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4.30 In total, five policies within the Warwickshire Structure Plan were saved beyond September 2007. Of these Policy TC.2 – Hierarchy of Town Centres states that Rugby is one of four main town centres in the county (the others being Leamington Spa, Nuneaton and Stratford upon Avon) alongside four “other town centres”.
4.31 Policy TC.2 goes on to state that all new major shopping, entertainment and leisure developments should be planned to be located in town centres. It identifies (a) that all shopping, entertainment and leisure developments of 1,000 sq.m, or over, should be located within one of the eight town centres.
4.32 The Local Plan was adopted in 2006 and the Secretary of State saved many of the policies in a Direction in July 2009. The majority of town centre/retail policies have been saved.
4.33 Policy TCR2 refers to Town Centre Shopping Area Uses and states:
“...Proposals for retail developments outside the town centre shopping area as defined on the proposals map and not specifically permitted by other policies of this Local Plan, will only be permitted where the proposal satisfies the following criteria:
Consideration will be given to proposals for retail development out of town centre shopping area locations which are not permitted by other policies of this plan provided the developer can demonstrate that there is a need for the development and that there are no suitable sites or buildings available within or on the edge of the town centre shopping area. All proposals will also be subject to criterion 3 above.”
4.34 Whilst the Local Plan identifies Rugby Town Centre, it does not identify any other smaller centres within the retail hierarchy.
4.35 The Rugby Local Development Framework is progressing and, in due course, will replace the saved policies within the Rugby Local Plan. At this stage,
however, relatively little weight should be attached to LDF documents reflecting their early stage.
4.36
Specifically, Rugby Borough Council submitted their Core Strategy to the Secretary of State in January 2010. The 2008 Retail Study forms part of the evidence base for this document.
4.37
The Core Strategy identifies (para. 4.1) the opportunity provided by the proposed large extension to the urban area (at both the South West Broad Location and Rugby Radio Station) giving rise to increased expenditure on the goods and services sold from the centre. It goes on to allocate the sites within policy CS8 (North Street and Evreux Way) to meet the identified need for further comparison floorspace and states that the detailed capabilities of each site will be addressed within the forthcoming Town Centre Masterplan SPD (subsequently reflected in the Rugby Town Centre Action Plan 2009). We comment on these sites further within Section 6.0 of this report.
4.38
The primary retail planning policy is now contained within PPS4, specifically within the sequential test and retail impact test and these are addressed within the subsequent sections of this report. Whilst we assess the modest level of additional retail floorspace sought in the context of the 2008 Retail Study (and the identified need for significant levels of retail floorspace), it is important to note at the outset that the “needs” test no longer forms a planning policy test.
5.0
5.1 This section briefly reviews the key conclusions of the 2008 Retail Study before assessing the function, character and health of Rugby Town Centre.
5.2 This section draws on both the analysis within the 2008 Retail Study, updated where appropriate by NLP site visits to the relevant locations centres which were undertaken in December 2009
5.3 The 2008 Retail Study forms part of the evidence base for the emerging LDF. It includes a qualitative and quantitative assessment of the need for further of retail (and leisure) provision in the period to 2026 as well as an assessment of potential sites.
5.4 The 2008 Retail Study notes (Section 4.0) the current leakage of expenditure from local residents to facilities beyond the Borough reflecting, in part, the proximity of higher order centres including Coventry, Leamington Spa and Northampton.
5.5 Specifically, the 2008 Retail Study identifies the location where residents of the study area undertake their shopping trips for a number of product ranges. The study area is focussed around Rugby, including Daventry but stopping on the western fringe of Coventry and Leamington Spa.
5.6 The household survey then identifies responses to the question of where respondents have spent the most money on electrical and domestic products (ie. washing machines, fridges, cookers, IT equipment, TV's, DVD/CD players and photographic equipment). Of those who have made such a purchase (ie. 56% of respondents) less than 37% had made their purchase within Rugby, with other popular locations including Coventry (13%), Northampton (6) and Leamington Spa (5%).
5.7 This is a relatively low level of retention (just over one third) within Rugby reflecting the currently limited provision of electrical retail facilities in the town.
