Summary

The purpose of this paper is to explore the issues around retailing and town centres.

National, regional and local context

The key reports, plans and policies relating to the retailing and town centres are:

Regional Spatial Strategy (September 2008) - particularly policies W5, LCR5 PPS 6 Planning for Town Centres (2005) Draft PPS4 Planning for Prosperous Economies (May 2009) Cheshire Structure Plan Alteration (December 2005) Chester District Local Plan (2006) Adopted Vale Royal Borough Local Plan First Review Alteration (June 2006) Cheshire Town Centre Study (White Young Green 2007) Chester Retail Study (Donaldsons 2006)

The Cheshire Structure Plan Alteration retail policies have been replaced by RSS but did identify the following retail hierarchy:

Chester - Sub-Regional Centre Northwich, Ellesmere Port - Primary Town Centres Winsford, Frodsham & Neston - Secondary Town Centres Local Plans identify a large number of village, local and surburban centres.

Context and characteristics

Chester is by far the largest retail centre in the Borough and draws in significant levels of expenditure from surrounding areas. Chester has a high level of service floorspace (e.g. Restaurants) which reflects its diverse evening economy and tourist role.

Northwich is the second biggest centre and is strong in both the convenience and comparison sectors when compared against the national average. The Cheshire Town Centre Study concluded that the centre is healthy but noted that the comparison retail sector was of generally low quality and includes a proliferation of low value retailers.

Ellesmere Port has a high level of convenience floorspace compared to the national average and a low level of comparison floorspace. Ellesmere Port serves a relatively small catchment area and there is significant leakage of expenditure to Chester City Centre, Liverpool City Centre, other Merseyside locations and most significantly to Cheshire Oaks. Ellesmere Port was identified as a primary town centre in the Cheshire Structure Plan Alteration but this was based on assisting regeneration rather than its retail function.

Cheshire Oaks is not identified as a town centre but is the fourth biggest destination in the Cheshire Town Centre Study area for non-bulky goods after Chester City Centre, Crewe Town Centre and Macclesfield Town Centre in terms of turnover and market share. Cheshire Oaks is predominantly a destination for comparison goods purchases and does not contain the mix of facilities seen in town centres as well as being largely accessed by car.

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 1 and town centres Winsford performs an important convenience role and also has a reasonable level of comparison floorspace but is subordinate to Northwich in terms of turnover and floorspace. Whilst it is likely it will always be subordinate to Northwich the centre still plays an important role in serving the local population.

Frodsham and Neston overall have smaller shopping offers than the other centres. They both have relatively low levels of comparison retail floorspace but high levels of convenience floorspace compared to the national average. Both centres serve almost exclusively local shopping needs and are principally food retail destinations.

Key Issues

Need to update evidence base on retail need and health of town centres since the economic downturn; Developing a retail hierarchy for the Core Strategy to allow appropriate levels of future development in the Borough's town and local centres; The significant decrease in expenditure directed to Chester City Centre as the result of increased competition from out of centre retail developments and how this can be addressed; The future role of Ellesmere Port and whether there is any case for recognising Cheshire Oaks as a 'town centre'; How through the LDF and other strategies the Council can support smaller independent retailers and improve consumer choice as outlined in draft PPS4.

2 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 1 Introduction 4 2 National, regional and local context 5 3 Context and characteristics 7 4 Key issues 11 5 Key questions 13 6 Definitions/glossary 15

Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 1 Introduction

1.1 Whilst the scope of Government guidance and the role of town centres are much wider than solely retail uses this paper concentrates on food and non-food retailing (A1 use class). Other topic papers include discussions on other town centre uses, including the Employment and Economy and Community Facilities Papers and area based papers on Chester, Ellesmere Port, Northwich and Winsford. It is recognised that smaller local centres and village / rural shops are important facilities, however in terms of the Core Strategy policies and developing spatial options for future growth the paper has focused on the larger town centres.

4 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 2 National, regional and local context

National

PPS 6 Planning for Town Centres (March 2005)

2.1 PPS 6 sets out the Government’s objectives for town centres and main town centre uses. Although this paper focuses on retail development PPS6 makes it clear that town centre uses are not confined to retail activities but also include leisure, office, cultural and tourism uses. The key objective of PPS6 is to promote the vitality and viability of town centres (including city, town, district and local centres). The core strategy should set out a spatial vision and strategy for the identified network and hierarchy of centres. LPA’s are also required to assess the need for new retail provision and the capacity of centres to accommodate new development.

