Supermarkets not tempted to open on 'disaster' street Shandwick Place

SHANDWICK Place has become "a disaster" according to one developer hoping to attract a major supermarket to the area.

The owners of the unit currently occupied by Habitat fear the furniture retailer may pull out when the lease expires in around two years, and have been canvassing interest from supermarkets.

However, several major chains – including Marks & Spencer, Tesco, Sainsbury's and Somerfield – have turned down owner Deramore Property Group's advances unless they can secure permission for a major refit of the shop floor.

Frank Montgomery, of property agents BNP Paribas Real Estate, said:

"Shandwick Place has been a disaster for retailers in the recent hard economic times and arguably hit harder by the tram works on the street.

"The location currently lacks a major tenant who would be a catalyst for the street and be a reason for people to shop on the street.

"The marketing campaign did result in interest from strong high street names, primarily the food sector, including Marks & Spencer, Tesco and Sainsbury's. Discussions and negotiations were progressed with these tenants but they all led to the unit being discounted due to the current configuration of the unit."

Habitat CEO Mark Saunders gave an assurance that "Habitat is committed to Shandwick Place and Edinburgh" but gave no indication how long this commitment would last.

As a "contingency" Deramore has applied for planning permission to refit the basement for storage, remove the central staircase to increase the ground floor space and create flats on the upper floors.

Deramore commercial director Darren Lonergan said: "We're not sure what Habitat's plans are.

"We are keeping an open dialogue with them but in the meantime we'd like to have a fallback, and we have been speaking to other retailers who have requested changes to the store layout."

Somerfield, which has a store on Shandwick Place, has rejected an offer to move into the Habitat unit across the road, triggering the prospect of a supermarket war.

Such a battle could have dire consequences for local independent retailers, including convenience retailer The Westend Store, in nearby Melville Place, where owner Joe Hussain has traded for over 20 years.

The next closest independent deli, Cockburn's, was one of the first victims of the tram work and credit crunch double-whammy in 2008.

However, Joshua Miller, manager of Charlie Miller hairdressers on Shandwick Place and vice chair of the West End Traders Association,

said: "We think another supermarket on the street will be a good thing.

"It would be good to see someone big and stable coming into the area.

"Joe's place is a brilliant store and is packed full of stuff, and I think he will remain the place for locals to go for a pint of milk and loaf no matter who opens up on Shandwick Place."