Victoria Gate may be 'too high end' for some tenants

Even though it recently earned the title of 'The Best Shopping Centre' in the world at this year's MIPIM Awards in Cannes, France, concerns surrounding the future success of premium shopping destination Victoria Gate are being raised.

The 165 million pound retail destination, located in Leeds, previously opened its doors last October and features stores from Cos, Joules, and Anthropologie. The high-end shopping centre, adjacent to the Victoria Quarter is also home to the largest John Lewis store outside of London, which is said to be trading well according to the Colliers International Midsummer Retail Report 20178, which was released last week in Leeds.

Concerns emerge over the premium appeal of Victoria Gate

In the report, the property experts note that the retail market in the region has remained strong for the most part, with shopping centre Trinity Leeds well-let. However, the upscale Victoria Gate is said to have a number of tenants seeking to move out of the shopping centre. "We understand there are some units that are vacant and three are being actively marketed by tenants at this time," said Tom Cullen, Director, and Retail Agency for the North at Colliers International to the Yorkshire Post.

"For what it’s worth, in my opinion, the scheme is almost too high-end and encourages a shopping treat as opposed to day-to-day sales," he added. "Phase two is to be leisure-led, we understand, but we feel demand is limited given other deals in the city and the peripheral nature of the second phase of the scheme."

FashionUnited reached out to Hammerson, the property owner and developer of Victoria Gate for their response to the report and news concerning tenants concerns. A spokesperson for Victoria Gate said: "Victoria Gate has had a fantastic reception since launching in Leeds last year. The scheme has created a premium retail destination, with over three quarters of the brands new to Leeds, providing an experience which is complementary to the existing retail provision in the city. In the first quarter of this year, footfall in the adjacent Victoria Quarter was up 22 percent and in the city itself 3 percent, which demonstrates that a more premium retail offer is attracting a new audience to the city."

"At launch, the John Lewis anchored scheme was 90 percent let to global brands. Part of our strategy is to use Victoria Gate as an incubator for emerging brands looking to build a presence in Leeds for the first time, which allows us to refresh and evolve the offer, ensuring that customers enjoy the best retail and leisure experience possible."

Concerns over the future of Victoria Gate comes as mass-market retailers such as New Look, H&M and Zara seek out larger stores (40,000 square feet or more) in key locations in Leeds and Newcastle over smaller units (5 to 7,000 square feet.) Zara is said to be moving into H&M's former store on Briggate in Leeds in order to capitalize on the space offered in the larger location.

Photo: Victoria Gate, Hammerson, website