International Brands such as Michael Kors, & Other Stories, Victoria’s Secret and Zara Home have all identified Leeds as an early target for further UK expansion, according to a report by Colliers International.
This trend was identified by Colliers International’s National Retail Barometer, which has tracked the openings of 10 international brands, across both luxury and mass markets, none of whom had a significant UK presence prior to the 2008 economic downturn. According to the report, two thirds of the international luxury brands monitored chose Leeds in the initial phases of expansion outside of London. (Please see further information for full list of brands).
David Fox, Head of Retail Agency, North at Colliers International, commented: “The opening of Trinity Leeds had a significant effect on the retail market and has acted as a catalyst, attracting many well-known brands to open regional debut stores in the city.
“With the opening of Hammerson’s Victoria Gate, it’s likely to see that Leeds will remain a high priority location for brands looking to reach a regional audience. We’ve already heard that Ghost and Bailey Nelson will open their first stores outside London, and well-known brand Cath Kidston is also establishing a base in the city.
Too Many Options:
Further findings from Colliers’ Retail Barometer showed that Birmingham, Bath, Brighton, Guildford and Sheffield Meadowhall were top destinations for 40 per cent of the brands, whilst Manchester only attracted three out of the 10 brands in their early expansion (Victoria’s Secret, & Other Stories and Nespresso).
Fox continued: “Manchester has some great retailers, but it’s been difficult for the city to attract some of the international brands as they have to choose between Manchester City Centre and the Trafford Centre, which as a result has seen neither venue occurring in the top two locations.
“In the same way as in Manchester, retailers must choose between Bristol’s two centres and, as a result, neither centre achieves the same concentration of regional debuts.”
Location, Location, Location:
Fox continued: “Logistics is also a major factor in a brand’s decision making process when it comes to expansion. Distant and more remote cities such as Plymouth and Exeter are less likely to attract brands in the initial phases of UK expansion.
“Bath, Brighton and Guildford have hit the radar of international retailers because of their affluent population, potential tourist benefits and relatively low rents compared to many of the other major UK cities.”
Rents Remain Steady:
The Retail Barometer, uses proprietary Prime Zone A rents and centre vacancy data to monitor the health of the UK retail property market. It also tracks rental growth, and found that no major UK cities have recorded a decline in rents since 2014, whilst 11 have seen a steady increase in rents. York, Newcastle-Upon-Tyne and Manchester have recorded particularly strong increases in annual rental growth of 17, 14 and 8 per cent respectively (2015-16).
David Fox further stated: “In general it’s larger towns and cities that have performed best, with Rotherham and Bolton examples of large towns to have experienced a fall in rents over the past year.
“Both Rotherham and Bolton sit just within the shadows of Sheffield’s Meadowhall, Manchester’s City Centre and the Trafford Centre. The Meadowhall and Manchester Centres have been more successful in attracting shoppers who are prepared to travel further to these locations, attracted by experiential shopping and ample parking.
“This increasing polarisation across the retail hierarchy is the result of changing shopping habits. Over the past few years, we’ve seen that shoppers are looking for a diversity of retail, restaurants and leisure all in the one concentrated area.”