5.8 We expand upon the implications of these existing shopping patterns further in Section 7.0.
5.9 Whilst we expand upon the current health of Rugby Town Centre below, the key conclusion within the 2008 Retail Study (para. 5.72) is that “Rugby is a vital and viable town centre with notable strengths in terms of the presence of a mix of uses and activities as well as the presence of a range of independent units”.
5.10 Whilst we have not reviewed the methodology in detail, we note that the 2008 Retail Study identifies the scope for surplus available comparison expenditure
to support further floorspace. Specifically (paras. 6.57 to 6.60) identify a need for 2,351 sq.m net bulky goods floorspace by 2014 rising to 3,469 sq.m in 2020 and 4,659 sq.m net in 2026. This is in addition to the identified need for further town centre floorspace (of 20,100 sq.m by 2026), and after the Chapel Street redevelopment (summarised in Section 6.0) has been taken into account. Furthermore it assumes that facilities in Rugby will exert a constant market store, making no allowances (within this part of the analysis) for the development of further facilities increasing market share.
5.11
It goes on to state (para. 6.61) that proposals must comply with the relevant (then PPS6) planning policy tests.
5.12
The Retail Study then goes on to identify and analyse the potential development sites within and on the edge of Rugby town centre and we consider these further within our sequential analysis at Section 6.0.
5.13
The Rugby Local Plan defines a ‘Primary Shopping Area’ within the ‘Shopping Area’ for Rugby Town Centre which incorporates High Street and parts of Sheep Street, Chapel Street, North Street, Church Street, Regent Street and Bank Street.
5.14
Information published by GOAD (November 2008) and updated by NLP (December 2009) indicates that the centre contains total retail floorspace (including categories A1-A5) of approximately 80,160 sq m gross in 359 retail units (with a further 16 added, by the completion of the Swan Centre, since the 2008 GOAD survey). It should be noted that this area incorporates a wider area than that defined as the Primary Shopping Area.
5.15
Management Horizons Europe (MHE) complies a ranking of retail destinations in the UK, including town centres, shopping centres and freestanding retail parks, on the basis of the nature and strength of national multiple retailers which they contain. The MHE UK Shopping Index 2008 ranks Rugby 241st in the national retail hierarchy out of 6,721 centres surveyed. As would be expected, this places it lower than the nearby centres of Birmingham , Coventry and Northampton but higher than Warwick , Bedworth and Daventry .
5.16
Information obtained by GOAD (November 2008), as updated by NLP December 2009) indicates that the centre contains 16 convenience units which equates to of total units. This is lower than the national average for town centres surveyed by GOAD of . The largest convenience trader in the centre is the recently opened Asda store, with other traders in this sector including Netto, Greggs, Thorntons, Iceland and All Nations Supermarket.
5.17 Comparison traders account for 38.4% of units in Rugby Centre which is also lower than the national average of 44%. This reflects the relative importance of the centre as a destination for comparison goods shopping as well as the town centre's role within the surrounding retail hierarchy. The town centre contains a wide range of comparison traders including Superdrug, Wilkinsons, Marks & Spencer, Topshop, WH Smith and Burtons.
5.18 All categories of service uses, which include such uses as cafes, fast food outlets, hairdressers, property services, public houses, legal services and retail banks, cumulatively represent approximately 46.8% of retail units in the town centre which compares is significantly higher than the national average of 35%. A number of 'high street' banks are present in the town centre, including Barclays Bank, Halifax, Lloyds TSB, NatWest and RBS.
5.19 In addition to the retail offer outlined above, the town centre serves a number of importance civic functions containing the civic offices, library, museum, art gallery and a number of places of worship.
5.20 The GOAD survey of Rugby Town Centre as updated by NLP identified that at December 2009 there were some 49 vacant retail/service units within Rugby. This equates to 13.1% of all units, slightly above the national average of 11.4%. A significant proportion of thee vacant units (15) are those currently unoccupied following the opening of the Swan Centre. This element is likely to reflect a temporary occurrence which overstates long term vacancy trends within the town centre.
