DERBY RETAIL REMAINS STRONG

Market Overview News

There has been a lot of bad publicity in the media regarding the retail sector recently with companies such as Jane Norman, Moben, TJ Hughes and Habitat going into administration and the announcement from local company Thorntons set to close up to 180 stores over the next three years.

Despite these announcements Derby’s Retail is performing well and is now up two places to 31st in the CACI annual retail and expenditure study rankings. This is a return to their highest position two years ago with the potential spend increasing by 7% meaning Derby is breaking the £700m barrier for the first time. Over the past 12 months we have seen 35 new lettings within the Westfield Shopping Centre with recent deals including Duck and Cover, Pandora, Iceland, Poundworld and Ilkeston Co-op Travel. Card Factory has also opened its second store within Westfield Derby with Lispy and Swatch opening their first stores in the East Midlands. These key deals have resulted in the Shopping Centre now being 98% occupied. Results show the overall availability rate in Westfield Derby has decreased from 7.23% to 3.27% in the last 12 months.

Turning an eye to the High Street, the opening of the new Bus Station last year has had a very positive effect on East Street. We have seen a tremendous increase in footfall, which in turn feeds Westfield and St Peters Street and so in this area there has been steady uptake with fewer casualties on this time last year. Key deals to note include Barclays Bank taking a combination of the former Ilkeston Co-Op Travel and the adjacent vacant unit on St Peters Street which is currently being fitted out. Also Cheque Centres have just opened at 111 St Peters Street and Greggs have recently completed on 48 St Peters Street.

Over the last 12 months FHP have completed 9 new lettings within the Cathedral Quarter with a further 3 shops ‘Under Offer’ which are due to complete shortly. Sadler Gate has seen a great deal of activity with new start-up companies such as, Scraggy and Finch jewellery, Wonky Table Bistro and Lancaster and Thorpe a national chain of opticians taking new premises.

A recent study undertaken by FHP identified 811 shops in Derby City Centre’s retailing core, of which 88 shops are vacant and 18 shops are occupied but available. This equates to an overall ‘availability rate’ for Derby City Centre of 14.66%. This is a slight increase from the Spring/Summer Study of 2010, however the quality of operators taking new space is significantly better.