What will the new owner of Kingsway Shopping Centre need to change?

The 17,093 sq m centre in the heart of the city, described as a "complex leasehold asset" by auctioneers Acuitus, comprises retail, leisure and office space.

We asked local commercial property expert, Dan Smith of M4 Property Consultants what needs to be done to make it successful again?

Here is what he had to say:

"The obvious answer is fill up all the shops and attract people back by offering a full and vibrant shopping centre. Unfortunately, it’s not quite that easy, so let's drill down into what really needs to be done.

Dan Smith, M4 Property Consultants

"Most people will understand that the retail sector has suffered difficult times in recent years.

"This started well before Covid with increased online shopping and difficulties with expensive business rates.

"Covid accelerated some of these issues and added further issues in terms of reduced footfall in our towns and city centres.

"Shopping centres all across the UK have suffered and many have been sold in similar circumstances. So with that background, how does a shopping centre like The Kingsway survive and thrive in today’s world?

"In our opinion, it’s all about active management and providing an interesting tenant mix.

"Retail centres need to offer something to attract shoppers in the first place and then ensure there are sufficient points of interest to keep them there for some time.

"Mixing of retail/leisure and other uses combined help to improve 'dwell time' by keeping shoppers engaged and wanting to spend more time there.

"The new owners will need to ask what can the centre offer that will appeal to potential customers to attract them to return.

"Owning a large amount of property like this in Newport is unique and allows them to curate the right tenant mix.

"Take Newport Arcade as an example. Previously, struggling for many years, since local owners bought the property and took a genuine interest in providing an interesting and vibrant mix of tenants, the scheme has gone from strength to strength and is currently fully let.

Newport Arcade.

"A similar approach on a larger scale could produce similar results for the Kingsway Shopping Centre.

"At present, Newport lacks adequate leisure activities within the city centre and there is a clear opportunity to help address this with some of the larger vacant spaces within the Kingsway.

"For example, No Comply Skate Park currently within Friars Walk needs a larger space – perhaps the basement space formerly used by Wilko’s could be the perfect solution.

"Other leisure uses could also be considered. If we want more people to live and work in the city centre, providing leisure facilities for them to use is a key component and Kingsway has the space to be able to do this.

"In terms of retail occupiers, attracting national and regional retailers will continue to be part of the plan due to the size of some of the units but we would suggest a greater emphasis on attracting local, start up retailers also.

"Why not use some of the empty units to provide 'pop up' shops for potential new businesses to trial their concept for a short period at minimal cost?

"Worst case scenario these pop ups add some interest in the short term while occupying. Best case scenario some of them trade well and realise they could make a long term successful business out of their idea and become a long term tenant.

"Engaging with Newport City Council will be important as they not only own the freehold of the centre, but also own the adjoining Kingsway Car park.

"Collaboration and joined up thinking in this respect is a must. The offering at the Kingsway and the car park must be aligned as the potential for each of them is heavily reliant upon the other.

"In conclusion, it’s a brave investor to buy the Kingsway given the wider state of the retail market.

"Fundamentally it’s a good size centre, in a prime location but it has lost it’s identity and needs to get that back so that potential customers understand what is on offer and why they should visit.

"If the new owners are bold in their vision, open to potential opportunities and very proactive in their management its possible they could deliver something of value to the city centre, local residents and businesses and do well for themselves at the same time."