Martin Ginnane from Ginnane & Associates on the game-changing economic opportunities ahead for regional towns from smart retail renewal, investment attraction and effective cooperation between local stakeholders

@MartinGinnane from  @ginnaneassociates is an expert advisor on #retaildevelopment #placemaking and #brandactivation. He's worked with international cities and regional towns on major #investmentattraction #regionalrenewal and #retailrenewal projects. 

He was the #vicgov first retail industry specialist, is a member of the @victoriangovernment #SmallBusinessMinisterialCouncil and had senior roles at the #vicgov #DepartmentofBusinessandInnovation and was #DeputyManagingDirector of #DowntownDutyFree. 

The following quote from his website sums up his philosophy and approach to the work he does.

"Global Cities of significance all have one thing in common, a strong and vibrant, culturally diverse heart that encourages people to live, experience, participate and claim ownership of their location. At the heart of these cities, is a unique offering that makes them stand out from the sameness that is making so many cities bland and boring. Retail strength, placemaking and events are the economic backbone of all successful global cities and large residential developments." 

He's currently working on a major retail renewal project with the @cityofwarrnambool and in the discussion we cover;

• bringing his experience with major city #investmentattraction to regional towns
• the exciting opportunities ahead for #regionaltowns
• avoiding the 'sameness' that is making so many cities bland and boring, the #oversuccess of big cities
• how #Covid19 fast-tracked problems in the retail sector
• where and how #prestige  has lost out to #masstige  and why "luxury is about where you found it rather where you bought it"
• #liebigstreet #warrnambool 
• the critical role of #localgovernment   #restorationgrants  #landlords #localcouncil
• the component pieces in a vibrant and vital #retailstrip
• #treechange and the influence of these younger people when they return to the towns they were born in
• #foodandbeverage #whiskybars #goodbottleshop  #ginbars #goodpizza
• building #sustainable #businessmodel from services and products that appeals to #locals and #visitors 
• #smallbusiness an #employmentgenerator in #regionaltowns

www.kerrcapital.com.au

A full transcript of the interview is below. 

Michael Kerr: Hi, it's Michael Kerr here presenting Small Business Banter.

A healthy micro and small business sector means a successful economy and a more vibrant society. Small Business Banter is about helping regional business owners better prepare for current challenges, but also for the next stage of business success. I'm Michael Kerr, founder of Kerr Capital, advisors to business owners.

Each week I interview a fellow small business owner or an expert and they share their stories, their life experiences, the wins and the losses, and their best advice to help you, the listener, get the most you can from your own business. Small Business Banter is brought to you from the studios of 104.7 Gippsland FM and is heard across Australia on the Community Radio Network. Thanks also to Kerr Capital supporters of the show.

Okay, welcome to another edition of Small Business Banter. Really pleased to have in today with us, Martin Ginnane, from Ginnane & Associates. Martin will tell you a lot more about what he's done in a few minutes, but I just wanted to cover off some of the highlights. He's principally responsible for advising on retail development, place making and brand activation. He's done a lot of work in both big cities and regional areas. He's a member of the Small Business Ministerial Council, and he's really a Retail Industry Specialist here in Victoria. And prior to that, he was the Deputy Managing Director of Downtown Duty-Free. Firstly, welcome in today, Martin. 

Martin Ginnane: Thank you very much. It's a pleasure to be here. 

Michael: And for today's discussion with Martin, we're going to be talking about regional renewal, making the most of retail, attracting investment, and lessons learned from some of the major initiatives. Martin was involved in Melbourne and now has been working with regional Victoria locations in Camperdown Warrnambool and Ballarat. So we're looking forward to that. But Martin, if you could, just give us a couple of minutes in your background so the listeners are in sync with where you come from and what you do. Over to you.

Martin: Thank you, Michael. I'm fortunate enough to have had a very varied background, but all around the retail sector. Born in Melbourne many, many years ago. I was raised in Melbourne. I spent 20 years in Sydney where I started my retail career with companies such as Angus and Coote, The Jeweler's and Diamond Traders, which was part of then of the Hooker Corporation owned by the illustrious George Herscu. And then was poached to join Downtown Duty Free in the days when Duty Free was a big business. We had Melbourne Airport, Brisbane Airport, Sydney Airport, and about 15 off-airport stores. So, at about 6,000 staff in those days. I joined there as Deputy Managing Director. And after six years, we were taken over by Swiss Air Company. I was retrenched and thought, well, I'll come back home to Melbourne. 

I came back to Melbourne and was appointed as the Victorian government's first Retail Industry Specialist at a time when Melbourne in particular had vacancy rates as high as 17 to 18%. I was appointed under the Kennett government for 12 months and ended up staying there for 17 years. And during that period, I work mainly on investment attraction for the CBD, an original advisor on the Melbourne Fashion Festival for the state government up until I departed 10 years ago to establish my own business, Ginnane & Associates.

