Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain
CENTRE FOR REGIONAL STUDIES 
OF HUNGARIAN ACADEMY OF SCIENCES 
 
 
 

DISCUSSION PAPERS 
 
No. 26 
Fall and Revival of City Centre Retailing:  
Planning an Urban Function in Leicester, Britain 
by 
Erika NAGY 
 
 
 
 
 
 
 
 
 

Series editor 
Zoltán GÁL 
 
 
 
 
 
 
 
 

Pécs 
1999 
 
 

Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain
 
Publishing of this paper is supported by the 
Research Fund of the Centre for Regional Studies, Hungary 
 
(This paper was made within the framework of MA Program of the 
Centre for Urban History, Leicester University, UK) 
 
 
 
 
 
 
 
 
 
 
 
ISSN 0238–2008 
 
 
 
 
 
 
© 1999 by Centre for Regional Studies of the Hungarian Academy of 
Sciences 
 
Technical editor: Zoltán Gál 
Typeset by Centre for Regional Studies of HAS Printed in Hungary by 
Sümegi Nyomdaipari, Kereskedelmi és Szolgáltató Ltd., Pécs 
 
 

Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain
 
 
 

CONTENTS 
 
 
 
 
 
1 Introduction / 7 
2 Population trends / 12 
3 Rising income and changing shopping behaviour / 15 
4 Changing structure of retailing / 19 
5 Town planning and retail policies at national level /  25 
6 A local response: planning of city centre retailing in Leicester
 
6.1 Transportation policy / 31 
 
6.2 The 1952 General Plan / 36 
 
6.3 The first generation of shopping centre schemes in     
      
 
      Leicester: the Haymarket development / 38 
 
6.4 Controversial approaches towards retail planning: the 1970s 
 
      and 1980s / 42 
 
6.5 Actions for preserving the city centre / 45 
7 Final findings / 49 
Notes / 51 
References / 54 
 
 
 




Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain
 
 
 
LIST OF FIGURES 
 
 
 
Figure 1: Pedestrian routes and the most visited stores in the main 
 
      shopping area of Leicester (1993) / 10 
Figure 2: Shopping facilities in Leicester, 1992 / 17 
Figure 3: Shares of retail sales by form of organisation / 21 
Figure 4: Retail floorspace in Leicester City Centre 1971-1988 / 22 
Figure 5: Car Park Provision in the Central Area of Leicester / 34 
 
 
 

 
 




Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
1 Introduction 
 
The purpose of this paper is to analyse the changing structure and spatial 
forms of retailing activities in the city centre after the World War II. To 
reveal economic and social changes behind the declining business of small 
corner shops and rise of large shopping malls, the studies was extended to 
three topics:  
•  economic, social and environmental problems of city centres; 
•  structural and organisational transformation of the retail sector and 
 
   the spatial consequences of that; 
•  central and local governmental attitudes towards the processes  
 
