While challenges persist, the city’s commitment to redevelopment and the introduction of major new attractions promise to bring fresh energy to both the city centre and surrounding areas.

Manchester’s Retail Landscape in 2023: Refurbishments, Footfall, and Future Developments

Manchester’s city centre has been undergoing significant transformation in 2023 as key refurbishment and redevelopment projects seek to reinvigorate footfall and boost the retail landscape. Using data from Visitor Insights, gathered through the Terain platform, we can better understand the changing dynamics of Manchester’s retail sector and its ongoing efforts to attract more visitors to the city centre.

Refurbishments and Redevelopments: A Glimpse into the Future

Several high-profile schemes are currently in the pipeline, aimed at breathing new life into Manchester’s retail spaces. In the heart of the city, notable projects include:

  • The Printworks: Undergoing a comprehensive refurbishment to reimagine this iconic entertainment complex.
  • House of Fraser on Deansgate: Approved for redevelopment, the former department store will be converted into office spaces with a limited portion dedicated to ground-floor retail.
  • Former Debenhams on Market Street: An application has been submitted to convert this site into a mixed-use development, showcasing a trend towards creating multi-purpose spaces that combine retail with other functions.

Outside of the city centre, retail changes are equally noteworthy. Marks & Spencer is set to relocate from its current 87,000 sq ft store in the Trafford Centre to the much larger 135,000 sq ft former Debenhams unit. Meanwhile, just next door to the Trafford Centre, the eagerly anticipated Therme Manchester, the UK’s first city-based wellbeing resort, is under construction. Scheduled to open in 2025, this ambitious development will include indoor and outdoor leisure spaces, botanical gardens, swim-up bars, and a range of wellbeing activities. Additional leisure and retail projects are planned for this site, which will undoubtedly increase footfall in the future.

    Elsewhere in the region, projects such as the redevelopment of the Fallowfield Retail Park, the transformation of Eccles town centre by Salford City Council, and the revamp of Wythenshawe town centre illustrate the broader trend of repurposing underutilized retail spaces to create vibrant community hubs. These developments aim to inject vitality into areas that have struggled with declining footfall and retail closures.

      Footfall Challenges and Rent Trends

      Despite the efforts to stimulate retail activity, Manchester’s city centre is facing challenges, particularly when it comes to vacancy rates and rental trends. According to footfall data from our Terain platform, the city’s prime retail spaces are experiencing a higher vacancy rate, with 10.8% of units currently vacant. This is a notable increase from the 8.3% recorded at the end of 2022, reflecting the pressures that retailers are facing post-pandemic and amid a shift to online shopping.

      Nevertheless, Manchester remains one of the UK’s strongest retail markets outside London. While the decline in prime zone A rents has mirrored the national trend, Manchester’s 33% decline since 2017 is slightly below the UK average of 36%. This resilience has helped Manchester maintain its position as one of the most expensive retail markets outside of the capital, ranking seventh on PMA’s prime rent index at the close of 2022.

      The Road Ahead: Long-Term Recovery

      Although the refurbishment and redevelopment projects offer exciting prospects, the journey to revitalizing Manchester’s retail sector will take time. Developments such as Therme Manchester and the proposed surfing centre and leisure facilities in Trafford are expected to attract significant footfall once completed, but their full impact will not be felt until after 2025.

      In the short term, Manchester will need to continue leveraging innovative solutions, such as data-driven insights from platforms like Terain, to monitor footfall patterns and adjust strategies accordingly. By embracing mixed-use developments and prioritizing projects that foster community engagement and leisure activities alongside retail, Manchester is positioning itself for a recovery that aligns with the evolving needs and preferences of modern shoppers.

      In conclusion, Manchester’s retail landscape in 2023 is one of transition and transformation. While challenges persist, the city’s commitment to redevelopment and the introduction of major new attractions promise to bring fresh energy to both the city centre and surrounding areas. As these projects progress, we can expect to see a gradual increase in footfall and a rejuvenated retail market that caters to a new generation of visitors.

      In the short term, Manchester will need to continue leveraging innovative solutions, such as data-driven insights from platforms like Terain, to monitor footfall patterns and adjust strategies accordingly. By embracing mixed-use developments and prioritizing projects that harness community engagement and leisure activities alongside retail, Manchester is positioning itself for a recovery that aligns with the evolving needs and preferences of modern shoppers.

      Manchester’s retail landscape in 2023 is one of transition and transformation.  As these projects progress, we can expect to see a gradual increase in footfall and a rejuvenated retail market that caters to a new generation of visitors.

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