The North East’s largest shopping centre has hailed strong progress in its latest accounts, with footfall reaching a post-pandemic high of 14.4m visitors.
The Metrocentre in Gateshead says the shopping and leisure destination is building on its momentum despite the challenging macroeconomic conditions, with a £70m investment into the centre by owners Metrocentre Partnership helping to draw in “high calibre” tenants while driving a one million increase in footfall since lockdowns.
In figures for 2023, the firm said net operating income increased by 17% over the year to reach £35.2m, and was also markedly up on the £24.6m reported in December 2020, before the pandemic. Footfall increased by 2.4% to reach 14.4m visitors and it has also seen occupancy of its units grow, with last year seeing the centre reach 86.4% occupancy, up from 82% in 2022 and 71% in 2020.
Read more : Harvey Nichols to cut dozens of jobs
Go here for more North East business news
Metrocentre shoppers have also been able to take advantage of spending in 42 new stores, covering over 330,000 sq ft, since October 2020 and last year saw seven new lettings including the NHS Community Diagnostic Centre fitting out a new 40,000 sq ft facility in the former House of Fraser store. Other lettings in the centre itself include Rowen Homes, Skopes, Flying Tiger, The Fragrance Shop, Zara’s 41,000 sq ft flagship store – the only one in the North East – and Frasers opening a 165,000 sq ft store in the old Debenhams space on the Red Mall in late 2023, including an Everlast Gym, Sports Direct and Flannels.
Looking ahead, centre bosses said tenant demand remains strong from both new tenants and existing tenants who are upsizing or regearing and renewing leases. They also promised a good pipeline of potential openings across retail and leisure are in the offing, adding to recent news that the Primark store is set to expand, and Go Outdoors is due to move into the old Wilko unit.
The directors said they intend to continue to pay a £20m annual interest coupon subject to the centre performing in line with plan. Martin Healy, chairman of Metrocentre, said: “Metrocentre performed well in 2023, as the fruits of our labour came through. Our investment programme has enabled upgrades across the centre and we’re encouraged by the positive response from our loyal customers and visitors which have, in turn, generated growth in footfall and average consumer spend.
“As a result, we are attracting high calibre tenants and have built a strong pipeline of potential openings across retail, leisure and entertainment offers, giving us confidence that, despite the current economic backdrop, the strong momentum in 2023 will continue into 2024 and beyond.”
