Aberdeen should follow the lead of Dundee to help attract big name brands to the city according to a local retail expert.
Andrew Turnbull believes the development of Dundee’s Overgate Shopping Centre is “indicative of what might be achieved” in the Granite City.
Frasers Group, controlled by retail billionaire and former Newcastle United Football Club owner Mike Ashley, is to open a Frasers department store in the centre this year along with other big name brands.
Mr Turnbull, senior lecturer in retail and marketing at Robert Gordon University, said the move by Frasers Group is a “model worth trying to emulate” in Aberdeen.
Last year the Bon Accord Centre was acquired by EP Properties in a multi-million-pound deal.
EP Properties, led by Zakir Issa – brother of Mohsin and Zuber Issa, who own Asda in a joint venture with TDR Capital – is thought to have bought the mall from administrators for less than £10m.
‘If one benefits, then they all do’
Mr Turnbull said the purchase of the Bon Accord Centre proves it’s still an attractive opportunity for development.
He said: “The changing ownership of shopping centres demonstrates, on the plus side, that investors still view the prospect of involvement as desirable and potentially profitable.
“True, there are empty spaces, but the development of the Overgate shopping centre, in Dundee, is indicative of what might be achieved.
“The Overgate might just represent a model worth trying to emulate.
“That is, Mike Ashley, leading with his flagship House of Fraser brand, supporting this with many of his other retail operations, moving some from existing locations, creating a sort of ‘multiplier effect’.
“If one benefits, then they all do.
“It could even lead to new players entering the Aberdeen market such as upmarket brand Flannels, which has branches in Edinburgh and Glasgow, that might view such a venture in an Aberdeen shopping centre as an opportunity.”
‘Difficult year’ for retail
The cost-of-living crisis, high inflation and wages rising less fast have all played their part in a tough year for retailers in Aberdeen.
Lush, Jo Malone and Black Sheep Coffee are just some of the big names to have opened in Union Square last year.
The Bon Accord Centre welcomed Pandora but saw the closure of Holland & Barrett, Soletrader and Quiz.
Mr Turnbull said: “Local centres did well out of the pandemic, and the hybrid working model still encourages consumers to shop where they live, rather than travel into town and risk, especially at this time of year, trolley rage and road rage.
“The biggest losers are those in city centre locations not linked to convenient parking and ambient conditions.
“Aberdeen will further suffer from the temptation to visit places like Edinburgh and Glasgow, even London and Manchester, where a city break offers entertainment and leisure experiences, as well as more extensive shopping facilities, born of higher populations.”