   mentioned above in terms of town planning and retailing. 
The topics are discussed in the main sections of the paper, with strong 
emphasis on the changes of retailing in the city centre. 
To represent the local effects of the nation-wide structural changes, 
retailing and city centre development policies, I studied the example of 
Leicester in details. The city is located in the East Midlands inhabited by 
280.000 people. The retail sector of the city serves not only of residents but 
a wider region (about 540.000 consumers) recently. It must be considered as 
a typical regional and service centre: the City Centre has been the main 
focus of shopping trips in Leicestershire since the medieval market was 
established. The core of the city was suffering from depopulation, decay of 
old buildings and fall of economic activities such as manufacturing, 
wholesale and certain types of retailing after the World War II as other 
British cities did. Local plans for saving city centre retailing and providing 
sufficient shopping facilities reflected the priorities of central governmental 
policies. The city has been a pilot area for the observation and analysis of 
the effects of retail developments (such as the Fosse Park) since the late 
1970s. 
On the other hand, the colourful land use structure and the peculiar social 
structure of Leicester resulted in some specific features of the retailing 
sector and forced local planners to consider the customs and needs of 
immigrant communities. The sources  of the analysis included secondary 
7  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
ones (of which case studies provided information to compare Leicester to 
other British cities), official statistics (population census, Census of 
Distribution, local statistics of retailing) and official publications of the 
British government between 1960 and 1996. The Leicester City Council 
provided shopping and land use surveys, structure plans and action plans 
that targeted the city centre. Beyond the analysis of the texts and data, I 
collected „soft” information from the officials of the City Council and some 
of the shopkeepers.1  
Before setting up the hypothesis, it is necessary to define the space that I 
extended the analysis onto. In many respects, the city centre is a difficult 
area to be defined. In functional terms, it could be identified as the CBD in 
Burgess’s concentric model: it is characterised by a high concentration of 
retailing and service activities and the dominance of commercial use of the 
buildings (particularly, on the ground floor level). In many cases, CBD 
functions are not continuous in space; they are interrupted by industrial and 
residential units. These are potential sites for the expanding business 
activities. 
It is even more difficult to define the city centre as an object to historical 
and geographical analysis. The node of trading activities (the CBD) was 
shifting and expanding in time and space. This process produced a 
heterogeneous area in functional and physical terms. It is composed of 
medieval, 19th century and modern (post-war) buildings. This mixture of 
functions and problems challenged urban planners. They faced the problem 
of decaying historical dwellings and the needs of the actors of the local 
economy for a modern city centre after the World War II. Since I am going 
to analyse the development of city centre retailing in the post-war period, I 
had to consider not only the present CBD, but also the elements of the 
historical town centre in its vicinity.  
Leicester was an adequate object to my research for its colourful land-use 
structure. The main shopping area is bordered by residential buildings of lower 
rank on the West and industrial estates on the North and Northeast. The western 
part is still a problematic territory for town planners. Since it links a valuable zone 
including Roman and medieval remains to the main shopping area, 
8  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
physicalconditions must be improved to attract tourists and encourage multi-
purpose trips.  
The term of city centre is part of the terminology of town planning as 
well. The Town and Country Planning Act (1947) empowered local 
authorities to obtain land through compulsory purchase and designate 
certain parts of cities as “comprehensive development areas”. The document 
of “Redevelopment of Central Areas” that was prepared in the same year, 
contained a guidance to re-plan city centres dividing them into well-defined, 
specialist zones of shopping, offices education, etc. The paper (that distinct 
land for shopping, cultural services, housing and offices) described the 
functional characteristics of the city centre, but the boundary was not clearly 
defined. It was the duty of local town planners.  
Local planners distinct the Central Area from the rest of Leicester  that 
includes the territory inside the Central Ring Road, and some small districts 
that are considered as parts of the city centre due to their functions (the 
surroundings of the Castle Park, the New Walk and the London Road 
shopping centre). The Main Shopping  Area includes the primary and 
secondary shopping streets. (Fig. 1) This part of the Central Area is 
characterised by the highest concentration of retailing and leisure services in 
the city. To analyse the trends of population, economic and land use 
changes, I shall concentrate on the Central Area as a whole. Since changes 
in the retail sector effected mainly the Main Shopping Area, I focused on 
the main shopping streets in terms of local trading.  
To find a working definition for the area, I used the approach of town 
planners. In most cases, planners found a clear limit for the centre of their 
town: the innermost ring road surrounding the core. It often has historical 
roots incorporating old routes, the castle walls and ditch sites. Since they are 
planning units, databases are available for these areas (in the case of 
Leicester it is completed by the three small areas) discussed above. It is a 
wider definition of the city centre than the functional one.  
We have to pay attention not only to the retailing and planning actions 
shaping it, but also to the specific problems of the inner areas, such as  
9  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
10  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
office, shop and housing decay and demographic trends similar to those of 
the inner cities2. The latter can not be clearly separated from the residential 
parts of the city centre. For this reason, and because of the important role of 
the inner city population as the consumers of the shops in the city centre, I 
must refer to some problems and development plans related to the inner city 
in the next chapter. 
I focused on the period between the early 1950s and the mid-1990s in the 
paper. The scale and structure of the consumption and organisation of the 
retailing sector was changing considerably in this stage and the process led 
to the emergence of new spatial forms of retailing, such as out-of-town 
shopping malls3, hypermarkets4 and shopping precincts. Since the 
development of city centre retailing was influenced by planning paradigms 
(such as idea of precincts and neighbourhood centres) and practical 
approaches of local planners (pedestrianisation, traffic planning, physical 
renewal of town centres), such factors also must be considered the at the 
periodisation of our stage.  
The first stage of city centre retailing included the years of prosperity 
from the late 1950s until the mid-1970s. This period was characterised by 
increasing demand for durable goods and a fairly stable level of purchase of 
convenience goods. Town planners prepared major clearance schemes for 
city centres that resulted in changing land use pattern such as the expansion 
of commercial (office and retailing) use. 
Between the mid-1970s and mid-1980s deconcentration of urban 
population and retailing was accelerated. The latter was associated with the 
increasing scale of retail units. The central governmental attitude towards 
town centres was controversial and local authorities had to face with the 
decay of retailing activities in the inner areas of cities including city centres. 
As a consequence of political movements, governmental policies 
considered the interests of inner city poor and the future of the “High Street” 
as a focus of community life from the late 1980s. Local planners were 
encouraged to carry on the city centre improvement and pedestrianisation 
schemes. Construction of major out-of-town shopping centres was 
controlled and limited. The process was associated by the new wave of 
11  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
building city centre shopping centres and stimulated by increasing private 
investments in the sector.  
The periodisation is corresponding with local and central governmental 
policies that followed the fluctuation of the demand and retail investments. 
The changes in the retail sector were determined by widespread process 
such as the structural and organisational changes of the retail sector, 
deconcentration of the urban population and transformation of shopping 
behaviour. 
 
