By Benjamin Millar
Skyrocketing rents and the impact of a wider economic slowdown are sending Yarraville businesses to the wall, according to struggling traders.
Landlords imposing large hikes in rent are behind the recent departure of a number of long-standing businesses, leaving empty shopfronts along the once-thriving Anderson Street.
The sudden closure of Bakers Delight comes hot on the heels of the loss of a discount shop, a florist, a Japanese take-away and a vintage clothing shop, along with the Commonwealth Bank.
Yarraville Traders Association’s Carla Smith said one of the recently departed businesses was forced out by a landlord demanding a $500 weekly increase in rent as part of a new lease.
“When property values do go up many of the owners of business properties try and take advantage of the increase,” she said.
“This is exactly what’s going on in Yarraville.”
Ms Smith said the loss of the bank and key offerings such as a baker would have flow-on effects as fewer people would come into the area.
The situation has been compounded by a reduction in discretionary spending by shoppers on items other than food.
“I feel we have been in recession for the last couple of years,” Ms Smith said.
“The retailers here are trying to do their best and hoping somebody comes by, but running a small business is really hard.”
Ms Smith warned Yarraville’s unique mix of stores was at risk of being replaced by larger chain-style businesses.
She backed calls for steps to help retailers such as an “empty shop tax”, discussed earlier this year by Small Business Ombudsman Kate Carnell.
The vacancy tax, which would need to be introduced by local government as part of a commercial property rating system, would encourage commercial property owners to lower rents rather than keep stores empty.
Ms Smith said the recent spate of closures has created a gloomy atmosphere among traders and customers.
But she welcomed signs of new businesses emerging in the area, including Torres Strait Islander-owned and run cafe Mabu Mabu.
