It’s a complicated time to be a shopping Centre.

Nationally, sales in physical clothing and footwear stores increased by 4.5pc over the past 12 months.

In comparison, online sales – there is just one figure to cover all categories – only went up 2.8pc.

Chantry Place in Norwich will reopen Frasers later this month (Image: Chantry Place)

On the surface, this might sound like great news for our bricks-and-mortar retailers.

However, despite a surprise boom in physical sales, stores located in shopping centres are still closing at an alarming rate.

According to a Local Data Company (LDC) analysis of retail centres in the UK, around 30 shopping malls are now at least half empty, with five having more than 80pc of their shops unoccupied following months of lockdowns and the onslaught from online rivals.

Picking a lineup 

For the Buttermarket Centre in Ipswich, this statistic is unsurprising.

Ipswich’s Buttermarket Centre manager, Rebecca Bird, said she’s optimistic despite current challenges (Image: Submitted)

Centre Manager Rebecca Bird said attracting new tenants had become increasingly challenging, with big brands using “hit lists” to decide where to open new stores.

She said: “Everywhere is looking for tenants at the moment, so if you’re not in their top 20 list, based on their key demographic, then you’re going to really struggle.”

And, she said, making a good impression was about more than proving the quality of the centre itself.

She said: “We can do everything possible to make the inside look clean and fresh, but if they step outside and see an empty high street full of boarded up shops, which is sadly what we’ve got here, then it’s going to put them off.”

Buttermarket Centre in Ipswich has increased its entertainment offerings in recent years in line with consumer trends (Image: News Quest)

To help fend off closures, Buttermarket Centre has shifted tactics in recent years, replacing empty shops with entertainment and dining options.

Ms Bird said this had helped them curate their offering, selecting tenants that complement, rather than compete.

She said: “You look at the demographic and say, OK, these people are coming in to visit TK Maxx, so let’s get somewhere they can stop for brunch beforehand.

“We have a lot of younger, school aged people heading to Superbowl, so we need a cheaper lunch offering for them.

“Boom Battle Bar attracts a lot of after-work parties, and that older offering wants somewhere they can grab a drink and food.

“It’s all about coming up with ways to keep people in the centre for longer.”

Investing in success

While online shopping has long been credited with killing off malls, retail experts suggest the death of the anchor store – traditionally a large department store that draws in shoppers – has been the final nail in the coffin for many.

Chantry Place in Norwich will reopen Frasers later this month (Image: News Quest)

Between 2016 and 2021, 83pc of mall-based department stores closed, shrinking from 467 retailers to just 79.

READ MORE: All the changes happening at Chantry Place in Norwich

But here in East Anglia, our shopping centres are quick to show how they are bucking this trend.

Next week, the Frasers store (formally House of Fraser) will reopen in Chantry Place in Norwich, boasting a new look and the addition of new brands including Sports Direct, Evans Cycles, and fashion brand UFC.

Paul McCarthy, general manager, said he was expecting it to set in motion “some very positive things for the centre”, building on year-on-year increases in footfall since 2020.

Paul McCarthy, general manager at Chantry Place in Norwich (Image: Chantry Place)

And, he said, as well having a “fantastic line up of brands”, staying on top of maintenance had been key to the centre’s success.

He said: “This centre will be 20 years old, but it feels like it could be six, seven years old.

“The quality of the building was good in the first place, but we’ve had a brilliant team looking after it, which helps attract customers and tenants too.”

“That continued investment is crucial to staying relevant in this industry.”

‘Out of our hands’

While both centres said they were positive about the future, they agreed that the biggest challenge was out of their hands.

Ms Bird said: “Dealing with sky-high business rates is undoubtedly the hardest aspect of running a centre right now.

“It’s not just what we’re paying, but also the pressure it puts on our tenants.

“Business rates account for about a third of their total costs being in the centre.”

And with the east of England seeing the highest percentage increase in rateable value – which is used to calculate business rates – in the country since 2017, Mr McCarthy agreed.

Percentage change in Rateable Value from 2017 to 2023 Local Rating List by country and English region (Image: Valuation Office Agency)

He said: “The whole business rate system is fundamentally broken in this country and is dire need of a radical reform.

“Everybody understands the exchequer needs the money raised by business rates, but the question is how do you raise that money across all businesses more equitably?

“And it’s not through effectively a medieval property tax.”

READ MORE: How to appeal against business rates revaluations

But, he added, despite the cost of running a brick-and-mortar space, he believes it’s still one of the best ways to connect with consumers.

He said: “Shops know that a [bricks-and-mortar] presence is an essential part of their offer.

“The world of retail is constantly evolving, and it’s always very competitive.

“It’s up to the retailer to make sure they take some of that disposable income and convert it into their own offer.”