SUTTON COLDFIELD

TOWN CENTRE AND RETAIL MARKET ASSESSMENT

Report prepared for and on behalf of Sutton Coldfield Town Council

Peter Shearman Associates 01732 465 100 07768 994 087 [email protected]

April 2018

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CONTENTS

Context and Objectives

Summary Conclusions – 12 key points

1. Retail Market Trends – the national picture

2. Sutton Town Centre – the fundamentals :

- layout and structure - environmental quality - accessibility

3. Sutton Town Centre – non-retail uses

4. Sutton Town Centre – trends in retail representation :

5. Sutton Town Centre – expanding the retail offer

6. Development Potential : specific sites

7. Suggested physical and promotional measures

Appendices

1. How the town centre divides up (plan) 2. Main components of the shopping core (aerial photograph) 3. Retail composition (Goad Plan extract) 4. The Solihull factor 5. The Fort Retail Park – retail mix 6. Ventura Retail Park – retail mix 7. House of Fraser – Sutton Coldfield relaunch

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CONTEXT AND OBJECTIVES

In 2016 the Sutton Coldfield electorate voted in favour of establishing a town council to represent the interests of the town in a more focused way than is realistically possible for Birmingham City Council.

Sutton’s population of some 95,000 covers a wide area that extends from the Staffordshire border to Wylde Green, and from the west side of Sutton Park across to Walmley. Despite the size of this area and its substantial population, it is dwarfed by the sheer scale of Birmingham City which has a total population of 1.2 million; to the south-west the continuous built-up area reaches as far as Rubery (15 miles from the centre of Sutton).

Of particular significance to the present report is the importance of Sutton Town Centre; no other locality within Birmingham City Council’s area has a focal point of comparable importance. Its area of influence and attraction corresponds to the wards which form the Town Council area, as broadly defined above, plus Streetly.

Against this background, and in collaboration with the City Council, the Town Council attaches importance to creating the conditions conducive to underpinning the health and robustness of all town centre functions. Retailing is the primary function by a wide margin, but leisure activities, office use, education and not least housing all have a part to play.

This study is not in any sense an attempt at a masterplan such as that commissioned by the City Council in 2008. Nor is it a market reconnaissance exercise, which would be cutting across the work of the agency practices involved in the Sutton market.

The main purpose of the work is to provide an objective assessment of the strengths and weaknesses of all aspects of the town centre, and from that starting point better understand what might be achieved ‘on the ground’. In due course it should serve as an input into an eventual framework for the town centre that blends with the statutory development plan.

In addition to reviewing the three locations in the town centre that may offer possible scope for development or redevelopment, the report also includes a number of suggested measures – all relatively modest – intended to support the attraction of the town centre.

Of particular significance at the present time are two major proposals with potentially positive implications for the future of the town centre :

• proposed development of a new settlement at Langley, which could increase the catchment population by 15-20,000 people, albeit over a long time span (6000 dwellings over 20 years)

• allocation of funding to a new public transport hub (in the context of HS2 connectivity) that could free up part of the centre from bus movements, improve the environment for shoppers, and perhaps even encourage redevelopment of adjoining commercial property.

In preparing this report we have drawn on earlier West Midlands work for retail and other clients going back over more than two decades. However, our present assessment looks afresh at how the town centre works now, and its relationship to

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shopping destinations further afield which compete with Sutton Town Centre, whether central areas or out-of-centre. All of these we have inspected and reviewed for the purpose of this study.

We have also re-familiarised ourselves with the whole of Sutton Coldfield beyond the town centre, including the main local centres – Mere Green, Boldmere, Wylde Green, Walmsley, and New Oscott (including Princess Alice Retail Park) as well as out-of- centre at Minworth.

No less importantly, we have had the benefit of meetings and discussions with all the main stakeholders in the town centre, including several agency practices with longstanding expertise in the Sutton market. We are grateful to all the individuals, companies and organisations in question : without their contributions our findings and recommendations would not be well founded.

Inevitably the views expressed across such a wide spectrum of people vary significantly, and sometimes they differ outright. That simply reflects the fact that there are no easy, obvious and indisputable measures that will take the town centre forward.

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SUMMARY CONCLUSIONS – 12 KEY POINTS

1. Despite the increasingly adverse retail climate at national level, the growth of internet shopping and intense competition from alternative destinations, Sutton Coldfield town centre is holding its own and continues to attract market interest and premises investment.

2. That investment is reflected in new retailers and service businesses taking space in the town centre, but also the outstanding upgrade of the House of Fraser department store, completed November 2017; this introduced additional high quality brands, especially in fashion and associated product areas, and additional catering facilities.

3. Sutton’s strength and resilience stems from the backcloth of an extensive and largely prosperous catchment area, in conjunction with a pleasant, compact and easy to use core shopping area; generally convenient and reasonably priced car parking is a further key factor, along with excellent public transport accessibility.

4. Nevertheless, over the post-millenium period many retailers have ceased trading at Sutton; but most of these changes, and what has transpired since, are due to. corporate failure or changes in merchandising and/or location policies, rather than specific to Sutton. The prime example is Bhs – two years on no positive re- use in sight; but again no different from the many other places (out of 160) where the store is still vacant.

5. Like everywhere else Sutton is not immune to the impact of internet shopping; latest research puts the top slice of turnover lost to the internet at about 25% in non-food – a level which prejudices the viability of opening new shops and maintaining existing ones. In conjunction with shoppers’ greater willingness to travel to get the benefit of the best centres, retailers have every incentive to thin out established shop networks.

6. New retail development therefore becomes more difficult, and even where retailer demand remains, economic viability does not necessarily follow; the market has moved away from mid-sized centres like Sutton and the aim of creating even a smaller version of Touchwood – albeit understandable and logical – is in our view not capable of realisation. Even at Solihull – which now counts as a major centre – the proposed Touchwood extension is on hold, apparently due to insufficient retailer (and restaurant) demand.

7. Nor is shifting the focus onto leisure-orientated users an obvious or easy option; after several years of unrelenting expansion leading to market saturation, the last 12 months or so has seen the restaurant sector experiencing difficulties at least if not more serious as those affecting shops. Whilst there may be some scope to attract other leisure uses, the office market is limited and it is only residential which has proved consistently successful and continues to attract developer interest.

8. In the retail sector the extent of competition around Sutton is extremely challenging, especially compared with the late 90s when Touchwood was under construction; at that time Solihull benefitted from unfavourable perceptions of Birmingham city centre held in certain retail quarters; now, the city centre has

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overcome those negative attitudes with a vengeance, having been radically transformed by the Bull Ring (2003) and Grand Central (2015) . 9. Equally if not more significant, given the apparent feeling amongst Sutton’s more traditionally inclined shoppers that the city centre can often be ‘manic’, is the emergence of the Ventura complex at Tamworth as a first rate and easily reached shopping park – 32 large retail stores including full line M&S department store, John Lewis Home and a new flagship store for Next. In contrast, whilst The Fort has lost ground it too continues to be a significant destination (inter alia Next, small format Debenhams, new Primark).

10. Also relevant are two developments within the immediate Sutton area : Princess Alice Retail Park with its easily manageable, extensive retail mix (including Next, now no longer in Gracechurch), and Mere Green where Mulberry Walk has established a strong position as a focus for higher end casual dining.

11. That Sutton has survived as well as it has against this level of competition is testament to the town centre’s intrinsic robustness. However, the challenges will not diminish and there is no room for complacency; we propose a number of modest measures that could help the centre to maintain its relative position.

12. In addition we have considered possible ways forward for the three locations within the town centre that have, or may have, some form of development potential. What happens on any one of these sites has direct implications for the other two. This highlights the importance of resolving quickly the uncertainty around the proposed transport hub and possible removal of buses from Lower Parade.

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1. RETAIL MARKET TRENDS – THE NATIONAL PICTURE

Profitability challenges

1.1 Preparation of this study coincides with a period of increasingly severe difficulty in the retail sector. The pressures had been building up for a considerable time but only came to the fore in late 2017 with the Company Voluntary Arrangement (CVA) agreed between Toys R Us and its creditors. This involved selective store closures and reduced rents on most but not all of the survivors – all to no avail as the business folded within 2 months.

1.2 The list of retailers in similar difficulty has grown in the first months of 2018. New Look, Select Fashion and Carpetright have also gone down the CVA route, whilst Maplin went straight into administration. However, the number of high profile multiples that have experienced widely reported problems, including in many cases issuing profit warnings, is much more numerous.

