Briefing Paper to the Economy and Regeneration Overview and Scrutiny Commission
10th March 2016
Subject: City Centre Performance Update November 2015 to January 2016
Briefing Note of the Director of Regeneration
1
2
Purpose of the Briefing Note and Summary.
1.1
The purpose of this briefing note is to provide members of the Economy and
Regeneration Overview and Scrutiny Commission with a Quarterly update on city
centre performance as requested by the Commission (October 2014).
1.2
The briefing note focuses on performance within the retail core of the city centre
and now includes the three shopping centres and covers the period; November
2015 to end of January 2016 inclusive.
Background.
2.1
Recording changes to various metrics in the city centre is an important way of
measuring the impact of economic and cultural regeneration initiatives on the city,
with a particular focus on the city centre as a key economic driver.
2.2
This briefing note is designed to provide an update on how the city centre is
performing in the core retail area of the city centre. This report is continually being
updated on a quarterly frequency, and Appendix 1 provides the current analysis
which will be used to baseline future briefing notes.
2.3
All three shopping centres are included and will now form part of future
performance reports.
2.4
For the purposes of this report the retail core is identified as:
•
King Edward Street
•
Savile Street
•
Jameson Street, including South Street
•
Paragon Street, including Chapel Street
•
Prospect Street, including Pryme Street & Story Street
•
Whitefriargate, including Silver Street
•
Ferensway
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•
Carr Lane
This report whilst not being comprehensive of all areas covered will provide
information which gives an indication of current performance and trends.
3
Summary of current performance trends:
3.1
The national average vacancy is 14%. In the eight streets and three shopping
centres comprising the retail core the average vacancy is 14% and puts the city
centre on trend with the national average.
3.2
City centre retail core vacancy rates.
As can be seen from the chart below there are clusters of high vacancy rates within
the city centre and it is hoped that should the Outlet scheme, currently under
development by Princes Quay come to fruition, the subsequent reduction in
vacancy rates will provide an overall boost to the outline figures.
Details in Appendix 1
Retail Core
King Edward Street
Savile Street
Jameson Street
Paragon Street
Prospect Street
Whitefriargate
Ferensway
Carr Lane
St Stephens
Princes Quay
Prospect Centre
Retail Core Average
Occupied
33
22
45
48
27
46
18
35
46
45
44
Vacant
9
4
4
8
3
16
1
1
0
33
3
%Vacant
21%
18%
8%
14%
10%
26%
6%
3%
0%
42%
6%
14%
3.3
Since the last briefing to E&R Scrutiny Commission, over the past three months
seven new businesses have opened in the city centre and 12 have closed. The
new businesses cover a broad range of locations and sectors, being mainly
independent alongside one national chain.
3.4
Whilst it is not good news, the closure of only 12 businesses in the post-Christmas
period is encouraging. It is well known that businesses that are in difficulty will
make the most of the Christmas trading period before closing in January and a
figure of more than 12 would not have been unexpected.
3.5
The fact that we still have new businesses opening in the city centre supports the
idea of a strengthening of the local economy, and the cities status as City of
Culture continues to create an impact in addition to inward investment
announcements from organisations such as Smith & Nephew.
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Carr Lane is on the outer edge of the retail core and contains seven pub / club units and five
fast food traders; the low vacancy rate of 3% is good and relates to just one vacant unit.
Money Spinner (9 Anlaby Road)
This is a ground floor and has been vacant since approximately November 2014
Given this unit is located on the south of Carr Lane close to Ferensway. It is in poor
condition and may well suffer from a lack of passing trade.
5.5
Prospect Street, Inc Pryme Street & Story Street
Occupied
Vacant
Percentage Vacant
27
3
10%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
22,513
629
3%
This street now has three units to let which contribute to its below average vacancy rate.
PC Freeform (82 Prospect Street)
This is a ground floor and has been vacant since approximately September 2015
A small unit located on the east side of the street.
Freetown Sports (70/76 Prospect Street)
This is a ground floor unit and has been vacant since approximately March 2015.
This is a large retail unit (386 m2) previously used as a retail & online bicycle outlet.
Indications had been that although the shutters had remained down they had still been
trading although this now does not appear to be the case.
City Gent (14 Story Street)
This is a ground floor unit which has been vacant since February 2016 and is at the corner
of Prospect Street and Story Street and appears to be in reasonable condition.
5.6
Whitefriargate
Occupied
Vacant
Percentage Vacant
46
16
26%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
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Appendix 1
5
City Centre Performance Report (November 2015 / January 2016)
Retail Occupancy Statistics, Retail Core.
5.1
King Edward Street.
Occupied
Vacant
Percentage Vacant
33
9
21%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
13,425
1,604
12%
King Edward Street is split into two sections, one north of Jameson Street and the other
South of Jameson Street, with the north section running into Prospect Street.
The recent closure of Heaven plus the closure of the seasonal lets have contributed to an
increase in vacancies for this area to 21%.
The occupancy statistics are much higher than the national average of 14% but only equates
to a retail space vacancy of 12%.
