Delivering a decade of top shopping destinations

What makes a great shopping destination? Location, tenant mix, architecture and facilities all play a part.

But whether it’s a shopping centre, high street or retail park, what really matters is the results it delivers for the retailers located there. That’s what prompted Retail Week, back in 2001, to introduce a Shopping Location of the Year award, to recognise the best development completed that year.

The first winner was the Ashford Outlet Centre and many of the landmark developments of the past decade - notably Bluewater, the Bullring and Liverpool One - have all been winners.

While there are several awards in the retail property world, what makes the Retail Week award unique is the people who decide it are the people who run many of the UK’s biggest retailers.

The judging panel evolves from year to year, with regulars including Home Retail Group chief executive Terry Duddy, Debenhams chief executive Rob Templeman, Mothercare boss Ben Gordon and HMV Group CEO Simon Fox. All of them are big operators of stores in major shopping centres and even though aesthetics will play a part in their judgment, what is most important is whether a centre is pulling customers into their stores.

And while the relationships between landlords and retailers is characterised by a - usually - healthy tension, a fly on the wall on judging day would see that store chiefs are acutely aware that a well-run centre with proactive and responsive centre management makes a huge difference.

The other big challenge centres face is how they evolve. The novelty value of a new scheme can quickly wear off and - particularly in the development boom of the past decade - new competition emerge. So active management, new retailer names and maintaining a high quality environment is vital for even the best centres to hold onto their place in retail property’s top tier.

Retail Week Property takes a look at the 10 schemes that have won the award, what made them distinctive, and how they’ve coped with the challenging conditions for retail property.

Winner 2001 McArthurGlen, Ashford Outlet Centre

Back in 2000, there was a lot going on in and around Ashford in Kent. The Eurostar and Eurotunnel were still finding their feet and the UK’s designer outlet sector was a relatively immature affair. Then along came Lord Richard Rogers’ Ashford Outlet Centre, opened by BAA McArthurGlen, with 100 stores built on a former railway works site. The outlet took the form of a ‘medieval encampment’, with an embankment or ‘berm’ surrounding the structure, shielding all but the tented roof from external view.

Lest it be forgotten, Ashford Outlet Centre did as much as any of the other flagship outlet centre schemes to put the concept of discounted fashion centres on the UK map and that was recognised in the first Shopping Location of the Year Award from Retail Week.

In the decade since opening, Ashford has been designated as a government growth area, with a £2.5bn budget to create 28,000 new jobs and 31,000 new homes by 2031. A high speed rail link now makes the journey time just 37 minutes to London.

McArthurGlen managing director, Northern Europe Henrik Madsen reflects: “The brand profile has continued to shift to a mix of premium and designer brands sitting alongside an eclectic mix of high street names.

“Since opening we have introduced brands such as LK Bennett, Aquascutum, Ted Baker, Lacoste, Toshiba, Bose, Phase Eight, Kurt Geiger, and Skechers.

“Drive time to the centre is now at an all time high with some consumers travelling over three hours to reach the designer outlet. We’re also recording a double digit growth in the number of first-time visitors.”

Madsen says major initiatives are being undertaken to continue to improve the centre. “We’re continually working to engage new brands to diversify and strengthen the shopping experience for our consumer,” he says. “We’re also looking at ways to develop the food offer at the centre as well as improving the general shopping environment.”

Winner 2002 Touchwood, Solihull

While its big brother of a neighbour, Birmingham, was finally waking up to its own identity crisis, affluent West Midlands town Solihull was similarly afflicted by a downbeat retail offer for its decidedly well-heeled denizens. Then along came Touchwood − designed by developer Lend Lease, which was still basking in the afterglow of its acclaimed Bluewater development − to create an environment that extended the retail, commercial and leisure offer of Solihull but also integrated into the existing fabric of the town centre.

Touchwood’s charter was to enhance the architectural and landscape qualities of Solihull, incorporating itself into what was already an expanding regional shopping destination. The centre has successfully improved the neighbouring facilities with elegant malls, a stylish retail offer and civic gardens providing green spaces for the community to enjoy. Touchwood benefits from natural light throughout the centre and each arcade was developed with its own ambience to enhance the shopping experience.

The centre is home to the only John Lewis store in the West Midlands. Last year, Apple opened a store at Touchwood, and Paperchase, Ghost and Swarovski are all recent additions.

Lend Lease head of asset management Mark Boor says Touchwood has worked hard to maintain and expand an aspirational offer. “We have faced challenges from the improved retail in Birmingham - although we always felt that the catchment at Touchwood was not necessarily people who wanted to drive into the city to shop - and the recession, which we have used as an opportunity to bolster the retail mix. For us, we have always been very clear on our target market.”

