With the long-awaited opening of the Battersea Power Station redevelopment set for next week, Retail Week revisits this feature from June which looked at whether its opening could supercharge the capital’s post-pandemic retail revival?

  • After years of struggle, the redevelopment of the Battersea Power Station will open to customers in September
  • With an affluent customer catchment and a dedicated tube stop, the developers are confident Battersea Power Station will succeed
  • But some have their reservations as London retail struggles to rebound from Covid and adapt to customer behaviour

There are few buildings in London more iconic than Battersea Power Station. But since it was decommissioned in the 1980s, attempts to redevelop the landmark have been fraught. 

After decades of wrangling over planning permission, The 42-acre Battersea Power Station site was bought in 2012 by Sime Darby Property, S P Setia and EPF after planning permission was granted. Under that ownership structure, the redevelopment of the site has pushed on, with the station itself being transformed into a prime mixed-use shopping centre, complemented by hundreds of residential apartments, restaurants and cafes and a 500,000 sq ft office campus for tech giant Apple.

But as footfall to iconic London shopping districts such as the West End struggles to fully recover from the pandemic – international tourism remains muted and many commuters are embracing the shift towards more flexible working – Battersea Power Station is opening at a time of acute change for the capital. 

Can Battersea help to power a wider retail recovery in London, or could it be in for a shock? 

Slow and steady

The picture of London’s post-pandemic recovery has been one of slow progress.

Footfall to central London locations rose 3.6% year on year in May, but remained 18.9% down on pre-pandemic levels, according to data from Springboard. Shopper numbers in Greater London climbed 2.5% in May compared to 2021, but were 13% behind 2019.     

The central London recovery has been slower than the UK average – across the country, footfall was 13.7% down on pre-pandemic levels during May. Much of the drag on a full recovery has been attributed to the dual forces of a lack of tourist numbers and the increase in the number of people working remotely at least for part of the week. 

Current Transformation Of Turbine Hall A at Battersea Power Station final

Battersea Power Station is getting ready to open to shoppers in September

Chief executive of JDM Retail Jonathan De Mello says the thousands of commuters working in the office only on Tuesdays, Wednesdays and Thursdays have had a huge impact on London’s retail landscape. 

“In terms of hospitality and leisure, London is back to where it was or even slightly ahead of it now with no real restrictions. Retail has been affected worse – people are choosing to stay and work from home more and their money stays with them,” De Mello explains.  

“It’s a diverse landscape. Take areas like Chelsea or Marylebone – they have people living in those areas. The West End or Covent Garden are struggling a bit more because they don’t have the same population densities.”

The effects can be seen in areas such as Oxford Street, which is struggling to fill empty units and has been swamped by stores selling American candy and tourist tat, weakening its destination appeal. Footfall across regional shopping centres, including Westfield’s major malls in Shepherd’s Bush and Stratford, is also markedly down on pre-pandemic levels.

“Is there enough to hold you there for long enough? Even if there is, is there enough to make you do the repeat trip?”

Property agent

By contrast, landlords across the capital have been experimenting with their offers to attract spend from a less regular customer base. In the West End, Carnaby Street has tested pop-ups and new fashion brands to lure younger consumers, while Ingka Centres has redeveloped the old Kings Mall in Hammersmith into a new destination anchored by a small format Ikea. 

Battersea Power Station head of leasing Sam Cotton believes the shift in purchasing habits, with consumers shopping closer to home, will be a boon for the development. Battersea Power Station sits on the south bank of the River Thames in the affluent borough of Wandsworth, just across the river from Chelsea and Fulham. 

The development is in a part of the capital that is relatively devoid of competing shopping centres, apart from Southside in Wandsworth Town. As a result, Cotton believes there is a strong catchment of consumers waiting to be tapped into – before taking into account all of the new residents at the site itself.

“People are already making use of the restaurants and leisure activities we’ve opened,” he says. “But a key part of the reason why brands are opening with us now is because of who we’ve got here as neighbours and our customer demographic.”

On the map

While the development has an affluent consumer catchment built into its location, another huge game-changer for Battersea Power Station has been the launch of its own underground station. 

Opened in September 2021, the Battersea Power Station tube stop connects the area to the Northern Line through Kennington. Cotton says the station has solved one of the key issues previously hanging over the site: the lack of easy public access. 

