Aberdeen

Key Facts

Total floorspace: 1.2 million sq ft (115,910 sq m)

Missing retailers in central Aberdeen: Karen Millen, Dune, Republic, Zara, Swarovski, Foot Locker, Moss, Principles, Ravel, Hobbs, Crabtree & Evelyn, Jigsaw

Top five under-sized retailers in central Aberdeen: John Lewis (-54,177 sq ft), Debenhams (-38,494 sq ft), Next (-15,132 sq ft), Marks & Spencer (-14,027 sq ft), New Look (-8,759 sq ft)

Top centres that share the central Aberdeen total catchment: Kittybrewster Retail Park (8 per cent), Inverurie (1 per cent), Stonehaven (1 per cent)

Areas of highest rental growth over the past five years: Union Street (10 per cent)

Average rental growth over the past five years: 2.6 per cent

Latest deals: fashion players Cruise, Hugo Boss and Zara are the latest to sign to the Union Square scheme

New developments: Laurel Drive Shopping Centre is to be extended by 46,700 sq ft (4,340 sq m), more than doubling the scheme’s size to 95,000 sq ft (8,825 sq m). New development Union Square will provide 456,265 sq ft (42,390 sq m) and is due to open in October next year

Source: Experian/rental data from Churston Heard

A hive of development activity is confusing retailers in Aberdeen and those wanting to move into the Scottish city.

The Mall Aberdeen is being refurbished, while the Scottish Retail Property Limited Partnership (SRPLP) is ploughing£200 million into the Bon Accord Centre, adding 200,000 sq ft (18,580 sq m) of retail space, including two department stores.

The SRPLP received outline planning permission last year to link the Bon Accord development with the St Nicholas scheme, creating more than 1 million sq ft (92,900 sq m) of retail space running between Marks & Spencer off Union Street and John Lewis off George Street. The new space is likely to offer at least 80 good-size units

Meanwhile, Hammerson and Stannifer are developing a 538,000 sq ft (49,980 sq m) mixed-use mall and retail park. Just under half of the Union Square development will be retail space.

Doubts as to where the prime retail pitch will be once the schemes have been completed has discouraged several retailers from signing space.

Next, however, has taken a 54,000 sq ft (5,015 sq m) store in the Bon Accord development. It is likely to open in early 2009 and will be the first large-format Next store north of the border. New Look has upsized from 4,000 sq ft (370 sq m) to 27,000 sq ft (2,510 sq m) at the John Lewis end of the development. But Primark has quit the Bon Accord scheme and taken a larger space on Union Street itself.

Union Square has tempted New Look and Next to take second stores and Clarks and H&M have also signed up. Both the Union Square and Bon Accord-St Nicholas schemes are expected to be completed around 2010/2011.

Meanwhile, Ikea has pulled out of plans to open a store in the city following a feasibility study, though the reason behind its decision remains unclear.

Cushman & Wakefield head of retail Stuart Moncur says rents have not moved much in Aberdeen, with prime Zone A rents hovering around the£160 to£175 mark over the past 12 months. Union Square is understood to be letting for about£130.

Moncur says: “Retailers are holding back to see what others do. Union Square is likely to be complementary to the other schemes though and more retailers may take second stores there.”

The schemes will create a triangular shopping zone in the city from the bottom of Union Street, which is likely to get a significant lift from being the main thoroughfare between the Union Square and St Nicholas developments. “The high street will retain its positioning and strength helped by Primark, which has opened a large store there,” says Moncur. “However, everything not within that triangle will suffer.”

Premium fashion retailers G-Star, Cruise and Hugo Boss have taken sites in Union Street, slightly outside the triangle, but are destination stores so should still fare well.

Moncur concludes: “A huge number of retailers want stores in Aberdeen and the market is strong and buoyant. We will see some entrants to the town in the next six to 12 months and there will be a bit more clarity over the next year. Hopefully, we should get some clarification on who is going for which scheme and the timescale for the developments.”

Demographics

Population 459,429

Total retail spend£2.02 billion

Weighted shopper population 344,606

Index of population with internet access 97

Cars per household 1.02

Annual gross Household income£30,478

Most over-represented occupation Professional

Most over-represented age band 45-54

Source: Experian