Michael: Excellent. So, from that background, you know a lot about foot traffic. So I'm looking forward to exploring the work that you've been doing. I mean, drawing on that rich experience, but also relating it to what you've been doing in some of the regional parts of Victoria. So, I just wanted to start off with a quote from your website, "Global Cities of significance all have one thing in common, a strong and vibrant, culturally diverse heart that encourages people to live, experience, participate and claim ownership of their location. At the heart of these cities, is a unique offering that makes them stand out from the sameness that is making so many cities bland and boring. Retail strength, placemaking and events are the economic backbone of all successful global cities and large residential developments." 

That's straight from your website. It was very powerful. I'm going to ask you about how regional towns and regional cities in Australia can take something from that. I'm assuming it applies across towns as well as cities.

Martin: Most definitely, Michael, it does. It's a big statement, and it's a strong statement and it's one that I'm thinking actually of using on every single presentation that I do to whether be commercial or private government, particularly in this day and age. It came from the fact that a lot of things were happening in the retail sector prior to COVID. We can all say that COVID caused it, but there are massive changes happening prior. One of the things that was driving this belief that I have in that statement is that sameness was happening all around the world. So you could walk down in Collins Street, you could walk down all the major cities, and they were taken over now by the mega giants, the Louis Vuitton's, the Gucci's, the Prada's, who roll out their international branding twice a year.

So, you can walk down these streets and look in the windows and you'll see the same thing. The only time that you'll notice if you'll look up and you'll see St Paul or St Patrick's Cathedral or Notre Dame and you'll think I'm not in Melbourne, I'm in Paris. So seriously, that's how bad retail was getting.

Michael: They'd taken that McDonald's consistency of product just a little bit too far with their retail.

Martin: Yeah, and I call it masstige rather than prestige. It has got to the point where the big players are having to buy smaller boutique operations now to make themselves unique and so-called exclusive again because of the success and over success of some of those global brands.

Michael: Too much commoditization of a once glorious brand. 

Martin: Exactly. So, one of the things that comes out of this is the desire to experience something that is different and unique. One of my other sayings is, "luxury to me is about someone says where did you find that as opposed to where did you buy it." Because you can buy anything these days. If you've got the money, you can buy something at the top. When within 18 months it'll be at H&M or probably far less than that, or how you can buy the copy of it. But the wonderful discovery, finding something, whether it's a great old book or pre-love tie or whatever the case may be. So, jumping back into your question. This is where retail cities and towns across Australia had the upper hand. It is really, really their opportunity to shine. We can discuss that as we go along. 

Michael: Yeah. Look, I think we ought to jump straight into that. The renewal or the potential renewal of the local shopping strip. I mean, you're doing some work recently, I think, in Ballarat, which got some magnificent real estate and grand streets. But what would you take to those places to make that local shopping strip vital and exciting for the locals? I'm assuming we're not going to have potentially some of those big international luxury brands.

Martin: Nor do you want them. But Michael, what I think is the scenario is that it's going to be driven by two things. You've got to have an appetite by the local government. You've got to have an appetite by the council. For example, I just almost finished four years work with the City of Warrnambool on the redevelopment of Liebig Street. So they had a counselor at the time who had a vision to say to themselves and their constituents, "If we don't do something with this beautiful old big wide street, it is falling into such disrepair that we are losing out to the new shopping centers that are opening and almost circling like a western movie with the wagon train circling the town." 

Michael: Right. And choking it off.

Martin: And choking it off. Now, this scenario with success for any regional town or major strip is to make sure that they are no longer just selling stuff. I use the difference between a product and an NSA stuff. This is not being derogatory to any of the brands that are in the shopping centers around regional cities. And those shopping centers do offer convenience. If it's pouring with rain, a young mother can drive in or a young father can drive in. Unload the baby. It's dry. They are not going to get wet. But although found in those shopping centers is stuff. They'll find inexpensive football socks for the kids which they need because they grow so quickly. They'll find a dress. They might find a cheap, inexpensive set of cabinets or something for their bedroom. That's fine.

When they come into Warrnambool or when they come into Ballarat or when they come in to Camperdown, it's about wanting to come into town because that is where they are going to experience and find things that are different and unique. They are going to be able to engage with the community in a much nicer environment, wider footpaths, planting, better awnings, easier parking. All those things make for an environment that will make regional cities and towns continue to thrive.

Michael: Right. So Warrnambool, Ballarat, other regional towns around Australia, the history is there. But you talked about having local councilors being a big part of the equation they need to support. What about landlords? I mean, some of these buildings are grand and make for beautiful retail or food or whatever. But the older they get, the harder they are to maintain, or the costly they are to maintain.

