Asda fears for retail park over store plan
ASDA has revealed concerns about the decline of the Southport retail park where its supermarket is the main anchor tenant.
Asda Property Team head of town planning Jenny Taylor-Smith spoke out about the situation in a letter to Sefton Council, as the firm lodged its objection to plans to build a new Sainsbury’s supermarket at Meols Cop.
She wrote: “Central 12 is in a fragile position and rental levels have dropped over 60%. Retailers have left or are in liquidation and vacancy rates are high.
“As you can imagine, Asda are very concerned about the declining health of Central 12 and the town centre, which will be exacerbated by the trade that will be drawn away from the town and the impact on the Asda store itself which is expected to trade below its benchmark.”
Sainsbury’s had
planned a huge, 60,00 sq ft two-storey superstore and petrol station which would have created 328 jobs and replaced the former Homebase store and two adjacent units.
But scaled-back plans being presented to last night’s Sefton Council planning committee are for a smaller, one-storey development, with 30 fulltime jobs and 170 parttime.
This would mean Sainsbury’s seeking tenants for the adjacent units, with one expected to be filled by Argos, which the firm now owns - which Asda fears could make room in the park for firms such as an M&S Food Hall, which would draw even more trade away from Southport town centre.
Ms Taylor-Smith wrote: “We must maintain our objection to the proposed Sainsbury’s, given the impact it would have on what is already a vulnerable town centre.
“The town centre has weakened in recent years. Many stores have closed, and others will follow.
“The proposed development would have a significant adverse impact on Southport town centre.”
Gerard Carney, of Southport & Windsor Properties LLP, is also warning of the dangers, with council officers admitting that the new store could mean revenue worth £7.9m drawn away from the town centre each year, which they claim would only have “limited impact” on businesses there. Figures from council consultants Nexus reveal the other areas which will lose out.
Mr Carney said: “This application only creates 30 full-time jobs and 170 part-time jobs, with £15m private sector investment.
“In comparison, £7.9m is lost to the town centre each year. The benefit of the £15m investment equates to less than two years’ loss. The loss to the town centre for the 25 years of Sainsbury’s lease is nearly £200m.
“The proposed Sainsbury’s will take 35% of its convenience trade from Tesco, Asda 17.5%, Morrisons 13.5% and the Lord Street Sainsbury’s 13%. It is inevitable jobs will be shed from those stores as a result of the loss in trade.
“The proposed Sainsbury’s will also take 25% of its comparison trade from Central 12 Retail Park, at a time when Central 12 is in a perilous state and rental levels have dropped over 60%.
“Next and Boots have short term escape clauses, waiting to see the outcome of this application, other retailers have left or are in liquidation and vacancy rates are high.
“How many further jobs will be lost due to the impact on this retail park alone?
“The town has lost BHS, H&M, HMV, Jaeger, Argos, Poundworld, Brighthouse, Debenhams is closing, Bon Marche are seeking a rescue buyer, Bathstore are in administration, Arcadia’s Outfit on Central 12 is the subject of a CVA [company voluntary arrangement] and Boots have announced 200 store closures, aimed at locations where two stores are nearby like Central 12.”
Former Southport MP and current Sefton Lib Dem leader Cllr John Pugh was due to speak against the proposals.
He said: “The council’s own consultants record a 37% increase in town centre vacancies in just four years, with footfall falling by a million between 2017 and 2018.
“Rental levels in Central 12 have dropped by 60% and there are currently eight agency letting boards in Chapel Street.
“No amount of public investment could offset the damage to the town centre if other chain stores imitate Sainsbury’s and move up to Meols Cop.”
For a result of last night’s meeting, visit www.lancs.live or www. liverpoolecho.co.uk
WHAT do you think? Please email me at: andrew.brownNW@ reachplc.com