International tenants show confidence in NZ market
As a country, we have a solid and reliable retail spend, a sound economy and an informed and aware consumer base. For a growing number of global retail brands, New Zealand is a good news story.
Bayleys’ retail leasing team is in regular contact with representatives for global brands seeking to enter – or continue their involvement with – the New Zealand market.
Talking Shop spoke to two American-headquartered businesses to get their take on why New Zealand appeals as a market.
Putting Orangetheory into practice
Orangetheory is a fitness brand operating in 24 countries with around 1,250 studios worldwide – and now it’s in New Zealand.
Its first studio on these shores opened four months ago in a commercial development on Moorhouse Avenue, Christchurch, close to Hagley Park.
Headquartered in Florida, Orangetheory fitness studios champion a one-hour, full-body workout, focused on endurance, strength, and power using proprietary heart rate-based interval training.
Kiwi Fitness Limited, a wholly-owned subsidiary of Apollo Projects Group Limited, holds the rights to Orangetheory Fitness in New Zealand.
Paul Lloyd, area developer for Orangetheory New Zealand, is a Kiwi who chanced upon the Orangetheory phenomenon while visiting Florida.
“My partner is from Florida and when I asked her where we could go to do some workouts, she mentioned this very cool place called Orangetheory,” explains Lloyd.
“After doing the workout we looked into whether they had a presence in New Zealand and found they didn’t.
“We went and had a chat and, one year later, we opened the first Orangetheory studio in New Zealand.”
Canterbury-based, Lloyd was confident the fitness model would work well in that market and Orangetheory agreed.
“As a global brand, Orangetheory uses very sophisticated demographic software to assess all potential locations regardless of the market they are considering.
“While New Zealand is a smaller market in international terms, it has many suitable locations – as assessed through the software programme – with the first requirement being that it meets the demographic profile Orangetheory has established.”
This profile is broadly mid- to higher-income earners, aged 30-55 years.
Lloyd says the premises must have good parking or high foot traffic credentials, have a floor area of 260-300m2, preferably be single-level and located among bulk retail or similar high-profile tenants.
“The Orangetheory client demographic brings proven additional foot fall into retail areas while leveraging off existing successful retail operations,” says Lloyd.
Lloyd says the agreement with Orangetheory is to open 24 studios over seven or so years.
The inner circle of Krispy Kreme
Founded in North Carolina in 1937, Krispy Kreme doughnuts can be found in more than 35 countries and it now has three dedicated outlets in Auckland and a core national wholesale client.
Last February, Krispy Kreme opened its first New Zealand manufacturing/retail operation in purpose-built premises in Manukau.
It has since opened a retail store in the revitalised Chancery Square in Auckland’s CBD and one at Auckland Airport, and Krispy Kreme doughnuts are now sold in more than 40 North Island BP service stations.
Edwin de Guzman, Krispy Kreme’s Australasian development manager, says after getting the brand well-established in Australia, it was the right time to come across the Tasman.
“We were overwhelmed by the public’s response to our Manukau opening just over a year ago, and this gave us confidence in our plan to open two more retail stores in our first year,” says de Guzman.
“Through our market research we knew there was a lot of love for the brand and we have an amazing product, so we didn’t have reservations about launching into the New Zealand market.”
Krispy Kreme was on the hunt for a suitable manufacturing and retail site “for years”, and de Guzman says the Manukau location proved ideal.
“We needed enough space for both the factory and the retail store, drive-thru’ capability, and adequate parking for customers.
“This facility employs over 100 staff across retail, logistics and manufacturing and can create 4,320 doughnuts every hour.”
The Manukau operation is close to motorway on-ramps meaning doughnuts can easily be delivered to the other stores.
“The Chancery Square and Auckland Airport stores reflect our desire to be available in the central business district, and also for travellers who want to spread the joy of Krispy Kreme to their friends and family around the country as they jump on a flight.
“Our wholesale launch into BP has further allowed us to become more widely-available and accessible.
“We’ll also continue to look for opportunities to expand our own Krispy Kreme store network.”
Read more market insights from Workplace
Subscribe to receive the latest commercial news and insights from Bayleys Workplace