Draft PPS4 Planning for Prosperous Economies (May 2009)

2.2 Draft PPS4 has been released for consultation and will eventually replace PPS6. The broad messages for protection of town centres remain the same although there is increased emphasis on promoting ‘consumer choice’ and protecting small independent retailers. The requirement to demonstrate retail need for out of centre developments is removed and replaced by an 'impact' test although the LDF is still required to identify and plan for future retail need. There is also an increased emphasis on the climate change agenda which is included in the impact test.

Regional

Regional Spatial Strategy

2.3 Policy W5 states that plans and strategies should promote retail investment where it assists in the regeneration and economic growth of town and city centres. Future development should be consistent with the scale and function of the centre, should not undermine the vitality and viability of any other centre or result in the creation of unsustainable shopping patterns. Given the presence of Cheshire Oaks in the Borough it is important to note that RSS says there is no justification for out-of-centre regional or sub-regional comparison retailing to be designated as town centres within plans and strategies.

2.4 W5 identifies Manchester and Liverpool as the Region’s primary retail centres. Chester and Northwich are listed among the Region’s 24 second tier of centres where ‘comparison retailing facilities should be enhanced and encouraged to ensure a sustainable distribution of high quality retail facilities’. Below this tier W5 supports investment (of an appropriate scale) to maintain and enhance vitality and viability; support wider regeneration initiatives; and ensure that centres meet the needs of the local community. Policy LCR5 does recognise Chester as a 'key sub-regional' centre for shopping.

Cheshire Structure Plan Alteration (December 2005)

2.5 Although the retail policies in the Structure Plan have been replaced by RSS the following hierarchy is included as background information. The large out of centre retail and leisure facility at Cheshire Oaks, near Ellesmere Port, is not classified as a town centre:

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 5 and town centres Table 2.1

Hierarchy Centre

Sub-Regional Centre Chester

Primary Town Centres Northwich, Ellesmere Port

Secondary Town Centres Neston, Winsford, Frodsham

North East Wales West Cheshire Sub-Regional Strategy (2006)

2.6 The Sub-Regional Strategy (2006) recognises Chester is a major shopping destination for not only the sub-region, but for the North West of England and North and Mid Wales. Policy RET1 contains a strong presumption against further out of town retail development.

Local

2.7 The three current Local Plans identify town centre boundaries and primary and secondary shopping frontages and reflect the hierarchy in the Cheshire Structure Plan. Additionally they identify various lower level centres that will require review through the LDF process (Table 2.2). A number of major allocations are identified through the Local Plans including redevelopment of Chester City Centre (Northgate) and Barons Quay in Northwich. The Northgate major retail led mixed-use redevelopment has been granted planning permission for approximately 30,000 sq m net retail floorspace.

Table 2.2

Local Plan Area Designation

Vale Royal 5 Large Village Centres (Frodsham, Tarporley, Hartford, Weaverham & Helsby) & 6 Local Centres

Ellesmere Port & Neston 4 Local Shopping Centres (Whitby, Little Sutton, Great Sutton, Westminster) & 18 Small Shopping Centres

Chester 19 surburban shopping centres e.g. Faulkner Street, Hoole; Boughton Retail Park.

6 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 3 Context and characteristics

3.1 There are two key evidence bases for future retail development namely the Cheshire Town Centre Study (CTCS - White Young Green 2007) & Chester Retail Study (Donaldsons 2006).

3.2 The CTCS assessed the health of centres in the former Vale Royal and Ellesmere Port and Neston Districts and looked at past and future shopping provision. Whilst it did not look at Chester in the same level of detail it does include data on the Chester catchment area. The CTCS also compares data from 2000 and 2006 so can usefully highlight changes in shopping patterns. The Chester Retail Study used a different catchment area for Chester than the CTCS and follows a different methodology.

3.3 Table 3.1 demonstrates that Chester is by far the largest retail centre in the Borough and Table 3.2 shows that it captures the most significant market share (15.9%) of non-food expenditure in the CTCS area (which included the whole of the former Cheshire County Council area plus parts of NE Wales, the Wirral and South Warrington). Chester draws in expenditure from surrounding areas including significant levels from the Ellesmere Port catchment and the Northwich catchment although Broughton Retail Park in Wales and Cheshire Oaks draw trade away from the City Centre . (i) The high level of service floorspace reflects its diverse evening economy and tourist role and Chester was ranked 22 out of 1,672 centres nationally.

