Woden centre retailers have called for an urgent revamp of the struggling precinct amid "worst in a decade" business conditions.
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The calls came as a community leader said the next ACT budget needed to deliver for the region to discourage stores from moving to cheaper sites to the east.
Ora Hair owner Marco Imbriano, whose business is located off Woden Square, said it was probably the worst period in 10 years.
"Woden needs a revamp, it's dead – the businesses aren't attracting people, the mall is in limbo, and the proposed development would definitely be a good thing," he said.
"The new bus interchange will be great."
The government, in its draft Woden master plan released in January, proposed an upgrade to the existing bus interchange, and a 20,000 square metre increase to Woden Plaza's retail space.
Woden Valley Community Council president Martin Miller said there were at least 10 empty shops in the Woden centre, whose market had shrunk as shopping precincts in Fyshwick and Majura Park had grown.
"The government has been expanding the capacity out there, and with those "big box" retailers – Costco etc – as well, I think they're starting to have an effect on the [town centre] retailers," he said.
As the approaching loss of hundreds of ACT and federal public servants undermines confidence in the town centre, the council's submission to the draft plan encouraged more mixed-use development, installation of playgrounds or an outdoor cinema for public spaces, and backs moves to build a new covered bus station, but separate from the mall.
"Encouraging more shops outside the shopping centre would be a good thing," he said.
Westfield Woden tenant Anna Cuschieri, owner of beauty salon Brazilian Beauty, said client numbers had fallen by 20 per cent since October.
"Woden is in desperate need of rejuvenation," she said.
"We've participated in lots of promotions to get new clients and it hasn't done much."
Ms Cuschieri said important retailers including Cafe Gaudi and Gloria Jeans had closed in recent months and several other tenants were considering their lease renewals.
Julia Clarke, spokeswoman for Scentre Group, owner and operator of Westfield in Australia, said there was "natural turnover" at any shopping centre, but acknowledged wider issues which the centre was working with the retail community to respond to.
"It's clear that there have been changes in the demographics of the local community that have had an impact on Westfield Woden's immediate environment," she said.