Niche retail and new-look space is a successful fusion
Thursday, 12 June 2008
Gloomy headlines make it easy to believe that Britain’s retail sector is in meltdown but even old worn out shopping centres can be given a new lease of life in these tougher times.
That is the prospect for one Coventry neighbourhood, thanks to our efforts combining with developer Stoford, after we teamed up following the launch of the latter’s new niche retail division last autumn.
We were appointed to project manage Stoford Retail’s first scheme, which has just been brought forward on one of Coventry’s inner-city housing estates.
Stoford Retail’s £500,000 investment has transformed Ernesford Grange from a struggling and outdated shopping precinct at Willenhall into a genuine neighbourhood retail centre.
An old Kwik-Save store has been so successfully revamped and redesigned that Tesco Express has already signed a chunky 4,000 sq ft lease.
Other high-profile brands, in the form of Domino’s Pizza and Ladbrokes, have taken adjacent space of 1,400 sq ft and 1,300 sq ft respectively.
Director Gavin Stephens said that 1,400 sq ft of office space has also been added to increase the location’s desirability.
“Ernesford Grange was a classic failing scheme. Its main anchor, Kwik-Save, had gone into administration, other units were vacant and there was just a negative feel to the place,” explained Gavin.
“It is only two miles from the city centre, so people who lived nearby were going into town rather than use the shops almost on their doorstep. Now it has started to win back that trade and has become a proper neighbourhood centre.”
Stoford Retail’s Carl Stacey believes the key is to identify locations that are struggling but which would repay investment.
“It’s not about finding a retail scheme that isn’t working and throwing money at it. It‘s about seeing potential,” he said.
“You need the right advisers and agents, then you have to research the local market in detail to see why retailers aren’t going there and which brands you could attract if the space was of sufficient quality.”
His colleague, Andy Browne, stresses that it is always vital to be prepared to commit significant funds.
“Nothing looks worse, particularly when you are trying to attract residents from the surrounding area, than going into a struggling scheme, sticking up a couple of notice-boards and just giving the place a coat of paint,” he said.
“Everyone can see that nothing has really changed. In this case, we recognised that the old Kwik-Save unit was too large for the market at 7,000 sq ft, so we split the space into three, creating just the size of unit which Tesco Express wants and two smaller units.”
As Mr Browne points out, the refurbishment also included new external lighting, improved entrance and exit points for the adjacent car park and repaving.
“We see Ernesford Grange as an investment for our property portfolio, so skimping on improvements isn‘t going to help anyone. We have appointed Shortland Horne as the sole letting agents and they – like Fusion – are doing a very good job” he said.
Stoford is now focusing on another – and much more ambitious – regeneration scheme in Birmingham’s Shard End.
“In Coventry we were creating a local neighbourhood centre. In Shard End we will be creating a new town centre but the key element remains the same,” said Mr Stacey.
“We have to bring forward the type of retail space the market needs and find the right niche brands to sign up.”