1.3 In alphabetical order, the following names fall into this category, but the list is not exhaustive :

Body Shop, Bon Marché, Debenhams, H&M, House of Fraser, Laura Ashley, Marks & Spencer, Moss Bros, Mothercare, Next, Schuh, Crabtree & Evelyn

All of these retailers will inevitably close under-performing stores, and there is no shortage of others also implementing closure programmes e.g. French Connection, Goldsmiths, Karen Millen, Arcadia Group (Dorothy Perkins etc).

1.4 Both House of Fraser and Next have stated their intention to seek rent reductions on stores which are retained – and they will not be alone in renegotiating. This process also has implications for development viability : investors considering funding a new scheme can no longer be confident that the income stream they are buying will endure, let alone produce rental growth on review.

1.5 The circumstances of every retailer are different, but the reasons for the problems of the sector as a whole are generally attributed to a combination of the following (in no particular order) :

• decline in consumer confidence and consequent reining back on spending • increased business rates (but not everywhere) • unsustainable rental outgoings, often entered into as a result of over-hasty and over-ambitious expansion programmes • increased cost of imported products • higher employment-related costs

and most significant of all : • erosion of shop sales due to growth of internet shopping (see below).

1.6 A further but less widely recognised factor, noted by several commentators, is private equity ownership. Many retail businesses have been acquired by private equity with high levels of debt funding which must then be serviced, saddling the operational side with an onerous interest rate burden that becomes unsustainable when trading gets tough. Even in the good times it can mean less scope to plough money back into the business, for instance by way of upgrading of the physical

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estate, let alone investing in innovative systems. Private equity has also been heavily involved in the restaurant sector (see para 1.20 et seq).

1.7 Despite the problems of the sector as a whole, not all is doom and gloom - some retailers are doing well. Dunelm, Edinburgh Woollen Mill Group, JD Sports, Superdry, Inditex Group (Zara and others), Quiz and Yours (young and middle aged female fashion respectively) have all reported positively on sales performance and profitability, whist Waterstones has re-established itself as a viable business, despite the ongoing Amazon threat.

1.8 Higher up the fashion scale Fat Face, Joules and Ted Baker are success stories. And at the cheap-and cheerful end, Poundland (with their clothing offshoot Pep & Co) and B&M Bargains likewise. Primark goes from strength to strength – now the star turn in the retail sector and positively welcomed into high quality centres like Bluewater after having originally been firmly rejected as too down-market. Also, retailers at this market level are less vulnerable to the impact of the internet.

Internet shopping

1.9 We are in no doubt that this is the real ‘game changer’ for the medium and long term future of retailing, especially in non-food. Estimates of the share of spending taken by internet purchases has grown steadily over the last 10 years, and whilst the percentage annual rate of increase now looks to be slowing, by definition that is from a much higher base.

1.10 Market research company Mintel estimates that internet purchases now (end of 2017) account for 24.1% of all non-food sales, compared to 11.6% at the end of 2012. The 24% figure is the same for clothing sales – and this is the product area that a few years ago most commentators felt would be least affected, because shoppers would want to see and feel the garment, and try it on. The success of specialist fashion retailers Asos and Boohoo has disproved this theory – both companies report stellar sales growth.

1.11 The response to the internet from many retailers, not just fashion ones, is to embrace click-and-collect. That has the compensatory effect of bringing people into the store with the possibility that they then buy other things on impulse. This may well be a useful palliative but probably no more than that. Earlier problems with the delivery process look to be being ironed out and we suspect that over time click-and- collect will reduce in importance.

1.12 Nor does click-and-collect automatically bring people into shops (other than to return goods) : collection businesses like Doddle focus on railway stations, while Amazon (and others) are intent on installing banks of lockers within shopping malls. In our experience landlords are often receptive to this on a ‘if you can’t beat them, join them’ basis, more because it encourages footfall than for the modest additional income. There is a logic to this view but the effect is peripheral.

1.13 Paradoxically, the internet is also an issue for the restaurant sector. We comment on that presently.

Where now for physical shops?

1.14 The simple answer is fewer of them and therefore in fewer places. It is hard to argue with the proposition that too many shops are chasing too few shoppers. But physical shops will always have a part to play.

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1.15 If 20 or even 10 years ago a national multiple requiring widespread (but not necessarily comprehensive) representation throughout Britain needed 200 or more shops, typically less than half that number is now regarded as sufficing. The internet and many people’s willingness to travel further to bigger and better shopping centres make up the balance, which partly answers the follow-on question : where will the shops be ?

1.16 Obviously the top shopping centres will be targets for most retailers, just as they are now, despite high occupational costs. In the West Midlands, that means Birmingham and Merry Hill, and Solihull as a special case because of its proven success since Touchwood opened. Locally, Lichfield is a good example of a centre with reasonable prospects, due to its historic, characterful ambience, but even so, not without limitations. Wolverhampton and Walsall may well be more vulnerable, caught between two stools, but like West Bromwich since many years, ever more orientated towards price-driven retailing.

1.17 It seems likely that polarisation will occur : top destinations with very wide catchments on the one hand, and those that are convenient in all respects on the other hand. Convenience in this sense means places that are local and easy to reach, easy to use once there, and pleasant to be in with good facilities and a critical mass of shops i.e. adequate but far from comprehensive.

1.18 If this is right, then we see a good future for Sutton and many other similar towns – the polar opposites of Birmingham and Manchester, and so-called regional mega malls like Meadowhall (Sheffield), Westfield in the capital (newly extended and now the largest shopping centre in Europe), and Bluewater (N. Kent), all of which and others like them which may well be regarded by some shoppers as hard work. However, it goes without saying that to sustain a role at the convenience level retailers need to make money. That means constant attention to maintaining footfall by enhancing the centre’s appeal as first choice for all but the major shopping trips.

1.19 The other dimension to the where ? question for retailers is town centre or out-of-centre. Relevant to Sutton are :

• the highly successful Ventura Park which we believe will hold its appeal to retailers irrespective of the internet, • and more locally, Princess Alice at New Oscott, which meets all the convenience criteria above except offering a pleasant environment in the way that a town centre does.

1.20 Sutton faces strong competition from both Ventura and Princess Alice. The enthusiasm of so many retailers for retail parks means at the very least that performance, or potential performance, at Sutton town centre will be subject to ever more critical scrutiny. Inevitably, rental and other property costs are now a key part of that scrutiny.

Restaurants (A3)

1.21 After a long period characterised by new openings and new brands, the restaurant sector has only recently turned the corner – in a negative way. The root cause of the now much publicised problems in the restaurant sector is saturation resulting from over-expansion : too many outlets chasing too few customers. Other factors have not helped, for example :

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• over-reliance on vouchers and cards offering large discounts • over-bidding to get sites (partly driven by the involvement of private equity and the consequent incidence of high debt (c.f. para 1.6 above)) • people switching from dining out to dining in, encouraged by high quality/competitively priced offers like that of M&S, and the ease of ordering delivery through Just Eat, and • as with shops the increase in business rates; but this was well-known at least two years before it happened, yet largely disregarded, so to that extent problems attributable to the most recent phase of openings are self-inflicted.

1.22 A recent study by specialist consultants estimates that one-third of UK restaurants are loss-making. On the ground the evidence is the closure programmes now in the pipeline as a result of CVAs recently agreed by creditors with Prezzo/Chimichanga, Byron and Jamie’s Italian, and the associated rent reductions on most of those outlets not earmarked to close. Carluccio’s, Bill’s, Casual Dining Group (Bella Italia and Café Rouge), and Fulham Shore (trading as Franco Manca and The Real Greek) are all also signalling intentions to renegotiate rents against the background of loss-making outlets.

1.23 We are also aware of planned openings where terms have been agreed, only for the operator to withdraw at the last minute. Busaba is a good example but the general point about scaling back on expansion applies across the board : one CEO, referring to cannibalisation of trade recently commented that “we don’t eat our customers, but now we do have to share them “.

1.24 These issues are nationwide. However, they look to be more widely felt outside London. In the capital consumers appear to be more determined to stick with the regular – even frequent – casual dining phenomenon.

1.25 As with retailing, there are also success stories. Nando’s is one, possibly attributable to their particularly family-friendly business model, whilst Frankie & Benny’s and Garfunkels (both belonging to The Restaurant Group) are said to have returned to profitability after long loss-making periods. Unfortunately these are exceptions and in the regions, including the West Midlands, there are fewer operators still looking to take new sites.

