The go-ahead for a proposed new Next concept store in Dundee would signal the end for another of the retailer’s stores in the city.
The company is seeking permissions from Dundee City Council for a major new home and garden outlet at Kingsway West Retail Park.
The development is part of a wider £7 million revamp for the out-of-town park proposed by owners Land Securities, which also owns the Overgate Centre.
However, it emerged yesterday that if the development was given the green light by councillors, Next’s store at Gallagher Retail Park would close its doors.
It is expected that all 115 staff at Gallagher would transfer to Kingsway West, while a further 85 full and part-time posts would also be created, taking the total workforce in the new outlet to 200.
The high street favourite’s other Dundee store, one of the anchor units in the Overgate, is not affected by the proposed changes and would continue to operate as normal.
Next regional estates manager Peter Gee joined planner James Harbison and Land Securities retail parks portfolio director Hermione Mackrill to update members of Dundee and Angus Chamber of Commerce on the Kingsway West proposals this week.
“Land Securities’ plans include the prospect of securing the first Next concept store in Scotland for Dundee.
“This brand-new store will bring in an exciting new persona, where the existing core market of fashion and home are supplemented with a new DIY and garden offer,” Mr Gee said.
“Next currently trades from 44 stores within Scotland and employs more than 4,000 staff. The new concept store would employ 200 new staff, ranging from full to part-time positions, and include four apprenticeship roles.
“This would be in addition to Next’s existing store in the Overgate Centre,” he added.
l Shares in property group Land Securities fell back more than 2.5% yesterday after a first-quarter trading update failed to excite investors.
The company said it retained a strong balance sheet and had secured £5.5m of development lettings since April 1, with a further £12.3m in solicitors’ hands.
However, chief executive Robert Noel said the sector remained “challenging”.
He said: “Overall, the retail market remains challenging but we are maintaining very high levels of occupancy in our centres and are pleased with our increased exposure to leisure.”
Katherine Armstead, senior portfolio manager for Land Securities in Scotland, said the company’s property portfolio north of the border which includes assets in Glasgow, Aberdeen and Livingston, in addition to its Dundee operations were performing well.
She said: “Dundee’s Overgate is the dominant retail offer in the city and we are continually looking at ways to enhance and improve the shopping experience.
“With the major redevelopment work being carried out in Dundee, the centre is in a great position to capitalise on this investment.”