Administrators seeking a buyer for the Bon Accord centre in Aberdeen may take some comfort from a slight uptick in total shopper footfall in Scotland.
The number of people visiting retail outlets across the country was still significantly lower, by nearly 15%, compared with the pre-pandemic levels of three years ago.
But there was a modest improvement of 1.7 percentage points on July’s rate of decline.
August saw a slightly more upbeat set of figures for visits to stores in Scotland and the best performance for four months, with concerns about galloping household energy bills not enough to keep Scots away.”
David Lonsdale, director, Scottish Retail Consortium.
A breakdown of the overall figures gives a less encouraging statistic.
Shopping centre footfall was down by 20.7% last month, compared with three years ago, reflecting a weakening from a 19.2% decline in July.
All food for thought for any new owner of Bon Accord after the Guernsey-based businesses behind it collapsed into administration this week.
Countless shoppers have reacted with dismay on social media.
Specialist commercial property agency Cushman & Wakefield has been hired to prepare particulars and manage the sales process.
Bon Accord typically gets around 15 million people a year through its doors.
The closure of anchor tenant John Lewis, the Disney Store and other shops during the past 18 months have been a major blow to the mall.
But there are also exciting plans for a new multiplex cinema.
A spokesman for Azets, the professional services firm which has been appointed to administer the assets, told The Press and Journal yesterday all options would be looked at.
He also confirmed seven out of Bon Accord’s 72 retail units are currently vacant.
Business as usual
The administration has no impact on current trading at the shopping mall and 38 full-time equivalent centre management employees are all still in their roles.
Not counting remaining anchor tenant Marks & Spencer or the NHS vaccination centre in the old John Lewis, a further 1,200 full and part-time retail staff work at Bon Accord.
With peak festive season trading just a few months away, any potential new owners would need to get their skates on to take advantage of the traditional surge in footfall.
Turkish billionaire Sevket Sabanci, the majority shareholder of Turkish Airlines, is thought to have acquired the mall about 10 years ago.
Two Guernsey-based companies, Aberdeen Retail 1 Limited and Aberdeen Retail 2 Limited, the owners and operators of Bon Accord, have been placed in administration.
Azets said the shopping centre had cash flow problems stemming from the ongoing impact of the Covid pandemic, rising operating costs and “intense retail competition”.
Cushman & Wakefield declined to comment on the sales process.
It comes as the Scottish Retail Consortium unveils its latest monthly shopper footfall figures, showing the “modest uptick” overall.
Shopping centres ‘continue to struggle’
SRC director David Lonsdale, Director, Scottish Retail Consortium, said: “August saw a slightly more upbeat set of figures for visits to stores in Scotland and the best performance for four months, with concerns about galloping household energy bills not enough to keep Scots away.
“Buoyed by the return of holidaying, social occasions and tourism, the modest improvement in shopper footfall was felt across most retail destinations and especially in Edinburgh and Glasgow. Shopping centres, however, continued to struggle.
“Despite the improvement, visits to stores remain well down on pre-pandemic levels and Scotland continued to lag the 12 other parts of the UK surveyed for a fourth month in a row.
“That’s worrying, given inflationary headwinds and the likely impact on consumer sentiment and spending power – more so in the lead up to what is traditionally the crucial golden trading quarter for the industry in the final months of the year.”
Retailers seeking early action from new PM
Mr Lonsdale added: “Next week will see the election of the new prime minister and the unveiling of the first minister’s programme for government.
“Early action is needed from both to protect living standards, assist retailers to keep down shop prices, and help retail destinations rebound.
“After all, much of our wider economy is, ultimately, dependent on what happens to consumer spending.”
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