bring 3500 commercial and retail workers into the city.”
Hill said that since 2019, states and territories have all gained tourism expenditure market share from NSW, Victoria and the ACT. He also noted that interstate tourism is returning, with Adelaide Airport’s Q4 FY22 domestic traffic reaching 92.5 per cent of pre-covid levels this year.
“AEDA also plans to deliver a new intrastate tourism campaign this year, as well as partner with the South Australian Tourism Commission,” Hill continued.
“One of the most exciting projects is the creation of a new state-of-the-art Experience Adelaide Centre that AEDA is currently assessing EOIs in order to partner with a range of technology providers.”
Moving ahead, the AEDA has two events planned in October: WellFest Adelaide and the ADL Fashion Week. These are expected to draw thousands of people into the city, according to Hill, and city businesses are encouraged to take part in both.
To drive encouragement for prospective businesses, AEDA’s Business and Investment team provides free business advice for local traders.
As a final comment, Hill spoke on the ongoing initiatives around hybrid working weeks, where employees have the option to work from home.
In a September 2021 report by the Productivity Commission, an initiative by the federal government, it found that working from home is expected to shift some economic activity into the suburbs.
This has prompted some to call for the return of workers to the city to save the CBDs.
However, Hill noted that AEDA’s recent independent research from McGregor Tan indicates how working from home “is likely to be ongoing.”
“So our focus is to make the city attractive and vibrant, and extract as much yield and foot traffic as possible.”