Demonstrating the True Value of Shopping Centres. Case Study: BULLRING, BIRMINGHAM

Transcription

1 Demonstrating the True Value of Shopping Centres Case Study: BULLRING, BIRMINGHAM

2 Economic value generated by the centre Introduction Bullring in Birmingham has been trading for 10 years. Over the last decade it has enabled the city to become a major retail destination, moving from 12th to 3rd in national retail rankings. But what has its impact been for the wider local community? Has the anticipated economic regeneration been delivered for the wider city? As part of Hammerson s research, Demonstrating the True Value of Shopping Centres, in-depth case studies were carried out at Bullring in Birmingham and WestQuay in Southampton. This case study sets out the socio-economic impacts Bullring has had on the wider Birmingham area, and looksat factors ranging from job creation and related wages through to improved quality of life and benefits to the wider community. Total number of jobs supported at Bullring 4,946 CURRENT JOBS 63.6m TOTAL WAGES THIS REPRESENTS 2,892 FTE RETAIL JOBS 60.1m TOTAL WAGES 133 FTE CENTRE OPERATIONS JOBS 2.7m TOTAL WAGES Without doubt Bullring has dramatically improved the city, helping us become the regional shopping capital. It attracts new brands, and is a fantastic experience, especially with its extensive food and drink offer. Local stakeholder, Birmingham Demonstrating the True Value of Shopping Centres - Case Study: Bullring 1

3 2 Hammerson Positive Places 2013

4 Economic value generated by the centre Number of current retail jobs and the FTE at Bullring broken down by retail subsector category 1,040 ANCHOR TENANTS 635 FTE 195 HEALTH AND BEAUTY 121 FTE 1,626 CLOTHING AND FOOTWEAR 862 FTE 174 LEISURE (HOBBIES, BOOKS, MUSIC) 99 FTE 323 ELECTRONICS AND HOME APPLIANCES 245 FTE 112 SERVICES 96 FTE 679 FOOD AND DRINKS 473 FTE 350 SPORTING GOODS 167 FTE 93 GENERAL MERCHANDISE AND SUPERSTORES 62 FTE 192 JEWELLERY 132 FTE 4,784 CURRENT RETAIL JOBS A full time equivilent (FTE) is calculated on the following assumptions: 3 individuals working less than 15 hours, 2 individuals working hours, 1 individual working 30+ hours Demonstrating the True Value of Shopping Centres - Case Study: Bullring 3

5 Perceived change in quality of life The benefits to central Government generated by Bullring include: 6.9m INCOME TAX 5.6m NATIONAL INSURANCE 3.8m REDUCTION IN UNEMPLOYMENT BENEFIT CLAIMS 740,000 SAVINGS FROM FUTURE YOUTH UNEMPLOYMENT 1 Key evidence from visitor surveys and engagement with local stakeholders A high profile destination: Attributed as a key driver in Birmingham s rise in the UK s ranking of top ten retail destinations from 12th to 3rd place, behind London s West End and Glasgow. Bullring s contribution to enhancing the quality and appeal of Birmingham has dramatically increased local pride. An architectural icon for the city: Bullring s distinctive design has become a nationally recognised symbol of Birmingham and a major attraction within an extensive regional catchment. It is widely viewed as having raised the city s prestige. Quality of life: Creating jobs and bringing income and further inward investment to the area has had a considerable impact on local well-being and quality of life. A significant number of jobs created went to previously Impact on town centre compared to Bullring having not been built 29% 24% 21% 826,000 REDUCED OFFENDING Shopping Centre is important part of city centre Access to the area (e.g. routes and transport) Surrounding public spaces 19% 20% 19% 85,000 IMPROVED HEATH AND WELLBEING Quality of life for local people (within 40 miles) Community well-being Local pride 18% 16% 13% Feeling safe Choice of other restaurants in the area Choice of other shops in the area 4 Hammerson Positive Places 2013 The perceived changes in % from visitors compared to Bullring having not been built. Positive numbers indicate perceived improvement. 1. Employability Penalty (future) every 3 months Unemployed under 23 yrs old leads to 1.3 months unemployed per year between the age of 28 and 33

