Cambridge has topped a 2024 ranking of the health of 1,000 UK retail centres.
It has regained the top spot in the Vitality Rankings for the first time since 2019, thanks to the post-pandemic return of tourists, students and shoppers.
The rankings, which have been running since 2014, are based on analysis of a range of factors, including the vacancy rate of retail units,
the change in that rate, the amount of space being adapted for other uses, shopper spend per annum and footfall figures.
Second on the list was Cobham in Surrey, while the rankings show luxury shopping destinations thrived in 2023, with Sloane Street, Chelsea and Knightsbridge rising to the top 10.
Cambridge’s success comes at a time when there are big changes afoot for some of its major retail sites, like The Grafton and the Beehive Centre.
Maria Manion, CEO of Cambridge Business Improvement District (BID), which represents 1,200 city centre businesses, was delighted to see the city top of the pile.
She told the Cambridge Independent: “It is great news to see Cambridge returning to the top spot. A city centre is both the economic and social heart of its local community, and Cambridge has adapted well to changing consumer demands. As a city, we are constantly evolving and changing.
“Cambridge is fortunate to have a strong reputation across a number of areas. The historic fabric of the city is an asset and provides the right environment for a good mix of major chains and independents plus a strong leisure/hospitality and business sector. Having the right balance and range of services is essential for our residents, and to those who work and visit the city.”
Investors have been keen to redevelop some of Cambridge’s retail centres in a post-pandemic world in which home delivery has become so commonplace and pressure is growing for laboratory space to serve the city’s thriving life science sector.
Developer Pioneer Group plans to convert the bulk of The Grafton into laboratory and office space for science and technology businesses, while creating a new public square surrounded by shops and cafes, and building a hotel and restaurants to create a leisure destination alongside the existing gym and cinema.
And Railpen wants to transform the Beehive Centre to create laboratory and office space alongside retail.
Some brands have been unable to benefit from the return of shoppers and visitors, particularly given high rental prices typically seen in Cambridge. Ted Baker was the latest to announce it was closing its Cambridge outlet – it is one of 15 to be shut by the fashion chain, while owner Tasty included its Wildwood restaurant in the city among a raft of closures. However, there have been openings too – with a number of new eateries arriving in the city and more to come, including a new African restaurant in Hills Road.
Maria said: “Generally, the way people use our towns and cities is changing. We are seeing a move towards leisure and social activities or experiences, but we still have a strong economic base, with the new developments supporting the variety and offer of the city. Vibrant towns also have high-quality environments and open spaces, something that Cambridge offers in abundance.
“We also know that cities and towns which are performing well have strong partnerships and civic leadership. This makes it more attractive for businesses and in turn helps maintain employment and services for local people. As a city, we strive to provide a welcoming, safe, clean and vibrant centre for all users of the city. Interestingly, we constantly hear in the media that the high street is dead. Cambridge illustrates that towns and cities can have a strong future.”
Cambridge BID is working on plans to make the most of the city’s attractiveness to tourists by introducing a new visitor levy, under which overnight stayers at hotels would be charged a fee – initially £2 – that would enable £1.5million-£2million to be invested each year back into the visitor economy. The levy will need approval from hoteliers via a ballot expected in June or July.
It is a move many other cities are expected to follow.
Jeremy Waller, at Primavera art gallery in Cambridge, agreed that the city was busy. “We have hundreds of visitors every day,” he said. “We are open seven days a week to the public and our three floors offers an insight into British art and craft that you will not find anywhere else. That provides a service – and that part of retail is as strong and vibrant as it was.”
The Vitality Rankings, compiled by Newmark Retail’s London-based strategic consultancy and analytics team, also showed a revival in the fortunes of major retail centres in the capital, while many larger retail destinations badly hit during the pandemic returned to the top 50 for the first time in four years, including Westfield Stratford City, which rose to number seven from 82, Leeds city centre (34, up from 86), Liverpool city centre (37, up from 145), and Edinburgh city centre (41, up from 207).
But the top 20 does include a number of smaller commuter towns that benefit from more localised shopping habits. The Buckinghamshire market town of Beaconsfield, which topped the list in 2021 and 2022, is at number nine, while Henley-on-Thames, Ilkley and Sevenoaks stayed in the top 25.
Andy Metherell, head of consultancy and analytics at Newmark’s UK & EMEA retail practice, who leads the Vitality Rankings, said: “Luxury destinations have attained higher positions in this year’s rankings as the cost-of-living crisis – caused by inflation and other economic headwinds – is less likely to impact shoppers in locations like Chelsea, Sloane Street and Knightsbridge.
“Affluent commuter towns have also retained their high positions as local residents are more likely to undertake hybrid working and therefore shop in their local towns more often than before the pandemic.
“However, smaller locations whose shoppers are more vulnerable to the cost-of-living crisis have fallen down the rankings as pandemic-related factors, such as vaccination rates or the presence of convenience retail, are no longer driving high street vitality.
“The return of tourists and pre-pandemic shopping habits have also boosted the performance of major shopping destinations.”
