Shopping centres across the north and north-east of Scotland are facing an uncertain future once Christmas and Boxing Day sales are over.
In Aberdeen, three of the main covered shopping areas are in the process of being sold including the Bon Accord centre which collapsed into administration.
READ: Future of Aberdeen’s Bon Accord and Trinity shopping centres still up in the air
In Elgin, the St Giles Centre has several empty units. It is owned by Aviemore-based entrepreneur David Cameron, who is also a director of Inverness Caledonian Thistle Football Club.
Meanwhile, the Eastgate Centre in Inverness, the biggest shopping mall in the Highlands, has enjoyed a recovery in footfall almost to pre-pandemic numbers although bosses are concerned that increased energy and difficulties in recruitment will continue to plague retailers come January.
Shopping in transition
Adrian Watson, the chief executive of business improvement district, Aberdeen Inspired, said it was likely people would have to get used to fewer places to shop in person.
“It’s fair to say that across the world retail is going through a considerable transition, and Aberdeen is not immune to this.
“It is likely we will have less shop premises, but they will still be a huge contributor to our local economy. A statistic that is often overlooked is that £7 in every £10 is still spent in ‘bricks and mortar’ shops.”
“Inevitably, there will be a continued re-location of shops to the ‘best space’ and vacated areas that are seen as peripheral will need to be re-purposed, the current trend being to a more cultural, hospitality, leisure, office and/or residential usage.
“New owners of malls will present new opportunities and the hope is this brings fresh investment and ideas to further stimulate these places.
“People still value the experience and a sense of community and we need to capitalise on this by continuing to re-purpose our city and town centres to make them more accessible, attractive, enticing and inclusive for all.”
Ownership flux
Robert Gordon University senior lecturer in retail and marketing Andrew Turnbull said retail property still remained attractive to shoppers.
He said: “The retail industry remains in a state of flux, with considerable movement in terms of shopping centre ownership.
“In Aberdeen alone, three major shopping malls, Bon Accord, Trinity, and Union Square, all located close to the city centre, are presently up for sale.
“On the one hand, this might be regarded negatively. It could be construed as a rush to the exit, in the face of a continued onslaught from online retailers.
It could be construed as a rush to the exit, in the face of a continued onslaught from online retailers.
Andrew Turnbull
“On the other, willing purchasers suggest that a mall that includes a good mix of outlets, containing flagship names, along with fast food, represents a combination that appeals to shoppers.
“These are still attractive, going concerns. There is ongoing commercial appeal and convenience of a visible, accessible, multi-function retail operation.
“Shopping malls and retail parks are presently the best way to compete with online retailers, given that they provide experiences, atmosphere, entertainment, and different environments, with sufficient variety and value that they deliver something the virtual offering cannot.”
In Inverness, the Eastgate Centre, was bought by American investor Harbert Management Corporation in 2015.
Its manager Jackie Cuddy said while sales and footfall recovered to pre-pandemic levels in December, she feels the sector is “not out of the water yet”.
What happens after Christmas?
She said: “It seems that despite the cost of living crisis people are determined to have a good Christmas.
“The danger here is that in the first quarter of the year people will probably tighten their belts even more particularly as bills start to come in.
“In 2023 in the long term I think retail will continue to stabilise, albeit we are not out of the water yet.
“Increased utility costs and difficulties in recruitment will continue to affect retailers and I am sure we will see more casualties in the first quarter.”
Nevertheless, she said there were several initiatives coming in the new year to keep shoppers happy, including a food collective, Loch & Larder, which will open in the early part of 2023 as well as new tenants.
She said: “We feel this will enhance and stabilise the offer at Eastgate. We also have a new national signed up to open in March, Rituals.
“Early discussions with various parties continue for the Debenhams space.
“Our costs will greatly increase for utilities and we have a programme of essential roof repairs for the original mall which celebrates its 40th birthday next year.
“Most shopping centres are getting to an age where substantial investment is required to maintain and upgrade the centres. Lots of challenges but also some opportunities along the way.”
Eastgate Centre was asked for comment.
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