Eldon Square revamp could be catalyst for a brighter future

Feb 17 2010 by Amy Hunt, The Journal

THE new Eldon Square shopping mall could be the catalyst Newcastle needs to shake off the troubles of the recession, city leaders say.

Following the opening yesterday of St Andrew’s Way, which boasts the North East’s first Apple store and a flagship four-storey Debenhams, business chiefs believe further investment can be found to improve shopping in the city and boost visitor numbers.

They say there are big-name retailers queuing to set up shop in the city for the first time in a bid to follow in Apple’s footsteps.

And they believe council bosses can work with private sector officials to make Newcastle a prime UK destination for shopping, culture and entertainment.

A total of £170m has been spent on renovating Eldon Square over the last five years, culminating in the opening of the new mall housing five brands which are new to Newcastle.

Next £2m will now be spent on bringing the rest of the shopping centre up to the standard of the new mall, with new floor tiles going in from March.

And outside the centre council bosses believe other projects, like the planned regeneration of Pilgrim Street into a business and retail quarter, will allow the city to attract more shopping firms to Tyneside.

Coun John Shipley, leader of Newcastle City Council, which owns 40% of Eldon Square, said: “There’s a complete let of the units in St Andrew’s Way. That means there’s retail confidence in Newcastle, but there’s still spare capacity in the retail sector. If you look at the city as a whole retail experts tell us there are still retailers who want to come to Newcastle, but they haven’t yet got the size of store they want, which is why the redevelopment of Pilgrim Street is the next step.

“This is more than just the opening of a shopping mall, it improves the city’s offer as a destination for visitors and businesses.”

Thousands of people queued up from early yesterday to be among the first to experience St Andrew’s Way, where high-end youth fashion labels Superdry, Hollister and Guess joined Debenhams and Apple as new names in the city.

The Apple store proved the most popular draw, with the first 1,500 shoppers through the doors promised a free limited edition T-shirt for their troubles.

Some shop units have been left empty as firms have moved into new premises, but Eldon Square manager Tim Lamb said he was confident they would soon be filled. He said: “It has always been our intention to be at the forefront of the redevelopment of the city. What we have done is sent out a message that retail in Newcastle is successful despite the difficult financial times.

“We listened to what retailers were asking for and it was quite clear what they were after was bigger retail spaces in a light, bright environment, with more space to show off their goods. So we built the new mall and the good news is they turned up in their droves.

“We’re very confident that in the next couple of months we will let all of the empty units in the centre. There were five, we’ve already let two and we have interest on the others.”

City leaders see the new part of Eldon Square, which will have entrances from Newgate Street, next to the Gate complex, as being key to improving that area of the city.

In October it was revealed the former Newgate Shopping Centre is in line for a £100m revamp to build new offices, shops and three hotels, creating about 600 jobs.

And earlier this month it was announced that fashion chain Next would move into a flagship store as part of a refurbishment of the Eldon Leisure sport and fitness centre.

Barry Rowland, chief executive of Newcastle City Council, said: “We’re working out some significant investments to Northumberland Street at the moment and how quickly we can bring forward some of the further redevelopment of Pilgrim Street.

“On top of all we’re doing what we really need is some inward investment from outside the North East.

“The commitment that the private sector has to this is the thing that will differentiate the city now and in the future. They are taking some risk, but we are sharing the risk and that will put us in a stronger position. If we’re not going to take a risk in our city, who is?”