Yahoo News Finding Middlesbrough's 'niche' and 'repurposing' town centre after retail decline
Walking through Middlesbrough town centre tells a tale of two stories.
One is of the obvious retail decline - a pattern familiar with high streets across the UK as big-name brands shut up shop. But the other is of a new chapter, one of rebirth, as the town repurposes itself as a leisure destination.
While still keeping its "retail base", Middlesbrough Council chiefs are in the midst of finding the town's new "niche" - all in a bid to drive footfall into the centre. But it's not just about filling vacant units; the authority wants to "do the right thing for the town" by making sure new additions are the right fit, even if it means being picky.
Teesside Live sat down with Sam Gilmore, the council's head of economic growth, Michelle McPhee, strategic town centre manager, and Middlesbrough Mayor Chris Cooke to talk all things town centre - past, present, and future.
There's no denying that the loss of major department stores in recent years has hit the town's retail offering hard, such as House of Fraser, Debenhams, Marks and Spencer, and BHS. The decline in high street retail is a national trend - whether due to changing consumer habits, online shopping, or the impact of the cost of living crisis.
But Sam says the loss of these chains reflects more upon the industry than the town: "With the exception of Marks and Spencer, a lot of businesses that are not in Middlesbrough are not anywhere. House of Fraser doesn't exist. Debenhams doesn't exist. The large department store format is void - department stores aren't coming back. The decline has been entirely consistent with the market in terms of retail floor space. We have outperformed ourselves a bit in relation to that."
The town currently has 1.2 million sq ft of total retail floor space and, as things stand, the vacancy rate is estimated to be at 23.7% - slightly down from 25% in August 2022. However, this rate includes units that have already been bought or are in the process of being taken over, meaning the rate could look significantly different in just a year.
Recently, the council has been aiming to "rebalance the town centre economy" in a shift towards leisure, with family entertainment, gaming, and food and drink being a top focus to make more people live, work, and spend time in the town.
Sam explains: "These are markets that are more robust in terms of their ability to weather retail storms. People also have to come to the space, not online, and that's driving footfall. These experiences can't be delivered on the internet."
But the town will continue to have a "retail base" while it looks to "diversify the services" delivered in them. The council-owned Cleveland Centre for example is set to welcome the Live Well Centre and the Employment and Skills Hub.
Racing towards regeneration
One of the council's biggest projects is Captain Cook Square - the former shopping centre comprising TK Maxx, Wilko, Peacocks, and TJ Hughes. It's still a work in progress - but is now home to the likes of Level X and Wendy's.
Coming soon to the complex is also a huge new soft play centre and inflatable theme park by Fun Shack Group in the former Wilko, new restaurant 'Bazaar' from Tarek Thomas, the man behind The Oven Restaurant, and a boutique cinema.
Sam said: "With the likes of Fun Shack, we would have that regardless of the space requirement. It's the king of footfall drivers." Michelle added that attracting these new leisure venues will then make way for "extra spend" elsewhere in the town centre.
Events are another thing in the pipeline - with Mayor Cooke noting how they would be a major bonus: "This is why events are so important, something that is driving people. And more people here means there is a greater reduction in anti-social behaviour - people don't want to come out and cause more trouble when there are that many eyes about."
It hasn't been without its controversies, however. Notably after a name change to The Square was "prematurely" announced and then later paused. Also, esports spot The Wired Lobby was shuttered just months after opening following an alleged breach in the terms and conditions of the operator's lease.
Creating a 'quality experience'
Michelle said that despite the higher vacancy rate, it's not just about filling spaces. "We are doing well - and we don't want to just let spaces to anyone," she explained. "Some vacancies we are trying to hold off. We are being just a bit precious about vacant space - we want to be picky!"
The trio admitted there was an international food court brand that recently wanted to move into Captain Cook Square - but Sam said it would be "duplicating what we already have" with the W2 World Buffet, and they opted against it.
Similarly, The Birdcage was earmarked to open a bar in the square but decided against this and has since opened up on Bedford Street. Mr Cooke said: "It's about doing the right thing for the town."
Michelle noted how residents have voiced their fears over the potential for town centre shops to leave - notably Primark - as Teesside Park continues to attract new chains. But she assured that Primark "remains very much committed" to Middlesbrough.
She also added that the town "had to be different" to Teesside Park with its offering, citing the likes of Baker and Bedford Street, the Orange Pip market, and other events. Most importantly, an emphasis on supporting local businesses is something the council wants to carry forward into the future.
Sam continued: "It is one of the few sectors that will continue to grow. Even in the Cleveland Centre - there are some vacant spaces with too big a floorspace for 90% of the market. Over time I'd love to chop up one into a dozen for independents. We can offer something that Teesside Park and the internet can not. The Orange Pip, events... it's about finding our niche."
However, the council's well-reported spending pressures - which are reported to amount to £20.7m in 2024/25 - meant that bosses had to seek "more sustainable models" for running the Orange Pip, turning to the business community to help secure its future. A new summer programme for the event was recently announced, thanks to the support of new headline sponsor Perco Foods.
There's already been some big news in Middlesbrough's retail landscape this year, including the purchase of Marks and Spencer (Linthorpe 54 Ltd) and Debenhams (local property company) as well as House of Fraser being earmarked for an overhaul. The former Topshop is also "under offer" with a retailer set to move in.
Then there are the exciting developments at Exchange Square. Bloom Show Hall & Eaterie opened in the former Spensleys Emporium in October 2022, which continues to receive praise for its "delicious" food and "amazing" setting. This will soon be joined by The Muddler, a pan-Asian restaurant, in the former Kalinka nightclub and shipping container complex STACK.
The council has also confirmed that a well-known retailer will be returning to Middlesbrough to open a store once again.
With so many bold and ambitious plans, the council is well aware that the transformation of the town is "going to take some time." And the priorities for Mayor Cooke are simple: "Diversify the high street, make sure the town is fit for purpose, and make sure the central offer is really strong."