One focus of enhancement at the moment is the food and beverage offer, which has been “a big play and has worked well”, says Boor. Restaurant operators Ask, Pret A Manager and Giraffe are all taking space at Touchwood.

Winner 2003 Bluewater, Kent

Bluewater’s impact on the UK shopping centre market was massive. Heralded for pretty much everything, from its master-planning to its architectural detailing, its high-level liaison with retailers to its friendly approach to shop fitting, Bluewater undoubtedly set a new benchmark for major regional malls in the country.

While the basic tenet of the shopping centre remains - a high-class emporium of stores, with a strong element of overseas retailers and a bias towards mall flagships - a surprising amount has changed since it opened. Mark Boor, head of asset management at developer Lend Lease, says 45% of the retailers currently occupying space at Bluewater were not part of the original line-up.

“Over the past decade a lot has changed in retail so we have reconfigured space to make bigger units and we have changed the zoning in some areas. We have tried to constantly keep thinking ahead,” says Boor.

A big part of that forward-thinking has been the development of non-retail space. Adventure Experience recently opened the UK’s largest outdoor golf facility at Bluewater. Pirate Cove features a 53,820 sq ft, 36-hole adventure golf course planned around the shores of Bluewater’s lake, the Blue Lagoon. Attractions include pedalo hire, remote-control boats and a children’s adventure playground with a zip wire across the lake.

Bluewater general manager Andrew Parkinson says: “It’s no longer about simply maximising income but rather about adding to the overall appeal of Bluewater. Pirate Cove is unlike anything else and it also makes use of the lake at the site.”

Lend Lease is also developing a 53,820 sq ft events space, due to open in late 2011. The area will include a 32,290 sq ft central plaza, 12 restaurants and a 12-screen cinema. It is part of a strategy to make Bluewater a full-day-visit destination, according to Parkinson. “We are looking more long term at opportunities to leverage our brand,” he says.

Winner 2004 Bullring, Birmingham

Opened in September 2003, Bullring is one of the best examples of retail-led city centre regeneration in Europe. The £500m shopping and leisure destination transformed the centre of Birmingham and redefined it as a major retail location.

Developed by The Birmingham Alliance, the 1.3 million sq ft scheme introduced the ultra-futuristic department store Selfridges - designed by the achingly hip Future Systems - at one end and a flagship Debenhams at the other, plus over 150 new shops, cafes and restaurants, 3,000 car parking spaces, and newly created public realm spaces.

At the time of its development, Bullring was the largest project of its kind to be delivered in Europe and was one of the first to be carried out through a private partnership when it replaced the original Bullring - a run-down centre that had become synonymous with the city’s lack of a natural heart and that suffered from high crime levels.

Bullring’s creation was the result of a partnership between property developers Hammerson and Land Securities and investment fund Henderson Global Investors together with Birmingham City Council.

It has an annual footfall of 40 million visitors and continues to attract high quality, aspirational domestic and international brands. Recent additions include A|X Armani Exchange, DKNY Jeans, Kurt Geiger, Tommy Hilfiger and Ben Sherman, with Hugo Boss and US retailers Hollister and Forever21 - due to open its first British store on November 12 - set to arrive.

“Birmingham has a young catchment, menswear trades really well and we have worked hard to give shoppers the retailers they want,” says Hammerson leasing director Sheila King. “One area we identified needed strengthening was the food offer and the loss of Borders gave us the opportunity to bring in Jamie’s Italian.”

More asset management is likely, says King, who says stores such as Topshop, Apple and New Look are among those who would like to upsize within the scheme.

Winner 2005 Castlepoint, Bournemouth

Castlepoint, just outside Bournemouth, was a trailblazer when it opened as one of the first retail destinations to turn the notion of the traditional out-of-town, bulky goods dominated park on its head. With a strong fashion retail mix and one of the first out-of-town Marks & Spencer stores, Castlepoint set out to prove that fashion could thrive in a retail park setting.

Launched as one of the country’s first hybrid schemes − an architectural cross between a shopping centre and a retail park − the centre attracts 11 million visitors annually and is home to many of the biggest branches of high street multiples and two large supermarkets − Sainsbury’s, Asda and a full sized M&S.

The tenant mix has been extremely consistent since launch, with no voids and only seven units changing hands since opening in 2003. The management of the centre has also set out a number of innovations, not least its customer service programme and its waste management initiative that has resulted in recycling rates increasing from 38% at launch to 65% now.

