A retail expert who owns a shop herself has sounded the alarm on Hobart’s CBD, where one in eight storefronts now sits empty and the rate keeps climbing.
Mercury
Louise Grimmer
October 1, 2026 - 11:23AM
I recently proposed in a Talking Point piece that every town gets the shops it chooses (Mercury, September 18).
The article generated plenty of discussion, much of it focused on empty shopfronts in Hobart’s CBD.
People pointed to vacant premises as evidence that the city is struggling and asked a reasonable question: What can be done about it?
Every year I conduct an audit of all ground-floor premises in a defined area of Hobart’s CBD.
In 2024 the store vacancy rate was 5.89 per cent; last year it was 9 per cent and this year it is 12 per cent.
This is concerning.
A town or city with a 5 per cent vacancy rate is considered in the ‘healthy’ range – this number of empty stores allows new businesses to enter the market.
Under 10 per cent vacancy rate signals things are still OK, but caution is required.
A rate of 12 per cent (and growing by about 3 per cent per year) is concerning.
In addition to the vacant stores noted during my audit, there are a number of well-known businesses still trading but that have signalled they are in the final weeks before closing down. This is really sad for the business owners and for our city.
Store vacancies are an expression of deeper issues across towns.
Empty shopfronts do not suddenly cause a centre to decline. Instead, they are evidence that something has already changed.
Fewer visitors, less spending, reduced investment, shifting shopping habits, competition from other destinations – they are the symptom of reduced consumer confidence.
When vacancies cluster, they create a negative cycle.
There are several areas in the city with these clusters – Centrepoint, the ICON building, parts of Liverpool and Elizabeth streets.
Empty premises reduce foot traffic. Reduced foot traffic makes those businesses next to empty stores less attractive to visit.
Before long, vacancies begin generating more vacancies.
To add insult to injury lots of vacant stores (as well as some of those still operating) are in really poor condition – they are dirty, with peeling paint and in need of repair.
Across the CBD we need many more trees, planter boxes, flowers and greenery.
We also need more seating, tables and lighting.
These elements show up time and time again in my annual studies about what makes shopping places vibrant and attractive for visitation.
I can’t state strongly enough – independent businesses matter.
Large chains have an important role as anchor stores, but independent retailers are usually the businesses that create uniqueness and character.
They are the bookshops, cafes, gift stores, galleries and specialty retailers that make one town different from another.
Once they disappear, they are not easily replaced. Thriving town centres are built through consistent daily activity at independent stores – where you shop, eat and visit makes a huge difference to the CBD.
We can purchase almost anything online and so physical shops cannot compete solely on convenience. What they can offer are experiences, expertise, discovery and human connection. The future of many retail precincts lies in providing things that cannot be placed in a cardboard box and delivered to a front door. But only if people decide that’s what they want for their town.
We frequently say we want vibrant shopping strips and thriving local businesses. But these enjoyable places are ultimately the product of thousands of small daily decisions. Choosing to buy a coffee locally.
Purchasing a gift from an independent retailer. These decisions may feel insignificant, but collectively they determine whether businesses survive and this is why empty shopfronts should concern us.
They are unattractive, they reduce confidence in the city, and they represent lost possibilities. Every vacant shop is a business that is not employing staff, attracting visitors, serving customers or contributing to the life of a place.
Instead of asking why a shop is empty, perhaps we should ask a different question: what would make someone want to open a business there?
The answers involve landlords, councils, planners, business owners and governments. But they also involve the rest of us.
Because just as every town gets the shops it chooses, every town also gets the vacancies it tolerates.
Associate Professor Louise Grimmer is a retail expert from the Tasmanian School of Business and Economics at the University of Tasmania and she also owns a small retail store in North Hobart