3.4 Northwich is the second biggest centre and is strong in both the convenience and comparison sectors when compared against the national average. The CTCS concluded that the centre is healthy but noted that the comparison retail sector was of generally low quality and includes a proliferation of low value retailers. Whilst it has previously been mentioned that the Northwich catchment leaks some expenditure to Chester Table 3.2 does demonstrates that it captures significant market share and does draw in some trade from beyond the catchment. The forecast capacity figures in Table 3.3 indicate there is sufficient capacity to justify major town centre expansion in Northwich.

3.5 Ellesmere Port has a high level of convenience floorspace (Table 3.1) compared to the national average and a low level of comparison floorspace. Ellesmere Port serves a relatively small catchment area and in terms of % turnover of non-bulky goods there is significant leakage to Chester City Centre (17.3%), Liverpool City Centre and other Merseyside locations (17.7%) and most significantly to Cheshire Oaks (23.4%). Although Ellesmere Port was identified as a primary town centre in the Cheshire Structure Plan Alteration this was not based on its retail function but on the expectation this designation would assist in regeneration. The development at Cheshire Oaks helped to improve the market share for non-bulky goods from 23% in 2000 to 36% 2006 within the former Borough of Ellesmere Port and Neston although the town centre saw a decline from 13% to just 7%. As can be seen from Table 3.1 Cheshire Oaks is predominantly a destination for comparison goods purchases and does not contain the mix of facilities seen in town centres. It should also be noted that the Ellesmere Port and Neston Retail Study (White Young Green 2007) found that 98% of visitors arrive by car to Cheshire Oaks compared to 55% to Ellesmere Port Town Centre.

3.6 Winsford performs an important convenience role and also has a reasonable level of comparison floorspace but is subordinate to Northwich in terms of turnover and floorspace. Whilst it will always be subordinate to Northwich the centre still plays an important role in serving the local population i Of non-bulky comparison expenditure from the Ellesmere Port catchment 17% is directed to Chester City Centre and the figure is 22.5% from Northwich. Within the Chester catchment Cheshire Oaks accounts for 7.8% of expenditure, Broughton Retail Park (Flintshire) 17.9.%and retail parks in Chester 5%

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 7 and town centres and Table 3.3 identifies future capacity for retail provision to continue serving local needs and compete with Northwich.

3.7 Frodsham and Neston overall have smaller shopping offers than the other centres. They both have relatively low levels of comparison retail floorspace but high levels of convenience floorspace compared to the National average. Both centres serve almost exclusively local shopping needs and are principally food retail destinations. The CTCS identifies a small level of addtional capacity for food retailing in Neston and small amount of comparison retailing for both centres.

3.8 Cheshire Oaks is not identified as a town centre but is the fourth biggest destination in the CTCS area for non-bulky goods after Chester City Centre, Crewe Town Centre and Macclesfield Town Centre in terms of turnover and market share (Table 3.2). The Greyhound Retail Park in Chester is identified as the biggest destination for bulky-goods.

Table 3.1 Retail Floorspace (sq m) & Hierarchy of Town Centre(Cheshire Town Centre Study 2006)

Centre National No. Convenience Comparison Services Vacant

Rank Outlets Floorspace 03/04

Chester 22 700 16,868 91,556 61,728 5,806

(9.5%) (52%) (35%) (3.3%)

Northwich 226 262 14,065 23,764 15,216 1,876 (27.6%) (25.6%) (43.2%) (3.4%)

Ellesmere 344 191 16,221 18,432 13,814 3,029 Port (31.5%) (35.7%) (26.77%) (5.8%)

Winsford 546 87 11,065 8,621 3,920 1,839

(43.4%) (33.8%) (15.4%) (7.2%)

Frodsham NA 129 3,796 3,475 6,527 1,120

(25.4%) (23.3%) (43.3%) (7.5%)

Neston NA 99 2,677 2,411 4,581 1,319

(24.3%) (21.9%) (41.5%) (12%)

8 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres Centre National No. Convenience Comparison Services Vacant

Rank Outlets Floorspace 03/04

Cheshire 257 140 286 29,770 1,959 1,161 Oaks Designer (0.86%) (89.73%) (5.9%) (3.5%) Village

Notes: National Rank from Data in CTCS taken from Management Horizons Europe: UK Shopping Index 1,672 shopping venues ranked. Index is based on weighted scoring system of numbers

of multiple retailers and anchor stores but does include out of town retail parks. Services - includes retail services e.g dry cleaners, opticians etc), includes leisure services e.g food outlets and

financial services e.g banks. GB Average vacancy rate 7.39% GB averages convenience floorspace 13.8 % and comparison floorspace 40%.Cheshire Oaks Designer Village does not include

adjacent Sainsbury's foodstore or Coliseum Retail Park (Source: Ellesmere Port and Neston Retail Study White Young Green 2007).

