John Lewis has confirmed plans to create one of its largest UK stores outside of London at Birmingham New Street station, as revealed by Estates Gazette (News, August 2010).
The announcement was made at an event in Birmingham this morning.
The city council today signed a heads of terms agreement with John Lewis for a full-line John Lewis department store to be located on a development site to the south of New Street station.
The 250,000 sq ft John Lewis shop will be one of the largest John Lewis department stores outside London
Subject to planning approval, the new department store will open in 2014.
The store would form part of the redevelopment of the 1960s-built Pallasades shopping centre. Birmingham council bought the 290,000 sq ft mall, which forms a key part of the New Street project, from Warner Estate for £91m in early 2009.
The redevelopment of Birmingham New Street station is part of a major investment which will open up new pedestrian links across the city
The new store will directly create 650 new jobs and Birmingham council estimates that the store will boost the local economy by over £25m pa.
Network Rail will construct the new store alongside the rebuilding of New Street station. The station will remain open for passengers and train services throughout construction.
David Higgins, chief executive Network Rail, said: “Network Rail is helping to rebuild Birmingham by transforming New Street. The project is about much more than simply redeveloping the station.
“Today’s deal is a further sign that our plans are critical to the long term success of the city and will create new jobs and help stimulate economic growth. These exciting changes are happening as a direct result of the investment being made to improve Birmingham’s transport infrastructure.”
Andy Street, managing director, John Lewis said: “Together with a progressive city council and Network Rail, we are pleased to play our part in the regeneration of Birmingham city centre. We will deliver a landmark, long-term investment and quality job creation. This project fulfils John Lewis’s longstanding ambition to bring our unique retail and employment offer to Birmingham. Our presence in Birmingham will also enhance competition, choice and quality for the benefit of regional shoppers.”
Mike Whitby, Leader of Birmingham City Council added: “I am delighted that John Lewis will be joining the Birmingham retail family. We have been working to secure their presence in the city for over two years now, and to see the fruits of our negotiation borne out today is phenomenal. Not only will their presence bring 900 new jobs, and create an extra £100m of investment, it will enhance what is already a spectacular new development of New Street station – and enhance our reputation as a city to do business in.”
paul.norman@estatesgazette.com
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