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Retail Centres Study Stage 1 Report London Borough of Hackney Retail Centres Study – Stage 1 Report (February 2011) London Borough of Hackney Retail Centres Study Stage 1 Report QA London Borough of Hackney – Retail Centres Study: Stage 1 Report Issue/Revision: Draft Final Date: February 2011 February 2011 Comments: Prepared by: Strategic Perspectives LLP Strategic Perspectives LLP Signature: Authorised by: DR Steven Norris DR Steven Norris Signature: File Reference: February 2011 1 London Borough of Hackney Retail Centres Study Stage 1 Report CONTENTS 1.0 INTRODUCTION 5 BACKGROUND TO THE STUDY 5 AIMS OF THE STUDY 7 Stage 1 Report 8 Stage 2 Report 8 EVIDENCE BASE 9 REPORT STRUCTURE 10 2.0 NATIONAL & REGIONAL PLANNING POLICY CONTEXT 11 COALITION GOVERNMENT’S PLANNING REFORM 11 NATIONAL PLANNING POLICY 12 REGIONAL PLANNING POLICY CONTEXT 14 The London Plan (consolidated with alterations since 2004) 15 The Replacement London Plan 17 SUMMARY 19 3.0 LB HACKNEY DEVELOPMENT PLAN - CONTEXT & POLICIES 21 1995 UNITARY DEVELOPMENT PLAN 21 LOCAL DEVELOPMENT FRAMEWORK 21 Adopted Core Strategy 22 Area Action Plans 25 SUMMARY 27 4.0 THE CHANGING URBAN, RETAIL & LEISURE LANDSCAPE 28 THE RETAIL SECTOR – KEY TRENDS 28 THE COMMERCIAL LEISURE SECTOR – KEY TRENDS 30 TOWN CENTRE FUTURES 31 5.0 EAST LONDON - NETWORK OF COMPETING CENTRES 35 February 2011 London Borough of Hackney Retail Centres Study Stage 1 Report NETWORK & HIERARCHY OF CENTRES 35 Shopping and Leisure Patterns 35 Key Performance Indicators 36 COMPETING CENTRES & SHOPPING LOCATIONS 41 LB Haringey 41 LB Tower Hamlets 43 LB Newham 45 LB Islington 50 SUMMARY 52 6.0 DALSTON TOWN CENTRE - HEALTHCHECK 54 2005 HEALTH CHECK 55 2010 HEALTHCHECK UPDATE 56 Diversity of Uses 56 Convenience Goods 58 Comparison Goods 58 Retail Services 59 Vacancy Levels 59 KEY FINDINGS 60 7.0 HACKNEY CENTRAL – HEALTH CHECK 62 2005 HEALTHCHECK 62 HEALTHCHECK UPDATE 64 Convenience Goods 65 Comparison Goods 66 Retail Services 66 Vacancy Levels 66 KEY FINDINGS 67 8.0 RETAIL & COMMERCIAL LEISURE NEED ASSESSMENT 69 2005 CAPACITY ASSESSMENT 69 February 2011 3 London Borough of Hackney Retail Centres Study Stage 1 Report Comparison Goods Capacity 70 Convenience Goods Capacity Assessment 71 Leisure Needs Assessment (Classes A3-A5) 72 2011 RETAIL CAPACITY UPDATE – REVIEW & NEXT STEPS 73 9.0 KEY FINDINGS 76 GLOSSARY OF TERMS 79 APPENDIX 1: 2005 HACKNEY STUDY - REVIEW APPENDIX 2: THE RETAIL SECTOR – KEY TRENDS THE ECONOMIC CONTEXT 3 The UK Economy 3 Household Spending 4 RETAIL SALES DENSITIES 5 RETAIL DEVELOPMENT TRENDS 6 THE RETAIL OCCUPATIONAL MARKET 9 Business Failures & Vacancies 9 The Grocery & Convenience Goods Sector 10 The Non-Food Retail Sector 12 THE GROWTH OF INTERNET & NON-STORE RETAILING 14 SMALL RETAILERS AND SECONDARY SHOPPING LOCATIONS 15 APPENDIX 3: COMMERCIAL LEISURE TRENDS Cinema Sector 17 Bingo 19 Ten Pin Bowling 19 Health & Fitness Clubs 20 Cafes, Restaurants, Bars and Nightclubs 21 APPENDIX 4: DALSTON – CENTRE REPORT APPENDIX 5: HACKNEY CENTRAL –CENTRE REPORT February 2011 London Borough of Hackney Retail Centres Study Stage 1 Report 1.0 INTRODUCTION 1.1 Strategic Perspectives LLP (‘SP’) was commissioned by the London Borough of Hackney (‘LB Hackney’) in January 2011 to carry out the Retail Centres Study (the ‘study’). In brief, the Council is seeking to improve the scale and quality of the retail and commercial leisure offer of Dalston and Hackney Central (also known as Hackney Mare Street), as well as provide an appropriate scale and complementary mix of retail and commercial leisure floorspace in the two emerging smaller centres of Hackney Wick and Manor House. 1.2 This introductory section summarises the background to, and key aims of the study. BACKGROUND TO THE STUDY 1.3 The LB Hackney borders the Boroughs of Islington, Haringey, Waltham Forest, and Tower Hamlets. It is close to the City of London to the south, the Olympic Park and Stratford City in the east and Canary Wharf to the south-east. 1.4 The Borough has a diverse shopping offer, ranging from small parades, to designated town centres and renowned street markets (specifically Ridley Road market). Dalston is the borough’s ‘Major Town Centre’ and is the largest shopping centre in Hackney. Hackney Central, Stoke Newington and Finsbury Park are defined as ‘District Centres’ by the London Plan and serve more local catchment areas, as well as providing specialist town centre offers. New centres for economic activity and residential development are also identified in the Borough, including Manor House, Stoke Newington Road, Shacklewell Lane and Hackney Wick. These centres and others have been designated as local shopping centres and their roles will be maintained and enhanced to better serve their local communities. 