News: National retailer ready to revamp empty Rotherham unit

A national chain has been given the green light to revamp a large Rotherham retail unit that has had many uses in recent years.

Since Homebase at Parkgate Shopping closed a decade ago, the large unit has been used by Best Buy, Kiddicare and as an outlet for JD Sports Fashion plc's outdoor brands - Millets and Blacks.

Rothbiz reported last year that a planning application had been submitted showing that the Frasers Group was eyeing up the vacant store.

Founded by Mike Ashley in 1982, Frasers Group is now a collection of iconic retail brands - notably Sports Direct, Flannels, GAME and USC.

An updated set of plans from Frasers has now been approved by Rotherham Council that would allow the creation a partial mezzanine for a gym measuring 22,646 sq ft.

The main operators would be Sports Direct and Everlast Fitness Club. Plans also show 6,000 sq ft of space on the ground floor for Fraser Group retailer, USC, along with smaller space for GAME and Evans Cycles. A 7,000 ft unit is also shown which could be sub-let by the group. External alterations include the central entrance feature being moved to the side with another entrance being added.

Sports Direct and USC already have units at Parkgate.

Included in earlier plans, space for designer brand retailer, Flannels has been removed.

As the proposals would take the retail space of the unit up to nearly 70,000 sq ft, and the site is classed as out of town, a retail assessment and sequential test is also included.

Sequential tests ensure that development is located in the most sustainable location first (usually in town centres), before other, less sustainable locations are chosen.

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Approved without going before the council's planning board, planning officers agree that there are no more sequentially preferable sites within allocated centres that are suitable or available to accommodate the proposed development which is based on Sports Direct’s business model to co-locate retailing with a gym. Planners also broadly agree that the application would have no impact on the vitality and viability of any centre.

A decision report adds: "The application site is located within Parkgate Retail Park which is the most successful retail destination in Rotherham Borough. The health check of Rotherham Town Centre within the Retail and Leisure Study focuses on the pressures on the Town Centre arising from competition from Parkgate Retail Park, Meadowhall and the proximity of Sheffield City Centre. The Town Centre has a restricted catchment and a weak market penetration within that catchment. Vacancy rates are a chronic issue in the Town Centre.

"However, there is a strategy to diversify uses and the Council’s Annual Monitoring Report indicates that vacancies do not provide a true reflection of the health of the Centre. The Forge Island Leisure Quarter and developments at Rotherham Market and Riverside Gardens will help to diversify the range of uses within the centre and introduce new activity.

"The Retail and Leisure Study indicates that the health and fitness and gym provision in and around Rotherham Town Centre has been dominated by the Rotherham Leisure Complex. However, since the publication of the Study there has been growth in the gym market. There is now I-Motion Gym, The Gym Group, and JD Gym in the Parkgate area and north of the Town Centre. The Oasis Health Club, Bannatyne’s and gym facilities at the Holiday Inn Hotel at West Bawtry and the Hellaby Hall Hotel at Hellaby provide facilities in the wider Rotherham area. The only gym within the town centre at Rotherham is Next Level Fitness at Quarry Hill.

"It is evident that the health and fitness provision is not a key component of the vitality and viability of Rotherham Town Centre or indeed any other designated centre nearby."

In granting permission, a condition has been included to restrict the disaggregation of the gym and the retail units at a later date, as well as one to stop the new space being subdivided into smaller units.

Frasers Group website

Images: Google Maps

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News: National company spots vacated Rotherham retail unit

A large Rotherham retail unit that has had many uses in recent years is vacant again, but another national chain is working out how to take it on.

Since Homebase at Parkgate Shopping closed a decade ago, the large unit has been used by Best Buy, Kiddicare and as an outdoor sports store.

In 2014 JD Sports Fashion plc took on the lease of the vacated 45,000 sq ft Kiddicare store. It has been used as a clearance outlet for the company's outdoor brands such as Millets and Blacks.

JD went on to submit plans to enable the large unit to be subdivided into four separate units, each with their own entrance, but these works were never carried out. Instead, JD opened in the 15,000 sq ft unit that was previously occupied by Mothercare and the Millets outlet was closed down.

Now a new planning application shows that the Frasers Group is eyeing up the vacant store.

Founded by Mike Ashley in 1982, Frasers Group is now a collection of the world’s most iconic brands - notably Sports Direct, Flannels, GAME and USC.

The plans, drawn up by Jigsaw Planning, show how the unit would be transformed with the installation of a mezzanine comprising of 22,400 sq ft retail floorspace (Class E(a)) and additional 20,400 sq ft gym.

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The main operators would be Sports Direct and Everlast Fitness Club (In 2014 Sports Direct bought out the LA Fitness chain of gyms and underwent a rebranding).

Plans also show large space for designer brand retailer, Flannels, along with smaller space for Evans Cycles and GAME.

As the proposals would take the retail space of the unit up to nearly 90,000 sq ft, and the site is classed as out of town, a retail assessment and sequential test is also included.

Sequential tests ensure that development is located in the most sustainable location first (usually in town centres), before other, less sustainable locations are chosen.

As the applicant is looking for a large unit where a gym and retail store can be co-located, vacant units and undeveloped sites in Rotherham town centre and other local centres have been discounted, mainly for being too small. The sequential test concludes: "there are no more sequentially preferable sites within allocated centres that are suitable or available to accommodate the proposed development"

A retail impact assessment indicates that proposals would divert trade, mainly from the existing Parkgate Shopping Park (£7.29m), but adds that this would be "trade currently going to the existing Sports Direct store, which will be closed to facilitate the proposed development."