 
 
 
2 Population trends 
 
Population trends of Leicester were changing in line with the national ones. 
The city experienced a considerable growth in the number of inhabitants in 
the post-war years. The process stopped and reversed in the first half of the 
1960s. It was a result of the emigration of urban population to the suburbs: 
the inner city suffered 1,4% population loss in favour of the suburbs (in 
Greater Leicester, the number of inhabitants increased by 7115) in the 
1960s.5 This process dominated population trends in next decades as well. 
The number of residents was falling in inner Leicester in the 1970s and the 
process was accelerated by the increasing housing prices in the 1980s (2,9% 
population loss). Town planners expected constant decrease in the inner area 
of Leicester and slight growth (about 1%) in the surrounding suburban belt.  
The age structure of the population was also changing: after the baby-
boom, proportion of elderly was increasing constantly as a consequence of 
the increasing life-expectancy and long-term downward trend in birth rate of  
white population. In Leicester, an increasing number of Asian and West 
Indian immigrants modified the process significantly. Their proportion of 
the population has exceeded 26% recently.  The newcomers were mostly 
young (younger than 40 years old) and the number of their children is higher 
than the national average. The rate of immigration was decreasing in the 
12  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
1980s and demographic characteristics of these families were getting closer 
to that of white families. Although, a lot of members of ethnic groups are 
suburbanites now (in Leicester, about one-third of the Asian immigrants), 
ethnic groups are still over-represented in the inner cities that are 
characterised by high unemployment rates, poor housing conditions (in old 
terraced houses), relatively low incomes and favourable demographic 
composition (high proportion of children and young adults between the age 
of 25 and 44 years).  
The trends sketched above re-shaped the social structure of Leicester’s 
inner city. Spatial distribution of local population could be followed in the 
national population census. Unfortunately, census wards do not resemble 
with the Central Area. It is incorporated into Castle and Wycliffe, St. 
Margaret (1961) and Abbey (1971, 1981, and 1991) wards. Castle and 
Wycliffe suffered a substantial population loss that resulted in an increasing 
number of vacant dwellings in the 1960s and 1970s.6 Residents of the Castle 
area are mostly white and the proportion of elderly was increasing after the 
war. Abbey and Wycliffe are characterised by rising number and proportion 
(30% or over) of fairly young immigrants. The latter is inhabited by families 
of low income and the ratio of single-parent households is the highest 
among the wards.7  
The process of population loss was even faster in the Central Area from 
the late 1950s on. It was encouraged by the slum clearance programs of the 
local authority that proposed land use changes to extend office and shop 
floorspace at the expense of residential function. Until 1971, 355.000 m2 
office development was carried out in the city of which over 300.000 m2 
occurred on central location. It was concentrated on the northern and north-
eastern part of the Central Area.  
Population trends outlined above effected city centre retailing directly. 
Ethnic groups represented a specific segment of the retail market as 
consumers of city centre department stores and small specialist shops of 
their own residential areas. Large food stores and the retail market have 
important supplementary role in the supply of immigrant communities. The 
majority (about 60%) of immigrant families does the weekly shopping in the 
13  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
main shopping area. Many of the immigrants are involved in trading (food, 
clothing, and jewellery) as shopkeepers as well (Hill, 1987) . 
The other important element of the population of population change in 
the city centre and the surrounding wards is the increasing number of small 
households of young and elderly singles or couples without children (in 
Abbey and Castle wards). Decreasing size of households could be followed 
in the population census since 19618, like in most of the British cities. This 
trend contributed to the decline of purchase power in the city centre that was 
stimulated by the emigration of white middle class families and invasion of 
poor immigrants as well (Davies, 1984).  
The new trends in the employment of the population had also effected 
local consumption. The number of employees in manufacturing fell by 20% 
between 1961 and 1987 although, it is still above the national average. The 
process has started in the city centre where the industrial employment 
dropped by 10% between 1950 and 1964 and the process was going on in 
the 1970s as a result of the decentralisation of industrial activities. In the 
meantime, proportion of services was rising up to 60% of which 10,2 % was 
employed in retailing in 1987. As in most of West European cities, 
proportion of white-collar workers was rising and the employment of 
women was also increasing in the offices (White, 1989). Replacement of 
workplaces in manufacturing by services resulted in significant changes in 
the composition of daily commuters moving to the city centre. Since 
employees often link their daily path to work with shopping, retailers and 
caterers had to adopt their activities to such needs.9 Increasing number of 
specialist shops, restaurants and supermarkets also serve the needs of 
commuting white-collar employees. 
14  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
3 Rising income and changing shopping behaviour 
 