1.5 The LB Hackney is set to benefit significantly from the 2012 Olympic and Paralympic Games and Legacy, including major new infrastructure and transport projects. In particular the 2012 Olympic Legacy is expected to act as a major catalyst for improving the borough’s local economy and town centres. The opening of the East London Line Extension (ELLX) (London Overground) to Dalston, Haggerston and Hoxton in 2010, as well as the improvements to the North London Line, will also increase the attraction of the Borough and its centres for new investment. Other planned strategic transport proposals include Crossrail, the Thames Gateway and the London-Stansted-Cambridge growth corridors. 1.6 Up to 2025 Hackney’s relatively young population is projected to increase to between 250,000 and 260,000, which represents a significant growth of 14% to 18% from 2008. This population growth is likely to reinforce the Borough’s ethnically diverse profile, which is made up of around 41% Black and Asian Ethnic Minorities (BAME) with Black African and Caribbean groups making up the largest minority groups. Hackney February 2011 5 London Borough of Hackney Retail Centres Study Stage 1 Report also has a diversity of faith groups living in the borough with much larger proportions of people of a Jewish and Muslim faiths living in Hackney compared to the rest of London and England. In addition, the housing requirements of the draft replacement London Plan 2009 are for 1,160 net additional new dwellings each year from 2011 to 2021. 1.7 Against this background of significant growth and change, the LB Hackney is developing a comprehensive and complementary approach to the spatial regeneration of the four main study centres. This has included setting up a town centre management (TCM) team to help deliver change and promote new investment. The preparation of Area Action Plans (AAPs) is intended to provide the policy and development framework needed to enable and guide a wide range of new investment in these centres over the next 15 years, including new retail and commercial leisure floorspace. 1.8 These AAPs are briefly reviewed in Section 3 (and covered in more detail by the Stage 2 Report – see below). In summary, the Dalston and Hackney Central AAPs are being produced in a two-stage process. The Phase 1 AAPs were adopted as interim planning guidance prior to the adoption of the Core Strategy in November 2010. The Phase 2 AAPs will be adopted as formal Development Plan Documents (DPD) as part of the Council’s Local Development Framework (LDF). In brief, the plans for Dalston largely focus on the potential for significant new retail, commercial and housing growth around the new Dalston Junction station. For Hackney Central the aim is to strengthen the centre’s administrative and cultural role. 1.9 Hackney Wick is situated on the edge of Hackney and after a period of decline it is now becoming a centre for hi-tech manufacturing and London’s artistic community. It has been identified as a neighbourhood of employment-led mixed use development to maximise the 2012 Olympic Legacy opportunities, including the International Broadcast Centre (IBC) and Main Press Centre (MPC). The AAP for Hackney Wick is also being produced in a two-stage process and amongst its key aims is the creation of a community ‘hub’. 1.10 Separate to the phased approach adopted for the other AAPs, the pre-submission Manor House AAP is currently programmed for publication in April/ May 2011. The local centre at Manor House is situated on the Hackney and Haringey borders and its small-scale offer is focussed around the Piccadilly Line Underground station. Manor House currently serves the Woodberry Down Estate, which is situated on both sides of Seven Sisters and has been identified as the location for a new community, within a regenerated housing estate. Redevelopment will add 2,664 new dwellings to the borough’s housing stock and it represents the largest housing renewal project in Europe. A new Academy, expanded primary school, health centre, youth club and a community centre are also proposed as part of the development. The increased February 2011 London Borough of Hackney Retail Centres Study Stage 1 Report population and new infrastructure at Woodberry Down will create the opportunity to significantly improve Manor House’s retail and commercial leisure offer. 1.11 The Borough’s key centres and their relationship to transport infrastructure are shown on the key diagram below. Figure 1.1 Key Diagram Source: LB Hackney Core Strategy (Map 4.1) AIMS OF THE STUDY 1.12 This study has therefore been commissioned by the Council to assist with the further development and implementation of its AAPs for each centre, specifically focusing on practical recommendations on the appropriate scale and type of new retail and leisure floorspace. The Council’s main policy and regeneration objective is to strengthen the February 2011 7 London Borough of Hackney Retail Centres Study Stage 1 Report vitality and viability of its mains centres and increase the retention of shoppers within the Borough, particularly for comparison goods expenditure.
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