Higher rent, red tape and a lack of foot traffic are just some of the major factors impacting Wagga businesses and forcing some to shut up shop.
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Fitzpatricks Property Report 2018 found retail leasing within the CBD “remains challenging” and vacancies were persistent in the northern and southern blocks.
The report showed the two blocks comprising of Sturt Mall and Marketplace have two and three shop vacancies and that a number of vacancies also remain within the malls.
Owner of the Vietnamese restaurant Roll Viet Harry Ly said his business has struggled with rent increases and other overhead costs, like water rates.
“We’ve been here for four years and we’ve noticed that rent has increased, especially in central,” Mr Ly said.
“On the main street, it’s high and it takes a lot from revenue.
“Every month it’s the first item we pay followed by costs of supplies and labour.”
Mr Ly said his business has also been affected by the drought as many of their customers are farmers.
“One of our main customers are farmers and their families, but they’ve been saving money for their households, which is understandable,” he said.
“We’ve done some improvements to the place, but the drought has affected us.”
As a way of reducing overhead costs, the small business are using Facebook and word-of-mouth as advertising platforms.
“Since we’re small, it’s hard to spend money on advertising,” Mr Ly said.
Former manager of PastaCup, now replaced by Sizzle on Baylis, said high rents and a lack of foot traffic saw his business struggle.
“It’s like a ghost town, there’s no one around spending money and that’s coming back to hurt businesses,” Jason Pearce said.
Rising utility costs are causing further pain to businesses and Mr Pearce said their electricity and gas bills would have increased “by up to 20 per cent”, which is a “massive cut” of the profit margin.
Former Wagga resident Graham Slingsby said the city has “lost its soul” and alfresco dining likely have lost their foot traffic due to “increased crime” and much higher rents compared to Albury’s main street.
“Exorbitant rents and gouging by energy companies is creating an untenable situation for small businesses,” Mr Slingsby said.
“Anti-social behaviour and alcohol induced violence deters many people from frequenting Wagga’s CBD over the weekend periods, particularly in terms of attending cafes and restaurants.
“People are too scare to be out past 10pm.”
Mr Slingsby said Wagga could learn from the border cities, Albury and Wodonga, who host “on-going” major events.
“Events that provide an obvious incentive for people to visit the CBD,” he said.
“However, retailers also have to provide support for these events and remain open when tourists are visiting.”
A search on February 17, found that there were 19 commercial building rental vacancies on Baylis, Fitzmaurice and Forsyth Street.
However, on Albury’s main street, Dean Street, there were only six commercial properties for lease.
Founder of the Small Business Party Angela Vithoulkas visited Wagga last week and said she noticed that almost “every fourth shop” is for lease, despite its main street location.
“I spoke to a variety of trades people, retailers, commercial investors and landlords and they all reflect a common threat of foot traffic,” Ms Vithoulkas said.
“Compliance and red tape is a huge concern; businesses are being buried or drowned in red tape and it’s becoming too complex and many feel like they’re devoting all their business time on paper work.
“It was clear that the expense of red tape was reflecting on the business’ performance.”
Ms Vithoulkas said the amount of time spent on red tape was equivalent to $60,000, which she said could be the difference between a profitable business and not.
“Local government plays a huge role in local economies and there is not enough incentives or communication to help businesses through tough times and what help they can access,” the former business owner said.
“The local government and council here are doing a great job and trying to help where they can, but there’s not enough money for local governments.
“Behind every business, there is a family, a job and lives.”
Ms Vithoulkas has been a small business owner for 30 years and last year after 17 years she had to close her business without a choice due to Sydney's light rail project.
While admitting people are “sick of pollies and elections”, Ms Vithoulkas said Wagga has the opportunity to vote for someone who will support local communities and those behind the local economy.