It’s a tale of mixed fortunes for two Aberdeen shopping centres as new data revealed Christmas has delivered hard-hit retailers the “best monthly performance in twenty years”.
While stores have pulled out of the Bon Accord Centre it’s a different tale for Union Square.
The shopping mall has recently seen the opening of a new Quiz store after the fashion retailer chose to terminate its contract with Bon Accord Centre.
A Quiz spokesman was unable to comment on why the decision was made but confirmed twelve jobs were transferred with the move.
In more good news for Union Square, luxury watch specialist Omega is due to open a store soon
A Union Square spokeswoman described the “real buzz” at the mall in the key Christmas trading period.
Union Square boosted by new store openings
She said: “Last month was really exciting as it was our first festive season free of restrictions since the beginning of the pandemic.
“There was a real buzz in Union Square particularly in the last week leading up to Christmas Day, when it felt like a busy Saturday every day, as customers came out to shop, eat out and socialise in our pop-up bar.
“We were boosted by a number of new brands opening including, Rituals, Quiz and Chisholm Hunter and experienced our busiest day since the pandemic on Friday 23rd December.
“Looking ahead, we’re looking forward to welcoming more new brands and shaking up our offering, so look out for Black Sheep Coffee and Estabulo in the near future.”
However the mall has still had a churn in recent months as tenants faced the fallout from years of difficult trading conditions.
Stationers Paperchase had already closed its store in Union Square ahead of its announcement on Tuesday that it is seeking new buyers.
Paperchase made the statement following reports that the high street retailer is lining up administrators.
The stationery chain confirmed it has hired advisers from Begbies Traynor Group (BTG) and PwC to assess options for the future of the company.
However, Paperchase stressed it is still considering a solvent sale as a going concern and has had interest from a number of possible suitors.
Blow for Bon Accord
The Bon Accord Centre has seen a number of other retailers choose to leave after the company running the complex collapsed into administration in August last year.
It is thought the mall will be bought from administrators by a sibling of the billionaire Issa brothers for less than £10 million.
Prior to the departure of Quiz, fashion retailer Jack Wills announced it would permanently close after Christmas.
The news came just days after luxury shoe brand Kurt Geiger shut its doors on December 17.
However, Quiz reported positive store sales throughout December 2022, increasing to £6.2m compared to £5.2m in 2021.
Quiz chief executive Tarak Ramzan said: “We are pleased with the strong consumer demand for Quiz and the group’s sales performance during the important Christmas trading period.
“Whilst the wider trading environment is expected to be challenging over the coming months, we are confident that Quiz is well positioned to deliver a performance at least in line with the board’s expectations in the current financial year.”
Sales in Scotland increased by 11.3% as savvy shoppers buy air fryers
The mixed fortunes come as new data shows sales in Scotland increased by 11.3% in December compared to the year before.
Scottish Retail Consortium (SRC) director David Lonsdale hailed the number as “the best monthly performance in twenty years” – albeit this included the effects of inflation and excluding Covid-era distortions.
Meanwhile, KPMG which supported the report warned retailers now face “survival of the fittest” in the coming months as consumers face still high cost-of-living woes and a potential economic recession.
In line with the energy price shock and cold winter temperatures, SRC found that energy-savvy shoppers had been snapping up air fryers and heated clothes airers, which helped boost figures.
The cold snap in December, which the Met Office recorded as the only colder-than-average month last year – and at its coldest saw temperatures plunge as low as -17.3C in Braemar, Aberdeenshire – also helped push sales of winter coats and boots.
‘Sparkling sales’ but retail is far from out of the woods
Mr Lonsdale said: “After two miserable years Scotland’s retailers were finally able to toast sparkling Christmas sales as 2022 finished with a flourish.
“These are unalloyed positive results for December, providing a final flourish to an otherwise tepid 2022 and a difficult two years for Scotland’s retailers.
“Retail is far from being out of the woods yet. It’s an industry in transition with retailers navigating their own costs crunch, cash-conscious consumers, and the twin challenges of the economic legacy of Covid and inflationary pressures.”
KPMG partner UK head of retail Paul Martin said: “With Christmas behind us, retailers are facing a challenging few months as consumers manage rising interest rates and energy prices by reducing their non-essential spending, and industrial action across a number of sectors could also impact sales.
“The strong demand across certain categories that has protected some retailers will undoubtedly fall away so we can expect high street casualties as we head into the Spring.
“The first half of the year will be tough for retail and a case of survival of the fittest, but we expect to see demand increase as 2023 progresses.”
Conversation