Cambridge tops new retail vitality study

Cambridge has been named the “healthiest retail centre” in the UK, after moving up six spots in the Harper Dennis Hobbs Vitality Index, ahead of Westfield London in second and Knightsbridge, which took third place.

The Vitality Index ranks all retail centres in Britain by quantifying the ‘retail health’ of each centre, measured through a combination of the proportion of up-market shops, value-led shops and ‘undesirable’ shops, as well as the vacancy rate. In addition, these variables are also compared to the demographic composition of the centre’s catchment area and a greater score is given to areas whose retail mix is optimally adapted to the local community.

Property specialist Harper Dennis Hobbs found that the university town of Cambridge with a retail market size of over 1.5 billion pounds, was up on the rankings since the 2014 study, due to more retailers moving in and that the town is “very much on the radar” for many retailers, plus it is popular with tourists, especially from China, which increases the “demand for luxury retail”.

Jonathan De Mello, head of retail consultancy at Harper Dennis Hobbs, added: “This ranking highlights the ‘healthiest’ retail centres in Britain, which successful brands should target when considering network expansion.

“Smaller centres are of increasing interest to retailers, given rents are often highest in the largest centres. So a small centre with a high vitality score – and the right shopper profile – could potentially yield strong profits.”

London still dominates the national retail scene and 34 percent of the top 50 most vital centres are located in the capital. However, quality retailers are increasingly gravitating towards a few very strong shopping centres and high streets, and this concentration of quality retail within the city is at the expense of the typical London high street.

Birmingham and Glasgow are the most improved centres near the top of the ranking, as both have benefited from new retail developments. Brent Cross has fallen out of the top 50 as a result of the preparation for works to modernise and expand the centre. It is likely that this drop will be temporary and the centre will increase its score upon completion within the next 5 years.

The least vital centre is Shields Road in Byker, Newcastle-upon-Tyne, where 19.6 percent of retail floorspace is unused, up 11 percent in the past 5 years. The retail mix on Shields Road is dominated by ‘undesirable’ retail, such as betting shops and money lenders, added the report.