Talking Investment: ‘Enquiries are up and more deals are getting done’

As the person responsible for city centre retail instructions at FHP Property Consultants, Tom Wragg has his finger well and truly on the pulse of Derby’s retail scene. Here, Tom, who is an associate director at FHP, gives his take on the state of the market as it currently stands – and why he is optimistic that major investments currently being made in the city centre will reap dividends.

Derby was always the nearest major city for me growing up – I can remember going to the then Eagle Centre as a child in the 90s.

Back then the shopping centre and the high street seemed to run seamlessly into one another.

As I got older and started going out at weekends, in what I now know to be called the ‘leisure circuit’, Derby was a thriving city, which drew national chains alongside high quality locals in both retail and leisure.

Today the high street and the Derbion are quite different pitches.

Since Covid, we have seen major retailers looking to consolidate stores in UK cities to one best in class location – known as the “flight to prime”.

In Derby, this has led to brands such as Goldsmiths and TUI relocating into the shopping centre.

This runs alongside numerous new names taking space such as Tag Heuer, Flannels, BOSS and Tommy Hilfiger.

More recently we have seen White Stuff and Castore open their doors in the upper mall.

Since 2021, over 332,000 sq ft has been let and £35 million has been invested in the Derbion and it continues to see good demand with a number of retailers upsizing, including H&M, Superdrug and Greggs showing confidence in the location.

Like many English cities, the Derby high street has struggled with its identity in the period since Covid.

In truth, those trends were already underway and merely expedited by the pandemic.

We have seen high street rents reduce by some 30% since lockdowns eased, which has opened the door for independent retailers to fill the spaces left by the departing nationals.

These operators generally have lower overheads and are willing to take risks in difficult trading conditions.

We are now seeing increased demand from fast food operators seeking space on traditional high streets in St Peters Quarter and Cathedral Quarter, from experienced operators, some of them established nationals, which, in my opinion, is the future of the former high street retail pitches.

I predict the new build residential developments and refurbishment projects around the city centre will continue to bolster footfall and give national operators more confidence that they can trade well throughout the week.

Since the closure of the Assembly Rooms some 10 years ago, the wet led pitch has drifted away from Market Place, consolidating in Wardwick and Friar Gate with changing consumer habits underpinned by inflation taking their toll.

The closure of Bar Revolution makes this point – but I am pleased to report good demand for that property since bringing it to the market earlier this year.

I expect the long-awaited Becketwell Live performance venue to prove a draw to the licenced trade and provide a boost to the surrounding areas.

From my perspective, as a retail and leisure agent, since the start of this year the general mood has been more optimistic with enquiries up and more deals getting done.

I am quick to tell people that Derby is a strategically located major UK city with a booming manufacturing industry, a wealth of graduate talent and above average salaries – and this isn’t bluster.

As the investments made into the city start to take root, I’m optimistic we will start to once again see a high street that befits those attributes.

Many of these major investments are due to become reality in 2025 – including Becketwell Live, the revamped Market Hall and the university’s new Business School.

It has been dubbed as ‘Derby’s olympic year’ – and I’m hopeful that the impact of these major schemes will quickly begin to show in our retail and leisure sectors with more national operators taking note and adding the Derby high street to their list of target locations.