Despite the economic success some businesses may experience, others are facing the harsh reality of the small, Grahamstown market. Both CNA and Dunns, who are just metres apart on High Street, have closed permanently leaving residents wondering what's next?
Despite the economic success some businesses may experience, others are facing the harsh reality of the small, Grahamstown market. Both CNA and Dunns, who are just metres apart on High Street, have closed permanently leaving residents wondering what's next?
High Street’s business landscape is currently undergoing several changes. Both Dunns and CNA have closed their doors permanently this year prompting questions surrounding the viability of business ventures along Grahamstown’s busiest street.
Director of the Centre for Economics Journalism in Africa Reg Rumney feels “the CNA and Dunns closure, taken together with the closing of the Telkom branch, may be signs of a worrying trend or they may be unconnected.”
According to Deputy CEO of Edcon Mark Bower “Edcon’s property board took a decision earlier this year to convert the existing CNA store into an Edgars Active store to cater for a higher demand from Grahamstown’s shoppers for branded active merchandise. This decision was based on customer demands.”
The new store is scheduled to open at the end of May. Bower said that Edcon was investigating other options for a new CNA in the area. “Should a suitable premises become available in Grahamstown, we would certainly consider opening a new CNA in the town,” he said.
He also confirmed that the current CNA staff have been placed and will continue to be employed by Edcon. The local branch manager of CNA declined to comment on how many people were employered there. Rumney feels as though CNA's product range was too general for the demands of the community: “I must say that I find CNA stores very unimpressive, without focus on what they are selling: sweets, papers, stationery, CDs?”
However, he raises the point that the diversity of the magazine selection in Grahamstown has somewhat diminished since their closing. The news that CNA closed down was met with mixed reactions by other stationary shops around Grahamstown. Staff at Albany Business Machines were “shocked” to hear of the closure, while Bargain Books are holding thumbs for an increase in business.
Van Schaik Bookstore on High Street have received numerous enquiries since CNA shut down regarding specialist publications such as The Economist and where such publications will be stocked in the future. Simpiwe Pango from Walton’s Stationary feels that CNA’s closure is a loss to the town, and “really enjoyed browsing their diverse collection of books.”
Tayani Van Heerden, a third year BA student at Rhodes University, didn’t share Pango’s sentiments: They were overpriced and under-stocked, so not much of a disappointment. But it's always sad when a business closes down, especially in a small town where people are struggling financially and unemployment is at an all-time high. A woman who wished to remain anonymous said she had no idea that CNA was closed down.
“Since when?” she asked, “I’m here expecting them to be open”. This just days following their closure on Saturday 24 March. She was also dismayed at the financial implications of shopping elsewhere – “other places are more expensive,” she said.
A number of potential customers have been arriving at CNA's locked doors, only to read a sign about the permanent closure. CNA is largely a cash business so we do not have a customer list to advise of a store closure, Bower said.
CNA’s closure comes hot on the heels of the recent demise of Dunns on 27 January this year. According to their Operations Manager Francois Rix, despite their centrality, the store itself wasn’t profitable. “The closure was directly related to the size of the store and the fact that it couldn’t accommodate the entire range of Dunns clothing,” Rix said.
Rix also commented that their next smallest store was almost double the size of the Grahamstown branch which hindered its turnover. Additionally, the local Telkom retail outlet was also closed in January due to the fact that “the effectiveness of the store was not being utilised” according to Pynee Chetty, senior media specialist for the company.
Sheet Street, located in the Shoprite Centre, has the opposite problem to Dunns and plans to relocate to smaller premises, hopefully on High Street. According to Sheet Street Project Manager Yusuf Cassim, their lease ends in May of this year and at the moment the store is too big for their range.
They are looking for a store between 150-180 m2. Cassim said that should the store be unable to locate an appropriate sized property they would shut down. “But the cards are still on the table and we will be looking for a new space until we close,” he said.
