LEICESTER | Retail in the city centre

[MWRIGH17]

Originally Posted by Leicity82

Joy has gone into administration - I wonder what will be the effect on the Leicester store (next to the now vacant Topshop store):

http://www.retail-week.com/Fashion/2...istration.html

Seems like the perfect location for American Apparel - from expensive shite to cheap shite.

[Leicity82]

It seems Joy has finally closed down, whether this is temporary I can't say. There were notices posted on the front of the shop, however I couldn't be bothered to read it all.

[duane]

It went into administration. It's shut

[Leicity82]

Does anybody know the latest on the Silver Arcade plans? The exhibition in Highcross about the plans doesn't seem to have begun yet.

[Leicity82]

From Retail Week:

Rosebys shuts 10 stores and axes another 60 jobs

Rosebys: another 60 staff made redundant

Rosebys: another 60 staff made redundant

Rosebys has closed 10 of its stores, making a further 60 people redundant after slashing 32 head office jobs, as Retail Week revealed on Tuesday.

Rosebys has closed 10 of its stores, making a further 60 people redundant after slashing 32 head office jobs, as Retail Week revealed on Tuesday.

The value home furnishings retailer, which fell into administration last week, has received 45 expressions of interest in the business to date and is liaising with interested parties, according to administrator KPMG.

Howard Smith, joint administrator and KPMG Restructuring associate partner, said: "There has been significant interest in this business, though a deliverable deal has not yet proved possible. We continue to seek offers for the whole or any part of the business and are in discussions with a number of interested parties.

"Closing some of the poorer performing outlets has been unavoidable to ensure trading remains at profitable levels."

Rosebys' outlets at Glasgow Sauchiehall Street, Glasgow Forge, Dunstable, Basildon, Swindon, Brighton, Wood Green London, Sutton Coldfield, Oldham and Leicester were closed on Thursday October 2 and the staff made redundant on Friday October 3.

See: http://www.retail-week.com/News/2008...undancies.html

Was a closed when I saw it last Saturday and that's another vacant unit in the Haymarket centre.

[s_d]

You know what, the more empty units in Haymarket the better. Maybe, just maybe it'll make way for the entire Haymarket development to be demolished for a new modern retail destination to be built. If only.

[Leicity82]

Like that's going to happen.

[s_d]

We can dream I guess.

[d4mo85]

With HX being so successful it might force the Haymarket into stepping their game up and spending more money on the appearance for a start.

If they ever want to attract bigger names and more customers they have no choice.

[thompski]

Where is the Haymarket relative to Highcross? Is it like the Victoria Centre and Broadmarsh in terms of positioning?

[Ruts]

Originally Posted by thompski

Where is the Haymarket relative to Highcross? Is it like the Victoria Centre and Broadmarsh in terms of positioning?

No, they're pretty much next to one another - but they have very different markets, so I'm not completely convinced with the argument that they're in direct competition.

[Lears City]

Nothing like the Nottingham set-up. The Highcross and Haymarket are at one point, only a few feet apart. Separated by the Clock Tower!!!

[Leicity82]

In fact they are so close that theoretically they could be combined into one huge shopping complex - not that I'd want that.

The Haymarket owners have said that they're offering is different to HX.

On the Google Earth image below Highcross (seen yet undeveloped) is to the left and the Haymarket is to the right (green and pink car park on roof) and in-between is the Clock Tower:

[Leicity82]

From propertyweek.com:

Hammerson opens Highcross mall in Leicester

17.10.08

By Stuart Watson

Leicester hopes its new shopping centre will propel it up the UK’s retail rankings – crunch or no crunch.

September was a month of economic shocks and widespread belt-tightening. Hardly the ideal conditions, one would think, for Hammerson to launch a single new shopping centre – let alone three.

Nonetheless, Highcross Leicester opened its doors on the fourth day of the month and was swiftly followed by Cabot Circus in Bristol and O’Parinor in Paris. Despite the market conditions, the £350m scheme achieved 92% occupancy by space and 87% by value, and attracted more than 1 million customers in its first two weeks.

Of the 135 shop and restaurant units in the scheme, around a dozen remain unlet.

‘A year ago, with the market very buoyant, we would have expected a slightly higher occupancy figure,’ says Hammerson development manager Richard Brown. ‘There was a great deal of inertia among retailers from the back end of last year, but then a lot of activity in the two or three months prior to opening.’

The scheme is a redevelopment and extension of the Shires centre. Brown says prime zone A rents have risen from £211.50 in the old Shires to around £250 at Highcross Leicester. ‘We have had to adjust a little bit on incentives to around 18 months rent free,’ he says. ‘But we haven’t compromised our desired tenant mix because we haven’t needed to.’

The scheme, carried out by a 60:40 joint venture between Hammerson and Hermes, has doubled the size of the Shires to around 1m sq ft. The centre’s existing department store anchors, Debenhams and House of Fraser, have been joined by a 236,805 sq ft John Lewis.

Big time

Among the big-name retailers that have taken units in the 322,920 sq ft of new shops are Next, Zara, H&M and Lacoste. The scheme also has a 100,104 sq ft Cinema de Lux multiplex, 15 restaurants and cafes, and 120 flats.

‘The Shires was capable of significant improvement and the draw of John Lewis makes Leicester a strategic location for other retailers,’ says Justin Taylor, a partner at Cushman & Wakefield, the joint letting agent on the scheme with DTZ.