Household incomes were rising in the post-war years. The progress was not 
broken until the mid-1970s. The purchase power rose by 28% in the 1960s 
and the trend was maintained by the inflation in the 1970s. Household 
incomes were increasing much slower in the 1980s (12,3%) as a result of 
the oil crisis and the economic recession. Demand for convenience goods10 
was stabilised in the 1960s. Shops selling durable goods were exposed to the 
income changes to farther extent: consumption was rising by 20% in the 
1960s but only 14,5% in the 1980s (in the case of convenience goods, it was 
10,2% and 14,0%).  
The process and the increasing rents in the Central Area resulted in 
structural changes in city centre retailing: the floorspace and number of 
shops selling convenience goods was declining sharply in the city centre 
from the late 1960s. The proportion of durable goods in the gross turnover 
of shops and retail floorspace was increasing in the area. At the same time, 
new elements of the retail hierarchy (suburban superstores and shopping 
malls) gained increasing share on the market of convenience goods that also 
involved changes in the city centre. 
After the World War II, households were equipped by durable goods 
such as refrigerator, TV set, washing machine (1960s), telephone, freezer 
(1970s) and video (1980s), (Price, Blair, 1989). Rising incomes involved a 
significant increase in car ownership, as well that led to dramatic structural 
and spatial changes in the retail sector. Although, Leicester is lagged behind 
the average of British cities in this term recently, car provision was 
improved in the post-war decades notably. Number of motorcars was 
increasing quickly from 0,12/household (1951) up to 0,3/ household until 
the mid-1960s. The trend encouraged planners to estimate the saturation 
level of car ownership 1,2 car/household in 1995. The process was slower 
from the late 1970s, and the estimation seemed to be too optimistic. 
According to the 1991 census, 32% of households had no access to car in 
Greater Leicester and this proportion is even higher (45%) in the inner 
area11. Proportion of households without car is the highest in Wycliffe 
15  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
Ward. Although, car-ownership was over-estimated, local authorities had to 
face the lacking balance between land uses as traffic generators and the 
available traffic accommodation (road and parking capacities) from the mid-
1960s.  
The Central Area was effected by increasing car ownership in an other 
way as well: the decentralisation and increasing mobility of the population 
involved the emergence of new forms of retailing and new patterns of 
shopping trips in Leicester. Out-of town shopping centres and superstores 
appeared on the edge of the city that changed the traditional shopping 
hierarchy. (Fig. 2) City centre has lost its dominance on the market of 
convenience goods and the mix of shops and activities has also been 
changed since the mid-1960s. The process was accelerated by the increasing 
difficulties in the accessibility of the area furthermore, pollution and 
dangerous traffic situations. There were attempts to relieve the city centre 
through the formation of the one-way system, pedestrianisation, and 
construction of controlled parking sites. 
The rising number of car owners involved increasing commuter 
movements as well12. City centre concentrated an increasing number of 
workplaces, shops and service facilities, as a result of the post-war 
developments. The area became the destination of short-term (shopping) and 
long-term (daily commuting) movements of car-owners. Since the car was 
available less times for women, use of the car was restricted to certain 
period (non-working hours) of the day that effected the frequency and 
timing of shopping trips. 
In parallel with the decentralisation of the population and workplaces 
resulted in the rising number of cars, increasing mobility and 
deconcentration of shopping facilities, changes in shopping behaviour were 
also significant. Less frequent (made 2 or 3 times a week) multi-purpose 
trips combining shopping, recreation and personal business became general 
as a result of increasing car-ownership (Dawson, 1980). Such routes were 
directed to higher hierarchical levels of retailing and services and they were 
longer than traditional walk-to-shop distances.  
16  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
 