Martin: You can see examples not just in regional towns. You can see examples on Chapel Street under the Council of Stonnington on Glenferrie Road in many, many areas. One of the advantages that live shopping centers have is that every so many years, your store must be refurbished. You must meet the guidelines of the shopping center and so forth. So while that creates a great Disneyland feel and a very, very nice, safe environment and a pleasurable environment where we're almost craving. Well, we are craving something that's a bit more earthy and a bit more real.

Warrnambool, and I know the City of Ballarat as well. Warrnambool successfully offered restoration grants for property owners during the redevelopment program. The City of Warrnambool got that funding from federal state and from their own coffers. So three lots of funding. I believe the City of Ballarat has done the same for the renewal of the mall. I believe both cities are offering grants and financial assistance to restore and renew these heritage buildings.

Michael: Right. So assuming the landlord takes advantage, then it does really open up the opportunities for smaller retail operators, whether they be food or whether they are quirky retail, to start something.

Martin: Michael, the exciting thing is when you walk down the streets of these areas now is that you are seeing young people. You are seeing in Warrnambool there's, I think, three whiskey bars. There's a gin bar. These are all being run by young people who were born and raised in Warrnambool. Evidently, you do need to either be born there or marry somebody. And if you marry somebody, you need to be married for 20 years before you are classed as a true business owner.

Michael: Before you get your stamp. Yeah.

Martin: Even though I've been there a lot, I still don't think I'm a local. But they are coming back to town. They are seeing opportunities to come back to their town and make a living for themselves and their families. There's new housing estates being built in big numbers around these large and medium-sized regional cities. And these people come in many ways, quite often from urban environments, and they still want to live the same way. They want to be able to go out to a whiskey bar. Well, they want to be out to buy some nice cheese and some nice bread. 

Michael: Yeah. And in today's edition of Small Business Banter, I'm talking with Martin Ginnane from Ginnane & Associates. Yeah, that's a trend that we talk about all the time on Small Business Banter. The movement back from CBD areas, whether it be Sydney or other states and capitals, and this reinvigoration of towns and those people bringing with them some of their experiences. There's no question me, Melbourne and Sydney and Brisbane and Adelaide have some incredible innovation in food, but it seems to be transplanting now in these regional locations. Is that a result of people just having enough of the city being too expensive to run businesses? What are your thoughts on why this is happening?

Martin: I think, Michael, you are spot on it. But it's a combination of all those things. It's a combination of perhaps the over success that large cities have had in terms of urbanization, particularly Melbourne, in the last eight to ten years. Massive increase of student population, which we see the massive contribution they've given to the economy, particularly as I haven't been here for the last 12 months. It's a combination of all those things. People want to not necessarily escape, they just want to experience something, whether they are moving permanently or whether they are visiting. The other thing that's happening, of course, is that the ability. I know someone in particular who's going to be working. He stays in Ballarat but is working from Melbourne firm, and then you need to go to Melbourne that twice a week. So all that flexibility is something five years ago we didn't have.

Michael: Yeah, I think you made a comment earlier about not what you bought, where you bought it or you found it. You know, I live down the Bellarine Peninsula. My office is in Queenscliff. Well, it's fascinating every day to walk through that street and what it might be and see the gin bars and the distilleries. Not so much in Queenscliff, but certainly in other places, it's booming. It's a combination of that vigor and energy. If you were to take a view of what the next town that wants to reinvigorate their retail strip, the historical retail strip, what are the key that we've talked about to support to restore buildings? I guess we need landlords to come onboard and buy into the vision, and the small business operators. What else or who else is needed to really kick start getting these places? Because people are traveling more and more through regional Australia because you can't go elsewhere. So the opportunities would seem to be there if you've got an interesting offer.

Martin: The LGA, the Local Government Authority, has to have the passion. And the counselors, the CEO, have to have a dream of what that town could be. In many eyes, retail doesn't play a part. Retail services and hospitality don't really play a part in local government plans. They may have a four-year strategy for economic development, but retail and services don't normally play a big part in it. So, in order for what you've just said, the other players, the landlords, the small business operators, the potential investors. You have to know that you are moving into an area or considering to move into an area where a council is hungry for your business and is keen to get it.

I'm just about to deliver an investment attraction to the opportunity in Warrnambool where we are inviting some of the big commercial real estate agents down to have a look at what the area has to offer. How it's grown, how it's changed. Not necessarily to get any big players down but for them to be able to put Warrnambool in their head for property investors, but also for businesses that might be looking to expand. 

Michael: So you're saying that retail and retail services aren't really a driver for the LGAs. Is that it?

Martin: No. I'm not saying that with all of them, but with a lot of them it's very much... When I started originally with the state capital which was over 20 years ago. I remember having a director said to me, "But Martin, why are we even playing in this space? One shop closes, another shop opens." It's not as simple as that. It's a scenario where council needs to lead the way in a vision of what they want the city to be. And when I say retailer, not necessarily just talking about selling more stuff. A good regional town, a good regional city, should attract people. It should attract its own people. It should attract visitors. But it should attract them for a multitude of reasons. Retail, food, beverage is one of the biggest drivers in today's market.

