Newcastle

Key Facts

Total floorspace: 1.6 million sq ft (149,430 sq m)

Missing retailers in central Newcastle: Gap, Wallis, Debenhams, The Disney Store, Scholl, Shoe Zone, Jones the Bootmaker, Molton Brown

Top five under-sized retailers in central Newcastle: Bhs (-20,524 sq ft), John Lewis (-19,877 sq ft), Next (-16,032 sq ft), Primark (-15,156 sq ft), Argos Extra (-13,320 sq m)

Top centres that share the central Newcastle total catchment: MetroCentre (25 per cent), Sunderland (6 per cent), Silverlink Retail Park (5 per cent), Team Valley Retail World (2 per cent), South Shields (2 per cent)

Area of highest rental growth over the past five years: Grainger Street (4.1 per cent)

Average rental growth over the past five years: 1.5 per cent

New developments: Denton Park Centre is set to open in October next year, with 75,000 sq ft (6,970 sq m) of retail space. Meanwhile, the 324,990 sq ft (30,190 sq m) extension to Eldon Square is under way. The refurbished centre will have 1.3 million sq ft (119,470 sq m) of retail space when it opens in 2009

Footfall index: January 2006, 100; July 2007, 72

Source: Experian/rental data from Churston Heard

Newcastle is widely known as the gateway to the northeast. Its city centre prime pitches are nearly always fully let and there remains a strong list of retailers trying to find the right space.

“Newcastle is a great shopping location, but space is tight and that’s why there’s always a waiting list,” says Sanderson Weatherall retail director Bob Fletcher. “The market is a little less active than it was 12 months ago, but, for the right space, deals are still being done. Compared with the national theme in terms of retail lettings, Newcastle is still relatively healthy.”

Capital Shopping Centres is refurbishing and expanding its Eldon Square shopping centre. The£170 million scheme is being carried out in three phases. The first, ES West, is complete and involved revitalising Old Eldon Square, which provided restaurants at street level with outdoor dining. Seven shops were also built on Blackettbridge. ES North will open in February and will create a bus station giving direct access to the shopping centre, with escalators and lifts connecting the scheme to an atrium and a John Lewis café.

Meanwhile, work has just started on site on ES South. The project will demolish the entire southern end of the scheme to make way for a Debenhams and 22 other shops. This will be complete in 2010. The developments should help improve the city’s flagging footfall figures.

“The scheme opened in 1976, so this remodelling will bring it up to modern standards and appeal to those larger fashion retailers that want big floorplates,” says CSC managing director Kay Chaldecott. “We have also been able to bring in new restaurants and introduce the concept of family dining to the city. Wagamama and Strada, for example, are both new to the city and with the outside seating on the square, it creates a catering experience that Newcastle hasn’t had before.”

In Gateshead, CSC’s MetroCentre scheme is also continually developing. Many retailers, such as River Island, Bershka and H&M, have taken space in the redeveloped Red Mall and CSC is now drawing up plans for its Yellow Mall. “We’re hoping to create a larger leisure experience in this mall and want to start on site next year,” says Chaldecott.

Some property agents claim that the growing number of retailers at MetroCentre that want to move to the Red Mall is creating voids in the older part of the scheme. However, Chaldecott maintains that there is interest in all parts of the scheme. “While some retailers have relocated, this has freed up space for smaller names to come into their units,” she says.

Atisreal head of Newcastle retail David Furniss says there is a thirst for space in both Newcastle and MetroCentre. “Despite their closeness, the schemes are different animals and, so, can co-exist,” he says. “Customers have a choice where to shop and retailers are aware of this. As a result, they tend to have representation in both locations because they are not directly competing.”

Experian director of property consultancy Jonathan De Mello says: “Eldon Square will be a successful extension and will definitely draw back some spend from MetroCentre. It is a dominant centre and will become and even more dominant centre.”

Demographics

Population 2.6 million

Total retail spend£9.52 billion

Weighted shopper population 552,944

Index of population with internet access 89

Cars per household 0.84

Annual gross household income£23,596

Most over-represented occupation Sales and customer service

Most over-represented age band 45-54

Source: Experian