Leeds’ retail landscape in 2023 is marked by a blend of challenges and opportunities. While footfall remains under pressure due to economic factors, the city’s proactive measures and strategic developments indicate a positive outlook.
The Retail Landscape of Leeds in 2023: A Year of Transformation
Leeds continues to solidify its reputation as a vibrant retail hub with a diverse mix of retailers both in the city centre and its outlying areas. Renowned for the principal shopping destination in Yorkshire, Leeds stands as the fifth largest retail centre in the UK outside London. The city offers an eclectic retail provision that caters to all preferences, from budget-friendly stores to aa wide array of luxury retailers.
A Glimpse into Leeds’ Retail Hotspots
The crown jewel of Leeds’ retail scene is undoubtedly Trinity Leeds. Celebrating its tenth anniversary, this one-million-square-foot shopping centre sits at the heart of the city and houses over 120 shops, restaurants, bars, and cafés. Just a stone’s throw away, Victoria Gate and the Victoria Quarter boast a collection of luxury retailers, including John Lewis. The city’s retail appeal extends beyond the city centre, featuring eight shopping centres and twelve retail parks.
Challenges in Footfall: Impact of the Cost of Living
Despite its retail offerings, Leeds has faced challenges in footfall recovery post-pandemic. Visitor Insights’ data highlights that the number of visitors has not yet returned to pre-pandemic levels. The cost-of-living crisis has posed a significant hurdle, leading to a 20% decline in visitor numbers in 2023 compared to the previous year. This drop is largely attributed to a decrease in consumer disposable income, resulting in lower retail sales volumes.
Positive Outlook with Council Support
Amidst these challenges, there are promising developments on the horizon. The city centre’s retail vacancy rate is approximately 19%, driven by the closure of major department stores like Debenhams and House of Fraser. The planned conversion of the former Debenhams store on Briggate into student accommodation was cancelled, however Frasers Group is refurbishing the six-floor building into its upscale ‘Flannels’ store. This development is a positive step in the right direction to significantly reduce the retail vacancy rate in the city centre.
As a result a ten-story block of student housing is planned for the site of former House of Fraser on Briggate. Additionally, the Core Shopping Centre is earmarked for demolition to accommodate more student housing. Retail giant Zara is also making waves by relocating to a flagship store in the former Topshop unit at Trinity Leeds.
The Leeds City Council’s 2021 ‘Future of Leeds City Centre and Local Centres’ report outlines a strategy for adapting to long-term changes and challenges. By focusing on high-quality retail, leisure, social, and cultural experiences, and collaborating with various stakeholders, the Council aims to support growth across the city’s retail and leisure sectors.
Rents on the Rise and Vacancy Rates Declining
Over the past five years, prime zone A rents in Leeds have decreased by 28%, which is better than the 36% average decline recorded across the UK’s major 200 retail locations. Encouragingly, the first half of 2023 saw a 6% rise in prime zone A rents in the city centre. The vacancy rate for prime retail in the city centre has also seen a decline, dropping from 20.8% at the end of 2022 to 19.1% by mid-2023.
This positive trend is expected to continue, fuelled by numerous new openings in late 2023, including Build a Bear, Pizza Pilgrims, and Monica Vinader. The upcoming arrival of Flannels, occupying 80,000 square feet of previously vacant space, will further reduce the vacancy rate. With the demolition of the former House of Fraser store, city centre availability is shrinking, which will likely exert upward pressure on rents.
With ongoing support from the Council and a wave of new retail openings, Leeds is poised to strengthen its position as a leading retail destination in the UK.
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