TOP TOWNS RANKING 13

Key Facts

Total floorspace: 1.8 million sq ft (166,170 sq m)

Missing retailers in central Southampton: Faith, Ravel, Hobbs, Jigsaw, Jaeger, TM Lewin, Whistles, Mango, Ted Baker

Top five under-sized retailers in central Southampton: Boots (-20,932 sq ft), Bhs (-14,124 sq ft), Virgin Megastore (-9,158 sq ft), HMV (-8,786 sq ft), Next (-8,132 sq ft)

Top centres that share the central Southampton total catchment: Fareham (7 per cent), Hedge End Retail Park (6 per cent), Eastleigh (6 per cent), Winchester (6 per cent), Portsmouth (5 per cent)

Area of highest rental growth over the past five years: West Quay (13.3 per cent)
Rental growth over the past five years: 4.8 per cent

Latest deals: PC World and MFI have both signed deals for units at Mountbatten Retail Park

New developments: A retail park totalling 90,000 sq ft (8,360 sq m) is earmarked for the Antelope House site, with opening scheduled for next January


Source: Experian

Southampton’s West Quay shopping centre continues to perform strongly, with little in the way of competition to damage its leading position. Developer Hammerson sold off a 50 per cent stake in the centre last July to GIC Real Estate, an arm of the Singaporean government, for£299 million.

Hammerson has been retained as asset manager of the 76,200 sq ft (7,080 sq m) site and says it will use the cash raised to finance its other developments. The sale and cash generation is unlikely to hit West Quay shopping centre or bring new developments to the centre, according to property sources.

The centre is anchored by John Lewis and Marks & Spencer, which are guaranteed footfall drivers. Newcomers to the centre last year included Zara, which took an 18,735 sq ft (1,740 sq m) unit, as well as Apple and Fat Face.

Last Christmas, the centre recorded its best ever number of visitors in one day – 77,000 – illustrating the strength of the scheme. Zone A rents are up to about£385/£390.

Hartnell Taylor Cook partner Chris Thomas says: “The market is still buoyant around West Quay. There may be pressure in time to extend the centre. New retailers want to go in to West Quay and demand is still coming. There aren’t that many voids.”

Meanwhile, Ikea has submitted a planning application to build its third city centre format store in Southampton. The West Quay Road site will total 365,985 sq ft (34,000 sq m), split over four floors and is likely to bring new shoppers to the town.

In Above Bar, Southampton’s main high street, Zone A rents are static at£220 and there has been little activity, largely because of the strength of West Quay.

The Mall Marlands underwent a£2.5 million refurbishment last year, which was completed in November. The scheme has a new façade and food court and the Manchester Street entrance has become part of the main covered mall, helping to bolster its presence in Above Bar. Footfall has jumped 25 per cent since the refurbishment. Matalan, MK One, Shoe Zone and Bay Trading are among the tenants.

Southampton’s biggest threat comes from the Northern Quarter scheme in Portsmouth, which is being developed by Centros Miller. The£300 million development on the site of the Tricorn Centre is due to be completed by 2011 and will be anchored by John Lewis, one of West Quay’s big draw tenants. Marks & Spencer is in talks to take the second anchor site. The centre will have about 80 retail units and target a wider catchment area. It will be the first time West Quay has had a strong competitor so close by.

Demographics

Population 2.4 million

Total retail spend£10.8 billion

Weighted shopper population 364,636

Index of population with internet access 110

Cars per household 1.23

Annual gross household income£33,024

Most over-represented occupation Associate professional and technical

Most over-represented age band 65+

Source: Experian