City centre spending better than York, despite major retail names falling into administration

29/06/2011

 COMMERCIAL property agents say cost-conscious shoppers, an improved retail offer and rising fuel costs are helping to encourage retail spend in Hull.

New figures from CACI reveal that in terms of city centre expenditure, Hull has leapfrogged ahead of York for the first time.

Over the past 12 months, Hull has amassed a £640 million retail spend, compared with York's £630 million, according to the London-based retail analysts' 2011 retail footprint study.

The figures for Hull are approximately the same as last year, while York's have dropped about £10 million.

This puts Hull in 35th position – up from 37th position in 2010 – with York in 36th place.

Surveyor Simon Grainger, retail and leisure expert at Garness Jones, said: "People often say they 'never go into Hull' shopping, so I was initially quite surprised by the figures.

"Even with the bigger national retailers, such as M&S and Next, there is a general perception that there is a better and wider selection at their stores in other cities.

"However, in terms of what I do on the retail side, it has been very busy.

"We are not getting as many inquiries, but the conversion rates are very good, so there is obviously something good happening out there."

Mr Grainger pointed out that the rocketing cost of fuel could also have had a significant part to play in the figures.

"A lot of people are reluctant to drive 45 minutes or more to get to places such as Leeds and Sheffield," he added.

"And with people becoming more cost-conscious, staying in the local area can be a tempting option."

The CACI figures came before an announcement on Monday that Jane Norman had been placed in administration, with Thorntons yesterday stating it was to close 180 UK stores.

Jane Norman yesterday confirmed a third of its stores would reopen after being sold to the Edinburgh Woollen Mill, including the one in Hull's St Stephen's.

Mr Grainger said: "When you have companies with so many stores across the country, there is often a situation where a number of outlets are totally under-performing whereas others are doing really well.

"The fact Jane Norman in Hull is reopening suggests this one of their better-performing stores."

Simon Preston, of Scotts Property LLP, said: "We do now have a better mix of retailers in the city.

"St Stephen's has now been established for some time and for most of last year it was majority let, with very few voids.

"In the city centre in 2010, again there hasn't been too many voids and I think landlords have adopted a more realistic approach in terms of rents.

"As a result, voids have been quickly filled, which ultimately gives the shopper more choice."

Mr Preston admitted that some areas of the city centre had been affected by empty units more than most, particularly King Edward Street.

However, he confirmed he was currently in negotiations regarding a deal for the former Millets store.

He added: "People have their thoughts about York, but it has had its own issues.

"The Borders store, for example, closed in 2009.

"That occupied a large area of space in the city centre.

"It has just been let to Cult, but that was empty of all of 2010."