£26m Church Square shopping centre only clawing back marginal profits

Back in 2017, St Helens Council bought the town centre shopping centre to pave the way for regeneration plans and bring more land into public control - with the local authority previously owning just one percent of the town's retail stock.

Following the subsequent purchase and planned demolition of the Hardshaw Centre, the council aims to bring more traders in closer proximity as developers construct new homes, offices, retail space, a market hall and a hotel in the town centre.

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Shopping centre vacancy rate of 33%

The council purchased Church Square and Hardshaw Centre shopping centres to pave the way for regeneration plans (Image: St Helens Council)

As more businesses have departed the Hardshaw Centre in recent months, many have found a new home in Church Square shopping centre, which now has a vacancy rate of 33%.

A Freedom of Information request shows that the number of active leases at Church Square shopping centre decreased from 70 to 61 businesses, between the years of 2017 to 2022, although that figure is likely to have changed this year given the injection of traders which have relocated from the Hardshaw Centre in 2023.

The information also shows that the average length of active leases is currently longer than at the time of purchase.

Marginal profits clawed back from purchase 

The shopping centre has made marginal profits compared to its £26m purchase (Image: St Helens Star)

As a way to increase long-term income streams, the purchase of the town centre shopping centre was done through borrowing from the council's Capital Programme, which is separate from income generated from council tax and ringfenced for specific projects that can generate profit.

Looking at the income generated from the shopping centre from 2020 to 2022, the Freedom of Information request shows that Church Square shopping centre brought in £5.2 million over this three-year period.

When factoring in operating costs, the figures show that the shopping centre made a profit of £1.16m during this period.

In 2022, the data shows that there were profits of just £292k across the year.

In addition to this, the information states that there have also been rent arrears of £633k between 2020 and 2022, which would significantly eat into the £1.16m profit margin if they have not been recouped.

Footfall improving as more businesses make the switch

Businesses like Select have benefitted from the move to Church Square and being more visible on the high street (Image: St Helens Star)

With the demolition of the Hardshaw Centre set to start at the end of this year, vacancy and income figures will have improved at Church Square as businesses such as Bonmarché, Shoezone, and Select have relocated to the shopping centre in recent months, among others.

These businesses have been enjoying a new lease of life by being more visible on the high street, while footfall has also been reported to have improved inside the shopping centre.

However, with such a large investment in gaining control of the shopping centre six years ago, some residents have voiced concerns and questioned if it was a poor investment that will take years to see increased benefits.

Purchase to 'support the future regeneration of the town centre'

The purchase of the shopping centre was made to benefit the long-term future of the town centre (Image: St Helens Council)

St Helens Council has said that the purchase of the shopping centre was made to "improve the fabric of the shopping centre" and "support the future regeneration of the town centre".

Speaking previously about the recent relocations and improved footfall at Church Square, Councillor Kate Groucutt, cabinet member for business, economy and skills, said:

"As we prepare for the first phase of our town centre regeneration, it's good to see that footfall is strong, despite the very difficult economic circumstances facing residents and businesses.

“As we prepare to start the first phase of town centre regeneration it shows the potential for businesses to grow in our town centre, and that residents really value the mix of independent stores and national chains.

"The first phase, once complete, will further strengthen the offer available to visitors through new retail units and a new market hall, which will support a long-term sustainable future for retail in St Helens town centre.”