17  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
The City Centre of Leicester remained in the focus of such trips until the 
late 1980s. The boundary of its catchment area was the 30-minute isochron 
that included Greater Leicester travelling by car.13 Half of the interviewed 
shoppers travelled no more than 15 minutes in 1984 that means the majority 
of shoppers of city centre shops came from the inner city. Since the demand 
for convenience goods is inelastic and the purchase power of the latter area 
probably will not change considerably, the small share (3,4%) of such shops 
of the net retail floorspace will be unlikely to grow in long term.  
Advantages of the City Centre, such as variety of goods of different 
quality and prices, high number of specialist shops and concentration of 
retail and service functions may save the shops here. Shopping reviews 
suggest that retailing of durable goods attract shoppers from the wider area 
of Greater Leicester: 70% of the interviewed households chose the main 
shopping area for this purpose in 1984.  
Lifestyle changes occurred in the 1970s and 1980s also effected shopping 
behaviour and City Centre retailing. Increasing number of working women 
restricted the time available for shopping after or before working hours and 
changed the demand for certain types of food. Working couples prefer one-
stop shopping in larger stores accessible quickly by car. Segmentation of the 
market (growing number of small households of elderly, young singles, 
childless divorcees, single parent families, etc.) resulted in a significant rise 
in the number of specialists, such as healthy food or fashion clothing shops. 
This trend contradicts the widely accepted idea of homogenisation of 
consumption (“mall-culture”). Shopping has a significant social content: 
purchased articles express social identity and individuality. Needs for 
specialist shops and attractive shopping landscapes (localities) evolved in 
the 1970s that was perceived by shoppers and retailers had remarkable 
influence on planning of shopping centres and precincts in the 1980s and 
1990s (Crewe, Lowe, 1995). 
Increasing amount of free time led to the differentiation of the demand 
for leisure services such as restaurants, cafés and night-clubs (Price, Blair
1989). Lifestyle changes strengthened the specialisation of the city centre 
shops and hastened the erosion of retailing of convenience goods in the City 
18  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
Centre. The changes in shopping behaviour challenged retailers. Longer 
opening hours and more flexibility in time was required (e.g. for weekend 
shopping trips). Furthermore, increasing role of motorcar in shopping 
involved growing demand for parking space around shops and stores. Multi-
purpose shopping trips forced retailers to exploit the advantages of 
agglomeration economies that changed the organisation and the traditional 
hierarchy of the retail industry. 
 
 
 
4 Changing structure of retailing 
 
The changes occurred within the city centre are bound up to with broader 
processes that have significant impact on shopping provision throughout 
Britain. Such alterations are responses to the radical changes in the structure 
of retail industry and significant shifts in the pattern of retailing and 
shopping. The history of the sector was characterised by a fall in the number 
of retail units, a substantial increase in the market share of the large multiple 
groups and the emergence of new forms of retailing and new types of 
shopping centres in the past 30 years. Traditional shopping centres in the 
inner area were declining and new centres were constructed on the edge of 
cities increasing disparities in retail provision between the outer and inner 
city areas.  
The dramatic fall in the number of retail outlets characterised the sector 
in Leicester as well from the late 1950s. Convenience goods have been 
particularly associated with the decline of corner shops and specialist food 
traders (mainly grocers and greengrocers). Between 1961 and 1995, the 
number of shops fell by 51%14. In the group of grocers, provision dealers, 
other food retailers together with the variety/department/general household 
stores the number of shops fell by 71% between 1961 and 1995, whilst the 
floorspace of food shops almost doubled. Supermarkets15 and later 
hypermarkets16 and superstores17 became the destinations of food shopping 
trips. Unfortunately, there was no annual data available about large scale 
19  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
multiple investments in Leicester. At national level, the number of 
supermarkets rose from 367 (1961) over 700 by 1980 of which 400 was run 
by 6 major chains (Price, Blair, 1989). 
At the same time, net floorspace of shops was increasing in the city. 
Independents18 were suffering from increasing rents and a great loss from 
the early 1960s while the proportion of multiple chains in the retail 
floorspace and the turnover was rising. The latter increased from 25% up to 
42% between 1957 and 1975 in Leicester. In the meantime, their share in 
the selling floorspace rose by 25%. 
The basis of the expansion of multiple companies was the extension of 
their distributive system integrating wholesaling, transportation and retail 
activities. Such  steps were stimulated by increasing labour costs and rents 
(on central locations), mass production of retail goods, and the 
agglomeration of population and purchase power. To compete with multiple 
corporations, small organisations established voluntary groups for 
wholesaling (such as the Spar group) from the 1970s to achieve bulk buying 
economies. Despite such efforts, trends towards larger scale were present in 
the sector in the whole period: the top five convenience goods retailers19 had 
nation-wide representation and 51% share of the market at the beginning of 
the 1980s. Multiple chains also rationalised their organisations: smaller 
outlets were closed and new ones were planned at larger scale. Co-
operatives also recorded proportional decline. Most of the old corner shops 
faded and new forms and scales of retailing evolved. (Fig. 3 and Fig. 4) 
Deregulation process introduced by the Tory governments contributed to 
the multiple companies to build up or expand their chains and set up the 
control over supply in the 1980s. Economic policy of the central 
government accelerated the circuits of capital that resulted in shrinking 
profit for the producers in favour of retailing capital. Exchange relations 
became as important as production ones. Corporate capital was gaining 
stronger control over suppliers and consumers (through advertisement 
campaigns). 
20  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
21  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
 
