The Scotsman

After ‘home shopping’ comes ‘shop homing’

- Comment David Alexander

When John Lewis – that doyen of British retailing – announces store closures you know, if you didn’t already, that the high street is in serious trouble. And when one of those targeted was opened by the company just a few years ago in Birmingham city centre, then it became reasonable to assume that just about every store around the country was vulnerable

Therefore there must have been a big sigh of relief when John Lewis announced its Aberdeen store was to reopen after the Scottish Government relaxed the retail trading rules on the high street and in shopping centres. JL Aberdeen will not be part of the plan to convert some of the company’s closed stores to residentia­l use, either in whole or part. Just as Amazon exemplifie­s “home shopping,” John Lewis may become famous for “shop homing”.

However, this trend is already happening in Aberdeen, the latest example – as this newspaper reported last week – being the opening of high-quality flats on former disused floors on a block in Union Street, whose previous occupants included Virgin Megastore and Boots. The six properties, by specialist developer City Restoratio­n Project, are part of the Aberdeen City Centre Masterplan, the local council’s regenerati­on blueprint for Union Street and the surroundin­g area. This is the company’s second build on Union Street and it would be unusual if other developers were not eyeing up similar prospects either on the thoroughfa­re or just off.

As for John Lewis, the possibilit­y that it might seek to transform former stores to residentia­l units, or perhaps hive off surplus space in stores still trading, seems sensible, especially with relaxed planning procedures to enable changes to be made much quicker, making them more affordable and, therefore, more viable. It will not, however, always be a silver bullet. Stores were built and designed for a purpose – mass retail sales to the public on a face-toface basis, and the result is not always conous ducive to an easy conversion to residentia­l use. Shopping layouts (and indeed office ones) can restrict the internal design possibilit­ies, leading to flats of a shape and size that the developers would not have created had they had a “clean sheet” to play with. For example, flats in a converted commercial building may have to be designed around the lift shafts rather than the other way round as might be possible with a new build. And, of course, there are numerhealt­h and safety rules to be worked around. This certainly isn’t true of every conversion; for example, flats created from redundant retail/storage space just off Princes Street in Edinburgh (for which we acted as agent) sold quickly as soon as they went on the market. But I think we should be aware of the challenges, as well as the opportunit­ies, of converting commercial buildings to residentia­l use. Another factor is demand. Up to now, city-centre living has been extremely popular, mainly among younger buyers and tenants, and some older couples. Back in Aberdeen, Adrian Watson, head of the city’s Business Improvemen­t Bid, said the Union Street flats fitted with the policy of bringing people into the central area to live, work “and of course enjoy the many attraction­s and amenities on offer”. That’s fine as long as there are sufficient “attraction­s and amenities” to enjoy. There’s a danger the retail retreat from the high street may start to infect the bars and restaurant­s that rely, in part, on shoppers for daytime business, especially at weekends. Trade will be further reduced if more office employees are permitted to work from home rather than commute. This raises the possibilit­y of what the Americans (after bitter experience) call “doughnut towns” where everything is on the outside and nothing in the middle.

Retail/office conversion­s in the heart of town are only likely to work if they continue to offer a vibrant commercial and cultural environmen­t. For many, city centre living is great – just so long as it’s a city centre worth living in. David Alexander is MD of DJ Alexander

Be aware of the challenges

of converting commercial to

residentia­l

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