Michael: Absolutely. It is. And it's certainly an area for further discussion. But if you look around, I spend a lot of time in traveling in regional Victoria. I go a long way for a good bakery, a good beer, a good pizza. So, what are the components for a good contemporary retail strip in any given town? What must you have to get people to choose that town over another town? 

Martin: You have to have two things. You have to have a business model that appeals to the locals, and you also have to have a business model that will appeal to the visitors. Now, I spent a lot of time as a young boy, which was a long time ago in Daylesford and Hepburn Springs, and I remember how it was and I see how it is now. However, for all the success, Daylesford in particular is still very much a weakened economy. Because driven by everything that appeals to the tourist. You must maintain an offering that appeals to your local residents as well. So you need, as you just said, a good pizza joint which Warrnambool has about two and Ballarat has about six. You need a really good bottle shop. You need a couple of good pubs. You need a pub that has good live music. You need a good delicatessen. You know, there's one in Warrnambool called Darriwill Farm. It was a retail released by a woman by the name of Lisa Pitkethly. It's the most amazing business. It's got absolutely everything.

Michael: I also tried some stores in the city. I didn't know that.

Martin: They had one in [inaudible] and they had one in Albert Park, I think, but I think that both are gone. Lisa's got bought out her own business now. But it's that sort of business where you just go there. It's almost like a small Ikea for food and delicatessen. You just go in. You pick up a basket and you buy. The other thing is, do these towns need this as they get to and need to have the services as well? So there's a good banking infrastructure. There's two insurance brokers. There're things like that that help the community.

Michael: Yeah. And those communities would think on across the board of growing. So you've got a bigger and more permanent base to build a business around. This idea of investment attraction, it's still a viable model for local government to think about, local councils. It's not just for big cities. 

Martin: It's essential because big cities have been so badly hurt. The big cities that have relied particularly on government employees, in a big, big way, and international students. I think of Victoria's wonderful campaign they had many years ago with the jigsaw puzzle. And the course CBD of Melbourne, which I'm actively involved in working on their precincts, review work at the moment. But the pieces of a jigsaw puzzle fall on that. So, the students are falling off the table. The tourists are falling off the table. The public servants in town.

Michael: I get it. In that investment attraction, I just want to get your thoughts quickly. There's quite a difference between attracting big employers versus attracting new business operators. I'm very passionate about seeing more small business owners. So it's a balance between getting a bigger organization that can employ 20, 50, or 100 people. But also, I think, sometimes the opportunities to attract new and innovative small business operators. We had Carly Flecknoe from the Made the Grampians Way. She's a classic tree changer. This is maybe 30 episodes back. But that's the kind of energy and vigor that I think we need as well as obviously attracting... Not everyone wants to be a business owner, so we need to have a balance. But I sometimes wonder whether small business might get underappreciated as an employment generator. 

Martin: They certainly never get underappreciated if I'm involved in anything. I've been in small business in different ways on and off for so many years and I know the difficulties of it, but I am so passionate about believing that this is their time to rise. This is really, really their time to rise. They've got access to so much now in terms of they don't need to pay for big advertising. They've got Instagram. They've got everything at their fingertips to grow their business. 

Michael: Yeah. They got something that's interesting, quirky. They can get people to the destination.

Martin: Exactly.

Michael: They can build it and they will come. Maybe that's going to come true for some. 

Martin: Well, that's why we're doing the investment attraction work. It's certainly not to when under no idea that we will attract big brands, but it's about putting the city of Warrnambool and other cities in investors' minds. 

Michael: Yeah, and really building on the natural advantage, the heritage, the proximity to food, beverage, produce. 

Martin: And a wonderful life.

Michael: And a wonderful life. Yeah. Hey Martin, that is, unfortunately, time up for us today. But that was a really great chat. Thank you so much for sharing your experiences and your energy and passion for that reinvigoration and renewal. Keep up the great work and perhaps we will chat another time, but go well.

Martin: Thank you, Michael.

Michael: Thanks, Martin Ginnane.

So that is all for today's episode of Small Business Banter. I continue to be inspired, bringing you small business experts and other small business owners and hearing their stories. Do you want to listen to any past episodes? Jump onto your podcast platform of choice and search Small Business Banter. There, you will find a diverse and fascinating collection of small business owners and experts openly discussing and sharing their experiences. For any of the links, resources, or information we've talked about on the show today or to contact me, please head over to smallbusinessbanter.com, or you can find us on Facebook and Instagram. It would be great to have you tune in the same time next week for another episode of Small Business Banter.

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