Demonstrating the True Value of Shopping Centres

Case Study: BULLRING, BIRMINGHAM

1Demonstrating the True Value of Shopping Centres - Case Study: Bullring

Total number of jobs

supported at Bullring

Introduction

Bullring in Birmingham has been trading for 10 years. Over the last

decade it has enabled the city to become a major retail destination,

moving from 12th to 3rd in national retail rankings. But what has

its impact been for the wider local community? Has the anticipated

economic regeneration been delivered for the wider city?

As part of Hammerson’s research, “Demonstrating the True Value of

Shopping Centres”, in-depth case studies were carried out at Bullring

in Birmingham and WestQuay in Southampton.

This case study sets out the socio-economic impacts Bullring has

had on the wider Birmingham area, and looksat factors ranging from

job creation and related wages through to improved quality of life and

benefits to the wider community.

Economic value generated by the centre

4,946 CURRENT JOBS

133 FTE

CENTRE

OPERATIONS JOBS

2,892 FTE

RETAIL JOBS

£60.1m TOTAL WAGES

£2.7m

TOTAL WAGES

£63.6m TOTAL WAGES

THIS REPRESENTS

“Without doubt Bullring has dramatically improved the

city, helping us become the regional shopping capital.

It attracts new brands, and is a fantastic experience,

especially with its extensive food and drink offer.”

Local stakeholder, Birmingham

Hammerson Positive Places 20132

3Demonstrating the True Value of Shopping Centres - Case Study: Bullring 3

1,040 ANCHOR TENANTS 635 FTE

195 HEALTH AND

BEAUTY

121 FTE

1,626 CLOTHING AND

FOOTWEAR

862 FTE

174 LEISURE (HOBBIES,

BOOKS, MUSIC)

99 FTE

323

ELECTRONICS AND

HOME APPLIANCES

245 FTE

112

SERVICES

96 FTE

679

FOOD AND DRINKS

473 FTE

350

SPORTING GOODS

167 FTE

93 GENERAL

MERCHANDISE AND

SUPERSTORES

62 FTE

192 JEWELLERY

132 FTE

Number of current retail jobs and the FTE at Bullring

broken down by retail subsector category

4,784 CURRENT RETAIL

JOBS

Economic value generated by the centre

A full time equivilent (FTE) is calculated on the following assumptions: 3 individuals working less than 15 hours, 2 individuals working 15 - 30 hours, 1 individual working 30+ hours

Hammerson Positive Places 20134

Key evidence from visitor surveys and engagement with local stakeholders

A high profile destination: Attributed as a key driver in

Birmingham’s rise in the UK’s

ranking of top ten retail

destinations from 12th to 3rd place,

behind London’s West End and

Glasgow. Bullring’s contribution

to enhancing the quality and appeal

of Birmingham has dramatically

increased local pride.

An architectural icon for the city: Bullring’s distinctive design has

become a nationally recognised

symbol of Birmingham and

a major attraction within an

extensive regional catchment. It

is widely viewed as having raised

the city’s prestige.

Quality of life: Creating jobs

and bringing income and further

inward investment to the area

has had a considerable impact

on local well-being and quality

of life. A significant number of

jobs created went to previously

Perceived change in quality of life

Impact on town centre compared to Bullring having not been built

The perceived changes in % from visitors compared to Bullring having not been built. Positive numbers indicate perceived improvement.

The benefits to central

Government generated by

Bullring include:

£6.9m INCOME TAX

£5.6m

NATIONAL

INSURANCE

£3.8m

REDUCTION IN

UNEMPLOYMENT

BENEFIT CLAIMS

£740,000

SAVINGS FROM

FUTURE YOUTH

UNEMPLOYMENT1

£826,000 REDUCED

OFFENDING

£85,000

IMPROVED HEATH

AND WELLBEING Local pride

Feeling safe

Shopping Centre is important part of

city centre

29% 24% 21%

Access to the area (e.g. routes

and transport)

Choice of other restaurants in the area

Community well-being

Quality of life for local people (within 40 miles)

Choice of other shops in the area

Surrounding public spaces

19%

18%

20%

16%

19%

13%

1. Employability Penalty (future) every 3 months Unemployed under 23 yrs old leads to 1.3 months unemployed per year between the age of 28 and 33

5Demonstrating the True Value of Shopping Centres - Case Study: Bullring

unemployed people. This in turn

has had an impact on health

(and therefore health services

– the unemployed are twice as

likely to be depressed and in

poor health) and also on the

incidence of likely offending

(reduced by a third).