However, soon after winning the award in 2005, Castlepoint was forced to close its 3,000 space car park after concerns were raised over the structure of the concrete car park deck. The closure resulted in stores being obliged to shut down for a number of weeks while temporary measures were put into place.

A number of stores were closed over the Christmas and January sales period.

Owner Standard Life Investments says: “The Partnership continues to be in detailed discussions with the original contractor Kier to facilitate the rebuild of the centre in the most efficient, practicable way possible with the least inconvenience to our customers while maintaining the continued trading of the centre.”

Castlepoint has maintained a clear and direct communications strategy, with a strapline: “If you know what you want, get to the point - Castlepoint”, while strong community initiatives such as its sponsorship of the local Air Ambulance service and the Castlepoint Fun Run have helped to engage the local audience.

Winner 2006 Whitefriars, Canterbury

Whitefriars can certainly argue its case as a forerunner of the now popular integration of contemporary retail within traditional town centres - in its case a historic town centre - with a sensitive approach that enabled the new retail provision to reconnect the middle of Canterbury.

The original Whitefriars area was extensively damaged during the Second World War and was gradually redeveloped between the 1950s and 1970s with a mix of offices and retail units, the Whitefriars Centre and a multi-storey car park.

However, the redevelopment erased the historic pattern of streets within the area and adopted an architectural style at odds with traditional Canterbury streets. Over the years, this redevelopment proved to be largely unsuccessful, both from an economic point of view in terms of layout and space and also from a visual perspective. The majority of the site was owned by the city council and developer Land Securities. During the 1980s, both companies realised that a redevelopment scheme could provide a more suitable form of development appropriate to its historic setting, and one that would enhance the city as the major retail and tourist centre in East Kent.

The £140m scheme saw a phased opening, with completion in September 2005 and Whitefriars was sold to Henderson Global Investors in September 2007.

Jason Boyce, portfolio manager of Henderson’s UK shopping centre fund, adds: “It was a very good scheme and we could see the potential to improve the tenant mix, ensuring that it continues to provide the sort of space retailers need and to evolve the offer.”

Storm Front (an Apple retailer), Animal and hairdresser Rush have moved into the scheme as have Deichmann and Sports Direct. In 2008, Henderson introduced new branding to reinforce the identity of the scheme. “We are always looking at ways to add retailers and work the space to allow large and small units to work within Whitefriars,” says Boyce.

Winner 2007 Drake Circus, Plymouth

Drake Circus did not have the easiest of gestations and initial proposals to redevelop the original two-level 1970s-mall in the early 1990s failed. But developer P&O Estates tried again in the early 2000s with plans for a much larger centre, with department store Allders signing up as the first anchor tenant in 2001. Work started in February 2004 on demolishing the old centre and the adjoining Charles Street multi-storey car park.

But Allders pulled out at the early stages of pre-letting. However, this initial setback quickly turned positive when its interest was replaced with that of Primark and Next, which now anchor the eastern end of the centre. Once opened in October 2006, Drake Circus established itself as the dominant focus for retailing within both Plymouth and the wider Southwest peninsula region. Providing circa 560,000 sq ft of retail space in a bright, modern and enclosed environment, it was a much

needed addition to the city’s existing and somewhat uninspiring shopping area.

With Marks & Spencer at the western end and an impressive line up of predominantly fashion-orientated multiples in between, Drake Circus has recorded successive year-on-year footfall growth and welcomed 18.7 million people through its doors in its fourth year of trading.

On February 3, 2005, P&O Estates sold the shopping centre to Morgan Stanley Real Estate Fund for £55m. On November 20, 2006, Kandahar Real Estate took a 50% stake in the centre.

For a number of key retailers, including New Look, Drake Circus is now a top performing centre within the Southwest, notwithstanding competition from Princesshay, Exeter, which opened in 2007.

While the centre was not immune to the national spate of early 2009 retailer defaults, the consequences were generally limited, says Kandahar Group. While HMV has replaced Zavvi and Menkind has replaced Faith, the original tenant line up remains largely intact and the centre is 100% let.

Winner 2008 Princesshay, Exeter

On opening, Land Securities’ 530,000 sq ft Princesshay scheme pulled in 35 new retailers to Exeter, including All Saints, Apple, Jane Norman, Karen Millen, LK Bennett, Neal’s Yard Remedies and Reiss. Anchored by department store Debenhams and Next, the emphasis was also on attracting more upmarket brands to the city.

Land Securities reserved an area of the £225m scheme for independent retailers, offering opportunities for small store

chains that would not normally be accommodated in such a scheme. The area comprises 14 units, located mainly along the City Wall. The developer said initial interest was phenomenal, with 450 enquiries from hopeful businesses.

