Detailed planning approvals slipped back against the previous quarter and last year. More positively, project starts and main contract awards grew on the previous quarter.
Retail overview
Totalling £469m, retail work starting on site during the three months to March grew 24 per cent against the preceding three months to stand 30 per cent lower than a year ago. There were no major projects starting on-site (£100m or more), unchanged compared with the previous quarter but a decrease on a year ago. Underlying project-starts (less than £100m) experienced a 13 per cent decline against the preceding three months on a seasonally adjusted (SA) basis but climbed 1 per cent against last year.
Retail main contract awards totalled £333m, an increase of 9 per cent against the preceding three months and a 42 per cent fall against the same period a year ago. No major projects reached the contract awarded stage, unchanged on the preceding three months but down on the previous year. Underlying contract awards increased by 16 per cent (SA) against the preceding three months to stand 19 per cent lower than the previous year.
Detailed planning approvals, totalling £470m, slipped back 3 per cent against the preceding three months, to stand 13 per cent down on the previous year. Underlying approvals fell 10 per cent (SA) compared with the preceding three months and declined 33 per cent against the previous year to total. Major consents totalled £106m, an increase from the previous quarter and a year ago when no projects were approved.
Types of projects started
The value of shop starts fell 48 per cent, to total £228m, accounting for 48 per cent of all retail starts. Standing 90 per cent lower than a year ago, petrol filling station starts totalled £3m to account for a 1 per cent share of retail work. In contrast, totalling £228m, supermarkets grew 4 per cent from last year to account for 36 per cent.
Retail warehousing also experienced a 136 per cent increase against last year’s levels to total £12m. Having grown 74 per cent on a year ago, shopping centre projects commencing on site totalled £9m during the three months to March, accounting for 2 per cent.
Regional
London was the most active region, accounting for 17 per cent of all retail starts nationwide, despite the value having fallen 75 per cent against the previous year to total £77m. The North West, at £44m, also slipped back 42 per cent on a year ago, accounting for a 9 per cent share of the sector.
In contrast, accounting for a 16 per cent share, project-starts in the South East doubled compared with a year ago, to total £77m. At £61m, Scotland also experienced a strong period, with starts having grown 45 per cent compared with a year ago to account for 13 per cent of the retail sector. This growth was mainly driven by the £50m Aberdeen Market Development. Accounting for 8 per cent, the East of England increased 36 per cent, totalling £36m.
London also had the highest proportion of retail approvals, with a 36 per cent share, having increased 42 per cent against last year’s levels, to total £167m. Growth was boosted by the £106.06m Project Swan – Marble Arch development in Westminster. The South West jumped 74 per cent against the previous year, accounting for 10 per cent of the sector and totalling £49m.
In contrast, accounting for a 12 per cent share, approvals in Scotland slipped back 14 per cent to total £57m. Totalling £30m, the South East decreased 35 per cent, accounting for a 17 per cent share of retail approvals. The North East experienced the steepest decline. Approvals in the region decreased 80 per cent on a year ago, bringing the value down to just £7m, a 2 per cent share of the retail sector.
