In Glasgow, out-of-town mall Braehead was awarded town centre status in August after a long battle with Renfrewshire council. Owner Intu plans to extend the 1.1m sq ft centre by 675,000 sq ft. Meanwhile in the city centre a £400m extension to the 600,000 sq ft Buchanan Galleries shopping centre (pictured) is due to start construction soon. Is competition for shoppers and retailers across greater Glasgow and beyond about to hot up?
Getting town centre status is a significant move for Braehead. Tom Johnston, head of retail at Colliers International in Glasgow, says: “It means that they can do anything that a town centre does without having objections from other parties or objections from the local council. It gives them the power to do what they want if they wish,” he says.
If Land Securities is concerned about the change in status at Braehead, and the planned extension which has been approved in principle by Renfrewshire council, then it isn’t saying so. Its own extension, which will increase the size of the centre to 1.2m sq ft, already has a number of prelets including M&S as an anchor store and a Cine de Lux cinema.
It will be adding 100 shops and 25 restaurants in total to Glasgow’s city centre by the time it completes in 2017.
The developer bought out its jv partner TIAA Henderson Real Estate last month, paying £137.5m for its 50% stake and giving it sole ownership of the scheme.
Cushman & Wakefield partner John Menzies sees the new retail and leisure space as building on greater Glasgow’s success: “What we are seeing here is the extension of existing developments. They are so well ingrained into the Glasgow market that I think the impact we have seen with these developments has, for the most part, already happened.”
And in line with current growth trends, leisure features heavily in all the plans, arguably strengthening a previously weaker part of the market. Kevin Sims of CBRE is agent on Silverburn, the 1m sq ft shopping centre in south-west Glasgow where a leisure-led extension is due to open next year. He says: “The out-of-town centres are all trying to add to the consumer experience, but the city centre is always going to be number one in everyone’s eyes as it offers everything.”
John Duffy, head of in-town retail at Colliers International, agrees. He says: “You need both [city centre and out of town], and it is healthy to have both. People like choice and they have their own preferences of where they want to shop, and that is where Glasgow scores – there are many different outlets for many different kinds of retailers.”
LandSec’s success so far with lettings at Buchanan Galleries must be a positive sign. The city centre does seem to be the preferred choice for retailers opening their first store. Victoria’s Secret is reportedly looking in the city centre to open its first Scottish store.
The city centre’s pull is what helps set it apart, says Menzies. A number of high-end and premium brands have a presence there; they like to be in a cluster. “I think retailers will always want a place in Glasgow city centre,” says Menzies. “There will always be certain brands that will want a presence here.”
“It’s all about convenience, and we have to make it an experience again,” adds Johnston. “Glasgow has opened up to that and is extending its opening hours in the city centre. When it is dreadful weather and you’re a parent with the kids you want to go somewhere with free parking, and Glasgow has catered for all these needs,” he says.
But not all are confident that Glasgow can absorb all this extra space. One agent, who asked not to be named, says: “I think there is a danger of overprovision in the city centre if things keep moving forwards. Remember that 15 years ago we didn’t have Braehead, Glasgow Fort or Silverburn, amounting to the best part of a couple of million sq ft, so the retail landscape continues to be under pressure, and it will continue to be under pressure as more space comes on.”
You could argue that the city centre has successfully fought off the competition from the likes of Braehead, Glasgow Fort and Silverburn and become stronger as a result. But for now, there still seems to be an appetite for space.
Bridge to Braehead
A new road bridge is planned as part of the government injection of £11.3bn into the city’s infrastructure, linking the city centre to Braehead. The bridge could pull footfall away from the city centre.
“The new road will bring people from the north of Glasgow and allow them to come to the airport and industrial estates more quickly, as well as making it much quicker to get to Braehead,” says Colliers’ Tom Johnston.
It will open up the north-west, making it more accessible. At present, if you want to get to the city then you have to go through the Clyde tunnel, which can end up taking a whole afternoon if you get stuck in one of the frequent traffic jams at peak times.
John Duffy, director of in-town retail at Colliers International, also thinks that the new road will make Braehead more accessible.
“I think this new bridge will help Braehead as well as making access to the city much more easy than it presently is,” he says.