22  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
The process resulted in an increasing share of retailing and related services 
in the price of goods (Marsden, Wrigley, 1995). The neo-conservative 
policy favoured multiples investing in large, capital-intensive projects and 
accelerated the decline of small shops and the traditional shopping 
hierarchy. 
Organisational changes had significant spatial effects. Large-scale 
department stores were opened by multiples in the city centre in the 1960s. 
The gross selling floorspace was doubled in the Central Area by the end of 
the decade. Other shopping centres in greater Leicester were extended by 
65% in terms of floorspace increase. Expansion of the selling space of 
convenience goods was dominant in this stage. Food stores and mixed shops 
operated by national chains (Marks & Spencer, Woolworth) appeared in the 
City Centre. The new developments had changed the character of traditional 
shopping streets and the pattern of shopping behaviour: large stores became 
the main magnets of shopping trips. The process accelerated the decline of 
small shops.  
In the 1970s, location of multiple retail investments was moving towards 
the edge of the city where cheap land was available. This activity diverted 
the financial resources from shopping centres of the traditional retail 
hierarchy. In fact, a new subsystem was formed by the new elements in the 
shopping hierarchy. The process led to the decline of small, traditional 
shopping centres such as the district centres situated northwards form the 
Central Area of Leicester20. The process has been started in the sector of 
food retailing. New superstores21 offered the widest range of goods at the 
lowest prices in spacious surroundings. By 1987, their number was 457 in 
the UK.  
City centre shopping facilities were effected in two ways. On the one 
hand, there was a dramatic shift in investments between 1971 and 1991: 
120000 m2 development was implemented in the city outside the Central 
Area and slightly more than 45000 m2 was added to the existing selling 
floorspace in the city centre. On the other hand, there was only scarce 
development in the sector of convenience goods; retail capital was invested 
in the extension of selling space of durable goods. The new out-of-town 
23  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
developments were successful: proportion of the turnover and selling 
floorspace was much larger in the new stores than in the city centre, 
particularly, in the case of convenience goods. (There was only small 
difference in the case of durable goods in favour of the new centres on the 
edges.)22 Large-scale hypermarket and superstore developments outside the 
Central Area did not effect city centre shopping severely: the trend of 
declining food retailing was present in the centre from the late 1960s. Its 
viability was endangered by the construction of out-of-town  regional 
shopping centres
 that offered a wide range of convenience and durable 
goods. The large scale of such centres and the generous car park provision 
attracted multiples and small specialist shops that provided as high level of 
supply as city centre shops did. Their catchment area covered a whole 
region as that of the Fosse Park, a regional shopping centre on the south-
eastern edge of Leicester attracting shoppers from the whole area of Greater 
Leicester.  
The new elements resulted by the structural and organisational changes 
of the sector formed a new shopping hierarchy that challenged traditional 
concentrations of shops (neighbourhood, district centres in the Inner Area 
and the main shopping area in the city centre). Such changes accelerated the 
undesired decay of traditional shopping centres that could be stopped or 
slowed down only by the intervention of local authorities. In the case of the 
city centre, diversity of shops and services was highly appreciated by the 
segmented groups of consumers, but town planners had to interfere even 
here. Retail and transportation policies, slum clearance programs, face-
lifting of old buildings of historical value, improvement of the townscape 
(paving, setting up street furniture, etc.) must have been reviewed and 
shopping centre schemes were put into this context in the next decade. 
 
 
 
24  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
5 Town planning and retail policies at national level 
 
