Muswellbrook Council said it remains optimistic about the future of retail options in the town centre despite the announcement the Muswellbrook IGA will be closing its doors at the end of May.
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Muswellbrook IGA owner Hamish Thompson said the location of the store within the council-owned Campbell's Corner building on Bridge Street had made it difficult to attract business, leading to the difficult decision to close.
"The position doesn't work for us and it's probably not going to work for any other food retailer going forward," Mr Thompson said.
"Woolworths is only a block away and they have a bigger and better offer than us and we were always struggling in that respect and the bulk of the housing population (in Muswellbrook) is out closer towards the Aldi and the Coles, so when that centre was built it sort of destroyed the rest of the town centre.
"(The location) doesn't have a unique selling point and doesn't have a good car park, it's not easy to get in to and there's no houses around. You've sort of got to ask yourself, why were we even there in the first place you know?"
Mr Thompson said while turnover had increased at the two IGA stores he operates in Bathurst since the start of the COVID pandemic, the opposite had been true in Muswellbrook.
"In COVID, the rest of our stores increased in turnover whereas Muswellbrook was the opposite because all the miners went home and there's no locals in town. They all live somewhere else," he said.
"On the weekends it's very dead, like there's no one around. They all go back to Newcastle or wherever."
While Mr Thompson thanked the loyal customers who had supported the store over the years, he was critical of Muswellbrook Council who he said "didn't understand business".
"Had we been able to get out of the lease earlier, we would have gone earlier, but council obviously didn't want to let us out of the lease because they're going to struggle to get anyone back in there and then they're going to struggle with all the rest of the tenants," he said.
"We've had nothing good to say about the council for a long time but the council sort of stopped us telling too many people about that because they didn't want bad news getting around but for us, it's too late. The horse has already bolted for us years ago."
Council has worked very hard to support IGA providing additional dedicated parking, reducing his shop footprint and reducing his rent to assist IGA remain in Muswellbrook.
- Muswellbrook Shire Council general manager Fiona Plesman
In response to Mr Thompson's comments, Muswellbrook Council general manager Fiona Plesman told the Chronicle the council had worked hard to support the IGA to remain in Campbell's Corner.
"It is disappointing to hear that Mr Thompson has found his time in Muswellbrook unsatisfactory;" Ms Plesman said.
"Council has worked very hard to support IGA providing additional dedicated parking, reducing his shop footprint and reducing his rent to assist IGA remain in Muswellbrook."
Ms Plesman said the decision to construct the Muswellbrook Fair Shopping Centre was made by the Regional Planning Panel, not by the council, and said Mr Thompson had a "very limited commitment and understanding of Muswellbrook Shire".
"Mr Thompson has indicated to council on a number of occasions that his primary focus has been on his businesses in Bathurst; Council and the residents of Muswellbrook are generally optimistic about the future of Muswellbrook," she said.
"There are some very exciting plans going forward for Campbells Corner that include opening out onto Bridge Street - council is also in consulting with some fresh food and produce retailers who are interested in the current IGA space."
According to Ms Plesman, the opening of the second stage of the Upper Hunter Innovation Precinct in the new Donald Horne building in August and the construction of a park on the site of vacant buildings on Bridge Street would "bring a renewed energy" to the centre of Muswellbrook.
With Transport for NSW also confirming to the council the Muswellbrook Bypass would be opened in four years, Ms Plesman said business in Muswellbrook can look forward to a positive future.
"Council is liaising now with the Muswellbrook Chamber of Commerce and other key stakeholders in the preparation of new plans for Bridge Street - to beautify and activate the street," Ms Plesman said.
Improved parking, footpaths and cycleways, to be implemented as part of the council's new active transport strategy, would also provide benefits for businesses operating along Bridge Street, Ms Plesman said.