New kid on the block

Glasgow’s 2.8 million shoppers are hardly struggling for choice. As well as the city centre’s well-known Buchanan Street, Buchanan Galleries and St Enoch centre, they have the Braehead Centre out of town and nearby East Kilbride to choose from.

But, while it may not have been needed, the £350 million Silverburn centre – which opened in October in the Pollock area, about five miles southwest of Glasgow’s city centre – has made an impact on the market.

After 12 years of planning and construction, Silverburn has finally been completed. It is anchored by Tesco, Marks & Spencer, Debenhams and Next and has 95 units. On top of its big-name anchors, the centre has also attracted major fashion retailers including All Saints, Coast, Monsoon and Jane Norman.

The concept behind Silverburn is a high street shopping environment within an enclosed space. While the centre makes no attempt to mimic the city centre’s vibrant retail hub directly, it gives it a run for its money by offering a one-stop shop, with the convenience of Tesco as its foundation. And, with CACI predicting that Silverburn will be the fourth-ranking retail centre in Scotland, after Glasgow, Edinburgh and Aberdeen’s city centres, it seems a formula for success.

Since Silverburn opened on October 25, its Glasgow-based developer Retail Property Holdings says it has registered excellent trading. According to the developer, many retailers have reported that trading has been better at the centre than it has at their city centre branches.

Inside, the centre is stylish and well-lit. Natural light pours in through skylights way up in the lofty ceiling and there is a variety of shop fascias.

Unlike similar shopping centres that have opened recently in Derby and Exeter – which were fully let and trading when they first opened their doors – Silverburn is some way off having all stores open. The light music playing in the centre is drowned out intermittently by the tapping, banging and buzzing sounds of new units being fitted out.

The fact that the centre is not fully let is down to a combination of factors, according to Retail Property Holdings. The opening of other major centres around the UK at a similar time meant that retailers were hesitant about getting involved. But the five units that are still to be let are not a major concern to the developer, which is confident that Silverburn will be fully let by Easter.

Retail Property Holdings director Richard Low says: “It is only a handful [of units] and it hasn’t affected the customer experience, which, according to our research, has been exceptionally positive. We have significant interest from retailers [in the five remaining units], so I am confident that we will be 100 per cent open and trading in March.”

Silverburn’s arrival has had a ripple effect on the region already. Letting agents say that Glasgow’s other major out-of-town centre, Braehead, has lost some of its trade, which experts attribute squarely to Silverburn’s opening.

Drew Waddell, a partner of commercial property consultancy Culverwell, says: “Silverburn has had an adverse effect on trade at Braehead. A number of retailers have reported a significant downturn since it opened. People from the south side of Glasgow won’t go past Silverburn to get to Braehead.”

Silverburn’s location is certainly one of its key attributes. Its surrounding area, south of Glasgow, is home to many of the city’s most affluent shoppers. Situated on the M77, which heads southwest out of Glasgow, Silverburn is within easy reach of the city centre, the wealthy suburb of Newton Mearns and the towns and villages of Ayrshire. The centre is clearly geared towards car owners, with 4,500 parking spaces to attract the 1.5 million people who live within a 30-minute drive of the centre.

Silverburn is a retail centre that has laid out its stall not as a direct competitor to Glasgow city centre, but as an extra out-of-town site, which, with the inclusion of a Tesco, offers the ultimate in convenience. As such, the more immediate threat is to Braehead rather than the centre. Silverburn’s convenient location is proving to be a successful draw, with many car owners halving their journey to a centre by shopping at Silverburn.

Retail Property Holdings is forthright about the value of having a Tesco next door. The grocer’s presence is clearly a major plus for the centre and explains a lot of Silverburn’s instant impact on the region. “Tesco is the biggest food retailer in Scotland and, without question, it has established Silverburn as a significant retail destination,” explains Low. “Having Tesco as part of Silverburn undoubtedly drives footfall to the centre and increases frequency of customer visits.”

Scotland’s second-largest Tesco has been open at the Silverburn site since July 2006 and, judging by a visit to the store on a grey Tuesday afternoon, it is enjoying a healthy footfall. Comparing Tesco’s visitor numbers with those of the centre, it appears that a large proportion of the site’s visitors have made the trip for the supermarket alone.

The competition

Silverburn faces competition on several fronts. The centre of Glasgow is a thriving retail hub that is home to two major shopping centres and a huge number of smaller stores, as well as a good selection of independents.

Buchanan Galleries sits at the head of Buchanan Street – the retail centre of Glasgow. The scheme houses more than 90 stores and is anchored by John Lewis, with River Island, H&M, Next and Mango also present.

Heading south, the prestigious Buchanan Street is a catwalk of well-known brands. The recently opened Apple Store is one of the most notable additions to a street that is home to more than 50 retailers, including House of Fraser, Karen Millen, Goldsmiths, Diesel, All Saints and The White Company.

The city also has the value-led St Enoch centre, which, with its 750,000 sq ft (69,675 sq m) of retail space, attracts about 20 million visitors a year. Meanwhile, Silverburn is jockeying for position with other, well-established, out-of-town centres. As well as Braehead, which enjoys a footfall of 24 million, Glasgow Fort and East Kilbride Shopping Centre also lie on the outskirts of Glasgow.

The crowded retail scene in Glasgow means that a new kid on the block must offer something unique. What this is varies according to who you ask.

Leslie Doherty owns and runs an independent clothing, books and toy store in Glasgow city centre. He says that Silverburn neither poses a threat nor is of any interest to him. Doherty says: “The city centre has independent retailers and quirky shops. Silverburn is a much more bland experience. You go to Silverburn and you could come out in Southampton.”

Aside from boasting Scotland’s only Kurt Geiger store, Silverburn does not offer anything radically new. That said, it offers convenience, easy access and is popular. “We never set out to attract customers from the city centre. However, there is a definite leak owing to the size and range of shops at Silverburn,” explains Low.

Despite a sluggish start, the state of lettings at Silverburn is looking healthy. With only a handful of units still to let and another 19 nearing completion, the scheme’s agents are feeling quietly confident.

SGM is one of the letting agents hired to bring retailers into the centre. Director Stephen Gunn says: “It was slow initially, but we had a real push six months before opening. Initially, CBRE was the only letting agent and then we were brought on board to push the marketing. We left no stone unturned.”

The range of retail space available means that rents have been equally variable, but, as an indication, the prime pitch at Silverburn achieved a Zone A rent of £190. Experts say that other retailers are looking for space at Silverburn and are optimistic that the scheme will soon be fully let.

Cushman & Wakefield head of retail Stuart Moncur says: “Silverburn is gathering momentum and taking shape and it looks like it will be nearing full capacity by early next year. We are still looking at Silverburn for four more retailers.”

While Silverburn is by no means revolutionary, it is popular. It lacks the vibrancy of Glasgow city centre, which is served heartily by an array of smaller, independent stores, well-known brands and two successful shopping centres, but what it lacks in quirkiness, it makes up for in convenience.

Retail Property Holdings did not set out to imitate, or even overtake, Glasgow’s city centre. The brief was to provide an easily accessible, convenient destination for Glasgow’s affluent suburban shoppers.

Glasgow’s retail scene is a crowded market and the arguments against introducing a centre of Silverburn’s size may have been cogent, but it seems to have found its place on the city’s landscape regardless.

As Waddell remarks: “We didn’t need Silverburn, but now it’s there, we’ve just got to get on with it.”