12
FEATURE: LONDON & THE SOUTH EAST
Capital
VALUES
London and the South East is still the most affluent part of the country, despite the
credit crunch. How are its malls faring in the downturn?
T
he London Retail Consortium is the regional arm of the BRC, Despite this summer blip in trade Colliers CRE calculates
and the fact that it has its own representation underpins that the region is the UK’s most resilient, on the basis that
how important the capital is to the UK retail scene. The BRC occupancy levels have held up far better than elsewhere.
calculates that in 2008 the region accounted for 19 per cent of Oxford Street and Kensington High Street have the lowest level
total UK retail sales, with £52bn passing through its tills. Over of retail voids in the UK at 7.2 per cent and 8.7 per cent respectively.
£4.5bn is spent in the West End alone, making it the UK’s top retail However, while Kensington High Street is performing well
centre. Or putting it another way, London’s economy is larger in comparison to other national centres, both the proportion of
than those of Austria, Poland and Norway. empty units and amount of void floorspace has risen since last
However despite its economic might London has not proved autumn when the void rate was running at just 2.3 per cent.
immune from the downturn. The LRC calculates that in August Colliers’ report is diplomatic when it comes to ascribing blame
2009 retail sales in central London were down 5.9 per cent, on a for this surge in vacancies, stating: “It is unclear whether this is a
like-for-like basis, compared with a year ago, when they were direct result of the opening of the nearby Westfield London shopping
growing at 8.6 per cent. centre at the end of October last year; however, it is likely to have
Retail footfall in August was also down year-on-year. The LRC’s been a contributing factor.” Others are less tactful, with the London
analysts say better weather than last August’s downpours meant Evening Standard blaming Westfield firmly for the street’s woes.
people often preferred outdoor leisure to indoor shopping. Westfield London itself appears to be going from strength to
And London defines its catchment globally, which brings special strength despite retailer concerns about the high level of service
factors into play: sterling’s weakness against the euro continued to charge. The million-sq ft mall attracted its 10 millionth visitor by April
attract European visitors, but the high-spending shoppers from the 2009, and it is firmly on target to achieve footfall of 20 million during
Middle East returned home before the end of summer this year, as its first year of business.
Ramadan began earlier. Another example of a new mall making a big impact on its
SHOPPING CENTRE SEPTEMBER 2009
www.shopping-centre.co.uk
12 14-SCSep-LonSE.indd 12 23/9/09 17:03:08
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