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The Rotorua Central Business District has undergone considerable improvement in recent years, including a NZ$25 million Council-driven beautification project.
The local retail industry has a philosophy of cooperating to compete which is facilitated by an industry association called Ready to Retail. A substantial amount of previously vacant land on the southern edge of the CDB has been recently developed into-a modern hypermarket retail area, resulting in significant changes to pre-existing retail patterns. There has been a movement of existing tenancies from secondary locations into prime positions, and the formation of a cluster of cafes and restaurants in the northern lakeside part of the CBD. The average pedestrian flow count is typically around 6,000 per day.
There are more than I 00,000 square metres of retail space in the 500 stores comprising the main CBD area. Information on the services and goods provided is available from the Business Development Unit of Rotorua District Council and Ready to Retail. As at December 2000, Rotorua had 70 vacant retail stores available for immediate new start-ups, mostly of a high standard and location.
Utilities such as electricity natural gas, water and waste disposal are all competitively priced. New businesses have extensive choice in terms of power suppliers, and can negotiate favorable terms. Commercial office space in the central city ranges from around NZ$150 to NZ$200 per square metre depending on quality and size of space. Labour costs are very competitive, ranging from around NZ$8.00 to NZ$10.00 per hour for unskilled workers to NZ$45.00 per hour for executive management staff.
"N-Zone is a design company specialising in apparel for mountain bikers. We have been trading four years and we moved here to launch our company because of the profile Rotorua enjoys among mountain bikers as a place they aspire to visit. Our strategy has been to build our brand reputation by opening a bike rider's boutique and website to research our market's reaction to our ideas first hand, making small runs of our designs in the same, location as our store and design office. This phase is complete,and we are now about to launch a wholesale range through selected retailers in other parts of New Zealand. We are committed to manufacturing in New Zealand, and to becoming an exporter within 12 months. We have already sold garments directly to customers in the UK, Europe and the USA via the Internet and to virtually every part of the globe."
QUOTE FROM: Gary Sullivan, Owner-Manager, N-Zone Design Ltd
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