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News Release

Auckland, New Zealand

Day care centres boost retail traffic

Growing population, improving consumer confidence and stronger retail sales have boosted future expectations in the retail sector.


 

 

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As the financial performance of retailers becomes more viable, the recovery continues to take hold. The improvement of economic conditions combined with subsidiary drivers such as people working more hours, has resulted in an increased need for day care.

JLL’s retail team have been working with a number of developments across Auckland, securing anchor tenants which feed the demand for retail offerings. Chris Beasleigh, JLL’s National Director of Retail Sales and Leasing has noticed a wider trend, day-care centres are occurring in a number of retail developments as anchor tenants.

According to Statistics New Zealand, between the years of 2006 and 2013, Auckland’s population of children within the age of 0-4 has risen 8.8%. A key driver of this rise in day care could not only be due to the fact that the population of young children has risen, but also the new government supplemented scheme employed by the Ministry of Education, 20 hours early childhood education (ECE).

From 1 July 2010 all three, four and five-year old children are able to go to early childhood education (ECE) services for six hours a day, 20 hours a week at no charge. This has created an economic incentive for women to go back to work and put their children in day care, thus the demand for day care centres. 

Following this rise in day care centres, Beasleigh has successfully secured a number of day care centres as anchor tenants which is driving traffic by attracting an increased amount of consumers to retail offerings in the vicinity.

Beasleigh has been working with Discoveries Educare over the past year whilst they continue in search to expand their locations to a number of retail developments in Auckland and keep up to date with their growing success.

Discoveries Educare began in 2009 with a centre at Manurewa, and then went on to establish themselves in Mangere, Newmarket, Papatoetoe and Sunrise Mangere. JLL has since completed six deals with the rapidly developing day care service, in a variety of expanding residential areas across Auckland.

Discoveries Educare can draw up to 135 children to their centres per day, hence why day-care centres are increasingly becoming anchor tenants. Over the past year the Retail team at JLL have found space for Discoveries Educare in a variety of developments including; Target Road, Wairau Valley, Highland Park Centre, Pakuranga, Takanini Village,  Oteha Valley Road, Albany and locations in Anzac Avenue Browns Bay and Great North Road Kelston, as anchors of the new retail developments.

Beasleigh advises, “To find these target locations for Discoveries Educare, I searched for high profile, residential areas, expanding population nodes and areas that were close to schools. Adding a day care centre to a retail development already containing a gym, café or food outlet provides a good mix of tenants that work well together and create synergy.”

This increase in the young population will in fact add to the need for day care centres and seemingly drive foot traffic to other retailers in the developments.