Forced out: Hynes Newsagency to merge
RENT hikes are being blamed for the eviction of one of Rose City Shoppingworld's most loyal retailers.
Hynes Newsagency has been forced to shut up shop after 18 years of serving customers in the centre owned by the McConaghy Group. Hynes store manager David Hynes said the business will merge with Hynes Newsagency in Palmerin St on January 1 but there may be some job losses.
"I was evicted because I wasn't prepared to pay what Rose City Shoppingworld wanted in rent,” Mr Hynes said.
"As part of the ($40million McConaghy) expansion, a new tenancy agreement was required for a couple of years and we couldn't afford what was being asked.”
After the negotiation process concluded, the newsagency opted out and agreed to stop trading in the centre at the end of this year.
Mr Hynes said it was a more viable option to move to the family's Palmerin St store.
His brothers Paul and Peter took over the original store in the 1980s from their father, Maurie, who bought the business in 1976. David opened the Rose City Shoppingworld business in 1998.
"I weighed up the cost of a renewed lease at Rose City Shoppingworld, plus being required to pump capital into the shop and a new shop front and the detrimental affect that the centre's reconstruction is already having on our traffic here, ” Mr Hynes said.
He declined to disclose a dollar figure of the rent increase being asked by the McConaghy Group but said the store's 18-year tenancy was not taken into account.
"It's all about the centre making money and not about the loyalty of the retailers.”
Staff at the Rose City Shoppingworld store were made aware of possible job losses when Rose City Shoppingworld's redevelopment was announced, Mr Hynes said.
"We want to absorb as many of our staff into the new premises as possible but we won't know (if there will be job losses) until after we make the move.”
Mr Hynes said the Palmerin St store's fitout may change in the new year to boost services for customers.
"We will be focusing on making it as easy as possible for our customers to get great service from one location,” Mr Hynes said.
Rose City Shoppingworld centre manager Jason Gard yesterday said he was unable to comment on changes to the rents at the precinct.
Completion of the Rose City redevelopment is expected in mid-2017. Key features of the new development include a bigger food court, a new and extended Woolworths supermarket, a new full-sized Coles supermarket and more specialty stores.