1.26 That applies to Sutton Coldfield, where the other side of the coin is also evident : restaurants closing and then remaining unoccupied. At the very least prospective landlords and developers, whatever place they are dealing with, have fewer restaurant brands to try and attract, and greater pressure on achievable rents. The view current in the market until recently that ‘restaurants is the thing to go for’, given the difficulties with shops, is no longer tenable.

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2. SUTTON TOWN CENTRE – THE FUNDAMENTALS

Layout and Structure

2.1 In broad terms, Sutton Coldfield town centre falls into three distinct sections which are readily identifiable on the plan at Appendix 1.

• on the northern side (and becoming Lichfield Road), the original High Street (mainly 19th century or earlier) and various side streets, with a mix of pubs and other catering uses, a few specialist shops and services, business uses (for the most part professional offices, especially estate agents), modern flats, and nearby the railway station together with two commuter car parks

• Birmingham Road to the south, separated from the shopping area by the busy town centre relief road; here are most of the town’s restaurants and pubs, several specialist shops and services, two small supermarkets, occasional office accommodation and – marking the southern end of the town centre – the imposing art deco Empire cinema building

• the main shopping area along The Parade, almost entirely pedestrianised and dominated by the Gracechurch Centre opened in 1974, but with appendages in the form of Newhall Walk (retail warehouse stores) and the Red Rose Centre (incl the library); all three have their own car parks, and the northernmost part serves as a de facto bus station, albeit on-street.

The aerial photograph at Appendix 2 picks out the components of this main shopping area.

2.2 The northern end of the town centre is marked by the Sutton campus of Birmingham Metropolitan College on Lichfield Road, whilst at the far southern end, coming from Erdington and the city centre, the cinema acts as a very effective announcement of arrival at the town centre. These and certain other buildings help to create a real sense of place and reinforce the identity of the town centre. That is important in bolstering Sutton’s attraction in the commercial sector.

2.3 Taken as a whole, this elongated area, comprising the whole range of town centre uses, extends for just over 1 mile. This linearity is too much for people who want to move around on foot and do anything more than just visit the main shops, conveniently concentrated in the core. The severance effect of the ring road on both north and south sides is a further deterrent.

2.4 The upshot of this is that in practice relatively few people within the overall area will do more than the shopping core, unless they are, say, students or staff at the College or Bishop Vesey school or, in the other direction, customers of a particular restaurant or retail-type business.

2.5 The core shopping area conveniently occupies that part of the overall town centre roughly at its midpoint, based along and to either side of The Parade. Being pedestrianised (except for the bus section at the northern end, known as Lower Parade), this entire area forms a cohesive entity : the principal frontages are compact and easy-to-use for shoppers, and produce a mutually supportive environment for retailers and other businesses that serve the general public.

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Environmental quality

2.6 Sutton comes across as a modern town centre in the middle, with several mainly Edwardian buildings around the periphery interspersed with recent development on certain sites and some Victorian survivors. The northern section of the town centre based on the original High Street is easily the most characterful part of the centre, a real asset and a designated conservation area. But in user terms it is of limited relevance to Sutton’s appeal as a shopping destination.

2.7 Birmingham Road is more significant in that respect. In our view it is not at all unpleasant but makes a disjointed impression, with a few uninspired post-war commercial buildings mixed up with Victorian and Edwardian. The outstanding element is the art deco Empire cinema, which however needs attention. The Wetherspoons pub and Brewhouse & Kitchen further up are also mitigating elements, built in a kind of mock Tudor early 20th century style.

2.8 What really counts in environmental terms is the core shopping area. The original Victorian frontages along The Parade made way for Gracechurch at the beginning of the 1970s, a time nationally of functional and now discredited architectural style. Sutton is therefore fortunate that Gracechurch, while hardly noteworthy, makes a generally pleasing impression, without the stark and/or dead street frontage typical of that era. The unfortunate exception – although well away from the shopping frontages – is the rear elevation to the Brassington Avenue section of the ring road; even worse is the visually intrusive bridge and exit ramp from the car park down to road level.

2.9 The opposite and moderately varied frontage along The Parade (developed in the mid-90s), coupled with the broad pedestrianised thoroughfare enhanced by a uniform surface of interlocking tiles, completes the impression of a pleasant outdoor shopping area. On the other hand, relaying or repair of certain surface areas addition of hanging baskets on the east side at least equivalent to those on the Gracechurch side, and provision of more generous seating, would all improve the appearance of the walkway as well as helping shoppers in a more practical way.

2.10 Within Gracechurch, the umbrella installed at the focal point of the scheme and the covering over of the main mall are in our opinion visually successful, whereas the Kings Court/South Mall area is relatively bland. At the northern end of the scheme (but not part of it) is the attractive URC church dating from the Victorian period – the sole survivor in an otherwise modern environ ment.

2.11 Elsewhere in the core, further shortcomings are :

• South Parade, with the single storey Market Village building (formerly In- Shops) on one side, the harsh southern side of Red Rose including the service vehicle access opposite, and the Halfords Autocentre a little further along and the back of the Newhall Walk retail warehouses; on-street bus layover bays contribute to the uninviting impression, looking down from The Parade • within Red Rose, the drab open space between the library and the former Cool Trader store, although the main frontage onto Lower Parade conforms to the ‘perfectly pleasant’ theme • Victoria Road car park – both internally and externally. • The retail warehouse frontage to Newhall Walk which, together with the expanse of surface parking, introduced dated and thoroughly uninspired retail shed-type development to a town centre which deserved better.

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• Brassington Avenue, a longstanding empty development site which contributes nothing other than a view of the railway embankment and the unfortunate car park exit bridge and ramp.

2.12 Newhall Walk and Brassington Avenue detract from the environmental quality of the broader town centre area. However, they are both more or less peripheral and as such do not undermine the generally pleasant feel of the main shopping area, or the northern and southern perihery.

Accessibility

By car

2.13 As indicated above, the three shopping schemes in the town centre all have their own, integrated, large car parks and all with tariffs geared to short stay visitors :

• Gracechurch – 963 spaces, MSCP 2hrs/3hrs/4hrs resp.: £1.40/£2.00/£2.60, 6 hrs £6.00 • Newhall Walk – 240 spaces, surface 2hrs/3hrs/4hrs resp.: £2.20/£3.00/£10.00 over 3hrs • Victoria Road – 513 spaces, MSCP 2hrs/3hrs/4hrs resp.: £0.70/£1.00/£1.20, 6hrs £2.60

2.14 We regard these charges as good value; taking the largest (Gracechurch) as an example, £2.60 for 4 hrs is low enough to encourage relatively long dwell times. Victoria Road (Red Rose Centre) is exceptionally cheap but the poor condition of the facility, including a lift bank where typically only two out of three actually work, demands a discounted price. In practice, this car park is better for all day parkers than shoppers.

2.15 By way of comparison, uniform charges at Solihull (Mell Square, Touchwood and M&S) are £2.30/£3.10/£4.00 for 2/3/4hrs, thus significantly dearer but still reasonable given the superior range of shops and a total capacity of 3300 spaces. The price difference is not enough, in our view, to deter people from choosing to shop at Solihull rather than Sutton.

2.16 All three Sutton car parks are accessed from the ring road. For most visitors that means a longish route either on arriving or leaving. But for regular visitors who know what to expect this should not be a problem. Once parked, all three car parks are convenient for the shops (subject to the qualification regarding Victoria Road). In addition, at Gracechurch both House of Fraser and M&S benefit from direct access into 1st floor sales areas, whilst surface parking at Newhall Walk feeds simply into TK Maxx on one side and Aldi on the other.

2.17 Less good is the likelihood of congestion on approach roads, especially the approach via Lichfield Road. We have observed long queues and delays especially on Saturdays (and also in the morning peak although then less relevant to most shoppers).

By public transport

2.18 We do not have access to modal split figures but have little doubt that the train service is of minimal relevance to shoppers coming into the town centre, unless they happen to live near to one of the five or six stations in the Sutton area. However,

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for office workers and others working or studying in the centre, wherever they live, rail is an excellent option, and the station is close to the shopping core.

2.19 In contrast to the trains, the bus network is extremely important to the health of town centre retailing. The commercial network (operated almost entirely by National Express) penetrates into almost all residential areas throughout the Town Council area, at weekday daytime (off-peak) frequencies of between 10 and 20 minutes. On certain corridors e.g. to Boldmere, Wylde Green, Falcon Lodge and Mere Green, that can mean as many as 12 buses per hour. The commercial network is supplemented by further routes subsidised by Centro and serving low demand residential areas at hourly intervals.

