It’s no secret that the UK retail market is still undergoing significant challenges. However, as the old adage goes, with challenge comes opportunity and we’ve certainly been seeing a number of new brands capitalising on the opportunities that have arisen as a result of the shifts within the sector.
Last year in Leeds we saw a significant spike in the number of new names taking space within the city centre, with many being driven by increased vacancy rates and reduced rental values. Key city centre retail streets such as Briggate have seen rents fall from £300 ITZA net in 2016 to £130-170 ITZA net in 2020/21, with Savills forecasting a bounce back to £200 over 2022 and 2023.
Coupled with rises in vacancy rates, there are now more opportunities than ever for acquisitive, new brands to take retail units in prime locations that may have previously been out of their reach.
What’s promising is that we’ve seen new entrants from a full mix of sectors opening new sites in Leeds, suggesting that there is growth to be had across each sub-sector if the brand and offering is right.
We’ve seen a number of high profile brands make their Leeds debuts, such as Decathlon, which opened a flagship store at Trinity, as well as aspirational brands such as Kate Spade and Boodles, which both opened last year in the Victoria Quarter.
Equally, we have seen a raft of new leisure names from axe throwing brand Whistle Punks to Babydoll, a new bar concept from DJ Tom Zanetti.
Food and beverage (F&B) occupiers have been particularly acquisitive with a number of brands opening multiple sites across the city. Last year saw quick bite deli brand Meal Deal take sites at Albion Street and Briggate with more in the pipeline for this year. Popular coffee brand Black Sheep, which initially launched as a pop up in London in 2013, is also actively seeking numerous sites throughout the city.
In spite of the challenges they have faced, it is still the key retail destinations that are attracting the highest levels of activity, such as Commercial Street, Briggate and Trinity. We are also seeing a number of transactions across the city’s strongest leisure pitches such as Electric Press, Boar Lane and Merrion.
It is the weaker secondary and tertiary locations that are now struggling, with retailers formerly based in those pitches taking the opportunity to snap up space in more prime locations. Retail in the city’s central business district has also been impacted due to a lack of footfall, although we do expect this to recover.
What’s clear is that these new entrants all have the belief that their brand can withstand the current turbulent market, and it’s worth noting they have also benefitted from having smaller portfolios, rather than larger, over-rented legacy sites.
Rents will bottom out and start to creep back up, and it’s those that have acted with confidence now that are in the best position for the future.
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