Table 3.2 Existing Market Share of Comparison Expenditure (Cheshire Town Centre Study area)

Location Comparison Goods Market Share of expenditure Expenditure (£m)

Cheshire Oaks 132.6 3.9%

Chester 548.8 15.9%

Ellesmere Port 82.1 2.4%

Frodsham 4.5 0.1%

Neston 5.9 0.2%

Northwich 226 6.7%

Winsford 66.2 1.9%

3.9 Table 3.3 is based on the CTCS and Chester Retail Study forecasts of future capacity for food and non-food retailing. The Council is intending to update the study to reflect recent economic changes and to take account of any planning permissions granted since the studies were completed. Whilst the CTCS did not specifically include forecasts of future need for Chester the data is available to draw them out of the Study. The Chester Retail Study is based on two scenarios, one based on maintaining current market share and the second on increasing market share as a result of the Northgate redevelopment. For comparison purposes only the first scenario has been included. The forecasts for floorspace in the Chester Retail Study are in addition to floorspace coming forward from the Northgate development (estimated at 30,000 sq m net convenience and comparison) that the study assumed would be completed by 2011.

3.10 The economic downturn has stalled the Northgate redevelopment and is likely to have had a significant effect on the vitality and viability of centres. Major retailers such as Woolworths, Pier and Zavvi are no longer trading and vacancy rates will have increased since the completion of the retail

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 9 and town centres studies. Up to date monitoring information is available for the Chester City Centre where the current vacancy rate is 9.6%.

Table 3.3 Indicative Convenience & Comparison Floorspace Capacity by Town Centre based on retaining market share to 2021

Town Available Capacity 2021 Available Capacity 2021 Food Non-food (sq m net) all (sq m net) all non Expenditure food Expenditure food (£m) (£m)

2006 - 2021 2006 - 2021

Ellesmere Port 22.6 2,260 - 4,520 145.4 29,080 - 41,543 (excludes capacity at Cheshire Oaks)

Northwich 61.9 6,190 - 12,380 178.7 35, 740 - 51,057

Winsford 23.7 2,370 - 4,740 53.2 10,614 - 15,200

Neston 2.1 210 - 420 3.7 740 - 1,057

Frodsham -4.4 0 3.6 720 - 1,029

Chester (using data in 22.5 2,250 - 4,500 396.6 79,320 - 113,314 CTCS)

Chester City Centre 1,624 (to 2016) 13,450 (to 2016) (Chester Retail Study)

Chester Non-Central 150 (to 2016) 35,350 (to 2016) (Chester Retail Study)

10 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 4 Key issues

4.1 The Council is required to plan for growth and manage change in town centres. As part of this the Core Strategy will need to consider the existing hierarchy of centres, their future roles and the long term maintenance of vitality and viability. Whilst a more even distribution of retailing provision could lead to more sustainable shopping patterns the commercial realities of retailing decisions will also have to be borne in mind. Since the publication of the two retail studies there has been a significant economic downturn. To ensure a robust evidence base it is proposed to update the retail need forecasts and to investigate the impacts of the downturn on the vitality and viability of centres. This information will be published as soon as it is available in the coming year, however there are still a number of issues that can be raised as regard to broad patterns of future development.

Chester

4.2 Chester has been identified as a sub-regional centre in the Structure Plan and a second tier centre in RSS. Whilst Chester draws trade in from a wide area and is a relatively strong centre it has been affected by development from out of town retailing. For example the CTCS noted that in 2000 75.5% of expenditure (comparison non-bulky goods) in the Chester catchment area was directed to the City Centre but this fell to 49.1% in 2006. A change attributed to expenditure being directed to out of centre locations including Broughton Retail Park in Flintshire, Greyhound Retail Park in Chester and Cheshire Oaks. The recent redevelopment of Liverpool City Centre may also impact on future levels of expenditure as will any further out of centre development. (ii) The delayed Northgate scheme in Chester is intended to deliver a significant amount of retail floorspace and increase the attractiveness of the centre through the provision of a major department store.