2.20 The de facto bus station (c.f. para 2.1) may be less than ideal in environmental terms (see below) but for shoppers it could hardly be bettered; by extension it is of corresponding benefit to retailers. In addition, bus stops at two points on Birmingham Road are also well used, especially the one nearest to the ring road intersection and only a short walk from the beginning of The Parade. But these stops are only served by routes towards Boldmere or Wylde Green.

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3. NON-RETAIL USES IN THE TOWN CENTRE

3.1 Sutton Town Centre is first and foremost about shopping, and the focus of this study is therefore on the retail sector. However, other uses are also relevant and potentially significant, whether :

i) in their own right, because they also provide a service to the public (and sometimes other businesses as well), and/or contribute to economic activity and provide employment, or

ii) as a complementary activity to retailing, drawing people into the town centre and thereby creating additional spending potential to the benefit of shops, and contributing more generally to overall vitality ; in other words, an additional dimension to the catchment.

3.2 A further factor relates to site development; subject to the extent and nature of demand, non-retail uses can help to achieve economic viability of retail-based and mixed use schemes. This is important in the Sutton context where three sites could be candidates for new development.

3.3 We outline below the existing situation on each of the principal land uses relevant to the town centre.

3.4 Offices

• Good demand for small suites, mainly from professional firms, recruitment consultants etc; catered for by conversions and several well-presented, purpose-built office developments dating from the late 80s, notably Emmanuel Court and Trinity Place off High Street and Wrens Court off South Parade • Victorian and Edwardian buildings – again mostly in the High Street area – also provide small suites for the professional sector, including medical practices • Otherwise Sutton not normally regarded as an office centre; larger accommodation tends to be in 60s/70s buildings above retail e.g. 2 Duke Street/ Red Rose Centre/Gracechurch (Plantsbrook House above West Bromwich Building Society etc) • exception is Dignity HQ with their own purpose-built premises at King Edward Square; same company also occupies part of 2 Duke Street (B’ham Road) • supply-side as a whole recently drastically reduced by conversions to residential : 1970s Knights House (8 floors) and Patrick House (3 floors) • rental values for small suites typically £12-£15 psf; whilst larger and dated spec space achieves only £10 psf approx.– at these levels viability of new- build (even assuming higher rents based on up-to-date spec) is difficult; as far as we are aware no office development has taken place since the small suite schemes in the late 80s. • local businesses wanting to expand beyond small suite level but remain in Sutton therefore have few options.

3.5 Residential

• Easy walking distance to the shopping area from Victorian/Edwardian (mainly terraced) housing areas immediately to the east; higher grade housing west

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of the centre (beyond the rail line) and off B’ham Road – both also within easy walking distance • also extensive late 1980s flat developments on various well located fringe sites e.g. Cavendish Place off B’ham Road (4 large blocks in gated scheme) and at the opposite end The Sutton (41 units – completed late 2017, top of the market quality and pricing • higher returns and less risk, plus supportive planning policies, have long made residential a generally more attractive development option than offices • hence conversions from offices : most significantly Knights House with 52 residential units and permission granted May 2017 for two-storey (vertical) addition (12 units) • wherever possible in amenity terms, and subject always to external market conditions, sites with commercial development potential now unlikely to progress without significant residential components to maximise value creation as part of mixed use schemes • residential use supports retail activity by virtue of captive walk-in trade, but benefits needs to be kept in perspective – relatively inconsequential compared to car-borne and bus-borne custom from across a much wider catchment.

3.6 Education

• Sutton Coldfield College – since 2009 the Sutton campus of Birmingham Metropolitan College – approx. 350 students on courses where most teaching is concentrated on this site; location at top of High Street makes it easy for students and staff to go to town centre shops and associated uses • similarly Bishop Vesey Grammar School – immediately adjoining B’ham Met College, with a school roll of just under 1000.

3.7 Restaurants (A3 users)

• Good range of specialist independent restaurants, mainly along B’ham Road, (de facto restaurant quarter), offering selection of cuisines including Spanish (recently opened), Greek and Middle Eastern as well as Indian, Chinese and Italian • multiples also concentrated in or near to B’ham Road i.e. Ask, Pizza Express, Nando’s plus TGI Friday (Newhall Walk) – but overall a relatively limited selection, all mid-market and mainstream • fast food comprises Macdonalds at opposite end of the shopping area and until recently Burger King nearby on The Parade frontage (franchisee went into administration) – still unlet and no firm interest • pub-type bar/restaurants also on B’ham Road, notably Wetherspoons, Yates, Lounges (t/a Quinto) and most recently Brewhouse & Kitchen (opened approx I year ago) • increasingly saturated dining-out sector at last inhibiting demand from new entrants (cf para 1.20 et seq); gaps in representation include Thai (e.g. Giggling Squid) and Japanese (e.g.Wagamama) • weaker market leading to casualties and slow re-letting; closures include Turmeric Jones and Jimmy Spices – but multiples referred to above appear to be amongst less vulnerable eating out brands • key local issue is now competition from Mulberry Walk at Mere Green – successfully marketed as a high quality but still casual eating-out destination; easy parking and well located for the most affluent part of the Sutton catchment; includes Bistrot Pierre, Gusto and Renato Lounge.

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3.8 Non-commercial facilities

• Public library – essential facility in the centre of a town of Sutton’s importance; reopened 3rd April after second prolonged closure period for remedial works within 5 years; poor location at back of Red Rose, and on 1st floor, with access dependent on lift or stairs • Arts Theatre – on South Parade, but remote from the centre on ‘wrong’ side of eastern arm of relief road (Lower Queen Street); typically 7 shows per year, each lasting 1-3 weeks • URC church – well located and busy church centre (but restricted opening hours); positive asset to the town centre with social facilities and coffee shop open to general public • Sutton Park and Visitor Centre – potentially a tremendous resource and on the town centre fringe within easy walking distance; but lacks any presence or profile within the town centre.

3.9 Commercial leisure

• at northern limit of B’ham Rd commercial frontage Empire the sole cinema in the whole of Sutton – not just the town centre; latter should be a target for other operators e.g. in principle interest from certain operators, but may not be compatible with survival of Empire (c.f. para 2.7) • other facilities : The Gym (Gracechurch, near to ex-Bhs), LVL1 (nightclub), traditional pubs in High Street area N.B. Rumour night club (lower level of Red Rose) recently closed down • hotels : within the town centre only The Royal, although Standbridge private hotel just within walking distance on B’ham Road towards Wylde Green • all others further afield and located on freestanding sites e.g. New Hall, Belfry, Premier Inn (Whitehouse Common Rd), and Travelodge (Boldmere and Streetly); both latter chains are market leaders and continue to seek new sites – Sutton town centre should be of interest, could contribute to realisation of development opportunities, and the sector attracts investor interest • overall, limited evening-type activities in the core town centre area i.e. no cinema or theatre or bowl, inadequate hotel provision, and by today’s standards few major restaurant brands (but good choice of independents and bar/restaurants).

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4. SUTTON TOWN CENTRE – TRENDS IN RETAIL REPRESENTATION

4.1 First impressions count. Any multiple retailer – or indeed an independent (but an independent may well have more familiarity to start with) – looking at the town centre as a possible candidate for a new shop, would in our judgement come away with three impressions :

• firstly – and emphatically – that the retail mix is in no way indicative of a centre down-at-heel, struggling, or simply down-market. Rather it comes across as predominantly mainstream mid-market, orientated towards non- food, popular with older people but also well patronised by young families especially at weekends – and no retailer would contemplate a new shop without seeing the place across the week.

• secondly, and on closer examination, that this mid-market level has more or less kept pace with trends nationally. That does not mean that other market levels are not represented or that there are no gaps in the mainstream offer. But that is to be expected since historically Sutton is not quite a sub-regional centre, yet well above important suburban centres like say Kings Heath, Northfield or Erdington (as it used to be)

• thirdly, that Sutton town centre is compact, easy-to-use and easy to get to, focused on the Gracechurch Centre and along The Parade, and that taking a shop will invariably mean locating within this core area; neither High Street nor even Birmingham Road would come into the reckoning; and even within the core only certain frontages will be acceptable for a given retailer, reflecting different criteria in respect of rental costs, suitable adjacencies etc.

We believe these impressions will have been as valid 20 years ago as they are now. In other words, little has changed.

4.2 Against that background, comparison of the current retail make-up (shown on the plan at Appendix 3) with the position at the turn of the millennium, not surprisingly points to a reasonable degree of stability. This applies to both the quantum of shopping space and – importantly – market level. Moreover, whilst there have been numerous changes in representation since then, they largely reflect what has been happening across the country.

