Newport city centre struggling as retail profits 'plummet'

The dismal forecast comes from property development company Garrison Barclay Estates, which said there has been “very little interest” from any new traders looking to open premises in the city centre.

The demand for retail space in Newport is so low that the firm is currently offering prospective tenants up to 18 months’ free rent at one of its vacant lots at 16-18 Commercial Street.

This comes as Argus readers said the state of the city centre was one of the major problems facing Newport.

Planning documents show the firm is hoping to convert part of the former British Home Stores (BHS) space into a bank, in a bid to “provide much needed space for an occupier looking to invest in the city and hopefully have a positive impact on other vacant space within the locality”.

Garrison Barclay bought the site and neighbouring properties in 2016 when BHS closed down, and has spent several years refurbishing and reinventing much of the building – including the new Mercure Hotel, several shops, and the South Wales Argus offices.

The former Debenhams site in Friars Walk, Newport, hasn't been used for retail since the chain closed down its high street operations. (Image: Newsquest)

Despite marketing the former BHS site for around three years, including “numerous marketing campaigns”, the firm has been unable to fill the unit.

Some “early expressions of interest” from supermarket firm Heron Foods fell through “as they withdrew their interest in Newport”, planning documents show.

“Since then we have received very little interest across all vacant retail premises at the scheme, in particular for Commercial Street due to the number of other vacant units in the vicinity,” Garrison Barclay said.

The developers noted the “significant” changes in the UK retail market, driven by the growth of internet shopping and historic rents now being considered “too high in many locations”.

The former Wildings store in Newport is another city-centre retail site which stands empty. (Image: File)

“This has been the case in Newport for example amongst others,” Garrison Barclay said. “Effectively, the market now believes there are too many retail units and that the market is currently over-supplied.”

The firm added: “Newport, like other towns across Wales and the UK have of course also felt the impact of the Covid19 pandemic.

“The closure of Debenhams in May 2021 followed by a number of other national retailers has led to further competition and little demand due to the reduced footfall.”

Garrison Barclay now faces competition from “other vacant retail space within the Friars Walk Scheme and on Commercial Street” and is offering incentives such as “anywhere from 12-18 months rent free” and “very competitive reduced rents”.

The developers hope changing the BHS space to a prospective bank will finally fill this long-empty premises in the heart of the city.

• We spoke to other business and council leaders in the city about what they thought about this. Read more here.
• And click here to read what our readers thought.