Text-Only Version Go to article page
2024 was tough, but "there's more of an energy in the city" now the new year has dawned, owners say.
Unity Books owner Adrian Hardingham says he is cautiously optimistic about the year ahead. Photo: RNZ / Mary Argue
After a "gruelling year" for many businesses in the capital, owners who have survived till 2025 are hopeful the worst is behind them.
A common theme among Wellington business owners spoken to by RNZ was that 2024 was tough - with very few exceptions.
Many people were unaware of just how tough, Business Central chief executive Simon Arcus said.
"It was a gruelling year. It was a recession that was very deep and had comparisons to some of the big recessions of the past."
He said job cuts, businesses closing, and a general feeling of malaise all contributed to a difficult 12 months.
The feeling of struggle was backed by the data, with cuts to the public sector and a crackdown on government-hired contractors contributing to Wellingtonians tightening their belts, Infometrics principal economist Brad Olsen said.
Overall, spending had been volatile, with people hunting for bargains, he said.
While spending in December was down year-on-year around the country, the decline was greater in Wellington - a 2 percent drop compared to the national decline of 0.7 percent.
However, Olsen said the idea of all doom and gloom in the capital had been blown out of proportion.
"Calls made over Wellington's demise are overstated. It has been tough, but it's certainly not at economic collapse."
An increase in spending month-on-month in the latter part of 2024 had economists forecasting a brighter future to arrive in mid-2025, Olsen said, helped by lower mortgage rates.
For those on the business frontline, that future could not come fast enough.
Mystic Kitchen on the corner of Jessie and Tory streets in Wellington. Photo: RNZ / Mary Argue
Rowan McIntyre, the owner of Mystic Kitchen, said running two cafes - one in the CBD, one in the suburbs - helped cushion the economic ups and downs. However, it was still a grind with ever-shifting goal posts and price increases from suppliers and landlords.
Compared to the Tory Street cafe, the one in Strathmore was going from strength to strength, McIntyre said. However, he saw a glimmer of hope on the horizon with more people coming back into the city.
"I'm gambling on a bit of positivity ... time will tell."
Next door at Bizarre Bazaar - which sells independent labels and vintage clothes - owner Jess Scott said even though 2024 was "pretty bleak", a loyal customer base kept the store alive.
"We connect with a very specific facet of the community, and [while] they might not have the same amount of spending money, they still shop at every event and share a post."
The 'day-ones' cared about the designers they loved, and so had stayed invested in the business, she said.
The hope was to tread water over the coming year until she could open up a second store in Japan.
Jess Scott is the owner of independent label and vintage clothing store Bizarre Bazaar. Photo: Supplied / Jess Scott
Unity Books owner Adrian Hardingham said although 2024 had started off much slower than he would have liked, it finished on a high with booming Christmas sales.
He was cautiously optimistic for the year ahead, with 2025 already looking promising and some "really good fiction" being published.
Victoria McArthur, the co-owner of Fred's Sandwiches and The Ram on Cuba Street, said her team was working hard to bring the good vibes back to the city.
While 2024 was not an easy year by any means and things were slower at the bar, the sandwich shop remained solid, she said.
"You just put your head down and keep working ... you just focus inwards and push through."
Things were looking up so far this year and there seemed to be a positive shift in the capital's mood, McArthur said.
"There's more of an energy in the city. We only opened last week after a bit of a break, but we hit the ground running. We've been super busy, which has been amazing."
Wellingtonians loved "new things", McArthur said, and she suspected the business was still riding the coat-tails of being relatively fresh.
Lines out the door at new shop Salut Pies in Wellington. Photo: RNZ / Mary Argue
Also new in town was Salut Pies, which had lines out the door on Friday.
Owner Joe Player said he knew he was moving into a tough economic climate when the business shifted from Ōtaki to Wellington in August, but trusted in the pies.
"It's a full meal for cheap and that ticks a lot of boxes for a lot of people."
He said the popularity of the shop had been "insane" and that it was regularly running out stock mid-afternoon.
"I'd say we've tripled in the last month and we're struggling to keep going past 2pm ... and we're meant to be open until 5pm."
The coming year would see him "head down, arse up" focusing on making the best pies he could, he said.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.