Bustling capital of leisure and retail

Aug 21 2009 By Andrew Hebden, The Journal

IN COMMON with every other part of the country, the number of To Let and For Sale notices peppering the high streets of the North East has increased significantly over the last 12 months.

Unfortunately, one of the most obvious characteristics of a recession is that folk stop spending their cash and this has certainly been true in 2009, despite the Government’s best efforts to encourage us all to spend, spend, spend.

Despite the difficult trading conditions, the number of locally-based business failures in the retail and leisure sector has been mercifully few and it has tended to be the national chains – notably Woolworths, of course – whose failures have led to many empty outlets in prime town and city centre streets.

In the leisure category, one high-profile casualty among last year’s Most Influential was restaurateur Eugene McCoy who, after moving out of the top floor of Baltic, had a short-lived venture in Newcastle city centre. Premium Bars and Restaurants, the owner of many well-known outlets in the region, including the Living Room brand, has also endured troubled times and was de-listed from the stock market.

But it has been far from all doom and gloom. In the retail sector, the new £170m extension to Eldon Square in Newcastle city centre, under the leadership of Tim Lamb, has continued apace.

He said recently: “The building is on schedule and on budget and we’re absolutely delighted.

“There are some big retailers which are new to the city and some which are relocating from other parts of the centre. We’re in discussions on all of the units which will be vacated by retailers moving elsewhere in the centre to make sure they’re not standing empty.

“Footfall has risen in the last 12 months, which is great news, and we’re looking forward to welcoming the public to the new mall at the start of next year.”

Over at one of the region’s best loved companies, Greggs, new managing director Ken McMeikan has wasted little time in making his mark on the business since succeeding Sir Mike Darrington last year. In May, the firm announced a 2% rise in like-for-like sales – not bad in the current climate – and said he was confident the firm could grow its 1,400-strong store chain to more than 2,000. A period of accelerated store openings will get underway in earnest in 2010.

In the leisure sector, the failure of Newcastle-based tour operator Freedom Direct left the holiday plans of thousands of families in ruins back in April. However, the future of the company’s 109 staff was secured when the business was bought by John Hays, who has continued to mastermind the growth of his Sunderland-based travel empire. He went a step further in June when the firm bought 57 branches of Harvey World Travel UK, which was also in administration, for an undisclosed sum.

Finally, a word or two of praise for a newcomer to the Most Influential list for 2009 – Robert Forrester, chief executive of Vertu Motors. The Newcastle firm has truly bucked the trend in the world of car retail by embarking on a new growth strategy after raising £30m from investors in a rights issue.