4.3 Nevertheless, we are aware that there is some dissatisfaction with the range and standard of shopping in Sutton town centre. Locally, expectations are often rather higher, and reinforced by unfavourable comparison with Solihull. Appendix 4 is especially relevant in this context because it explains the special circumstances underlying development of a John Lewis-based scheme on the Touchwood site.

4.4 In addition to Solihull town centre, the main shopping destinations which draw trade from the Sutton catchment range from the comprehensive regional-level offer at Birmingham City Centre to local facilities at Mere Green and New Oscott (Princess Alice Retail Park plus Tesco), plus the two large out-of-centre shopping parks in the area :

➢ The Fort, close to the M6 at Erdington and a key destination since 1997, and ➢ the Ventura complex at Tamworth which has only become a major retail attraction in the last 10 years or so.

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4.5 For several years after opening The Fort ranked 3rd in the heirarchy of UK retail parks, according to rental value, and was crowned best out-of-centre shopping centre in 2001. However, M&S closed down in Sept 2015 and the entire Arcadia contingent in November 2016; none of this space has been re-let and we are aware of other stores being covertly marketed. Even so, there have also been recent successes, including a virtually new and expanded Next (relocation into the former Bhs), and a similarly, virtually new Primark opening in March 2016.

4.6 The Fort is still a competitor to Sutton Coldfield but having moved down- market, less now than even 5 years ago. Ventura has become the principal threat, with John Lewis Home and Marks & Spencer plus 30 other major retailers and others anxious to gain representation..

4.7 In the text boxes which follow we summarise recent retail history related to three points in time (roughly year end in each case) :

• at 2001, the year when Touchwood opened, so directly overlapping in letting terms; also 5 years after completion of The Parade units, by then well established and fully let, and 4 years after The Fort opened

• at 2008, five years after Bull Ring completion and just pre-dating the emergence of Ventura as a major shopping destination; also the beginning of the recession and the internet becoming a factor

• at 2017, post-recession in a highly selective retail market, and facing the full force of internet shopping : retailers cutting back on expansion and trimming existing networks; Grand Central opened two years earlier.

RETAIL PROFILE 2001 – RECENT EVENTS

➢ Monsoon – relocation within Gracechurch to larger unit and addition of Accessorize range

➢ Similarly Birthdays, now also including Wax Lyrical concession area

➢ New store for Hennes (H&M) (9,000 sq.ft. on 2 trading levels) in newly formed space adjoining Bhs

➢ Allders at Home enters into new lease on former Maples furniture store fronting The Parade)

➢ New entrants to the town: Gap, Clinton Cards, MVC, Mark One, Bon Marché, First Sport, Ernest Jones, Beaverbrooks

➢ Next relocates within Gracechurch to former Principles (opposite M&S), trebling sales area

➢ Sainsbury’s closes supermarket in Red Rose, provides an ideal opportunity for Wilkinson’s

➢ Starbucks and Costa Coffee acquire coffee shop outlets in Gracechurch (both with external seating).

4.8 On the negative side, the main event in the run-up to the millenium was the closure of most of the (then) Arcadia Group fashion brands, except Evans and Dorothy Perkins/Burtons (moved across to lower rent premises vacated by Top Shop /Top Man). Miss Selfridge, Wallis, Richards, Principles and Top Shop/Top Man then

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all migrated to The Fort, and Dorothy Perkins/Burtons also opened there whilst retaining representation in Sutton town centre.

4.9 The changes outlined above follow those consequent on first letting of the Newhall Walk frontage units in 1996 e.g. relocations by Adams and River Island (both into larger space) and new stores for Ottakars, The Entertainer, Virgin Music etc.

4.10 The second text box goes forward to 2008, the culmination of several years of buoyancy in the retail market – both nationally and in the West Midlands. Inevitably there were ‘blips’, but overall the years following the millennium saw concerted expansion by many retailers. As will be evident from the box below, Sutton Coldfield was no exception, even though the early years of this period were dominated by successful letting of first Touchwood and then the Bullring.

RETAIL PROFILE 2008 – RECENT EVENTS

➢ Demise of Woolworths at end of 2007 enables H&M to relocate to much larger store with two full-cover trading floors

➢ Holland & Barrett relocate from Red Rose mall to better located unit opposite Bhs

➢ Adams childrenswear – after years of struggle finally put into administration; Sutton shop quickly taken over by Poundland

➢ River Island – relocation back to Gracechurch taking a much larger store vacated by Gap, one of their many closures due to sharp decline in UK sales; previous shop on The Parade re-let to Poundland (in conjunction with former Adams next door)

➢ New banking premises in Gracechurch for HSBC and Barclays – in place of Homestyle (failed successor to the failed Fads business) and original H&M store respectively

➢ Infill development within Gracechurch next to M&S : 3 newly formed units, let to La Senza, Jane Norman and Clarks

➢ Other new entrants to the town : Ann Summers, Blacks Outdoor, Ryman, Republic, o2, Card Factory, The Works

➢ Collapse of the Allders business provided an opportunity for aggressively expanding Aldi, thus bringing back an element of supermarket shopping to the town centre, and compensating (up to a point) for loss of Sainsbury’s in 2001

➢ Bank (fashions) replaces Etam/Tammy Girl (closure of entire UK operation) in Gracechurch main mall

➢ Kings Court frontage in Gracechurch (next to Beatties/H of F) extended forward to create larger units; lettings to (inter alia) Bodycare and Roseby’s.

4.11 The final text box covers the period since 2008, including the recession years and subsequent gradual recovery. Like every other town, Sutton was affected by the impact of the recession on the retail sector, and by people choosing to shop on the internet. Concurrently, Sutton also faced increasing competition from Ventura in particular. Nevertheless, the town centre has continued to attract retailer investment

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– and not just mainstream mid-market retailers but also certain higher grade stores such as Fat Face and Paperchase.

4.12 No less positive is the fact that, taking a view across the entire period from 2001 to the present day, it is clear that the majority of shop closures in the town centre are attributable either to failure at corporate level (i.e. reasons not specific to performance at Sutton Coldfield), or to company policy requiring slimming down nationwide and/or a shift to retail park sites.

RETAIL PROFILE 2017 – RECENT EVENTS

➢ Demise of Bhs in 2016, removing one of Gracechurch’s three anchor stores – but the least significant one in terms of customer appeal

➢ Completion of House of Fraser’s far-reaching upgrade in November 2017, relaunched with several new brand shops and new in-store services (see also Appendix 4)

➢ Goldsmiths ceases trading – no evident corporate reason, therefore presumably due to poor trading at Sutton; similarly Bon Marché N.B. Goldsmiths has this year placed numerous stores on the market

➢ Morrisons’ foray into convenience stores (M Local) included opening on B’ham Rd – a failed experiment over-reliant on poorly sited ex-Blockbuster stores – premises still vacant; Little Waitrose only slightly less short-lived – good location but too small to make an impact

➢ New Look acquires adjoining unit vacated by Bon Marché (doubles floorspace); Republic acquires MVC unit following failure of the MVC business

➢ Top Shop/Top Man comes back to Sutton, moving into JD Sports store inherited with JD’s acquisition of First Sport business; JD relocate to the former Bank unit on prime frontage

➢ Significant new entrants staying the course : Flying Tiger, Paperchase, Lakeland, Hotter, Fat Face, Stormfront, Swarovski, Pandora, Roman, Grape Tree

➢ Closures in fashion sector due to business going into admin./liquidation : Jane Norman, Republic, Envy, Bank, Jones, Barratts, Internacionale, Officers Club, La Senza; likewise non- fashion-related : Roseby’s, MVC, Phones4U, Julian Graves, Jessops

➢ Closures for corporate policy reasons (but not business failure) : Halfords (relocation to Princess Alice), Burton/Dorothy Perkins, Monsoon/Accessorize (but re-entered with smaller unit limited to more successful Accessorize brand)

➢ At the value end of the market, Poundworld challenge Poundland, opening in the former Bed Warehouse store in Red Rose (next to Wilko); Shoe Zone tales a unit but closes five years later; Card Factory moves to a larger unit and Sports Direct similarly

➢ Caffe Nero opens coffee shop in Gracechurch, followed much more recently by Brains’ new Coffee#1 venture on opposite Parade frontage – but Starbucks withdraws; Burger King closes as franchisee goes into administration

4.13 Since the end of 2017 Trespass (outdoor) have opened and Patisserie Valerie (Druckers) have relocated within Gracechurch to a larger unit. More significant are two very recent closures : Body Shop and Next. Both are Sutton- specific but also in line with what the respective companies are doing elsewhere. We

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understand that after many good years Body Shop had become unprofitable and the company decided not to renew on lease expiry.

