Dimmeys in return as CBD confidence rises

JOHN VAN KLAVEREN
Budget retailer Dimmeys will return to central Geelong when it opens a new store in Little Malop Steet, the company has announced.
And despite new research giving the city’s heart a tick of good health, Mayor John Mitchell has committed council to pressing ahead with its Vision Two strategy to revitalise the CBD.
Dimmeys’ Ken Hampson said the discount department store would reopen in early June in premises currently occupied by Reject Shop.
“We never wanted to leave Geelong but the rent being asked for our former building was ridiculous,” he said.
“Our figures went down 40 per cent with the opening of the Westfield extension. We couldn’t make money there, so we needed to find somewhere that fit our business model.”
Mr Hampson, a Geelong resident, said the move was a “vote of confidence” in the CBD.
A property holding company associated with Dimmeys had purchased the Little Malop Street building, he said.
“There’s more chance of people coming to our store in the mall. Our demographics are different so our business is suited to that spot.”
Mr Hampson said the new store would have 1500 square metres of retail space.
Dimmeys has 46 stores around Australia, including new outlets at Nerang, Launceston, Parramatta and Yepoon.
The Reject Shop announced on Wednesday that it would relocate to Moorabool Street’s former Snowgum premises on May 26.
The Independent last week revealed that Richard Jenkins, of property valuer Opteon Victoria, had conducted analysis showing Geelong’s CBD had an acceptable retail space vacancy rate. He suggested subdividing six large vacant spaces to cut the rate to 4.5 per cent.
Claims the CBD was in “crisis” reflected perception rather than reality, Mr Jenkins said.
Cr Mitchell believed that Mr Jenkins’ research “strengthened the case” for council’s $150,000 Vision Two study.
“By no means is the CBD perfect but it is in transition. It was good to have someone else reinforce what we’ve been aware of for some time,” Cr Mitchell said.
Further work on planning and stimulating growth and movement would only help enhance the CBD, he said.
“There’s no doubt the city looks better with shops occupied but (the owner of) the former KFC building on the corner of Moorabool and Ryrie streets is already looking at subdividing the space. We understand there needs to be a rethink on retail space and use from planning perspective.”