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SUBMISSION DOCUMENT CORE EVIDENCE BASE: Retail Capacity Study

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SUBMISSION DOCUMENT CORE EVIDENCE BASE: Retail Capacity Study nd Local Development Framework SUBMISSION DOCUMENT CORE EVIDENCE BASE: Retail Capacity Study Improving the quality of life for everyone living and working in the borough November 2006 2006 - 2007 Early Intervention (Children at Risk) 2003 - 2006 Winner of 4 previous Beacon Awards London Borough of Tower Hamlets Borough-Wide Retail Capacity Study February 2005 Drivers Jonas 6 Grosvenor Street London W1K 4DJ Contact: Nick Taylor Direct Line: 020 7896 8086 Fax: 020 7896 8001 Email: [email protected] CONTENTS Page No 1. Introduction 1 2. Executive Summary 3 3. Retail Policy Guidance 5 4. Summary of Trends in Retail and Leisure 11 5. Summary of Health Checks and Markets 14 6. Retail and Leisure Hierarchy in Tower Hamlets 23 7. Proposals in Main Competing Centres 29 8. Retail Capacity Assessment 33 9. Development Sites 42 10. Strategy for Comparison Retailing 55 11. Strategy for Convenience Retailing 57 12. Strategy for Markets 59 13. Strategy for Leisure 60 14. Strategy for Professional Services (A2) 61 15. Implications on Area Action Frameworks 62 16. Conclusions 64 Appendices: 1 Retail Planning Policy Review 2 National Retail and Leisure Trends 3 Health Checks 4 Floorspace Analysis of Centres 5 Map of Main Centres in the Borough 6 Catchment Area and Zones 7 Map of Main Foodstores in Borough 8 Convenience Quantitative Analysis 9 Comparison Quantitative Analysis 1. Introduction 1.1 Drivers Jonas was instructed by the London Borough of Tower Hamlets (hereafter referred to as the Council) to prepare a Borough-wide retail study to support the review of the Unitary Development Plan (UDP), and to respond to the guidance in Planning Policy Guidance Note 6 - Town Centres and Retail Developments, that development plans should be based on an up-to-date assessment of retail capacity. Background 1.2 The Council considers that the retail hierarchy has changed since the Tower Hamlets UDP was adopted in March 1998. In terms of a retail hierarchy, the Adopted UDP only identifies district centres and local shopping parades, whilst Canary Wharf is undesignated. 1.3 The Borough is under considerable pressure from developments in neighbouring authorities, in particular Newham, Lewisham and Southwark, and allowance needs to be made in the emerging development plan to respond to these pressures. 1.4 The purpose of the study is to provide the Council with an estimate of retail capacity and provide guidance on how this could be accommodated within the Borough in the convenience and comparison retail sectors. 1.5 The study will help to inform and provide justification for: · Emerging shopping policies coming forward in the development plan process, particularly in terms of the designated centres and the need for floorspace change; and · the Area Action Plans for the Isle of Dogs, City Fringe and Lower Lea, particularly in terms of the level of retail use that can be accommodated without significant adverse impact on existing centres. Study brief 1.6 The aims of the study are to: (i) Provide a quantitative Borough-wide estimate of existing and proposed retail floorspace need, up to and including 2016, and assess the quantum and mix of retail facilities that can be supported across the Borough; (ii) Assess the health and role of existing centres within the retail hierarchy and the future potential for change; (iii) Provide a qualitative assessment of the Borough’s street markets and leisure facilities; (iv) Determine the likely impact of major retail development permitted outside the Borough on centres within Tower Hamlets, particularly from Stratford and Surrey Quays; and (v) Assess the potential for and likely significance of major retail development in Tower Hamlets, and thus identify the potential future role of its centres. 1 Format of the report 1.7 The structure of this report is as follows: · In Section 2 we provide an executive summary of our main findings and recommendations; · In Section 3, national, regional and local retail planning policy is reviewed; · In Section 4, national shopping and leisure trends are reviewed; · In Section 5, a summary of the health checks of the Borough’s main centres and markets is provided; · In Section 6, we review the retail and leisure hierarchy in the Borough; · In Section 7, we review recent proposals/schemes in competing centres outside the Borough; · In Section 8, the retail capacity assessment and appraisal of the potential for additional retail development in Tower Hamlets over the plan period is set out; · In Section 9, we appraise potential development sites in the Borough; · In Sections 10 to 14, the strategies for comparison retailing, convenience retailing, markets, leisure and professional services in Tower Hamlets are outlined; · In Section 15, we assess the implications of our findings for the Borough’s Area Action Frameworks; and · Our general conclusions and recommendations are set out in Section 16. 