Of the vacant shop units the following should be noted.
Liberty Flights.
This is a ground floor corner property and became vacant in January 2015.
This also appears to have been a short term let and it will be interesting to see if the retailer
appears in another “pop-up” retail unit in the city centre.
Dollond & Aitchison.
This is a ground floor unit and has been vacant since approximately 2011
The layout is of a none rectangular format and could be problematical for any prospective
tenant, in addition only 184 square metres of the retail space in on the ground floor with
much of the remainder being in the basement.
Note:Refurbishment of this property now appears to have been completed
Heaven.
This is a Ground & First floor unit and has been vacant since February 2016 and has been
fitted out as a cafe
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3 Mobile
Vacant as a result of the closure of a seasonal let, vacant since June 2015
Starbucks
This is a ground floor corner property and became vacant in April 2015.
The operator stated the unit was too small to be economically viable; however the first floor
of the property is vacant with the potential to create additional seating area.
Herbert Brown
The two adjacent units used by this retailer suffer from difficulties with the retail spaces
which are split into four separate areas of 65, 26, 32 & 28 sq metres respectively, which
again could prove problematical for a tenant and limits the range of occupier.
Thornton
This is a small ground floor unit which became vacant in April 2015.
It had been used as a “factory shop” by the organisation and did not carry the normal retail
range.
Unknown
This is a small unit located close to the Savers Health & Beauty offer
Fish & Chip Bar
The unit at 77 King Edward Street which became vacant in August 2015, and was
previously used as a fish & chip takeaway.
5.2
Jameson Street, Inc South Street.
Occupied
Vacant
Percentage Vacant
45
4
8%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
20,154
1,322
7%
Jameson Street runs from Ferensway along one of the main pedestrian route ways through
to the start of George Street.
Although there has been an increase from the previous report the vacancy rate of 8% is still
well below the national average with the four vacant units accounting for 7% of the total retail
space.
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Vanilla
The seasonal let of this unit has now ended and excluding the seasonal let has been vacant
since September 2015.
Miss Buffet.
This is a ground floor corner property and became vacant in March 2015.
This corner unit has been closed for some time but had signage in the windows to indicate
they were still in business. However it has since become clear the business is no longer
trading
Former “Jessops” (15 Jameson Street).
This is a ground floor property and became vacant in January 2013
This unit has been vacant since the collapse of the national chain and has a limited retail
space, with only 109 sq metres of retail space spread over 3 areas. It is also at the far end
of the retail core and would appear to require refurbishment.
Al Zahra Florist (15 South Street)
This unit closed in January 2016, and had previously been used by an exotic pet supplier,
the unit is very small with a total retail floor space of only 44 sqm which will affect the range
of occupiers it would be suitable for.
South Street runs between Jameson Street and Paragon Street and as a result is slightly off
the main pedestrian route ways.
5.3
Paragon Street, Inc Chapel Street.
Occupied
Vacant
Percentage Vacant
48
8
14%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
8,581
1,164
14%
Paragon Street runs from Ferensway along one of the main pedestrian route ways through
to the edge of Queen Victoria Square.
This Street is on trend with the national average.
Work around Paragon Square is still ongoing by the majority stakeholder developer to create
a dining area and following the successful rental of the building now used as the Dutch
Pancake House, they are working on an adjacent property with a similar outcome in mind.
Unknown (14 Paragon Street)
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This unit is adjacent to Barclays Bank and has been vacant for some time, the unit is
shuttered and so it is difficult to gauge the internal condition.
We Buy Gold (16 Paragon Street)
This is a ground floor corner property and became vacant in February 2014
The unit is small, 78 square metres, and is not of the highest quality.
Reeds Recruitment (28 Paragon Street)
This is a ground floor unit and has been vacant since approximately 2011
Santander Bank (54/60 Paragon Street)
This is a ground floor unit and has been vacant since approximately 2012
This unit was previously a Bradford & Bingley branch office and was closed during
Santander’s rationalisation of branches.
Sams Top Hats (53 Paragon Square)
This is a ground floor unit and has been vacant since January 2016.
Santander Bank (57 Paragon Street)
This is a ground floor unit and has been vacant since approximately 2012
This unit was previously a Bradford & Bingley branch office and was closed during
Santander’s rationalisation of branches. It should be noted that this unit only went on the
rental market in September 2015
My Cup of Tea (67 Paragon Street)
This was previously run as a ground floor cafe and still contains many of the fixtures and
fittings. This appears to have come on the market as part of the conversion of the hotel to
student accommodation. On the Market since September 2015
Sgt Peppers (8 Chapel Street)
This is a ground floor and has been vacant since approximately March 2012
The venue has had a chequered history and closed following the suspension of its licence in
March 2012, and has remained vacant since then.
5.4
Carr Lane, Inc Anne Street, Anlaby Road (part)
Occupied
Vacant
Percentage Vacant
35
1
3%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
15,421
90
1%
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Carr Lane is on the outer edge of the retail core and contains seven pub / club units and five
fast food traders; the low vacancy rate of 3% is good and relates to just one vacant unit.
