Major retailers are swapping flagship high-street shops for units in the Bullring. But agents are confident that the scheme will generate enough footfall to sustain older shopping areas too. David Quinn reports
As the Bullring nears completion, increasing numbers of retail units are becoming available in Birmingham’s core shopping area.
A total of 27 units in and around the “Golden Square” area, bounded by Corporation Street, Bull Street, High Street and New Street, are available.
Most of these are not yet vacant, but when the 1.2m sq ft Bullring opens on 4 September, this could change, according to agents.
“Most of the availability is a result of retailers opening new units in the Bullring,” says Richard Bidwell, associate retail director at Colliers CRE. “The vast majority are still trading, but in September it may be a different story. Certainly Dixons will look to close its shop on Union Street.”
Dixons is opening a flagship 30,000 sq ft store in the Bullring, premiering its new “XL” format. Meanwhile, its present store in Union Street is being marketed by Colliers CRE.
Next is also taking a unit in the Bullring. Like Dixons, it is looking to offload its existing flagship, which anchors the Pavilion Central centre on New Street.
Despite the availability of several high-profile units in central Birmingham, agents shrug off claims that the existing retail core could suffer in the long term.
“I don’t think it’s an indication that High Street and New Street are doomed,” says Andrew Benson, retail director at DTZ.
“It’s merely an indication that retailers are waiting to see how the Bullring will perform. There’s a pause in the market until the scheme opens and new pedestrian flows make themselves clear.”
Bidwell agrees, noting that the Bullring will increase the popularity of certain parts of the existing core.
“If you look at the bottom end of New Street, close to the Bullring’s entrance, it’s actually starting to look good again,” he says.
Phones 4u has already snapped up H Samuels’ New Street shop, which the jeweller made available earlier this year in readiness for its move to the Bullring.
Paul Rands, retail and leisure specialist at CB Hillier Parker, is certain that the Bullring will not have an adverse affect on pitches.
“Far from killing everything else off, it will drag in many more shoppers from a wider catchment who will be interested not just in the Bullring but in the wider area. New Street, High Street and Pavilion Central will continue to be good pitches,” he says.
But with 27 available units, is it not possible that at least some will remain vacant for an extended period, leading to an influx of lower-end retailers as landlords take a short-term view on rents?
Bidwell thinks not. He says: “There will be voids, but I don’t think it will last. It will filter through. Maybe retailers will come in, maybe they will take second units,” he says.
Unlike Bidwell, Benson admits that there could be a downgrading in the type of retail provision outside the Bullring.
“Available units could be let to retailers further down the hierarchy,” he says.
But, overall, he maintains his enthusiasm, adding: “Alternatively, they may let to better retailers moving into the city for the first time, or there may even be foreign retailers waiting in the wings.”
An opening date of Thursday 4 September has been confirmed for the Birmingham Alliance’s Bullring.
Retailers have committed to more than 90% of the units in the 1.2m sq ft scheme, and the 100th deal is close to being signed. In May alone, 17 retailers signed for units.
“It has gone exceptionally well and I don’t think anyone in the market would disagree with that,” says Guy Webber of Jones Lang LaSalle, which is joint letting agent on the scheme with Cushman & Wakefield Healey & Baker and Lunson Mitchenall.
Recent notable lettings include fashion retailer Mango, which will be housed in a 4,350 sq ft corner unit overlooking the central piazza on the middle level.
Earlier in the year, Nike, Karen Millen and Miss Sixty took units on the scheme’s fashion-orientated “Street 7” upper level.
The few remaining units are at the smaller end of the size range, says Webber.
Much of the construction activity is now focused on the external spaces, particularly around the spruced-up St Martin’s church, which will stand within a limestone piazza.
Additionally, paving is under way on St Martin’s Walk, which re-establishes a pedestrian link between New Street and High Street to the church and the markets.
Meanwhile, cladding on Selfridges’ spectacular store exterior (pictured above) is now close to completion.
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Selected retailer requirements |
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TK Maxx and TJ Hughes are seeking space |
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Retailer |
Sector |
Minimum sq ft |
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Allders |
Department store |
70,000 |
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TJ Hughes |
Discount/value retail |
35,000 |
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TK Maxx |
Discount/value retail |
12,000 |
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Daisy & Tom |
Childrens/babywear |
8,000 |
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B&M Bargain |
Variety store |
8,000Madness |
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Urban Outfitters |
Unisex |
7,000 |
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£-stretcher |
Discount/value retail |
5,000 |
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Peacocks |
Womenswear |
4,000 |
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Tiger of Sweden |
Menswear |
4,000 |
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Warner Bros Studio |
General |
3,500Store |
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Iceland |
General |
3,000 |
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Farmfoods |
General |
3,000 |
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99p Stores |
Discount/value retail |
3,000 |
|
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Mexx |
Womenswear |
2,500 |
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Bathstore.com |
General |
2,000 |
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Blockbuster |
Video chain |
2,000 |
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Delcor Furniture |
General |
2,000 |
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Ethel Austin |
Childrens/babywear |
2,000 |
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Fopp |
Music chain |
2,000 |
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New Heights |
General |
2,000 |
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Republic |
Unisex |
2,000 |
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Sainsbury’s Local |
General |
2,000 |
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Joy |
Womenswear |
1,800 |
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Moben Kitchens |
General |
1,800 |
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Sharps Bedrooms |
Speciality |
1,800 |
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Café Cadbury |
Coffee boutique |
1,750 |
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Carphone Warehouse |
Mobile phones |
1,500 |
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Motor World |
Car accessories |
1,500 |
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Ottakar’s |
Bookstore chain |
1,500 |
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Ramsey |
Menswear |
1,500 |
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Source: EGi Retailers’ Requirements |
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