“Retail policy is a mechanism for overriding and modifying the generation 
of such activities where it is against the public interest.”23 Through such 
interventions, private investments are directed to places where a new land 
use pattern would be beneficial to private capital and the general public. The 
process must be cost effective that may deprive the status of certain social 
groups. At the same time, retail policy may result in under-utilisation of 
existing capacities (such as inner city shopping centres) that must be 
remedied at the expense of local governments and local people. In this way, 
retail policy was closely related to the problem of city centre development 
and town planning regulations. The other contradiction of retail policy is the 
extent that public interests should be considered to, at the expense of cost-
effectiveness (the emphasis might be on the first factor as well). Such 
problems involved inconsistency in national town planning principals, retail 
legislation and governmental guidance focused on inner city problems. 
Since the World War II, self-contained shopping centres became the 
framework of organising and developing new shops in Western Europe. The 
British approach is considered as a specific one that is different form 
continental policies in respect of constraints that were established to channel 
resources into the central area of cities. The policy resulted in a fairly 
concentrated pattern of retailing. This spatial structure is a product of 
changing economic philosophies and social changes that influenced central 
governmental policies. 
The 1947 Town and Country planning Act introduced the concept of 
Comprehensive Development Areas and empowered local authorities to 
obtain land through compulsory purchase and designate such localities. The 
Act inspired local leaders to plan well-defined functional areas segregating 
specialist zones for shopping, offices public services etc. In 1954, wartime 
licences for new buildings were abolished. The 1957 Town Planning Act 
involved extensive slum clearance programs that provided clear sites for 
new, zoned developments (mainly for offices, shops, traffic areas). Local 
authorities purchased private estates and demolished decaying houses. As a 
25  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
consequence, they had to take the burden of compulsory re-housing of the 
removed population. 
Slum clearance programs involved the redevelopment of deteriorating 
parts of city centres as well. The process changed the built environment and 
function of the cleared and re-built sites significantly. Extensive office, 
shopping and transportation developments occurred on these places. In 
Leicester, 270 acres of land was acquired by the local authority between 
1952 and 1972. 33 acres of that were reserved for commercial and office 
development and a new civic centre. Sites for the Central Ring Road, a 
coach station, the Lee Circle car park and space for warehousing were 
separated.  
The Acts had a major impact on city centre development: private 
investments were increasing and shifting to commercial property that was 
inspired by the rising household incomes, as well. Retail developments were 
directed to the main shopping area and district centres. The re-development 
of city centres had accelerated the decline of small businesses. Planning 
blight transformed shopping streets by rising rents. Until the early 1960s, 
emphasis was put on the redevelopment of city centres and there was no 
governmental policy formulated to manage urban sprawl and its effect of the 
retail network. 
In the 1960s, comprehensive development plans were prepared for city 
centres. The idea of precincts (applied in Coventry, Plymouth and the New 
Towns successfully) was adapted for shopping and an extensive 
pedestrianisation process has been started. Such local actions were inspired 
by the Town Centre Approach to Renewal program initiated by the Ministry 
of Housing and Local Government and Ministry of Transportation providing 
technical devices for town centre development.  
The 1968 Town and Country Planning Act obliged planning authorities 
to prepare structure plans for a whole region and local authorities had to fit 
their own structure plans into that under the supervision of the Secretary of 
State for the Environment. The Act provides that so far as shopping is 
concerned, this plan was to be able  
 
