46 ANNIVERSARY
Is bigger better? I
Over the past 20 years the trend has been for shopping centres to get bigger and bigger. Sean Kelly investigates the rise of the mega-mall
t could well be that there is a natural limit on just how large UK centres can feasibly become, based on the general evidence of shopping centre development and sizes over the past 20 years. Trevor Wood of Trevor Wood Associates believes the story behind
the UK’s shopping centre size statistics over the years is a compelling one.
“It’s interesting to note that from the table there are 11 schemes in
1991 that were 700,000 sq ft and above,” he says. “In 2011 there are now 40 schemes. Furthermore back in 1991 there were just 18 schemes of 500,000 sq ft and above. Now there are 67. Bigger may seem to be preferable in the industry but whether that’s what the general public feels I wouldn’t like to say.” Wood notes that historically some of the biggest schemes had
supermarkets as anchors but that this has changed over the years. “Shoppers tend to treat the supermarket shop as a separate journey so in the past few years a number of landlords have cleverly asset managed those supermarkets by finding a location outside or adjacent to the centre and then filling up that vacant space with a wider variety of retailers,” he says. “This was the case at MetroCentre and also at Almondvale in Livingston. Centres like these have been proactively asset managed to increase their overall appeal.” One other trend clearly shines through with regards to the 20
largest in 1991 and now, according to Wood. “I would imagine that we are close to the apex of the maximum size of a shopping mall within this country – at least in the foreseeable future,” he says. “I think in the UK while it may seem preferable to be big, the creation of bigger and bigger shopping malls is not something we aspire to. Too large a centre and it can become unwieldy for the consumer. If you look at recently-opened centres they have been about 1.5m to 1.6m sq ft in size. Westfield Stratford, which opens later this year will take us to 1.9m sq ft but we’re unlikely to see more of that size for some time to come, given the current economic climate.” Mark Teale, director of retail research at CBRE, believes that
the cyclical nature of the economy has left clear imprints on retail development. “Developer appetite for bigger shopping centres strengthened
markedly following the 1980s boom,” he says. “During the 1980s, the development of shopping centres accelerated but relatively small
SOURCE: TREVOR WOOD ASSOCIATES
centres in secondary trading locations continued to proliferate. It was the smaller secondary centres that tended to come a cropper in the early 1990s downturn. Post-recession focus shifted sharply towards large dominant centres and extensions to centres with a proven track record – essentially a low risk development strategy.” Teale also cites UK market maturity. “The biggest development
surge for the shopping centre industry in town centres was actually in the 1960s and 1970s,” he says. “Following the 1980s recession there was another development surge but cumulatively it wasn’t as large. The floorspace added following the 1990s recession was less again. The gradual decline in the rate of development in town and city centres is simply because most of the best sites were developed years ago: it has become increasingly difficult to find new ones that are viable, hence the continuing pressure for A1 shop space out-of-town.” And ahead? A development surge of any size would be welcomed by the industry facing an anemic development pipeline. “The
2,000,000 GLA (Sq. Ft.)
1,500,000 1,000,000 500,000 0
The largest shopping centres in January 1991 2,000,000
GLA (Sq. Ft.) 1,500,000 1,000,000 500,000 0
June 1992
July 1992
July 1992
September 1992
by June 1992. The centre was built to house 40 shops, cafes and restaurants.
Construction on Bredero’s Broadway Shopping Centre in Hammersmith was well under way
The 180,000 sq ft Paisley Centre, the joint venture between Bredero and Arrowcroft, was opened by Princess Diana.
SHOPPING CENTRE February 2011
www.shopping-centre.co.uk
construction and due to open on October 27 1992. The centre would provide 27 units for a host of speciality retailers, BhS and Waitrose.
The Meadows in Chelmsford was under
Speyhawk’s 320,000 sq ft Centre Court Shopping Centre in Wimbledon opened on September 17 1992. The scheme cost £120m.
Lakeside Shopping Centre MetroCentre
Arndale Centre, Manchester
Lakeside Shopping Centre MetroCentre
Arndale Centre, Manchester
Merry Hill Centre Meadowhall
Eldon Square Shopping Centre the centre:mk
Merry Hill Centre Meadowhall
Brent Cross Shopping Centre Queensgate Shopping Centre
Eldon Square Shopping Centre the centre:mk
The Arndale Shopping Centre, Luton Cwmbran Shopping
Brent Cross Shopping Centre Queensgate Shopping Centre
The Arndale Shopping Centre, Luton Cwmbran Shopping
The Telford Shopping Centre Kingfisher Shopping Centre
The Telford Shopping Centre Kingfisher Shopping Centre
Eastgate Shopping Centre The Victoria Centre
Eastgate Shopping Centre The Victoria Centre
Clyde Shopping Centre
Runcorn Shopping City Galleries Shopping Centre The Brunel Centre
Clyde Shopping Centre
Runcorn Shopping City Galleries Shopping Centre The Brunel Centre
Dolphin Shopping Centre Dolphin Shopping Centre
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