5.21 A search of the EGi database indicates that at December 2009 there were 8 operators within use classes A1 to A5 with specific requirements for representation in Rugby (predominantly seeking retail (Use Class A1) floorspace. These retailers were cumulatively seeking up to 11,174 sq m (gross) retail floorspace. Comparison traders account for the highest number of requirements in outlet terms (4). This is higher than the level of demand identified within the 2008 Retail Study (which drew on an alternative data source and identified five retail/town centre user requirements in 2008). The updated figures suggest that demand has not reduced, and indeed may have increased, despite the current recession.
5.22 The latest available information published by the Valuation Office Agency (July 2008) records average yields, which are a reflection of investors confidence in a centre, at 6.5%. This represents a slight decline in confidence from January 2007, when yields were recorded as being 6.25%. However, it is the same as the yields for the first part of the decade, which were also at 6.5%, representing a relatively consistent level of investor confidence.
5.23 According to Colliers CRE, Prime Zone A rents in Rugby at 2008 were £969 per sq m. This is lower than the rental levels recorded in nearby Birmingham (£3,498 per sq m) and Coventry (£1,883 per sq m) but higher than rents recorded in Hinckley (£592 per sq m), Market Harborough (£538 per sq m) and Kettering (£915 per sq m), again consistent with these centres relative roles within the retail hierarchy.
5.24 The 2008 Retail Study suggests that rents have remained steady since 2006.
5.25 The 2008 Retail Study indicates that the highest levels of footfall in the town centre is recorded in the Market Place. Relatively high levels of footfall were also recorded along Church Street and the Clock Towers Shopping Centre. Low levels of footfall were recorded around Regent Place, Regent Street and Railway Terrace.
5.26 Rugby Town Centre benefits from excellent connections with junction 1 of the M6 two miles to the north, junction 1 of the M45 two miles to the south and junction 18 of the M1 three miles to the east.
5.27 There are 8 off-street car parking facilities located around Warrington Town Centre. These include John Barford multi-storey car park (370 spaces) on James Street and the Clock Towers Shopping Centre car park (550 spaces) as well as a number of smaller facilities. The 2008 Retail Study refers (para. 5.50) to the perceived car park shortage (notwithstanding the, then forthcoming additional provision in the Asda, Chapel Street store) and this can further indicate a healthy centre underpinned by a strong demand for car parking.
5.28 There are many bus routes throughout Rugby that link the suburbs and surrounding towns to Rugby Town Centre. The majority of these routes pass through North Street/Church Street/Clifton Road of the Town Centre.
5.29 Rugby train station is located on the West Coast Main Line with direct routes to London Euston, Birmingham New Street and Crewe.
5.30 Pedestrian movement around the town centre is generally unproblematic, and aided by the pedestrianisation scheme of much of the Primary Shopping Area. Corporation Street and Evreux Way can present barriers to north because they are busy and difficult to cross.
5.31 The majority of the defined Primary Shopping Area in Rugby is pedestrianised which provides a safe and pleasant shopping environment. The town centre is generally well maintained and legible. The Clock Tower Shopping Area is
Curry, Unit 1, Junction 1 Retail Park, Rugby Retail Statement
privately managed and provides a modern covered shopping area for visitors. Much of the Primary Shopping Area with the exception of the northern half of the Clock Towers Shopping Centre is a Conservation Area in recognition of the high quality historic environment in this area. On this basis, we conclude that the town centre has good environmental quality.
5.32 Rugby is both the nearest town centre to the application site and the main centre within the Borough. Both the 2008 Retail Study and our subsequent update has identified that, consistent with its role within the surrounding retail hierarchy. It also offers a wide range of retail and in particular service provision. It also benefits from good transport links and high environmental quality. There is reasonably strong demand from retailers for representation in the centre, and until the completion of the Swan Centre Rugby had a lower vacancy rate than the national average. The Centre has benefitted from the recent major investment in the Asda, Chapel Street/Swan Centre development.
5.33 We note that our updated analysis is consistent with the 2008 Retail Study which concluded that Rugby town centre is in good health for the size of centre, its location, the extent of its catchment, and the proximity of surrounding larger centres. Notwithstanding the current recession it remains a vital and viable centre with good PPS6 indicators of health indeed and its role has strengthened over the last year with the development of the Asda store.
