Steve Hawkes
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Shopping centres equivalent to eight Bluewaters are due to open over the course of 2008 and 2009, just as the economy heads into its worst period for more than a decade.
A total of 1.25 million sq m will be opened in the next 18 months, the first of which was the Liverpool ONE city centre development, which centres on a new John Lewis and the largest Debenhams in Britain.
According to Mark Hudson, retail and consumer leader at PricewaterhouseCoopers: “The amount of space coming on is potentially massive and, with the trading conditions we have and the ongoing shift towards online, it's going to mean more empty shops in market towns. More marginal sites will become unprofitable and more companies will go bust.”
Nearly a dozen retailers have collapsed into administration since the turn of the year, including Dolcis, Ethel Austin, Base, The Sleep Depot and Toyzone.
New developments such as Liverpool One, and two more mammoth centres due to open later this year - Bristol Cabot Circus and Westfield London - take years of planning and are almost impossible to stop.
However, a number of smaller developments, including a regeneration scheme in Dumfries and another in Chester, have been postponed as the credit crunch affects funding and the number of retailers signing up to the project. This month St Modwen put the development of a £100 million retail-led development in Hatfield, Hertfordshire, on hold because of the retail and economic climate.
Alistair Parker, head of Cushman & Wakefield, the property development consultancy, said: “The monster malls take ten years to deliver. They are like oil tankers - once set down, they take a while to slow.”
Mr Parker said that new centres such as Liverpool One were essential to reviving areas where most of the retail estate pre-dated the Second World War: “Liverpool believed it was losing large amounts of trade over the years to everywhere else, so the effect will be to pull that trade back to Liverpool. Clearly, other areas will lose out, but that's what drives improvement.”
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Is it the right tme to open huge shopping centers, those thast are built have no choice, but to guage has arecession arrived, then look no further the deal or no deal, how many punter que up to win a penny and you wil lhave your answer, in theold days itwas the cobbler or the church plate.
michael , cahersiveen-adams town, madness
Yesterday's men talking yesterday's language about yesterday's projects. For all their much vaunted and supposed financial acumen, their self interest has led their eye to focus too much on the ball and to forget entirely about the game and the spectators. The whistle's blowing boys.
John Barlow, oswestry, uk
In 1931 ,during the Great Depression, some of the most iconic buildings in NYC were completed ( Empire State Building, Chrysler Building ) having been commissioned at the end of the boom before the terrible bust. This is just history repeating although I doubt the buildings will be as memorable.
Edward, London,
These shopping mails are already consigned to the history books before they've even opened.Think about it,people will have less money to spend on non essential items and won't be prepared to travel to shop because of high fuel prices.They are from a byegone era,icons of post millennium madness.
stephen hulton, eure, france
John in London, we already have these in the form of Poundland and Poundworld, not forgetting the 99p Stores. Coming your way soon!
Paul, Coventry,
Japan has 100-Yen shops and even 50-Yen shops. We'll be seeing sterling equivalents soon.
John, London,
I will do my bit to bankrupt these developers, Im going to double my use of internet shopping.
ronnie, bucks, uk
There is no Bluewater issue in rural Wales. Little shops still run the show. This requires more walking or perhaps not given the size of giant malls. We probably benefit from being an outpost and at the end of the delivery track. Not always such a wide range and no designer labels, but who cares?
Colin, Llandingat Without, Rural Wales
How long before the old shopping centres complain that trade is being taken away from them?
David Leslie, Perth, Scotland
With oil prices rising, has much though been put into how people will travel there when cars become too expensive (oil prices)?
White City will be on a couple of tube lines, leading to more over crowding, but most will still travel there by car - or choose to shop more locally or online.
ian, London, UK
I have only been to Bluewater shopping mall once , and i found it over priced and lack a of choice due to the chain stores that inhabit these places. So now i have moved to shopping on line, due mainly to the local shops deserting the high street.
Clive, Dartford, Kent
Shopping, our favourite pastime, how sad.
brian keating, agde, france
Another shopping devlopment!!! My partner will be so happy, more places to go which sells the same stuff as our local shops but charges you high parking prices!!! Bring on the hours of standing in another chained shop!!!
Richard Smart, Portsmouth, UK
These white elephants will be just as profitable as all those BTL apartment developments. Thrift stores will be the fashion of the next decade.
Paul, Coventry,