A 50-Year Icon with a Future-Focused Vision
Defying the usual retail sector misconceptions around age-related performance constraints, last year Eldon Square, a mature 120,000sq m regional retail site in central Newcastle, outperformed multiple relevant UK retail real estate performance benchmarks. Here, RLI learns more about how it achieved this and how the unique scheme is redefining strategic retail performance management from Centre Director Helen Cowie and XPE Group Director Pete Cooper, as we unpack the ingredients of this success story and find out what comes next.
Marking its 50th year as the retail cornerstone of ‘the regional capital of the North East’, Eldon Square is a lesson in the resilience of good shopping scheme design and integration. A groundbreaking 1970s shopping development on what many considered a difficult site, Eldon has shrugged off all challenges and matured into a fiercely adored city centre landmark – a UK top 12 retail and leisure destination under new management (by XPE Group / Pradera Lateral) that defines the retail heart of the city and region.
“Retail real estate ownership has changed for well-rehearsed reasons – we knew the established approach was failing, which was a good place to start,” explains Pete Cooper, Director of XPE Group. “Making it work now requires different modelling, different management and different attitudes. Three years on from XPE acquiring Eldon, our footfall, sales, dwell time, brand awareness, UK destination ranking and rental tone are all flying – for a reason.”
Discussing the Group’s approach, Cooper highlights some fundamentals that are laying the groundwork for success. The first of these is location. Set in a remarkably compact city for its economic size, Eldon is the centrepoint of routes connecting all the major city centre components within five minutes’ walk. The second is accessibility. Almost all the local public transport arrives at Eldon as a destination including the Newcastle Metro, an extensive, well invested and popular underground rail network (one of only two in the UK outside London). The next key point is design. Eldon’s inherent flexibility has enabled XPE to deliver, profitably, significant new and upgraded trading space and an operating platform for which market demand has proven its quality. Moving onto economy, he highlights that through increasing economic strength and high quality civic stewardship, the city has grown in confidence in the past five decades, creating compelling reasons to invest. Finally, civic support is a pivotal element and the strong commercial partnership between the two owners of the scheme has enabled delivery pace. It demonstrates what really can be done when the private sector and the best of the public sector work properly together.
“Eldon Square has always been willing to push boundaries, from its early, groundbreaking design to the way we now approach partnerships and the public-private dynamic,” comments Helen Cowie, Centre Director. “Our evolution has been shaped by listening closely to our customers, brand partners and city stakeholders, allowing us to invest in an offer that reflects what Newcastle needs today. People love what we do because often they’ve suggested much of it in the first place. Our job is to ensure it is resilient, always accessible and consistently irresistible!”
Pam Smith, CEO of Newcastle City Council, commented: “The executive team I lead at Newcastle are quite rightly fiercely proud of the city regions reputation for the quality and longevity of our public private partnerships. Eldon is a flagship for us in so many ways, it is part of our city identity and a showcase for what Newcastle stands for. Maintaining that means never standing still and we want the world to see how much unique added value we can contribute as a long-term trusted investment partner.”
Pete Cooper continues by saying that this partnership works because there is complete clarity on roles and a shared understanding of objectives. Newcastle City Council manages elegantly the distinction between its civic responsibilities and its role as a long-term commercial owner and that has been a real strength.
“The confidence a strong relationship like this builds has translated into what matters – delivery and performance objectives fulfilled on both sides. We get resilient commercial success. For NCC, it supports prosperity and reputation, job creation, skills development, education and cultural initiatives – all reinforcing the city’s identity. It shows investors and occupiers that Newcastle is an investable city run with stability, ambition and commercial discipline.”
Speaking about the lessons Eldon Square can offer other city centres globally, Helen Cowie says that it shows successful city centres are built on partnership, not silos. The key lessons are aligning public ambition with private investment around a shared, long-term vision for place and prioritising community, accessibility and economic vitality alongside commercial performance.
“By embedding Eldon Square within the wider fabric of Newcastle and maintaining open, trusted relationships, we have been able to evolve while staying true to the city we serve. That balance of civic responsibility and commercial realism is what creates resilience.”
The launch of music and leisure destination Freight Island is a classic example statement for the Eldon Square project and the city. Transforming unused rooftop space into something completely unique, this 6,000sq m music, food and creative arts venue will be a UK first, supporting a hyper local creative and catering economy alongside international music and entertainment events in a clever flexible multi-use space with a retracting roof and soundproof 4,000 person capacity music box. It also signals a shift towards a more rounded day-to-night offer, attracting new audiences at different times of day and reinforcing Eldon Square as a destination, not just a shopping centre.
“Freight Island in Newcastle represents a bold reimagining of what a city centre retail space can become. By repurposing the space into a super multi-purpose destination, we are creating an entire neighbourhood on top of a shopping centre, blending dining, entertainment and community. This approach transforms not just the use of the floor plan, but the way people experience a centre, making it a vibrant hub that brings people together,” says Dan Morris, Managing Director of Freight Island.
Newcastle is a city defined by culture and creativity and for the past 50 years, Eldon Square has aimed to reflect and amplify that every day. Eldon Square’s brand strategy, embracing ground-breaking partnerships with The British Fashion Council, Newcastle United Football Club and local higher education establishments, such as Newcastle College, to showcase and grow local talent, support city culture and create experiences that feel authentically Newcastle.
“Cultural relevance is at the heart of everything we do, not an afterthought. Our new brand strategy embeds regional stakeholders and community needs into every aspect of planning, positioning and activation, balancing commercial objectives with a genuine ambition to give back,” Cowie comments.
From the tenant mix and events to programming and partnerships, everything is designed to reflect Newcastle’s culture and support its creative community boldly and authentically.
As it embarks on its next 50 years, we ask Pete and Helen what success looks like for Eldon Square in its next chapter.
“Keeping the performance strong, never resting on our laurels, having time and respect for all our stakeholders, being the very best we can be, every single day,” says Pete Cooper. “Retail is detail however you look at it – some things never change.”
As we end our time with two of the main drivers of this city centre asset, Helen Cowie says success for Eldon Square means staying true to their heritage while continuing to evolve as the heart of Newcastle.
“The launch of Freight Island, coupled with a thoughtful leasing strategy that balances world-class brands with innovative leisure and cultural partners, we are strengthening our mix, enhancing experiences and delivering lasting value for our community, ensuring Eldon Square remains at the centre of city life for generations to come.”
