Satellite towns need to "differentiate or die"

REGIONAL town centres like Oldham and Altrincham will have to develop their own specialist attractions or become redundant as retail centres, according to the former chief of Manchester’s Arndale Centre.

Glen Barkworth, who was centre manager at Manchester Arndale for more than a decade and oversaw its recent transformation, said that many dormitory towns in the North West cannot compete with the region’s “big three” – Manchester, Liverpool and the Trafford Centre.

Speaking at a discussion held by Pro.Manchester last week in conjunction with insolvency trade body R3 and law firm DWF, Mr Barkworth cited Bury as an example which had differentiated itself due to its market. This proved to be a draw for further investment such as The Rock retail and leisure scheme.

He added: “There is no incentive to go to places like St Helens and Altrincham unless the council, landlords, retailers and the public come together to create an identity and a reason for people to come in.”

The event was also told that there was currently around a 30% oversupply in the number of town centre high street units and that some retail areas may have to be converted back to residential use.

R3 regional chair Jeremy Oddie said: “There are too many outlets on the high street and not enough people buying.”

Meanwhile, DTZ director Nick Pyman has also predicted a greater degree of retail ‘obsolescence’ as many major multiples look to cut back on the number of outlets from which they trade.

He argues that the government’s recent decision not to strengthen rules regarding “pre-pack” administrations could lead to more retailers using insolvency processes to shed underperforming stores.

“The government’s U-turn has come at a time when landlords and other creditors look for means by which to challenge retailers who are using the pre-pack as a means of reducing rents and shed debt,” he said.

“JD Sports’ purchase of Blacks is one example of this as they are a solvent, acquisitive company, whom many believed to have picked up Blacks at a knockdown price. It will be interesting to see how many locations are retained, or whether it is the fascia and associated brand loyalty that the purchaser is most interested in.

He added: “Overall, 2012 looks set to be the year in which retail obsolescence increases in pace. Landlords and retailers are hoping to tread water over the coming months, holding out for at least an anaemic recovery to begin sooner rather than later.”