Melbourne’s Lord Mayor Sally Capp remains optimistic about the future of CBD retail and hospitality despite the impact of repeated lockdowns on office occupancy rates and foot traffic. Speaking with Australian Retailers Association CEO Paul Zahra for the Retail Therapy podcast, Capp said the city sees a ‘bounce back’ phenomenon when restrictions ease. Here are some exclusive extracts from Zahra’s interview with Capp, which will be available on Friday. On confidence “I
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“I think the biggest issue has been the lack of confidence that the pandemic has created, and that’s for business owners and customers. From our perspective, it is about looking forward and we really feel that we have to get everybody behind the vaccine and the vaccination program, because that ultimately is going to be the only way that we have confidence about the future,” Capp said.
On the bounce back
“In Melbourne, we know what it takes. We know what to do, and we respond well to the restrictions that are put in place. It’s the bounce back. Now we’re in bounce back number four. It is about bringing back the buzz.
“The business community here has shown how ingenious and resilient they are. Our locals have shown how proud of the city they are and how they come back relatively quickly. And our big focus is on getting our worker population back. And as we continue to see restrictions ease, the public responds in a very positive way.”
On empty office buildings
“Public transport remains a big barrier. Pre-Covid, about 75 per cent of our daily population came in by public transport, but usage at the moment is still [around] 40 per cent. Office workers are at around 45 per cent.
“We’re really looking at the momentum to bring people back…because that sense of workers, retail, hospitality, culture and entertainment, we know they’re inextricably intertwined. That’s what’s a real differentiator about the city as a destination for retail, that symbiotic relationship with workers.
“Things like FOMO Fridays [and] Melbourne Money, which is a 20 per cent discount on dining…we can see the uplift in our pedestrian foot traffic directly related to programs such as this. At the moment, it is really driving more in the weekend and evening foot traffic. That’s very heartening from our perspective and for our retailers, but it is important that we continue to look at the worker traffic.”
On the future of Melbourne
“We know that there is a lot of hardship as a result of the pandemic, but we’re also trying to create that sense of excitement. In fact, our city vision for the next four years is ‘city of possibility’. You rarely get a chance to do a reset, so let’s make the most of it, and let’s incorporate more of our aspirations for the city into what that future looks like.
“For us, that means a really big focus on creativity and every form of that, from digital innovations and biomed research through to performers and artists and cultural festivals. It also means embracing technology for new ways of working. But it’s still pivotal that we understand that we’re human beings. We love to get together with other human beings. It’s good for mental and emotional health, and some of the early studies are showing that while an individual’s productivity can be maintained in remote working environments, team creativity and organisational growth happens when people come together. And it’s the serendipity of what happens in cities — that collision of talent and opportunity and investment — that cannot be replicated at scale in other places.
“So we feel confident about the future of the city. The studies [that say recovery will take] 10 years, actually seem way too long, given the evidence that we’re seeing in terms of what’s happening with employment rates, what’s happening with investment. And whilst there’s a period of adjustment, we’re certainly seeing that bounceback happen at fairly healthy rates.
“We are acknowledging it’s a time of transition, but we are encouraging a sense of excitement and hope about what the future holds.”