4.14 Closure of Next is more serious for the town centre but accords with the company’s policy of favouring retail parks : in the case of Sutton, much larger stores at The Fort and now the recently opened equivalent at Ventura, coupled with a strong local presence at Princess Alice. In several other places Next have closed down and now have either no presence at all (e.g. Winchester and Folkestone), or have opted purely for retail parks away from the town centre e.g. Ipswich (two sites on the outskirts of the town) and Leamington. Withdrawal of such an important name inevitably conveys a negative message to other retailers that may be considering representation. However, we understand that at Sutton the former Next is currently under offer to a well reputed multiple retailer.

4.15 Unfortunately that is not the case with Bhs. We have discussed possible retailer reoccupation with the letting agents and it is clear that every avenue has been rigorously explored, but as far as we are aware there is no tangible solution at the present time (see next section, para 5.3).

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5. SUTTON TOWN CENTRE – EXPANDING THE RETAIL OFFER

Anchor stores

5.1 Lack of progress on re-letting the former Bhs store is first and foremost an issue for the Gracechurch Centre. However, it is also a pointer as to what might or might not be achievable more generally in the town centre, especially where an anchor store – or even a combination of mini-anchors – would be a prerequisite for getting a scheme off the ground.

5.2 The most obvious location for that would be redevelopment of Red Rose and the associated Victoria Road MSCP, in conjunction with relocation of the bus stop bays to near the station. In theory, Red Rose could then form the starting point of a larger site perhaps extending across South Parade, in line with the wish to see a Touchwood-type comprehensive scheme come forward in the town centre.

5.3 From discussion with the Gracechurch team and taking account of our own assessment, the salient points on the post-Bhs situation, may be summarised as follows :

• irrespective of market level considerations, the obvious candidate for the premises in their entirety would have been Primark; firmly rejected due to recent opening at The Fort • straight re-letting of the whole to Dunelm – took a short (5-yr) lease on ex-Bhs at Solihull; did examine Sutton carefully but rejected as too close to Castle Vale store; in any event committed retail park retailer and priority now is Ventura; only took Solihull because terms at nearby Sears Retail Park too expensive • assuming instead sub-division to accommodate up to say three smaller but still good- sized high-fashion stores fronting North Mall; main targets : Uniqlo, Superdry, Zara, new H&M fascias Cos and & other stories - all out of the question due to insufficient market size and inadequate footfall; expansion now focused on major centres • also in the fashion sector, expansionist Polish womenswear chain Reserved – large stores and direct competitor to New Look but at present concentrating only on major centres (took half of Bhs Oxford Street) • likewise US chains Victoria’s Secret (lingerie) and Forever 21 – but latter’s great expectations of delighted UK shoppers not realised, thus retrenching rather than expanding • Deichmann (value footwear from Germany) now well established in Britain and all over Europe; continuing to expand including in W Midlands – typically max 5,000 sq ft • Metrobank – aggressively seeking and obtaining sites for large high profile premises (visually and long hours); especially on corner sites; likely to enthuse aboutpotential at Sutton Coldfield • straight re-letting of the whole to B&M Bargains (or medium-term even Wilko if displaced from Red Rose); former submitted offer but at unacceptable level; also completely wrong tone in our view for Sutton retailing; latter would doubtless expect a discounted deal together with no-cost fit-out; similarly TK Maxx if encouraged to relocate from Newhall Walk to free up that site for redevelopment • other possibilities for most if not all the space (probably in conj. with fitness which may not be compatible with Pure Gym close by) could be sports sector e.g. DW Sports, Sports Direct (relocation from existing upper level space opposite), Decathlon; but no firm interest • Clas Ohlson (Sweden), now in the process of exiting the UK, and relevant only as an indication of how new concepts (often from abroad) do come forward and create new letting opportunities – substantially larger version of Robert Dyas and similarly geared to town centres, unlike say B&Q.

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5.4 This summary shows that for towns at the Sutton level of the hierarchy the letting market is getting more rather than less difficult. The experience of trying to let ready-made premises i.e. the former Bhs – which in principle should be easier than new build – indicates that new large scale shopping development dependent on securing an anchor store is unlikely to be feasible. . 5.5 In such situations, for some years the only non-food candidates for town centres have been : (recent openings in brackets)

• Debenhams (Wolverhampton, but took existing void space and sweetheart deal) • occasionally House of Fraser (High Wycombe, Chester), • in special circumstances John Lewis (Chelmsford, Oxford and Cheltenham) or more often John Lewis at Home (Newbury, but mainly retail parks), and • Marks & Spencer (recently opened Longbridge department store linked to closure of Redditch, combines out-of-town characteristics with a highly accessible urban location).

More recently also Primark, the ultimate price-driven clothing store, has now become a favoured anchor store but priority locations are the top malls in central areas or regional schemes (such as Merry Hill), or out-of-centre shopping parks.

5.6 To complete the picture, Beales (struggling to survive) expanded by acquisition and Fenwicks similarly (new Bracknell store is a relocation).

5.7 The corporate difficulties of both Debenhams and House of Fraser, and John Lewis’ stringent locational selectivity, rule out the vast majority of town centres. M&S – like Debenhams – is more focused on slimming down than on taking new stores e.g. just closed in Portsmouth City Centre). N.B.M&S food-dominant small stores are subject to different criteria e.g. planned development at Lichfield Friarsgate not relevant to new development at Sutton, given existing store with its conventional and popular general merchandise, food and catering offer.

5.8 In short, we see no clear prospect of securing a department store-type anchor for a development in Sutton Coldfield, even looking far ahead to the additional population coming to Langley. But even if Sutton were to somehow be a candidate, the financial aspect is a further difficult area. Large stores playing an anchor role are well placed to negotiate concessionary rental terms alongside generous incentives, and that applies no less in a strong market. Incentives take the form of substantial capital payments towards fit-out costs, rent-free periods (or stepped rents), and often capped service charges. These have to be, in effect, covered by rental income from the unit shop element, which is difficult to reconcile with rents under pressure.

Unit shops

5.9 In contrast to the difficult Bhs situation, the town centre has been fairly successful in attracting new retailers as and when units become available. Incoming tenants cover the whole market spectrum : cheap and cheerful, mainstream mid- market, and also those positioned more toward the quality end of the market e.g. Lakeland, Fat Face and Paperchase. Even so, limited demand is still an issue in the unit shop sector, and also translates into pressure on achievable rents and the need to budget for incentive payments, although the market has largely moved on from the exceptionally onerous deals tenants were able to negotiate during the recession.

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5.10 At Sutton, several shops are available in Gracechurch. Whilst the covered mall section is fully let (or will be assuming the deal with the interested party for Next proceeds), vacant units are mainly on peripheral frontages. We are informed that two are under offer and that there is tangible interest in certain others, including from independents, but not for all. The row of designated A3 units on the southernmost section of The Parade frontage has proved especially difficult.

Independent retailers

5.11 Although we understand there is interest from the independent sector for representation in Sutton town centre, rental values in a prime scheme like Gracechurch are not normally affordable – although there can be exceptions. Smart Ideas (an impressive West Midlands chain of around 10 stores based at Droitwich) have traded from a high profile, large shop on the corner of Newhall Walk ever since The Parade development opened; they have evidently ‘survived’ several rent reviews over the 20 year period, underpinned by a successful and attractive merchandising style.

5.12 But as a rule the cost issue is crucial for both tenant and landlord: if the tenant has an affordability ceiling of say £20k, paying nearer £40k is out of the question. Conversely, no institutional landlord can risk prejudicing investment value by agreeing to a seriously discounted rent which then sets a valuation precedent.

5.13 In this context it is important to keep in mind that, in the absence of a land ownership interest, local authorities have no powers whatsoever to dictate who a shop should be let to. They can try and influence a private sector landowner, but even then their ability to do so is extremely limited.

Charity retailing

5.14 In recent years the charity sector has become a major force on the high street, especially in towns smaller than Sutton. But whatever the location all the major national organisations and most regional ones have ‘upped their game’ in terms of merchandising practice and presentation, shop fascia treatment, rental levels and opening hours. The corresponding commercial rationale is frequently misunderstood, along with ability to generate footfall. Key target towns are most likely to be affluent – on the one hand attracting quality donations and on the other selling to well-off shoppers who love browsing for the unexpected and are happy to pay relatively high prices.

