Global financial crisis claims another Varsity Lakes business

(By Kate and Olivia Morrow – Bond University Journalism Students)

The closure of one of the last retail goods stores in Market Square shows the Global Financial Crisis is still badly affecting local businesses.

A recent survey conducted by the Chamber of Commerce & Industry Queensland showed the crisis had negatively affected 90 percent of Queensland businesses.

Griffith University and the Gold Coast Bulletin’s recent quarterly business sentiment survey revealed the Gold Coast would take longer than other Australian cities to recover from the economic downturn.

Many Varsity Lakes businesses have closed as a result of the current financial situation, which is evident by the large number of vacant stores.

Market Square home wares and interior-decorating store KymDesign was the most recent to shut its doors.

KymDesign co-owner Craig Lund said the lack of local trade influenced their decision to the close the store.

“When we opened three years ago it [income] was increasing weekly ... when the GFC (Global Financial Crisis) hit it seemed to affect all the other retail businesses in the area,” he said.

“When they all closed down that then affected our trade because people weren’t coming here for retail goods [anymore] … only for restaurants.”

Varsity Lakes Travel director Nick Rone said local businesses needed to draw trade from outside the local area to overcome their financial difficulties.

“I have purposely done a lot with my database in networking … it gives me a farther reach because I can reach outside of Varsity Lakes,” he said.

“The difficult thing in business [is] you’ve always got to create yourself new business, if you’re not, you’re falling behind.”

KymDesign co-owner Wendy Lund said she believed Varsity Lakes still has potential and will recover when economic conditions improve.

“Everything always turns around eventually,” she said.