6 Perceived change in quality of life unemployed people. This in turn has had an impact on health (and therefore health services the unemployed are twice as likely to be depressed and in poor health) and also on the incidence of likely offending (reduced by a third). Connectivity: Bullring has transformed Birmingham s city centre through dramatic changes to its road and traffic infrastructure. Formerly cut off from its surroundings, Bullring was specifically designed to re-establish links between the Bullring market site and the wider city centre. The shopping centre also physically connects to two mainline train stations, providing immediate access for visitors. Survey respondents reported improved levels of local well-being and quality of life linked to Bullring s development. Visitors also identified Bullring as a core visitor and tourist attraction for Birmingham. Shopping choice: The majority of visitors expressed positive feelings about the range of shops and the improving choice of good quality catering at Bullring, enhanced by the quality of the interior environment. Public realm: One particular area cited as in need of improvement was the public realm around the main building to make it more engaging. In addition, the younger adult population are more wary of being in the vicinity at night. Further improvements to the leisure and and catering offer in Birmingham may help to improve this by attracting a more family friendly night time economy. Generally, retail is under pressure, with the impact of internet shopping and the fragile economic. However, Bullring continues to grow and develop with new tenants, increased leisure offerings and exciting events. Bullring has undoubtedly become an important addition to the fabric of Birmingham. Further investment generated by Bullring: 500m BIRMINGHAM NEW STREET PROJECT The value Bullring brings to its highstreet location: 59m ADDITIONAL SPENDING INCLUDING 3.1m SPENT AT INDEPENDENTLY OWNED BUSINESSES 6.4m LOCAL SPENDING FROM RETAIL WORKERS Tim Walley, General Manager, Bullring. Demonstrating the True Value of Shopping Centres - Case Study: Bullring 5

7 6 Hammerson Positive Places 2013

8 Key Impacts Key impacts of Bullring s opening on Birmingham s retail offer The opening of the Bullring in September 2003 attracted over 90 new retailers to the city and provided new modern units in Birmingham. As a result, stores relocated from the surrounding retail centre to benefit from the associated increased footfall. Of the 17 retailers who relocated to Bullring, 10 units have been taken by other high street brands. There have also been signs of new independents and high quality retailers such as Louis Vuitton entering the market in high street locations. Bullring s impact has been assessed by looking at High Street, New Street, The Pallasades and Broad Street showing a fall in rents across locations. Whilst the economic downturn has impacted retail within the city, prime pitches and customer footfall can be seen to have relocated to Bullring. Leisure rents have not been as impacted by the Bullring due to strong leisure offers within the city. Bullring has responded to increased demand by improving its offer introducing a Jamie s Italian and opening its dining offer Spiceal Street. The area continues to develop and improve as a retail destination as a new John Lewis plans to open adjacent to New Street station in Birmingham city centre in Demonstrating the True Value of Shopping Centres - Case Study: Bullring 7

9 Methodology All statistics quoted in this document are based on a comprehensive data collection exercise carried out in 2013 across the Hammerson shopping centre portfolio and from research undertaken by Jones Lang LaSalle and Envoy Partnership on behalf of Hammerson as part of the research Demonstrating the True Value of Shopping Centres. All data sources are referenced within this report. Sources of data specific to Bullring include: + Visitor surveys across a sample of 250 people at Bullring. + Urban design and architectural site surveys of Bullring. + Surveys across a sample of 35 local businesses with Bullring. + Interviews with local stakeholders. + Jones Lang LaSalle research into residential prices and retail rents. In partnership with: 8 Hammerson Positive Places 2013

10 Join the conversation... Find out more at: #truevalue