5.15 Sutton has only 7 charity shops – all but one on secondary frontages. That quantum and pattern is very similar to Solihull, and reflects the continuing reluctance of many institutional funds to permit charity shops, but also the retail importance of the town centre and its compact physical structure which combine to limit availability of affordable space. Only Cancer Research is not on one or other of the secondary frontages i.e. B’ham Road or within Red Rose. If it were not for these constraints we would expect several charities to be keen on Sutton, despite wider concerns in the sector about market saturation.

Discount and value shops

5.16 By 2009 the recession was starting to bite seriously, with the value sector coming to the fore in terms of acquiring space. Retailers at that market level who opened in the town centre included Card Factory, The Works (incidentally, based at

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Sutton Coldfield), Bodycare, Poundland and Cool Trader (Frozen Food). Specifically referring to Poundland, an article in national professional journal Property Week reported that the town centre’s “retail mix matches a deprived town rather than one of Birmingham’s most sought after addresses” (19th September 2008). The article also lamented the end of Allders, “robbing Sutton Coldfield of a department store which was replaced by an Aldi discount supermarket”.

5.17 Leaving aside the fact that Allders’ Sutton branch was purely a furniture and furnishings store, so not in any sense a department store, it was not right to say that Sutton shops were those of a deprived town. The overall retail profile had then, and has now, nothing in common with say East Ham, Hartlepool or – somewhat closer to home – Erdington. Whilst any town centre should cater adequately for all sections of the community, the presence of retailers like those above, and most importantly Wilkinsons, means only that it actually does so, but in a place like Sutton not to the exclusion of other shops.

5.18 The reality is that value and discount stores are everywhere, including in prime positions of affluent towns mixed in with mid-market and higher grade retailers. Solihull is no exception, with an established Poundland on the pedestrianised High Street (as in Sutton, also previously the Adams shop) and a much larger one opening shortly (albeit in a secondary position) between Sainsbury’s and M&S. Nor is there any shortage of other value multiples – basically the same names found then (or now) in Sutton town centre (but lacking Wilkinsons). . High end retailers

5.19 A key issue for Sutton is the fact there are only a handful of higher end retailers, especially compared to Solihull. With a predominantly affluent catchment area, Sutton might in theory be an attractive proposition for that level, which is typified by the following examples :

• womenswear – Phase Eight, Whistles, Hobbs, Karen Millen, Mint Velvet • childrenswear/maternity – Jo Jo Maman Bebe, Moshulu (ftwr) • mixed fashion – Crew, White Stuff, Joules, Jack Wills • beauty – Space NK, L’Occitane, Molton Brown • home décor – Farrow & Ball, White Company, Cath Kidston Cook (frozen food) is also relevant at this market level.

5.20 None of the above is per se unrealistic for Sutton. However, in practice retailers like this expect to locate in clusters, with similar and therefore mutually supportive retailers close by. We understand that with some creative estate management M&G had this in mind for the South Mall part of the scheme (where there are available units), in the expectation that Argos would move out and be incorporated as elsewhere into Sainsbury’s (Mere Green in this case). But Argos decided to renew their lease.

5.21 Examples of ‘high street’ clusters with a range of names at this level are Tenterden and Reigate in the south-east, Beverley in East Yorks, and Market Harborough – but all are market towns providing a character environment. A purpose-built and successful scheme developed specifically for this market position is Christopher Place at St Albans; similarly Regent Court at Leamington but there the concept failed (subsequently switched to restaurants).

5.22 At Sutton, the best – but in practice difficult and in our view unlikely – possibility now has to be a remodelled external Red Rose frontage, facing onto an

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upgraded Lower Parade environment, with most if not all existing retailers relocated elsewhere. But achieving development viability would not be straightforward. Moreover, sufficient tenant interest is not guaranteed either, and House of Fraser’s transformed store doesn’t entirely help, given that certain brands indicated above now have concessions and may be content with that.

Restaurants

5.23 We are conscious of the widely held view that more needs to be happening in the town centre on the leisure front, in particular in the evenings and taking in the main shopping area as well as Birmingham Road. Restaurants are fundamental to achieving this aim, which we endorse, providing that it is not at the expense of expanding the shopping offer; life is difficult enough for retailers, and the priority should be encouraging more people into the town centre during shopping hours. Restaurants can help with that but better and more shops is what counts.

5.24 In any event, despite what until recently has been a very strong eating out market, restaurants have generally shown little interest in the core area. Now, two further factors come into play :

• completion of Mulberry Walk at Mere Green, where several quality restaurants have opened including Bistrot Pierre, and we are told have proved to be highly successful and are certainly very well patronised

• market saturation generally (see Section 1), although there are invariably localised exceptions.

Even with these twin constraints, we would expect gaps in cuisine to be filled in a largely prosperous town like Sutton, subject to suitable premises being available. However, there is no hard evidence of that happening.

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6. DEVELOPMENT POTENTIAL – SPECIFIC SITES

6.1 The three opportunity sites in the town centre have all been considered as candidates for development/redevelopment for at least 10 years. In particular, Newhall Walk and Red Rose were the subject of ambitious retail proposals in the Master Plan commissioned by the City Council in 2008 and prepared by Broadway Malyan. This formed the basis of the Town Centre Regeneration Framework, adopted as a Supplementary Planning Document in November 2009.

6.2 The reason why no development has taken place on these sites is – at least initially – the result of the recession which brought to a halt almost all commercial development, due to normal sources of development funding drying up. However, over the last 5 years or so, development funding has re-emerged, several retail- based schemes have been resurrected and in some places new ones have come forward. Mixed use has taken hold, often on the back of high density concepts in conjunction with escalating residential values.

6.3 But that has not happened at Sutton Coldfield. The problem with Red Rose and Newhall Walk is partly one of existing positive occupancy and corresponding values. The latter establishes a kind of threshold from which significant added value must be created by a new development project. Taking account of development costs as a first claim on added value, achieving viability in a retail letting market getting weaker rather than stronger is hard to achieve in middle ranking centres.

6.4 The second problem, at least as far as the retail sector is concerned, is questionable demand for space (see Section 5). If retailer demand is limited, meeting the added value creation criterion, and hence viability, is also difficult.

6.5 With regard to Brassington Avenue, the issue is different – an empty site of 2.35 acres ‘crying out’ to be developed. But financial considerations and physical site problems have helped to stymie any progress with implementation.

6.6 Our understanding of the current position on each of the three sites, and our views as to possible (but always less than clear-cut) ways forward in each case, are summarised below. We emphasise that these suggestions are preliminary; far more detailed and robust information than is available to us as part of the present study, coupled with working up indicative layout plans and outline financial appraisals, would be a prerequisite for testing feasibility. This is a task appropriately undertaken by those with land ownership status, but against the background of input from and early discussion with the Town Council

6.7 Brassington Avenue :

• Original plans going back to the 90s envisaged retail development, initially a major extension of Gracechurch but subsequently limited just to expanding Beatties (in both cases bridging across Brassington Avenue); neither option proceeded, presumably for non-viability reasons

• planning permission granted 2005 to City Lofts for a large mixed use scheme dominated by residential tower blocks (295 units); City Lofts collapsed 2007 as a result of the financial crisis

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• similarly large but purely retirement complex i.e. not mixed use, granted permission 2013 (Pegasus Retirement scheme), comprising five tower blocks, arguably inappropriate to a centre like Sutton; failed to proceed

• subject to either verification or correction (made difficult by non-response of selling agents), currently believed to be owned by a company called Phoenix Developments and understood to be on the market; this not contradicted by initial contact with agents but no information on website

• serious physical problems inhibit development, but especially residential : i) shallow elongated site ii) vista across busy Brassington Avenue to carpark decks and back of Gracechurch iii) high railway embankment to the rear iv) difficulty of creating pedestrian-friendly linkage into shopping area v) intrusive presence of Gracechurch car park exit bridge and ramp; however, if at all possible a residential element should be included in any scheme, perhaps at the southern end where the site widens.

• leaving aside bus stn possibility, best development options may be a combination of commercial leisure e.g. bowling centre (typically 25,000 sq ft) and/or cinema (from discussions on the former Bhs we are aware of operator interest for a town centre multiplex but for physical and cost reasons that store is not suitable), a residential element (see above) and – benefitting from proximity to planned transport interchange (link to HS2) – three-floor high- spec office building, let separately as complete open-plan floors and with dedicated parking (but cf. para 3.4 re viability).

