George Street in Aberdeen faces a “perfect storm”, according to one of its business leaders, following years of serious blows that have brought its shops to their knees.
The desperate uncertainty of the first Covid lockdowns led to the announcement in spring 2021 that the street’s John Lewis department store would not reopen.
That loss led to fears fewer customers would be drawn into the centre of Aberdeen – and also signalled further dire times ahead.
It was followed by several more waves of the virus, and just as the country began emerging from the worst of the pandemic, businesses were hit by soaring inflation and energy prices.
And most recently, the 32-year-old Bon Accord Centre at the south end of the street went into administration.
Tough times for George Street businesses
Stuart Milne, the director of the Greater George Street Traders Association, said business owners felt they had “come out of a frying pan and into a fire”.
The most immediate concern for them, he said, is the serious rise in the cost of energy: a particular issue for takeaways and cafes that rely on refrigeration and gas for cooking.
Mr Milne, who is also the manager of Finnies the Jeweller, added: “There’s never been a perfect storm, but I think we’ve just about got it at the moment with this energy situation.
“Covid finished a lot of businesses that weren’t financially stable, and now we’ve got even those that were stable being hit by these huge increases.”
On Thursday morning, the UK Government announced a scheme to provide businesses with support for their energy bills, equivalent to that being offered to households, for six months.
At the end of that period, the support will continue to be provided for “vulnerable industries”.
Cinema plans boosted positivity
While empty units at the Bon Accord Centre had been conspicuously increasing in number recently, the news of its administration came after several positive headlines about its future.
In February, Aberdeen and Grampian Chamber of Commerce noted a £4 million investment in the centre for a four-screen cinema to open next year.
Three months later, London-based Everyman Cinema confirmed to the P&J they planned to open a venue there in 2024.
“That gave us great hope in the beginning of the year, and of course the other great hope was that Covid was winding down nicely,” said Mr Milne.
“But now, since the problem with energy, we are in a crisis situation again.”
While the centre’s administrators insist it is “business as usual” during the sales process, the current status of the cinema plans following their announcement is not known.
‘Use or lose’ shopping centre
Russell Borthwick, the chief executive of Aberdeen and Grampian Chamber of Commerce, said the Bon Accord’s troubles should be a “use it or lose it” warning for those wanting a vibrant city centre.
He said: “The Bon Accord Centre has been at the heart of Aberdeen’s retail offering for over 30 years – and there is precedent with other centres in the UK trading through administration for extended periods, which offers hope.
“The Chamber’s Vanguard group met on Thursday night, including a representative from a George Street retailer.
“The next phase of the campaign will be to form a civic partnership to bring forward ideas and deliver projects that will help to Save Our Streets.”
Need for diversification
However, Mr Milne insisted that the move away from relying solely on traditional shops was exactly what was needed to save the area.
He said: “Any investment in leisure, cinema, sports facilities, night-time economy would be a rather nice thing to have.
“We just hope that it is sold on to someone who will, perhaps, continue with these bold plans for a cinema development next year.”
A George Street ‘mini masterplan’ is anticipated to be presented to Aberdeen Council in December, with ideas to reverse the momentum and deliver positive news for the embattled stretch of road.
Councillor Deena Tissera has said the local authority should be open to all options, including taking ownership of the Bon Accord Centre.
But Mr Milne expects there will be difficult times ahead whatever happens.
“It’s a very difficult, uncertain market at the moment, and one really does batten down the hatches and do what one can to work one’s way through it,” he said.
“You’ve got to be optimistic about the future, but by Jove, we are being sorely tried on all fronts at the moment.”
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