Ragtrader recently reported on the aftermath of Queensland’s flood disaster for major fashion retailers. Melinda Oliver reveals the impact on independent players.
When the warning came to evacuate the Brisbane suburb of Fortitude Valley, the small team behind multi-brand boutique Frockshop did not delay. As flood water approached, public relations coordinator Jessy Cameron said they got to work shifting office equipment and stock out of Frockshop’s James Street headquarters, transporting it all to higher ground.
“We did our best to contact customers regarding their recent online orders to let them know of the possible delays to deliveries,” she said. “Most people were understanding and cooperative.”
Cameron describes the following two days as an “anxious wait” during which she expected the store to go under water.
“The fact that it stopped raining saved half of the city. We did not get a drop in our store,” she said.
The boutique, which stocks brands such as Karla Spetic, Ellery, Camilla and Marc and Nicola Finetti, was able to reopen quickly. Cameron said this helped to bring stability and a sense of normality back to the area.
“Retailers being open again plays a big part in morale in the city,” she said.
While Frockshop escaped the immediate flood devastation, Cameron is aware that business may be difficult for the fashion industry across Queensland for some time.
“It goes without saying that it will be a very nervous time for bricks and mortar retailers. The boutiques on James Street are going to have to work hard to reignite trade,” she said.
Not so lucky was fashion designer Masayo Yasuki of Brisbane-based womenswear brand Dogstar. As a nearby creek slowly flooded the design studio to 1.8 metres high, team members, friends and strangers waded through rising water to save what they could. Yasuki said around one third of fabric was lost and she expects it will be many months before the building is usable again.
“The cutting table is gone, sewing machines, patterns and the CAD systems are gone,” she said.
She has alerted the label’s 70 national stockists of possible delays to autumn/winter 2011 deliveries.
“It all depends on how quickly we find a new studio. If we get one next week, we may be able to catch up about two thirds of the range,” she said.
Yasuki guesses the financial impact of the flood on Dogstar will be high, but remains optimistic of recovery.
“We saved a lot more than we thought we could as people were so positive,” she said.
Australian Retailers Association (ARA) executive director Russell Zimmerman said such issues are just the start of challenges now faced by Queensland independents.
“I think we could be looking at a long period of time before we actually see some of these businesses up and running to the level at which they are accustomed to,” he said. “Even if you can get your shop up and running tomorrow, your business is going to be affected because you may be reliant on tourism and tourism is going to be affected for a while.”
Zimmerman said it will probably be the small to medium enterprises that suffer the most as they lack the infrastructure and resources of the big brands. He said they need assistance with problems such as lost documentation of leasing policies, lack of knowledge about insurance coverage and uncertainty about obligations to staff.
“It is very overwhelming, but what I would say is that retailers are very resilient people as a general rule. Some of these retailers have not only had damage to their business, but damage to their homes,” he said.
Zimmerman predicts huge demand for shop fitters, electricians and plumbers, which may lead to delays in store repairs.
“If you want to take it back a step further, even before you get the shop fit in there, we have some roads that are pretty impassable at the moment to my understanding. So how do you get shop fittings in, if they are made off-site?” he said.
Zimmerman said in time, retail may pick up as people come around to replacing clothes and household items lost in the floods.
Brisbane-based luxury retailer operator Amber Long, of the Jean Brown and The Tribune Brisbane stores, escaped immediate damage. However, she is concerned about the long term impact of the disaster, with six days of trade lost and reduced traffic since reopening.
“We expect an initial slowdown and major revenue losses over the coming weeks, however we are determined to maintain a positive outlook and to assist other retailers, clients and friends where possible,” Long said.
Long predicts some stores will close down if they cannot recoup trading losses.
“As a fashion community, it is critical we work together to rebuild,” she said.