6.8 Red Rose Centre :

• 2009 Regen. Framework : merges Red Rose with Newhall Walk to form a new Touchwood-style mall, plus civic offices and library relocation off-site

• That proposal failed to materialise and market conditions now even less supportive – that scale of development in this location presupposes i) a quality anchor store and ii) a real prospect of the vital unit shop element letting well and at full rents; neither is realistic

• Recent acquisition by B’ham City Council (2016) heralded as opening the way for comprehensive redevelopment, with the potential to “see a transformation into something like Solihull’s Touchwood shopping centre” (B’ham Post 28.01.16) – presumably coupled with removal of buses and consequent opportunity to create an attractive pedestrian space linked to Lower Parade frontage directly opposite

• taking account of HS2 connectivity proposals and associated relocation of buses, public realm enhancement could be an outcome irrespective of whether or not a Touchwood concept could be realised

• extinguishing existing occupational interests also not straightforward although most leases expire within 5 yrs; Wilko a key town centre retailer (paying only £225k p.a. on sub-lease from Sainsbury’s expiring 2022 but could require relocation even so)

• letting of recently refurbished upper floor offices (currently being marketed) could further complicate matters (depending on actual lease terms); note

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library service paying nominal rent of £32k for approx. 24,000 sq ft, but have invested £4.3m on remedial works (combined figure covering both recent closure periods)

• with 500 normally under-used spaces, any comprehensive redevelopment should examine whether a smaller replacement facility would be appropriate.

• alternative approach to development – with or without bus relocation – and dependent always on the challenge of securing funding, hardly to be under- estimated : completely new high profile library complex (incorporating related community facilities including activities aimed at children), and making use of the redundant ex-Cool Trader/Rumour night club site; all retailers left in situ; upgrading of MSCP; and again subject to cost feasibility, new Arts Theatre to replace the present facility on South Parade)

• alternative approach assuming bus relocation : as above but with retail frontage extended northwards to include adjoining former p.h./night club building; marketing targeted at higher quality retail brands (preferably including re-letting of existing less compatible shops).

6.9 Newhall Walk

• 2009 Regen. Framework : comp redev. combined with Red Rose – new shopping mall, other uses (unidentifiable from plan) and car park; repositioned pedestrian access from The Parade; see Red Rose for comment on questionable retail feasibility and development economics

• desirability of introducing more intensive and better designed development still applies but constraints as follows :

i) TK Maxx : just renewed lease but relatively short-term (5 years) ii) Hughes Electrical : in occupation but lease expiry approx. 1 year iii) well used, income-producing car parking – but not liked by retailers accustomed to free customer parking on retail parks iv) need to safeguard rear servicing to Parade frontage v) Aldi : ongoing dialogue with RailPen on future intentions: right to customer parking but lease expiry within 2 years vi)TGI Friday : no information n.b. ex-Halfords unit : possible occupier interest but not about to be re-let

• ideal world : free-up the site as follows :replace surface parking on smaller footprint with 2-level decked car park, move TK Maxx to Gracechurch ex-Bhs or new-build at Red Rose or as fall-back reinstate on-site closer to Parade frontage avoiding incursion onto frontage units service yards, similarly Hughes (but may not be necessary)

• key to financial viability then becomes high density residential on residual parts of site, especially along Queen Street frontage

• complex situation with progress dependent on occupier attitudes and RailPen willingness to explore options; latter’s approach is non-committal but positive, happy to meet and discuss what might be achievable, and how.

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7. SUGGESTED PHYSICAL AND PROMOTIONAL MEASURES

7.1 The message from Sections 5 and 6 is that there is little prospect of significant expansion of Sutton Coldfield’s shopping facilities taking place. Sutton is not about to follow in the footsteps of Solihull nearly 20 years ago, at the turn of the millennium when the retail world was rather different, both nationally and in the Birmingham region.

7.2 That does not mean that the town centre is weak or in decline. Far from it. But the development market has largely moved away from places at this level of the hierarchy. Leaving aside the (very relevant) difficult national backcloth, the fundamental constraint on Sutton achieving higher market penetration is the extent of competition from outside, which conditions how the market regards trading potential.

7.3 In retailing and associated areas, that external competition comes from the alternative destinations, and of course from internet shopping. Nothing can be done to counter either type of threat, other than by way of internal measures designed to improve the attraction of what Sutton offers.

7.4 These measures fall under two headings as follows :

• physical improvements • promotional activity.

Both are important and can make a difference. But to expect either or both to lead to a transformation of the town centre’s fortunes, whether in the immediate or in the medium/longer term, would be unrealistic.

7.5 On the other hand, the Langley project could make a difference, but the length of time to completion is protracted. We understand that up to 6,000 dwellings are planned over a 20-year timescale. Presumably a mix of housing types is envisaged, but if family housing were to predominate, the additional population could be substantial – in the order of 15-20,000. That would represent a significant boost to the trading potential of the town centre. Even so, this will not be akin to a captive population : location close to the A38 also feeds naturally into Ventura in one direction and The Fort in the other.

Physical improvements

7.6 By far the most significant measure would be extension of the pedestrian environment on The Parade, to take in Lower Parade following relocation of the bus stops and associated bus carriageway to the proposed transport hub. Whether this will take place is uncertain – the arguments for and against removing the buses are not clear-cut.

7.7 From a retail point of view, we do not believe that moving the buses would necessarily open the way to the comprehensive and far-reaching redevelopment of Red Rose that is hoped for. All the difficult issues regarding letting potential and tdevelopment viability come into play. However, a less ambitious remodelling and extension of the frontage, with a view to securing a run of quality retailers facing onto the transformed public space, might not beout of the question and would be a positive outcome. (cf. para 6.8). But there is no guarantee that this would succeed in lettting up at that market level.

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7.8 At this stage the City Council as freeholder needs to take the initiative and test the market without delay. That means exploring the commercial feasibility and development economics of all reasonable alternatives, to provide a sounder basis to arrive at specific options (for consultation with all relevant parties), and ultimately to establish a position on bus relocation.

7.9 Less significant but still important are the following : i) within Gracechurch, extend the covered area over of the secondary Kings Court/South Mall part of the centre, which stands out as a poor neighbour to the main mall and is more difficult to let ii) also at the southern end of the core, devise a reconfigured junction to facilitate pedestrian movement between The Parade and Birmingham Road iii) relay those sections of The Parade where the surface has been damaged and especially where rainwater accumulates, whilst retaining the uniform impression created by existing interlocking tiles; in conjunction with this, install additional seating and planters iv) provide hanging baskets along The Parade frontage (to match the opposite Gracechurch frontage) v) draw up and agree a concerted environmental upgrade scheme for South Parade; this is the most difficult proposal in practice, due to different land ownerships, several active uses, uncertainty as to the future of Red Rose (and the library), and uncertainty as to continued need for bus layovers. . vi) irrespective of how Red Rose is remodelled or redeveloped, priority should be given to the difficult task of seeking funding for a new library building incorporating a relocated Arts Theatre and other community-orientated facilities (whether public sector, private sector or charitable).

Up to a point physical measures such as these go hand in hand with maximising the potential of promotional activity.

Promotional initiatives

7.10 The town centre is fortunate to have a BID set-up which operates in a proactive way, within the resources available from the annual levy (1.5% of RV plus annual inflation adjustment). The BID is now into its second 5-year term which started in January 2017.

7.11 A further plus factor is the potential for a unified approach to town centre promotion and other measures, given that almost the entire core shopping area is in just three freehold ownerships – Birmingham City Council, M&G, and Railway Pension Fund Nominees.

7.12 We consider the following measures could have merit :

• production of a town centre information guide (in leaflet format and financed by advertising) to include a simple layout plan, details of all facilities – retail and otherwise – points of interest, access and car parking, and how to get to Sutton Park on foot

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• distribution via visitor info centres especially B’ham City Centre (if ever reinstated), Lichfield, Tamworth and NEC/Airport, plus hotels and major supermarkets, and National Memorial Arboretum

• provision of information racks (say three locations) within the town centre, to contain printed details of events and other local publicity, in addition to the above leaflet and – importantly – the exceptionally high quality and informative historic buildings guide produced by the Civic Society (discovered by chance and nowhere to be found subsequently)

• provision of equipment for a regularly publicised programme of specialist open-air markets and musical events on The Parade, and to include sessions aimed at children.

7.13 With regard to progressing development initiatives, set up a series of early, purely exploratory meetings with relevant site owners and their advisors :

• M&G Real Estate • Railway Pension Nominees • B’ham City Council

The aim of these meetings would be to understand respective aims and objectives, establish hard information on physical and land ownership/occupier constraints, and if possible reach an initial consensus on future action. For commercial confidentiality reasons each meeting would be restricted to one organisation rather than combined.

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