Manchester

Key Facts

Total floorspace: 2.1 million sq ft (190,550 sq m)

Missing retailers in central Manchester: Barratts, Ann Harvey, Past Times, John Lewis, Adams, Free Spirit, Molton Brown, Soletrader

Top five under-sized retailers in central Manchester: Selfridges (-79,533 sq ft), House of Fraser (-55,609 sq ft), Marks & Spencer (-40,427 sq ft), Debenhams (-14,194 sq ft), Heal’s (-11,633 sq ft)

Top centres that share the central Manchester total catchment: Trafford Centre (10 per cent), Stockport (8 per cent), Bolton (8 per cent), Bury (4 per cent), Oldham (3 per cent)

Area of highest rental growth over the past five years: Market Street (0.7 per cent)

Average rental growth over the past five years: 0.4 per cent

New developments: a 198,309 sq ft (18,420 sq m) extension to the Trafford Centre, known as Barton Square, is under construction, while Openshaw District Centre, comprising 145,000 sq ft (13,470 sq m), is due for completion next April

Footfall index: January 2006, 100; July 2007, 102

Source: Experian/rental data from Churston Heard

The extension to Manchester Arndale, the UK’s largest city centre shopping centre, opened last September and has brought a host of new retailers and new store formats to the city.

Virgin Megastores opened a flagship with a concert venue in the basement in an attempt to differentiate itself from online competitors. Peacocks took its first city centre store in the extension, which the high street brand hopes will help it reposition itself as a fast-fashion operator. Footwear chain Barratts, which last year was noticeable for its absence from Manchester city centre, opened a shop in the extension and unveiled its next-generation store. The centre has also pulled in new entrants to the UK, including Danish fashion brand Blend and has enlivened the overall mix by attracting quirky retailers including Foot Asylum and Athletic Boutique.

Cheetham & Mortimer retail commercial agent Conor Mulloy says: “The continued expansion of Arndale has gone very well. Footfall and pedestrian flow is good and the majority of retailers are trading well.”

However, he adds that retailers remain cautious about signing new stores because of the economy. “They are treading cautiously and a unit has to be very right,” he says. “You tend to have to offer a bit more in terms of incentives at the moment and retailers need to be encouraged to come into schemes.”

Market Street, the city’s main thoroughfare and the surrounding streets have been boosted by the extension to Arndale, although TK Maxx has relocated from its basement site beneath Primark on Market Street into the centre. TK Maxx’s store still fronts onto Market Street, but the basement unit is on the market.

Aldi chose Market Street in Manchester to make its UK city centre debut, with a unit opposite Arndale. The German discount supermarket chain invested£2 million in the new premium concept. Similarly, discount menswear chain Slater Menswear shifted its store to Brown Street, just off Market Street and splashed out on a new look.

Rents in Market Street have settled at about£300 and there are a few vacant units, although Mulloy says an initial shake-out is to be expected when there is a new shopping centre development in a city.

King Street, known for its upmarket fashion retailers, has stabilised at about£200 for Zone A rents.

The ongoing Spinningfields development around Deansgate hopes to attract high-end international fashion retailers similar to those in King Street. Development is phased, but should be completed by 2009/2010.

Demographics

Population 6.6 million

Total retail spend£24.73 billion

Weighted shopper population 608,060

Index of population with internet access 91

Cars per household 0.97

Annual gross Household income£27,830

Most over-represented occupation Process plant and machine operatives

Most over-represented age band 15-24

Source: Experian