Is Princes St heading down road to ruin?

Published on Wednesday 5 August 2009 11:26

THE number of shoppers visiting parts of Princes Street has plunged by an average of more than 60,000 a week as the impact of the tram works and the recession continue to bite, it was revealed today.

Business leaders say that the data is further proof that the tram works are encouraging people to steer clear of the city's main shopping thoroughfare, as embattled retailers report falling profits.

And in another sign that shoppers are staying away, the number of New Town on-street parking spaces lying empty has increased by 11.4 per cent compared with last year – despite a decline in the number of parking bays.

Today's data shows that in the middle of Princes Street, nearly a third fewer pedestrians have been tracked by the city council's footfall counters in the three months to the end of June than had been in the same period of 2008.

The worst decline in pedestrian traffic was outside Marks & Spencer, in the middle of Princes Street, where 201,595 people walked past the counter on an average week within the three-month period, down 60,478 on the same time last year.

Outside Next, shopper numbers plunged by a fifth. And 10 per cent fewer have been tracked outside House of Fraser on the first block in the west end.

The only part of the street to not suffer a decline was outside Carphone Warehouse in the east end – where there are no tram works. Footfall actually increased here by 10 per cent on last year.

Across the 17 counters spread throughout the city centre, the average decline was 3.2 per cent, which is slightly lower than the rate of year-on-year decline noted this time last year and also slightly lower than the average decline in "comparable cities" across the UK.

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said: "From what I can see, in terms of activity there is no doubt there has been a reduction. It has definitely been quieter and we shouldn't be surprised, given all that is going on.

"Being down 3 per cent across the city is not too bad, but the fact that it is much higher in Princes Street is down to two things.

"Firstly, all the tram work is meaning you can't get near the city centre (in a car] and when you are coming into the city all the signs tell you to beware of the problems. Princes Street may be shut to traffic but the message that the shops are open has been difficult to get out.

"Secondly, we all know Princes Street has been getting worse for some time. The 'string of pearls' is positive but it'll take some time before we see the benefit.

"It has been a difficult retail street for some time and has never reached its potential. Right now, it's nowhere near its potential."

However, he added that completion of the tram system, together with proposed improvements to the "public realm" in and around Princes Street, gives cause for optimism in the future.

Across the city centre, retailers admit that the city is suffering from the double blow of the wider economic downturn and the impact of tram works.

A spokeswoman for House of Fraser and Jenners said: "The tram works have had an impact for all retailers on Princes Street. We are, however, encouraged by visitor numbers to the city in the approach to the festival and are doing everything we can to minimise disruption for our customers."

John Lewis said that the St James Centre store has suffered a 9.4 per cent decline in sales in the 25 weeks to 25 July, compared with the same period last year.

Despite that, Isabella Miller, the store's operations manager for selling, said: "Trading in the Edinburgh store has been in line with our expectations."

A spokeswoman for Marks & Spencer said: "Despite the tram works around Edinburgh city centre it is business as usual at our Princes Street store.

"We are working closely with other businesses and retailers in the city to ensure shoppers to Edinburgh are aware that we are open for business and current trading is in line with expectations."

Some areas have seen increases in footfall. The counter outside The Dome on George Street tracked a 78 per cent rise in footfall, while another outside Whistles was up 81 per cent. However, these figures are thought to have been skewed by diversions of bus stops from Princes Street to George Street during the tram works.

Also, average utilisation of off-street parking has declined at the St James Centre, Castle Terrace, Fountainpark and St John's Hill, although it increased at Blackfriars Street.

Separate figures compiled by the St James Centre suggest a 1 per cent increase in shopper numbers in the three months to the end of June, while Multrees Walk has seen an 11 per cent rise.

But Rochelle Weir, general manager of the St James Centre and Multrees Walk, said: "Some weeks we've been well up and others its been down 10 per cent.

"The disruption in the city centre has definitely had some sort of impact, but so has the general mentality of this recession where people are cutting back spending.

"While we have seen a drop (in shopper numbers] on some occasions, if people hear about roads being closed and the disruption in parts of the city centre, it can help encourage people to come to this side of town."

She said that more than half of St James Centre retailers had achieved revenue targets.

Richard Dodd, a spokesman for the Scottish Retail Consortium, said: "Whilst footfall is important, the most important measure is how much people are spending and our own figures for Scotland show total sales up 6.6 per cent in July 2009 on July 2008. It is possible that people are shopping less but spending more each time."

Councillor Tom Buchanan, the city's economic development leader, insisted that parts of the city centre were still seeing increases in shopper numbers.

And he said: "These figures show that, despite the economic downturn, Edinburgh's city centre is still seen as a vibrant place to visit and shop. I am particularly pleased that, in relative terms, over the past three months, we have performed better than our comparator cities."

Dogged by drills, smoke and mess

OPENING a jewellers on the main shopping thoroughfare of Scotland's capital city was a dream come true for Michael Freedman.

When tram works came to the street in the middle of the worst economic downturn he had experienced in business though, it turned into a nightmare.

Ogham, the last independent name on the street, permanently closed its doors earlier this year, and Mr Freedman has no doubt what proved the final nail in the coffin.

"We were jewellers selling engagement rings while outside we had pneumatic drills, smoke, mess and big gates that restrict access to our store," he said.

"At a time when there was the credit crunch, it was a double whammy having trams and the council not being willing to compensate companies like us."

Mr Freedman, who ran the store on Princes Street for four years, now owns only the original branch of Ogham in Ayr.

He campaigned for the council to compensate businesses like his, but because of the level of business rates he paid for the prime spot on Princes Street, he did not qualify for assistance.

"For them to not be willing to help businesses to reduce rates is absolutely ridiculous.

"It is a sad day when they chase away independent retailers from the city centre.

"It was not a great experience being in Edinburgh. We gradually built the shop up over four years and it was starting to become a success but the actions of the council halted that."

Will the trams eventually help bring shoppers back to Princes Street?

Sheila Fraser, 46, publican, Beveridge Close, Dalkeith: "No, people have found other places to shop during the disruption and I don't think they will come back to Princes Street once the trams are up and running."

Rob Horwood, 64, train manager, Lorne Street: "No. Getting Princes Street back to the way it was 50 years ago, when there were substantially good shops, will bring people back, not the trams."

Gill Williamson, 41, marketing manager, West Savile Road: "No, because I think by the time the trams are finished, half the shops won't be there - they'll have closed - and it won't be worth coming into the city centre."

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