“Back in 2015, when we first started doing this, we’d ask big brands if they would want to open a store in Battersea Power Station and they’d look at us and say ‘why on earth would we do that?’ Brands said people couldn’t get there and didn’t consider it a retail part of town. 

“People never really believed the tube station would open, but since it opened the uptick in our leasing campaign has been tangible. For international brands, in particular, it was a perception issue. Now they can look at a tube map and see Battersea Power Station on the map. That’s been a massive deal for us,” he says.

Battersea Power Station

Source: Jason Hawkes

A dedicated Underground station makes Battersea Power Station more accessible

Since the station opened, Battersea has signed a flurry of lettings led by the likes of Zara, Ray-Ban, Ralph Lauren and Reiss. The fact that a global powerhouse like Apple has selected the site for its new campus is also a fillip, says Cotton.

Despite opening at a time when many retailers are looking to rationalise store estates following the pandemic-fuelled shifts towards shopping locally and online, Cotton says the station and Apple’s endorsement have propelled Battersea “to the top” of the list for brands seeking new physical space.  

“Looking at things through a post-pandemic lens, retailers have been weighing up where they should invest in their store network, where they need to consolidate and where they should open new stores,” he says. “All of the factors we’ve discussed have pushed Battersea right to the top of their lists.”

Aesop European general manager Karl Wederall says the skincare brand is “delighted to be a part of the renaissance of the Battersea Power Station”, noting the development’s “respect for the architectural integrity of the original power station, the considered curation of brands and the commitment to the revitalisation of the local community by creating a world-class shopping and entertainment destination”.

“A variety of exciting dining options keeps people in a location for longer and is often the most compelling reason for visiting – and returning”

Joanna Lea, director of retail, Grosvenor

César de Vicente Sandoval, global retail director of fashion operator Mango, says: “As Battersea Power Station and the surrounding area becomes a new hub for technology and leisure, we are excited to contribute to a new era of retail experience.”

But for all the positivity, some property agents are yet to be convinced. One suggests a new tube stop will not be enough to lure international tourists to the site. He also wonders if the retail and leisure mix is varied and interesting enough to bring locals back on a regular basis.

“My clients certainly aren’t battering the doors down to get into Battersea,” he says. “It’s not really a destination in and of itself, people are going to have to plan to go there. 

“If you’re talking about the West End or Covent Garden, tourists or shoppers can go there, spend some money and then do something else while they’re there. If you go to Battersea – that’s your trip. Even with the tube, it’s still a bit out of the way. Is there enough to hold you there for long enough? Even if there is, is there enough to make you do the repeat trip?”

Eat or be eaten

As traditional retail hubs such as the West End, Covent Garden and major malls struggle to adjust to new consumer behaviours, how will Battersea Power Station fit into the capital’s wider retail proposition?  

Cotton believes the new development will complement, rather than cannibalise, the rest of London’s retail scene.

“If you look at it demographically, we’re bringing something much needed to south-west London, which really has minimal existing retail destinations,” he says. “I think we’re contributing to London’s wider offer, bringing something new, very positive and much needed.”

Joanna Lea, director of retail at Grosvenor, which manages swathes of property in London’s ritzy Belgravia and Mayfair, says any addition to London’s retail proposition can have benefits for the whole city. 

 “The addition of more mixed-use space in London, with a strong F&B, work and retail offering, is welcome and necessary to cater to different visitors’ needs and essential in driving overall footfall,” she says. “A variety of exciting dining options keeps people in a location for longer and is often the most compelling reason for visiting – and returning.”

Battersea Power Station - Circus West Village - March 2022 credit Brendan Bell (11)

Source: Brendan Bell

People are already visiting the restaurants open at the old coal-fired power station

Due to its removed geographical location, De Mello thinks it is unlikely that Battersea will pull existing customers away from – or drive new customers towards – the capital’s other retail destinations. 

“People who live around that area, particularly south-west London, will enjoy being around there. It’s a very clearly curated offer for local residents and tourists, rather than bringing people from other parts of the city. It’s not going to take people who would otherwise go for a big shopping day in the West End,” he says.

The property agent agrees, suggesting Battersea’s retail mix “can be found in just about any other prime shopping centre or high street” and is “not overly exciting or strong enough to lure shoppers away from other destinations”.

No matter how iconic the building, no one retail destination is going to revitalise London’s retail operation overnight after three years of turbulence.

After decades of waiting, when Battersea Power Station finally opens to the public in the autumn, retailers will hope it has enough spark to attract shoppers for the long term. 

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