5.34 There are two large retail warehousing parks within Rugby. In addition to the Junction One Retail Park (which contains the application site), Elliots Field Retail Park is located 1.3 kilometres to the north of the town centre, near to Junction One Retail Park. Occupiers include Next, Wickes, Halfords, Homebase, Pets at Home, Allied Carpets, Pizza Hut, TK Maxx, Brantano, Comet and Carpetright.
5.35 In addition to the Asda store, there are also a number of supermarkets in and around Rugby. Tesco is located on Leicester Road, near Elliots Field and Junction One retail parks. Sainsbury's is located on Dunchurch Road 2.4 kilometres south of the town centre. Aldi is located on Paddox Close 1.5 kilometres south east of the centre and a Lidl store is located approximately 1 kilometre to the south west of the town centre.
5.36 We have been advised by Officers that Rugby Borough Council of major retail proposals being considered at this time. These are as follows:
P18/34 933405v1
5.37
5.37
We have also been advised by Officers at Rugby Borough Council that major retail commitments comprise:-
5.38
Within the last two years, Rugby BC have therefore permitted (or resolved to permit) additional floorspace totalling around 9,000 sq.m (principally in out of centre locations). We have regard to these planning commitments and proposals, and Rugby BC's analysis in permitting the relevant schemes, within the subsequent section of this report.
6.0
6.1
This section considers the proposals in the context of the sequential approach to site identification and assessment.
6.2
Drawing from the analysis in Section 4.0, PPS4 and the Development Plan indicates that:
6.3
As noted above, Policy EC15.2 explains that local planning authorities should take into account any genuine difficulties which the applicant can demonstrate are likely to occur in operating the proposed business model from a sequentially preferable site.
6.4
The proposal is for a store extension to the existing Currys store and will enable a wider range of electrical products primarily (within existing goods categories) including bulky goods to be sold from the store, and allow additional display and circulation floorspace. The proposal draws on the synergy between the existing Currys store and product range and proposed introduction of the PC World product range (although as noted in Section 2.0, the overlap between the two product ranges means that there is no material widening in the range of products sold).
6.5
The additional products which will be sold could not be sold from a different freestanding store. The extra lines sold are reliant on the attraction, customer draw and footfall of the existing lines. A freestanding store with a sales areas
of around 410 sq.m (ie. The net additional sales floor area sought by this application) selling a range of electrical goods categories, but with little choice in each and without the most popular items would not be viable.
6.6 The increase in circulation and customer display space that would also result from the application proposal also cannot be achieved by providing it in isolation in a separate unit.
6.7 DSGi do operate town centre stores in the form of Currys Digital stores. However, these stores tend to be focussed in higher order centres (for example Leicester and Coventry) which are ranked as the 14th and 60th largest centres by MHE-2008, compared to Rugby's ranking as the 241st largest centre. There are Currys Digital stores in the centres closer to Rugby's role in the retail hierarchy (including Stratford upon Avon and Hinkley) but these are generally older stores rather than a reflection of Currys current business model. Furthermore, the goods sold by these stores are a more limited element of the range of Currys stores goods focussed on smaller goods and audio visual goods. Provision of such a store in a town centre would not meet the same needs as this proposal, rather it would provide an alternative destination for purchasing goods already sold at the Currys store.
6.8 Currys show flexibility in their business model by having different models for different markets and locations. However, in a situation where they have an existing Currys store and the proposal is to expand this, their town centre model would not meet the same needs. It is not consistent with Currys business model and would not therefore provide a sequentially preferable alternative.
6.9 It is therefore not viable to disaggregate the proposed extension from the present store or to divide it into smaller elements to see if these could be accommodated on a number of separate sequentially preferable sites. The need can only be met by a retail unit that could accommodate the total quantum of floorspace that would allow Currys to locate within it. It is not, however, a requirement of the sequential approach to seek a site to relocate the whole of an existing store to, such an approach would conflict with policy and guidance (as reiterated in PPS4).
6.10 We therefore consider that the proposal satisfies the sequential approach. This is consistent with the LPA's stance, in permitting the extension to the Sainsbury's store, that their proposal complied with the sequential test as "Sainsbury's does not operate a stand alone comparison goods format".
6.11 Alongside this we have considered alternative sites to assess whether any of these could, in theory, accommodate floorspace of the scale proposed. We would, however, emphasise the theoretical nature of this exercise.
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