SURVEYS GIVE A GRIM SNAPSHOT BUT REAL PICTURE ON HIGH STREET IS A LOT BRIGHTER

Market Overview News

Empty shops are a blight on a city centre and the latest surveys suggest their numbers are growing in Derby.
One survey being prepared for release shows that of Derby’s 881 retail premises 88 are vacant and a further 18 are occupied but available.

Above, George Dunnicliffe, of FHP, in St Peter’s Street, which has become busier since the bus station opened at Riverlights. Left, work is under way on a new jewellery store in Sadler Gate but, below, the closure of TJ Hughes has left a big gap in Derby’s shopping area.

On the face of it, that means the availability rate is up from just under 12% last year to over 14.5%.

This report, put together by commercial property consultancy FHP contradicts statistics released last week by the Local Data Company which put the vacancy rate in Derby city centre at a whopping 19.4%.

And walking around the city’s core retail areas with FHP surveyor George Dunnicliffe, a different picture emerges again. He was the one who did the legwork for the forthcoming FHP report, counting up the premises to create an up-to-date picture of the city centre.

He said: "Times aren’t great for retailers and it is a shame that cafés in The Strand and Strand Arcade have gone but there is plenty of activity in the market."

A year ago, The Strand was fully occupied for the first time in four years. Now there are three empty units available with Raybould and Sons.
Martin Langsdale is an agent at Rayboulds and chairman of the Cathedral Quarter Business Improvement District management group.

He said: "In The Strand, we have a few units available but are close to agreeing a letting on one and there’s a fair amount of interest in the others. Nevertheless, I am surprised that the vacancy rate has gone up because that is not what we’re seeing in the Cathedral Quarter. There have been a few deals that have fallen through recently but having spoken to a number of businesses, I’m quite optimistic. And the fact that people can get into Bold Lane car park more easily is making a big difference."

Turning from The Strand Arcade onto Sadler Gate, George meets another commercial property agent with clients interested in two empty units in the street.

George said: "In this area, Serendipity has gone but opposite at 49 Sadler Gate, work is under way on a new jewellery store.

"And there is strong interest in the restaurant premises at 5 Friar Gate with negotiations at an advanced stage. You only have to have a good few weeks, get a couple of shops away and that percentage of empty properties will soon come down again."

In the Corn Market there is interest in the empty shop opposite Primark and the small unit that was previously home to jeweller HL Brown where the shop front is being renovated. There is an offer on a small unit at 8 Victoria Street and the sale of the former Debenhams building remains in the legal pipeline. At the bottom of Green Lane, piano bar and lounge Vie is being fitted out in the bar premises formerly known as Ranby’s.

Jeweller and specialist clothing retailer Janet Field may be vacating but another occupier has been lined up for her shop.

Another loss to the area is Strand Wools but, once again, another occupier has been lined up and the premises formerly occupied by children’s shoe shop Step by Step is under offer, having been vacant for several years.
"On the downside in Green Lane, the Quicksilver amusement arcade premise has not generated much interest," said George.

Along St Peter’s Churchyard and onto St Peter’s Street and the old On a Roll sandwich shop is under offer, as is number 97.

St Peter’s Street has become busier as patterns of footfall have shifted again in the city centre.

"One of the biggest changes that have happened to the city centre is the opening of the bus station at Riverlights which has made East Street the busiest street in Derby," said George.

"More people are drawn to the left towards Westfield which is a big pull but, hopefully, once people have visited the shopping centre once, they will return to find out what else Derby has to offer."
There is still no getting away from the fact that there has been an increase in the number of charity shops, pawnbrokers and bookmakers in the last 12 months but that is still better than having empty units sticking out as obviously as missing teeth.

If deals were completed on all the shops in Derby currently under offer then the vacancy rate would fall to a far more respectable level.

George said: "There have been a few deals fall through recently because bank finance wasn’t available."
Bank finance is an ongoing concern and is making life harder for potential occupiers and agents alike, contributing to the numbers of empty properties in the city.

"There are several reasons for the increased vacancy rates," said George.

"Firstly, the completion of the leisure units at Riverlights has led to the increased availability.
"The number of buildings that are occupied but available has increased which ultimately shows there is an increased amount of temporary operators."

There have also been more national retail casualties as TJ Hughes, Jane Norman and Henleys have all gone into administration, leaving gaps within Derby’s shopping centre areas. That said, Westfield has a good record of filling the gaps with Phase Eight, Duck and Cover, Pandora, Iceland, Poundworld and Ilkeston Co-op Travel moving into Westfield in the last year.

Janine Bone, centre manager at Westfield Derby, said: "We currently have very few vacancies and are talking to a number of potential retailers about these units with several scheduled to be open for Christmas trading.

"We are on track to reach 25 million footfall again this year and we will have our 100 millionth customer visit the centre this month which is testament to the centre’s consistently strong footfall since we opened in 2007."

Both FHP’s report and The Local Data Company figures back this up, reporting that shopping centres such as Westfield are weathering the storm better than the traditional high street.

Evidence shows retailers closing stores that are not performing and relocating to shopping centres. Of the 251 indoor shopping centre units in Derby, including Westfield, The Audley Centre and St Peter’s Way, only half a dozen are vacant.

George said: "This year has seen a rise in inquiries from national, regional and independent operators and, although the vacancy rates are up on last year, the uptake from occupiers and interest in the city is encouraging."

 

Photo courtesy of Derby Evening Telegraph.