Project starts and main contract awards declined compared to the previous quarter. On a more positive note, detailed planning approvals increased compared to both the previous quarter and the previous year.
Retail overview
Totalling £464m, retail work starting on site during the three months to July fell 36 per cent against the preceding three months to stand 8 per cent higher than a year ago. There were no major projects starting on-site (£100m or more), a decrease on the previous quarter and a year ago. Underlying project-starts (less than £100m) experienced a 2 per cent decline against the preceding three months on a seasonally adjusted (SA) basis but grew 8 per cent against last year.
Retail main contract awards totalled £283m, a decrease of 25 per cent against the preceding three months to stand 30 per cent down against the same period a year ago. There were no major projects during the period, unchanged against both periods. Underlying contract awards decreased by 42 per cent (SA) against the preceding three months to stand 30 per cent lower than the previous year.
Detailed planning approvals, totalling £510m, increased 10 per cent against the preceding three months, to stand 39 per cent up on the previous year. Underlying approvals grew 37 per cent (SA) compared with the preceding three months to stand 39 per cent up against the previous year to total £510m. Like project-starts and main contract awards, there were no major consents.
Types of project started
The value of supermarket starts grew 25 per cent, to total £235m, accounting for 51 per cent of all retail work starting on site. Shops experienced a 61 per cent increase against last year’s levels to total £172m, a 37 per cent share of retail project starts. Having more than doubled compared to a year ago, petrol filling station projects commencing on site totalled £22m during the three months to June, accounting for a 5 per cent share.
In contrast, standing 68 per cent lower than a year ago, shopping centre starts totalled £21m to account for a 5 per cent share of retail work. No retail warehousing projects started on site during the period, a decrease on a year ago.
Regional
The North East was the most active region, accounting for 15 per cent of all retail starts nationwide, thanks to the value having increased 88 per cent against the previous year to total £69m. Accounting for a 13 per cent share, Yorkshire & the Humber grew nearly five times on a year ago, totalling £58m. Accounting for 11 per cent, the South East grew 111 per cent on a year ago to total £52m.
At £48m, the West Midlands also experienced a strong period, with starts having jumped 180 per cent compared with a year ago to account for 10 per cent of the retail sector. Accounting for a 9 per cent share each, project-starts in the South West and Scotland grew 28 per cent and 32 per cent compared with a year ago, to total £44m and £43m respectively.
The South East had the highest proportion of retail approvals, with a 20 per cent share, having increased 99 per cent against last year’s levels, to total £101m. The South West jumped 95 per cent against the previous year, accounting for 12 per cent of the sector and totalling £62m. Accounting for the same share, approvals in Scotland grew 107 per cent to total £60m.
Totalling £55m, the West Midlands also doubled against last year, accounting for an 11 per cent share of retail approvals. London increased 136 per cent on a year ago, accounting for a 10 per cent share. In contrast, at £44m, the North West slipped back 25 per cent against last year’s figures to account for 9 per cent of retail consents.