Northwich and Winsford

4.3 Whilst Northwich is identified as a second tier centre in RSS in terms of retailing provision and catchment served it is a subordinate to Chester. Allocations in the Vale Royal Local Plan are intended to increase the town's market share and stop trade leaking to other centres such as Chester. Winsford has seen the successful development of retail schemes in the town centre and improved its position in the Cheshire retail hierarchy (in terms of turnover) although the centre still primarily serves a local catchment.

Ellesmere Port and Cheshire Oaks

4.4 Ellesmere Port and Cheshire Oaks - The development of Cheshire Oaks (including the Coliseum retail and leisure development) improved the market share for comparison goods within the former Borough of Ellesmere Port & Neston. However, the facility has drawn trade away from Ellesmere Port and Chester town centres. A key issue is whether Ellesmere Port town centre can be regenerated to attract further retail growth for comparison goods or should Cheshire Oaks accommodate this growth potentially at the expense of other centres? As part of this the Core Strategy will need to consider whether Cheshire Oaks could have wider role as a 'town centre' (although this could conflict with regional policy) and what the future role of Ellesmere Port as a town centre should be? It should be noted that schemes granted planning permission since the CTCS mean that there are no requirements for additional food retailing up to 2021.

ii Broughton Retail Park has an extant permission for extension and a call-in decision is pending for a Marks and Spencer super store at Cheshire Oaks (14,000 sq m net).

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 11 and town centres Other Centres and Issues

4.5 Frodsham and Neston are significantly smaller centres and serve local catchments. The key issue for Neston was to improve the convenience retail offer as it has been losing trade to other facilities, however planning permission has now been granted for a Sainsburys which should meet future requirements. The CTCS does not forecast a high level of future need for Frodsham but identifies the key issue as being how planning policy can support the high quality environment and strong independent retail sector that exists. Both centres were identified as secondary town centres in the Structure Plan although Fordsham was also identified as a village centre in the Vale Royal Local Plan.

4.6 Forthcoming changes to national planning policy may seek increased support for independent and small retailers whilst also aiming to improve consumer choice. It is not clear how Councils through their LDF and other policies will achieve this.

12 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 5 Key questions

Question 1

The 'National, regional and local context' chapter of the topic paper shows the key reports, plans and policies that will have a significant impact on the content of the Core Strategy. Are there any other reports, plans or policies that relate to this topic paper that you think should be taken into account? If so, please provide details.

Question 2

The 'Context and characteristics' chapter provides details of the key facts and figures relating to retail and town centres. Do you agree with the facts and figures that have been included? If you are aware of any sections that are incorrect or need to be updated, please provide details.

Question 3

Are there any other important facts and figures that are missing and you feel should be included? If so, please provide details and confirm the source and date of the information. Please ensure that only the most important facts and figures are includes, as we will only be able to include the key information, in order to prevent the topic paper from becoming too long.

Question 4

The 'Key issues' chapter of the topic paper includes the issues that have been drawn out from the evidence base and previous consultation, which are considered to be the most important issues for the area. Do you feel that the issues described are the most important issues for retail and town centres? If not, please explain the reasons for your view.

Question 5

Should the Core Strategy adopt a similar hierarchy to that in the former Cheshire Structure Plan and how should smaller centres be taken into account? Is there a case for Cheshire Oaks to be identified as a town centre and if so what form should future development take?

Question 6

What impact has the economic downturn had on the Borough's town centres and how should the Core Strategy ensure vitality and viability?

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 13 and town centres Question 7

How can the Council assist smaller / independent retailers and promote consumer choice?

Question 8

Are there any other key issues relating to retail and town centres that you feel the Core Strategy should cover? If so, please provide details.

14 Cheshire West and Chester Local Development Framework | Topic Paper - Retail and town centres 6 Definitions/glossary

Convenience goods - goods bought frequently for everyday needs such as food, tobacco, drinks, newspapers / magazines, confectionary and other goods of a standard type for which there is a wide sale.

Comparison goods - goods for which the purchase involves comparison by the customer and which while not being purchased frequently must nevertheless be stocked in a wide range of size, style, colours and fabrics. This includes clothes, footwear, household and recreational goods.

Vitality - level of activity, how busy an area is at different times and in different parts, vitality feeds into viability.

Viability - how robust an area is, can it adapt to change and attract new investment to maintain its fabric.

Cheshire West and Chester Local Development Framework | Topic Paper - Retail 15 and town centres