1.8 The appendices to this study are provided in a separate document. These are: · Appendix 1 - review of retail planning policy; · Appendix 2 - review of national retail and leisure trends; · Appendix 3 - health checks of the Borough’s main centres; · Appendix 4 - floorspace data of the Borough’s main centres; · Appendix 5 - map of the Borough’s main centres; · Appendix 6 - map outlining the study’s catchment area and zones; · Appendix 7 - map of the Borough’s main food stores; · Appendix 8 - comparison quantitative analysis; and · Appendix 9 - convenience quantitative analysis. 2 2. Executive Summary 2.1 Our health checks have shown that the District Centres (including Canary Wharf) all appear to be vibrant and healthy centres, although Whitechapel and Roman Road have high numbers of vacant units. Whilst these are all identified as District Centres, their roles differ in relation to the level of provision and the areas that they serve. Roman Road, Watney Market, the Isle of Dogs and Chrisp Street all appear to serve the needs of the local community. By contrast, Canary Wharf, Bethnal Green and Whitechapel serve a wider catchment area. 2.2 The 11 local shopping parades identified in the Adopted UDP provide a good service to their local communities in terms of top-up shopping and day-to-day comparison items although Aberfedly Street is showing signs of decline. We have also noted that the areas around Mile End, Stepney and Ratcliff appear to be under provided for. In addition, whilst there are environmental implications associated with street markets, their presence positively contributes to a centre’s vitality and viability and they should continue to be supported. 2.3 Given the retail provision and associated services provided by Canary Wharf we consider that it performs the role of a higher order centre within the Borough. Based upon our assessment, we consider that it should be allocated in the emerging development plan as a ‘Major Centre’. The Management Horizons Index almost classifies Canary Wharf as a sub-Regional Centre. We do not consider it necessary to alter the allocation of any of the other centres at this time, but recommend that the Council further investigate the provision/development of a local shopping parade to serve the Mile End area of the Borough. 2.4 Our qualitative analysis of the Borough’s leisure provision concluded that there is limited provision in the Borough from cinema operators, which is not surprising given the proximity to the West End. Given the proximity of cinemas in adjoining Boroughs we do not consider that there will be any demand for additional cinemas. In the health and fitness market, the majority of the provision is small scale with limited equipment and facilities. 2.5 The A3 market in the Borough appears to be healthy, with the main evening destinations for eating and drinking identified as Brick Lane and Canary Wharf. As long as the disposable income is available and the economy buoyant there will be pressure for additional A3 floorspace. However, we do not consider it necessary for the Council to specifically plan for this type of development. Instead, proposals should be assessed against general planning policies. The Council should also monitor pressures for changes of use to A3 uses. 2.6 In assessing the future capacity for additional floorspace within the Borough, the projections to 2016 should be treated with caution given the number of variables that are involved, especially in the comparison sector. 3 2.7 In the comparison sector, the available expenditure is forecast to increase by £597m from £485m in 2004 to a total of £1,082m in 2016. The forecast for additional comparison goods floorspace over the plan period is equivalent to between 2,620m2 (21,647ft2) and 19,093m2 (205,520ft2) net, which should be directed to existing District Centres, in particular Canary Wharf, but development in the smaller local shopping parades in the Borough could also be supported, in principle. If Canary Wharf is designated as a Major Centre it would be reasonable to expect that additional retail development would focus on this centre. 2.8 For the convenience sector, the available expenditure is forecast to increase from £284m in 2004 to a total of £378m in 2016: growth of £94m. This additional expenditure is broadly equivalent to the turnover of two small discount foodstores or a small high quality foodstore in 2006, increasing to a medium sized superstore or several discount foodstores by 2011 or a large superstore or several discount foodstores by 2016. The main gap in convenience provision is in the centre of the Borough, and we have identified the Gasworks of Ben Johnson Street as a possible location. 2.9 In considering developments that will impact upon the Borough’s markets, we recommend that the Council continue to support the markets’ role supporting the Borough’s centres, and hence these should be considered carefully.
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