While many retail chains are choosing to focus on widespread expansion, others are choosing to examine their property portfolios in order to determine whether or not stores are remaining profitable – especially as numerous high street and shopping centre lease agreements nationwide are due to run out later this year.
At WestQuay Shopping Centre in Southampton, this has resulted in the loss of five major brands, all of which are owned by Sir Philip Green’s Arcadia Group.
Dorothy Perkins, Evans, Wallis, Burton and Miss Selfridge will all close their doors for good at the centre when their leases expires on the 13th of June, although the group’s Topman and Topshop stores will be unaffected by the decision.
The group claims that this is a decision based upon the consumer demand in the area, and has promised to minimise staff redundancies by redeploying employees to other nearby stores where possible.
A spokesman for the Arcadia Group said; “We are constantly reviewing our store portfolio across the group, and leases continually expire or come up for renewal.
“We are always looking at how to shape our store portfolio, investing in flagship stores, and increasing our brands’ presence on-line.
“Our click and collect service across the brands is also proving a successful way of helping our customers collect their purchases at a location most convenient to them – when leases expire that we do not renew, we endeavour to re-deploy staff affected to another store within the Arcadia Group as much as we can.”
Although WestQuay owners are disappointed at the news, a spokesman for the shopping centre believes that the units will be snapped up quickly and that an announcement regarding the future will be made “in due course”.
Demand for vacant space within the centre is expected to grow significantly in the coming months, as ground was recently broken at neighbouring development WestQuay Watermark, which is also owned by Hammerson.
The leisure-led development is set to bring up to 20 national restaurant chains, a 10 screen cinema and a new public piazza to Southampton’s waterfront, significantly improving the current offering and increasing dwell time in the shopping centre. Work has already begun on the site, with the new complex expected to open in autumn of next year.
Chief executive at Hampshire Chamber of Commerce, Stewart Dunn, is hopeful that the loss of the Arcadia Group’s brands will not put a dampener upon the launch of the new leisure development.
He says; “It’s obviously something of a shock to hear the news and it comes at a time when there is a recovery on the way.
“We’re looking forward to WestQuay Watermark and Southampton becoming an even more vibrant shopping destination and I am confident that, while we are losing these household name stores, there will be others quickly to replace them.
“It perhaps reflects the changes in the High Street and retail shopping in general versus online sales.”
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