Connectivity: Bullring has

transformed Birmingham’s

city centre through dramatic

changes to its road and traffic

infrastructure. Formerly cut off

from its surroundings, Bullring

was specifically designed to

re-establish links between the

Bullring market site and the

wider city centre. The shopping

centre also physically connects

to two mainline train stations,

providing immediate access for

visitors. Survey respondents

reported improved levels of local

well-being and quality of life

linked to Bullring’s development.

Perceived change in quality of life

Further investment

generated by Bullring:

“Generally, retail is under pressure, with the impact of

internet shopping and the fragile economic. However,

Bullring continues to grow and develop with new

tenants, increased leisure offerings and exciting events.

Bullring has undoubtedly become an important addition

to the fabric of Birmingham.”

Tim Walley, General Manager, Bullring.

£3.1m

SPENT AT

INDEPENDENTLY

OWNED BUSINESSES

£500m

BIRMINGHAM NEW

STREET PROJECT

£59m ADDITIONAL

SPENDING

£6.4m

LOCAL SPENDING

FROM RETAIL

WORKERS

Visitors also identified Bullring

as a core visitor and tourist

attraction for Birmingham.

Shopping choice: The majority

of visitors expressed positive

feelings about the range of

shops and the improving choice

of good quality catering at

Bullring, enhanced by the quality

of the interior environment.

Public realm: One particular

area cited as in need of

improvement was the public

realm around the main building

to make it more engaging. In

addition, the younger adult

population are more wary of

being in the vicinity at night.

Further improvements to the

leisure and and catering offer

in Birmingham may help to

improve this by attracting a

more family friendly night time

economy.

The value Bullring brings to

its highstreet location:

INCLUDING

Hammerson Positive Places 20136

7

The opening of the Bullring in September

2003 attracted over 90 new retailers to

the city and provided new modern units in

Birmingham. As a result, stores relocated

from the surrounding retail centre to benefit

from the associated increased footfall.

Of the 17 retailers who relocated to Bullring,

10 units have been taken by other high street

brands. There have also been signs of new

independents and high quality retailers

such as Louis Vuitton entering the market

in high street locations.

Bullring’s impact has been assessed by

looking at High Street, New Street, The

Pallasades and Broad Street showing a

fall in rents across locations. Whilst the

economic downturn has impacted retail

within the city, prime pitches and customer

footfall can be seen to have relocated to

Bullring.

Leisure rents have not been as impacted

by the Bullring due to strong leisure offers

within the city. Bullring has responded to

increased demand by improving its offer

introducing a Jamie’s Italian and opening its

dining offer Spiceal Street.

The area continues to develop and improve

as a retail destination as a new John Lewis

plans to open adjacent to New Street station

in Birmingham city centre in 2014.

Key impacts of Bullring’s opening on Birmingham’s retail offer

Key Impacts

Demonstrating the True Value of Shopping Centres - Case Study: Bullring

Hammerson Positive Places 20138

Methodology

All statistics quoted in this

document are based on a

comprehensive data collection

exercise carried out in 2013

across the Hammerson

shopping centre portfolio and

from research undertaken

by Jones Lang LaSalle and

Envoy Partnership on behalf

of Hammerson as part of the

research “Demonstrating the

True Value of Shopping Centres”.

All data sources are referenced

within this report.

Sources of data specific to

Bullring include:

+ Visitor surveys across a

sample of 250 people at

Bullring.

+ Urban design and

architectural site surveys of

Bullring.

+ Surveys across a sample

of 35 local businesses with

Bullring.

+ Interviews with local

stakeholders.

+ Jones Lang LaSalle research

into residential prices and

retail rents.

In partnership with:

Join the conversation... Find out more at:www.hammerson.com/media/insights #truevalue

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