Money Spinner (9 Anlaby Road)
This is a ground floor and has been vacant since approximately November 2014
Given this unit is located on the south of Carr Lane close to Ferensway. It is in poor
condition and may well suffer from a lack of passing trade.
5.5
Prospect Street, Inc Pryme Street & Story Street
Occupied
Vacant
Percentage Vacant
27
3
10%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
22,513
629
3%
This street now has three units to let which contribute to its below average vacancy rate.
PC Freeform (82 Prospect Street)
This is a ground floor and has been vacant since approximately September 2015
A small unit located on the east side of the street.
Freetown Sports (70/76 Prospect Street)
This is a ground floor unit and has been vacant since approximately March 2015.
This is a large retail unit (386 m2) previously used as a retail & online bicycle outlet.
Indications had been that although the shutters had remained down they had still been
trading although this now does not appear to be the case.
City Gent (14 Story Street)
This is a ground floor unit which has been vacant since February 2016 and is at the corner
of Prospect Street and Story Street and appears to be in reasonable condition.
5.6
Whitefriargate
Occupied
Vacant
Percentage Vacant
46
16
26%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
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24,381
3,113
13%
Given its close proximity, Silver Street has now been included with the data for
Whitefriargate.
Whitefriargate now has five vacant units on the north side, eight units on the south side and
three on Silver Street which together contribute to the above average vacancy rate of 26%.
Although the vacancy rate is above average at 26% the vacant retail space accounts for only
13% of the total. This would suggest the vacant units are below average for the street and
may limit the range of potential tenants.
The area is subject to major public realm improvements and in addition redevelopment
schemes within Trinity Market, Beverley Gate & Holy Trinity Church.
5.7
Savile Street.
Occupied
Vacant
Percentage Vacant
22
4
18%
Total Retail Space (m2)
Vacant (m2)
Percentage Vacant
3,803
957
25%
The street has four empty units three of which are adjacent to each other with Bad Dog
Music being by the far the largest at over 600 sqm. This unit appears to be in poor condition
and one would assume given its size is proving very challenging to let, however some
refurbishment work appears to be happening to the building exterior.
6
Additions to the City Centre
6.1
The following is a list of businesses which are new additions to the city centre.
•
Brookes Outlet
Fashion
Prospect Centre
•
CardMarket
Gifts
King Edward Street
•
V-Tak
Leisure
Carr Lane
•
Tuckermoos
Fast Food
Carr Lane
•
That’s Entertainment
Gifts
Jameson Street
•
Sainthood
Health & Beauty
Paragon Street
•
Bourbon Craft
Bar
(Change of trading name)
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Paragon Street
•
7
Bar
Paragon Street
Business Closures
7.1
8
Maceys
The following retail unit closures.
•
Your Gourmet Burger
Restaurant
Prospect Centre
•
Heaven
Café
King Edward Street
•
Fish Bar & Restaurant
Fast food
King Edward Street
•
City Gent
Hairdressers
Prospect Street
•
EE
Mobile Phones
Whitefriargate
•
Clearout
Fashion
Whitefriargate
•
Christmas Shop
Gifts
Whitefriargate
•
YMCA
Charity Shop
Whitefriargate
•
John Fernley
Jewellery
Whitefriargate
•
Al Zahra Florist
Florist
South Street
•
Christmas Crazy
Gifts
Jameson Street
•
Sams Top Hats
Fashion
Paragon Street
Business Changes
8.1
There have been no recorded business relocations in the last period.
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9
City Centre Occupancy by Sector
9.1
Fashion is still the most prevalent by sector, followed by hair & beauty, fast food,
financial, restaurants and pubs / clubs
City Centre Occupany by Sector
November 2015 to January 2016
80
70
60
50
40
30
20
10
0
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10 Footfall figures
Year to Date
This data range shows the percentage change in total footfall compared to the previous year.
The figures show a distinct drop in footfall around week 52 which continues to the end of the
period. Note: Footfall cameras are at fixed points three of which are in sections of the public
realm affected by the improvement scheme.
2015 - 2016 Year to Date Change %
Hull
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
-6.0
-7.0
-8.0
-9.0
43
44
45
46
North & Yorkshire
47
48
49
50
UK
51
52
1
2
3
Year on Year Change
This data range shows the weekly change compared to the same week number of the
previous year, and these figures also show a marked fall around week 52.
2015 - 2016 Year on Year Change %
Hull
North & Yorkshire
UK
5.0
0.0
43
44
45
46
47
48
49
-5.0
-10.0
-15.0
-20.0
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50
51
52
1
2
3
Week on Week Change
This data range shows the percentage change between the current week and the previous
week
It is worth noting that the week on week figure appears to have begun to stabilise indicating
that the drop in footfall is leveling.
2015 - 2016 Week on Week Change %
Hull
North & Yorkshire
UK
20.0
15.0
10.0
5.0
0.0
-5.0
43
44
45
46
47
48
49
-10.0
-15.0
-20.0
-25.0
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50
51
52
1
2
3