Edinburgh is normally a bustling city, attracting over four million visitors all year round. It’s the UK’s second most visited city, after London, with visitors accounting for a spending potential of over £1.5 billion annually. 

Covid-19 is having a devastating effect globally and in Edinburgh the news that the 2020 Edinburgh Festival has been cancelled will be disastrous for some local businesses, particularly those reliant on the tourist trade. The Edinburgh Festival is the world’s most famous arts festival and the third largest ticketed event globally, only surpassed by the Olympics and the Football World Cup. 

As a result of event cancellations, properties marketed for short-term lettings are now being converted to longer term lets and some are even being offered to the council for homeless and vulnerable people.  

Retailing in the city centre is also at a standstill and construction of the new 1.7 million sq ft St James Centre has ground to a halt, delaying the opening until early 2021. 

However, Edinburgh has a superb basis from which to resurrect itself and we predict that 2021 will be a great year for the city. Festivals are expected to come back stronger than ever and attract even more visitors than in previous years.

When the St James Centre does open it will transform the retailing landscape in the city centre. We have already seen a change in the make-up of the high street, particularly Princes Street which is well known for its mass market retailing brands. Over the past three years we’ve seen the street, and in particular its west end, moving away from being dominated by retail uses to more F&B, hotels and tourist-driven uses, sitting alongside more value-driven retail.  

The new Johnnie Walker visitor centre, which will be located in the former House of Fraser, is a great example of the re-purposing of space on Princes Street. Recently planning consent was granted for Premier Inn to expand into the existing New Look at number 121, which will include a ground floor restaurant. The planning policy for Princes Street is being adapted to allow for a more diverse range of uses and we will see further new brands and concepts opening up, attracted by its tourist footfall and castle views. 

Edinburgh continues to attract new retail brands. Over the past 18 months George Street has welcomed the likes of Helly Hansen and Sea Salt, and there are a number of other brands keen to secure representation on the street. Such brands are less likely to relocate to St James Centre as they prefer the prestige and character of the buildings on George Street.

Looking forward, Edinburgh provides a unique blend of experiences, with the character and appeal of one of the most picturesque cities in Europe. And while the true reflection of the impact of Covid-19’s disruption on the city is yet to be seen, Edinburgh has an excellent base to bounce back from. Likewise premium retailers will continue to be attracted to the city, enticed by its affluence, year-round footfall and tourism.

Further information

Contact Savills Retail