There was also a 12 per cent increase in security costs last financial year, which KPMG said was due to an “overall increase in crime noted within the precinct which has occurred during COVID-19”.
Meanwhile, spending on marketing and events dropped from $2.74 million in 2019-20, to $2.3 million last financial year.
Rundle Mall management, which operates under the Adelaide Economic Development Agency (AEDA), which commissioned the review, generates income from pop-up activations and sponsorships, as well as a levy paid by the approximate 1500 traders.
According to the Adelaide City Council, the levy is used for “managing and marketing the Rundle Mall Precinct”.
A report outlining findings of the KPMG review states Rundle Mall traders raised concerns about how the precinct’s management prioritised spending.
Traders told KPMG they were unaware how their levy payments were being spent, or whether management was spending money on the “right things”.
“I have no idea what the budget is spent on or the campaign costs,” one trader was quoted as saying.
“I asked why cleaning and security costs are so high and how these figures are derived but no answer as yet – this needs to be more transparent,” the report quotes another trader as saying.
KPMG made about 20 recommendations to AEDA to improve its management of Rundle Mall, including providing more information about its spending in its buxjmtzywsiness plan and annual report.
According to the report, AEDA has developed a plan to address the recommendations of the review and presented traders with the findings at a meeting in December.
contacted AEDA for comment.
The report also highlighted a current lack of “contemporary retail knowledge” on the AEDA board.
AEDA chairperson Nikki Govan told an Adelaide City Council committee meeting on Tuesday that the lack of retail expertise on her board prompted her to commission the review.
“Quite frankly, the lack of representation was something that we recognise,” she said.
“We did have a retailer that had been appointed to the AEDA board and they had some financial strife and therefore they withdrew from the board.
“We’ve been concentrating very much on looking at filling that skills gap.”
Govan said six people with retail management experience had nominated to join the AEDA board, with an appointment to be made within two to three weeks.
She said the board was also looking to appoint a dedicated Rundle Mall manager.
“It’s important to have a dedicated Rundle Mall manager to look after Rundle Mall, to look after the stakeholders, the levy payers and particularly to also have a focus on (retail) curation,” she said.
According to the KPMG report, traders also raised concerns about the cost of car parking near Rundle Mall.
