Capital city central business districts are confronting challenges in attracting shoppers. With plenty of city office workers not returning to the office, everyday shopper traffic is down. This presents a challenge for retailers.
Rather than dealing with the change and a long-term change, because that would be tough to do, some city administrators are investing to try and lure people in.
Melbourne, for example, has launched council subsidised discount parking and a state government and city council funded dining voucher that provides a rebate of up to $100.
While these types of cash related campaigns are interesting, I don’t think they will solve the issue for the issue is structural. The pandemic has shown many people an alternative they had not previously considered.
More people are working from home permanently, reducing weekday core foot traffic in the city.
meanwhile, retailers in regional Australia continue to do well.