Newcastle’s Retail Revitalization: Visitor Insights & Future Footfall Trends
Visitor footfall data from Visitor Insights highlights the importance of these developments in steering Newcastle towards a more sustainable retail future, making it a city to watch in the coming years.
In 2023, Newcastle’s retail landscape was undergoing a transformative shift. Major redevelopment projects and investments were reshaping the city’s shopping areas, aiming to attract more footfall and adapt to the post-pandemic retail climate. According to footfall data gathered by Visitor Insights, using the Terain platform, these changes were vital in addressing the lingering impact of COVID-19 and the ongoing shift towards online retail, which has resulted in a significant reduction in in-person shopping. Footfall was still 22% lower compared to the same period in 2019.
Pilgrim Street Redevelopment: A Catalyst for Growth
One of the most ambitious projects was the redevelopment of Pilgrim Street. This area was set to become a hub for retail, hospitality, and leisure. New shops, bars, and restaurants are being developed to complement Pilgrim’s Quarter, scheduled for completion in 2027. This massive transformation also includes the construction of two new office buildings, an 80-bedroom hotel, a 221-space car park, and a large public square. The objective was clear: to create a dynamic environment that draws both locals and visitors, helping to reverse the trend of lower footfall.
Additionally, planning permission had been granted for the conversion of part of the TJ Hughes store on Grainger Street, transforming it into a food and beverage destination. The redevelopment of Pilgrim Street is expected to be a key driver in attracting more visitors, potentially increasing demand for retail spaces and boosting the city’s economy.
Fenwick’s Flagship Investment & City Centre Transformation
One of Newcastle’s most iconic stores, Fenwick, is also playing a significant role in revitalizing the city’s retail sector. With a £40 million investment in its flagship store, Fenwick is not only enhancing its offerings for shoppers but also upgrading its façade, contributing to the overall aesthetic upgrade of the city centre.
In parallel, Newcastle City Council is implementing a City Centre Transformation Programme, focusing on enhancing public realm in key locations such as Old Eldon Square, Blackett Street, Grainger Market, and Grey Street. These upgrades are designed to improve shopping experiences and make the city more appealing to both locals and visitors, which increase footfall in these areas.
Regeneration of East Newcastle and Jarrow
Newcastle’s East End is set to benefit from £2 million of funding from the North of Tyne Combined Authority’s Town and High Street Innovation Programme. This investment aims to breathe new life into key shopping areas by bringing vacant properties back into use, supporting local traders, and creating greener, more attractive public spaces. The project is expected to draw more visitors and invigorate the local retail scene.
Meanwhile, nearby Jarrow is due to receive £20 million through the ‘Long-Term Plan for Towns’ initiative. The funding will focus on high street regeneration, heritage preservation, and improving public safety. As Jarrow’s infrastructure is modernised, the ripple effect on Newcastle’s regional retail and tourism appeal could further boost footfall.
Retail Rents & Vacancy Rates: Green Shoots of Recovery
The retail sector in Newcastle, much like the rest of the UK, has faced significant challenges in recent years. Prime Zone A retail rents across 200 major locations in the UK have declined by an average of 36% since 2017. Newcastle has been hit harder, with rents almost halving from £310 to £160 over the same period.
However, despite the challenging retail climate, there are signs of recovery. The vacancy rate for prime retail spaces in Newcastle city centre has improved significantly, dropping from 21.1% in 2021 to 10% in 2023. This is due in part to new tenants, including brands like Mango, Rituals, and the Bagel Factory, setting up shop in Eldon Square.
Though retail rents in the city are expected to grow by just 1% over the next five years, the ongoing redevelopment of Pilgrim Street and other key areas is likely to increase footfall, potentially driving up demand and leading to higher prime rents in the future.
Conclusion: The Road Ahead for Newcastle’s Retail Sector
Newcastle’s retail environment during 2023 is characterized by significant redevelopment, strategic investments, and a focus on boosting footfall to key areas. While challenges remain—such as the slow recovery of visitor numbers and fluctuating retail rents—the city’s commitment to revitalizing its shopping districts is clear. Projects like Pilgrim Street, Fenwick’s refurbishment, and the City Centre Transformation Programme coming to fruition, signify that Newcastle’s retail sector is poised for a resurgence, attracting more shoppers and creating a vibrant city centre once again.
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