Meadowhall would also see some trade diverted to the new proposed unit (£5.28m), as would Rotherham town centre.

The assessment concludes: "Using the luxury and sports goods market share information, we have assumed that £2.12m will be diverted from Rotherham Town Centre, against a total turnover of over £140m; this amounts to an impact of just 1.5%."

The development of the vacant unit is the third attempt from Sports Direct to expand in Rotherham. In 2016, the group was looking at the 51,000 sq ft mini-warehouse vacated by B&Q to use for a number of its brands. It is now "the largest car retailer in the whole of Yorkshire" operated by The Trade Centre Group.

In 2018, Sports Direct applied to install a mezzanine level for a gym at the current Matalan store at Parkgate.

Frasers Group's unaudited interim results for the 26 weeks to 24 October 2021 showed that revenue increased to £2,339.8m, in comparison to £1,893.3m in the same period of the previous year. Statutory profit before tax increased to £186m from £106.1m.

Frasers Group website

Images: Google Maps

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News: Game over for retailer's remaining Rotherham store

Having been given an extra life in 2012, video game retailer, GAME, has closed its store in Rotherham town centre.

The national High Street chain holds the highest market share in the retailing of console gaming hardware, software, accessories and digital products in the UK.

GAME had operated 641 stores before entering administration in 2012 following rapid expansion and difficult trading conditions. It was acquired by OpCapita (Elliott Management Corp) and went on to close the Rotherham store at Parkgate that year whilst later rebranding the GameStation store at All Saints' Square in the town centre.

The remaining Rotherham store was being emptied of games, consoles, accessories and gadgets this week.

Rejoining the stock exchange in 2014, the retailer has continued to struggle. It posted a £10.4m loss for the 12 month period to July 2017. Sales have been boosted since following the launch of the Nintendo Switch.

Holding company, Game Digital plc, issued a profit warning last year and has put in place new strategies based on optimising its store network, selling online and diversifying into new areas such as e-sports.

Mike Ashley snapped up a stake of more than 25% in the retailer and work is taking place on creating concessions in Sports Direct sites, as well as with electronic retailer, Maplin, which has since entered administration.

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Other national retailers that have left Rotherham town centre in the last 12 months include Primark, New Look, Thorntons and Poundstretcher.

23% of floor space in the town centre area was classed as vacant at the end of 2017 and Rothbiz reported last week on how Rotherham Council is considering incentives in an effort to attract businesses into the town centre.

In optimising the store estate, GAME has been negotiating leases on improved terms and 20 stores closed or relocated in 2016/17. The company said last year that 70% of its UK store portfolio was to be reviewed by the end of calendar 2018.

As part of the review, Rotherham's store has closed, like others in towns such as Derby, Grimsby, Harrogate and Bournemouth. The brand now operates around 300 stores and had an annual rent and rates bill of around £31.1m.

Afternoon guys,today has been our last day in Rotherham...sad times I know😭!!thank you for all your support over the years,it’s been a blast and an absolue pleasure to serve you all....peace out 👊🤙👋✌️

— GAME Rotherham (@GAMERotherham) March 17, 2018

The plc explained that its UK action plan, launched in 2016, "remains a key focus for the business." A spokesperson added: "Considerable attention continues to be given to the review of our store footprint and reducing property costs wherever possible. Almost 40 lease renewals have been renegotiated on improved terms during the last 12 months and where proposed new lease terms have not been acceptable, the group has relocated to lower-cost premises.

"We are also exploring opportunities to open new concession locations where lower cost of occupation and more flexible terms can be agreed."

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Rothbiz reported in 2016 that plans had been submitted for the vacant bank at 16 - 20 College Street, adjacent to the GAME store, that would enable a restaurant and bar to operate over 5,000 sq ft of floorspace on the basement, ground and first floor.

Game Digital plc website

Images: HRH Retail

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News: Rotherham GAME stores saved

Rotherham stores operated by struggling video game retailer, Game Group, are set to be given an extra life after they were bought out of administration.

PwC, administrator to The Game Group plc has announced a deal with OpCapita LLP, the private investment firm specialising in operational turnarounds in the retail, consumer and leisure sectors, on the sale of GAME's UK assets.

Under the terms of the transaction, Baker Acquisitions, an entity advised by OpCapita, will acquire the UK business out of administration and will provide it with the capital it needs to trade on a normalised basis.

Financial terms of the transaction were not disclosed by the group that also owns electrical retailer, Comet.

Baker will acquire all 333 UK stores that have remained open during the period of administration.

This includes the GAME store at Parkgate Shopping and the Gamestation store in Rotherham town centre and the statement added that there are no plans for any further store closures.

GAME had operated 641 stores before entering administration.

The agreement means that the jobs of nearly 3,200 GAME employees, who will transfer to Baker, have been safeguarded. Baker Acquisitions will also seek to re-employ a small number of staff who previously worked at GAME's head office but who received redundancy notices last week.

Henry Jackson, managing partner of OpCapita said: "We are pleased to have reached agreement with the Administrator. We strongly believe there is a place on the high street for a video gaming specialist and GAME is the leading brand in a £2.8 billion market in the UK.

"We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring GAME's fortunes in partnership with its employees and suppliers."

Mike Jervis, administrator to The GAME Group plc and partner at PwC,added: "We are delighted to be able to secure this business sale and provide some much needed stability for customers, suppliers and employees alike in these uncertain times. The support of these stakeholders has been crucial over the last week and I would like to thank them for their support throughout this difficult period.

"This means that the GAME brand will not be another one of the retail names disappearing from the high street in the current difficult climate."

GAME website

Images: gamegroup.plc.uk

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