Leicester is ranked 14th in Experian’s league of UK retail destinations, and Brown predicts that the scheme will propel the city into the top 10.

For Jonathan Robson, director of retail at Hermes Real Estate Investment Management, the case for investing in Leicester was clear. ‘Leicester is a major city, but it has often been forgotten,’ he says. ‘The retail and leisure provision needed refreshing. There was a large affluent catchment, but the offer wasn’t matching their aspirations.’

Hammerson’s research shows that, before Highcross was completed, only 20% of the city’s retail served affluent residents – despite this group accounting for 30% of available spending. The early evidence suggests that the centre is recapturing some of that lost custom.

Some retailers in the scheme say trading has so far exceeded their expectations. Luxury fashion retailer Cruise is performing 75% above budget. Meanwhile Amanda Dammers, managing director of John Lewis in Leicester, says the store is doing 29% better than predicted, and that women’s clothes are selling particularly well.

John Lewis is housed in a lace-pattern, glass-clad building designed by Foreign Office Architects. ‘It has been an asset,’ says Dammers. ‘Customers can instantly identify the building as John Lewis, and it’s a talking point. It also bathes the building in natural light.’

The scheme’s appearance and impact have delighted civic leaders. ‘It’s a fantastic development in terms of architectural quality and shopping offer,’ gushes Ross Willmott, leader of Leicester City Council. ‘It means the city will continue to grow and prosper as we attract people in from well beyond Leicester.’

Hey, good looking

Nevertheless, big shopping centres always run the risk of damaging a city’s existing retail district, as retailers and shoppers are drawn towards the glitzy new stores. The neighbouring east Midlands city of Derby has struggled to come to terms with the impact of the 1m sq ft Westfield Derby, which opened last autumn.

Hammerson is at pains to point out that 73% of retailers and 85% of restaurants in the scheme are new to Leicester, while several other chains are taking second stores in the city. Next has moved out of its 48,790 sq ft Shires unit, which has so far remained vacant.

The city’s traditional main shopping streets of Humberstone Gate, Gallowtree Gate and Haymarket do not appear to have been badly affected. There are only two empty units – and only one of these, the former New Look store, is a direct result of the opening of Highcross Leicester.

However, there are persistent rumours that Marks & Spencer may move from Gallowtree Gate to unused space in House of Fraser’s Highcross store. Hammerson admits to being in talks with both retailers.

John Nicholls, chief executive of the Leicester Regeneration Company, says: ‘There are one or two shops that have shifted on, and the talk of M&S doing so is worrying, but it’s not nearly as bad as some other places. The key thing is economic prosperity. Highcross has created 2,000 new jobs and will recapture the spending from the prosperous hinterland.’

The city’s other principal mall is the 241,000 sq ft Haymarket Shopping Centre, which is anchored by Primark, TK Maxx and H&M. The latter is retaining its shop there in addition to opening a new store at Highcross, and Sarah Slater, fund manager at landlord ING Britannica Retail Property Fund, says the effect of the new scheme has been a positive one.

‘Footfall figures at Haymarket show an uplift of around 15% since the opening of Highcross, and anecdotal feedback from our retailers is that they are seeing increased business,’ she claims.

Masterplanning architect Rogers Chapman has created a scheme with shops opening on to the streets that help to connect Highcross to the surrounding areas. Meanwhile, the city council has spent around £23m on improvements to the city centre streets.

However, one significant challenge remains for Highcross’s owners: none of its 120 flats have been sold. Brown admits that they may prove tricky to shift in a largely untried market and amid great uncertainty over residential values. Hammerson has postponed marketing the flats until the restaurant quarter below is occupied, in the hope that generating a livelier atmosphere will help to attract buyers.

The slowdown in retail spending is likely to intensify in the coming months. Highcross general manager Tom Nathan says: ‘When embarking on a project that can take anything up to eight years to deliver, we are more than likely to weather more than one economic slowdown – this can come early in the project or, as we are experiencing now, on launch. At Highcross we have a strong tenant mix, which is not dominated by a single demographic. We can deliver broad appeal and increase the time that customers spend at the scheme.’

With the prospect of a recession looming, these are nervous times for retailers. But not all spending will cease, and Hammerson believes Highcross will enable Leicester to attract a greater share of that custom.

See: http://www.propertyweek.com/story.as...rycode=3125102

So there's still talk of the M&S and HoF moves?

[Leicity82]

It says House of Fraser's 'unused' space? What's that supposed to mean? The spare floor maybe?

[s_d]

I mentioned a few months back that House Of Fraser might just want to look at downsizing abit and taking just two floors. Leaving M&S to move into 'the vacant space'

[Leicity82]

Going into town today I was glad that the city centre, other than HX, was busy.

However, you can still see the huge holes in parts of the city and the 'potential'. Mainly for me it was the Silver Arcade. I know there are plans for it, but I think something needs to be done asap as judging from the interior of the arcade it's condition is deteriorating.

Just something I felt like commenting on.

[Mark76]

You know, sometimes I wonder just how impartial Experian are. Especially when it comes to Nottingham's East Midland rivals.

[Bingethink]

Yes, I am sure that a global company operating in 36 countries, with 15,000 employees taking three billion dollars of annual revenue would put some petty regional rivalry ahead of its reputation for providing trusted financial information. That makes sense.

[Leicity82]

Does anyone think that 'The Lanes' could benefit from it's own dedicated website?