There has been some churn among the independents says centre director Wayne Pearce but current retailers include womenswear designer Caroline Charles, Rose Opticians, jeweller Bluewing and niche retailers such as Neal’s Yard Remedies, and yoghurt offer Hugg is to open a store.

Though voids are running at a modest 2.25%, Pearce says there has been change in the retail line up, with Zavvi replaced by HMV and USC taken by JD Sports, while Quicksilver has also joined the scheme and Pandora will open mid-November.

The restaurant element is also a crucial element of Princesshay. There are delis such as Chandos dotted around the scheme, but the primary catering focus is a European-styled piazza, Princesshay Square. Using the backdrop of Exeter’s 12th century cathedral, the piazza houses restaurants such as La Tasca, Giraffe, Strada and Café Rouge and has been joined by Carluccio’s in “a deliberate move to bolster a really popular food offer”, says Pearce. “The integration of the shopping centre into the city and what it brings to Exeter has made it a place where people enjoy spending time.”

The cathedral was central to the plan for Princesshay, which was developed as a streetscape with views of the cathedral practically wherever shoppers stand.

Winner 2009 Liverpool One, Liverpool

It would be fair to say that when Liverpool One first opened, much of the news surrounding the project was about cost over-runs and delays. Developer Grosvenor finally completed a project dogged by the sheer complexity of inserting an enormous open-street concept into an existing metropolitan centre. Grosvenor also conspired to open the first phase of Liverpool One just as things got ugly in the retail market.

Yet those woes are all but forgotten. Physically the city of Liverpool has been transformed. The city’s traditional retail hot spot, Church Street, links up with Liverpool One in several places, creating a new flow through the city from the train station as far as the docks.

And architecturally the city is now more diverse. 20 different architects were appointed to design the 30 buildings that make up the scheme, which has kept the existing streets and building facades to try to maintain the flow of the city.

Liverpool One celebrated its second anniversary in October with more new additions including a 64,585 sq ft The Home Quarter store, operated by Redbrick. The new store features a mix of homeware and lifestyle brands and includes a champagne bar, cafe and florist. Habitat opened a 21,530 sq ft flagship store last year.

This summer, Spanish fashion retailer Desigual confirmed its first store outside London and now sits alongside G-Star, Oakley, Drome, Cult, Apple and Urban Outfitters on the vibrant urban boulevard of Paradise Street.

Adventure golf course Jungle Rumble opened this autumn with a 17,200 sq ft themed space comprising two 18-hole golf courses, a bar, Hideout Cafe and golf simulator, while Boss Black joins Karen Millen, Dune, Whistles,

Reiss and Jaeger in delivering a critical mass of upscale brands in Peter’s Lane.

Grosvenor Liverpool Fund head of asset management Miles Dunnett says: “We are 97% let and we have a lot more brands opening before Christmas, including a number of retailers showing their confidence in Liverpool by opening their first stores outside London.”

Winner 2010 Union Square, Aberdeen

The 700,000 sq ft Union Square is the realisation of a development first proposed in 1998 and is the result of a £275m investment by developer Hammerson. Launched in the midst of the financial crisis, 54 of the 67 retail units were let and 45 were ready to trade on the October 29 launch day. Hammerson pulled no punches in admitting that it had to dig deep to do the sort of deals that would pull in the retail mix it craved for the long-term health of the project, adamant that this would then enable it to attract more top name retailers. “It’s very easy in a downturn to take anyone’s money,” reflects Hammerson leasing director Sheila King. “But we were determined not to do that and to attract the brands that were right for the scheme.”

That strategy appears to have been borne out. US chain Hollister opened its first Scottish store there this year in a coup for the scheme, as is the 7,090 sq ft space occupied by Apple. Its only other Scottish store is on Glasgow’s Buchanan Street. Fashion brand Superdry has opened a store at Union Square and youth fashion brand Gio Goi and jeweller Pandora will be open before Christmas.

Aside from the pull of the brands, the centre is bordered by the city’s train station, bus station and harbour, making good transport links. A new Jury’s Inn hotel adjoins Union Square, thus making it an ideal location − the tourist board hopes − for those seeking a shopping break. The centre also has a 10-screen cinema and 12 restaurants and cafes − many of which are new to Aberdeen.

“The popularity of the catering and leisure has actually taken us by surprise,” admits King. “Yo! Sushi was there at opening and will be joined by Wagamama and Giraffe, with its first restaurant in Scotland. Union Square has created an alternative night-time environment for Aberdeen.”