 
26  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
•  to set out general proposals relating to the hierarchy of centres, 
          creation of new centres, development of district centres and                
          relief congestion on town centre, 
•  to deal with the quantity of floorspace at significant stages and 
          its distribution, 
•  to lay out a broad criteria and policies for the location of new 
          development and development control in relation to      
          conservation and conversion, 
•  to deal with the implementation such as the assembly of sites 
          by  local authorities and the scope for private development. 
The legislative framework to make strategic plans at regional basis, 
including the construction of regional shopping centres was ready. The 
hierarchical view of the governmental approach supposed the existence of 
the co-ordination of municipal decisions that was lacking. (Matthews, 1995) 
Furthermore, structure plans made for 20 years were not adequate to control 
the rapid changes in the retail sector. Considerable inertia had been imposed 
on the shopping development process since major schemes had taken 
several years to secure approval (in the case of Brent Cross, London as long 
as 10 years).  
The 1968 Act encouraged local authorities to desire and support the 
development of modern shopping facilities corresponding with the needs of 
local population, but stressing the need for examining the economic viability 
of the proposals to avoid over-provision. At this time, number supermarkets 
and superstores were increasing and shopping centre schemes were 
implemented only on central locations. Integration of new schemes into the 
existing hierarchy was suggested and improvement of car parking 
conditions was encouraged. The Act dealt with the problem of shopping 
centres in terms of needs of the population living in the region. The 
Department of Environment gave guidelines for the standards of amenities 
in shopping centres. The development of public transportation was also 
encouraged to make the centres accessible to a wide spectrum of the 
population. 
Although, the number of new, planned shopping centres was increasing 
27  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
in the 1970s, but joint actions of local authorities were hindered by 
bureaucratic inertia. The central government supported retail developments 
that improved the supply of new suburbs but suggested the integration of 
new shopping centres into the existing hierarchy in the 1971 report24. 
Traffic calming (not exclusion!) and the extension of the existing pedestrian 
routes were also suggested as devices for saving the role of the city centre in 
retailing. At the same time, the scale of shopping schemes in city centre was 
increasing and there was an increasing pressure on the government to 
approve schemes for out-of-town shopping developments (Bennison, 
Davies,
 1980) . 
Local authorities remained hostile towards to suburban retail centres 
although, there were exceptions such as potential outlying service centres 
for expanding residential areas. The reasons for that were disturbing the 
tranquillity of the countryside and the emergence of two distinct social 
systems of shopping: one for poor and elderly in inner cities and one for 
middle class and wealthy families in the suburbs. All applications for new 
developments over 45.500m2 floorspace must have been sent to the DOE, a 
collective body of professional planners for approval. Most of such plans 
were rejected forcing the developers to construct new facilities on central 
locations.  
In 1977, improvement programmes were initiated by the central 
government that included the protection of town centres (Development 
Control Policy Note 13
). Large scale stores had to be carefully planned, 
fitting into the existing patterns, helping the revitalisation of inner cities, 
avoiding over-provision under the control of local authorities. At the same 
time, governmental attitude became more flexible towards out-of town 
developments, there were more schemes of such sort approved than in the 
1960s. Ad hoc handling of the changing retail sector and lack of co-
ordination between the controlling bodies made ambiguous inner city retail 
policy of the government in this period. 
In the first half of the 1980s, there was a significant increase in 
investments in the retail sector. The boom of speculative plans was 
increasingly concentrated on the edge of cities. In 1987, 60% of the 
28  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
investments was located on out-of –town sites (at national level). Discussion 
about the impact of such developments was revived in the mid-1980s. The 
purpose of retail policy of the central government was to assist market 
forces in the early 1980s. The emphasis shifted from local control towards 
allocation of land use via the operations of the market. Retailers of the 
“High Street”25 were arguing for more control to avoid the deprivation of 
the city centre. 
The 1986 guidance proposed a detailed analysis of shopping provision to 
be done by local authorities. Using a clear set of regional criteria, a regional 
balance between district centres and large stores was to be maintained under 
the control of the central government. The guidance suggested the 
consideration of the interests of car owners and permission of large, modern 
foodstores in the vicinity of existing shopping areas. It also stressed the need 
for the revival of the central shopping area. Improvement of the physical 
environment, re-design of car parks and covered shopping malls, 
pedestrianisation and encouraging the development of services for shoppers 
(such as catering and amusement facilities) was suggested to local 
authorities, to enable the main shopping area and other traditional shopping 
centres to compete with modern forms of retailing more effectively. The 
guidance suggested that it is not the role of land use planning to regulate 
competition between retailers and retail methods and suggested local 
planners to avoid preserving existing commercial interests. This 
contradiction allowed local planners to follow their own ideas and local 
needs. 
Despite the contradictions of town planning policy, officials paid more 
attention to the declining inner areas including city centres, from the mid-
1980s. The Secretary of State for the Environment rejected a series of 
shopping centre schemes that were supposed to effect the vitality of inner 
cities severely or planned in the Green Belt or in the open countryside. 
(Leicester was also involved: in 1986, an application for a 12500m2 out-of-
town scheme was turned down.) The Secretary required local planning 
authorities to notify him each proposal for major retail development. The 
deficiency of planning mechanism for dealing with large-scale projects and 
29  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
the need for intervention to save the city centre viability was recognised by 
governmental officials however, town planners criticised central 
governmental policy. The reason for that was the elimination of 
responsibility of local planners in favour of the London administration 
without setting up the central administrative framework for the  assessment 
of shopping development proposals. Furthermore, there were no clear 
criteria of assessment and methods to predict the effects of new schemes 
were also lacking. 
The  National Planning Policies Guidance (1988) also dealt with the 
problem of city centre retailing. Governmental support shifted to improving 
city centre vitality and viability. The guidance introduced a new approach 
towards retail development: new schemes had to be considered first in city 
centres, then on the edge of traditional inner city shopping centres and only 
as last resort on out-of-town sites. The latter had to provide a choice of 
means of transport. Local authorities were required to work out a parking 
strategy in the city centre to encourage shoppers to visit there. The guidance 
represented a considerable shift towards the recognition of the effect of 
shopping centre developments, the role of city centre in the local 
community life and the need for its preservation. National policies had local 
content that considered needs and peculiarities of local shoppers and 
retailers.  
In July 1993, a revised version of retail planning policy guidance was 
published with a broader application containing planning aspects of retail 
development in town centres. It suggested the mixed use of the areas such as 
business, housing and leisure and rose issues about new forms of retailing. 
Local authorities were urged to appoint a city centre manager and work out 
a car parking strategy encouraging shoppers, not commuters. The 1993 and 
1996 revision set up more obstacles for out-of town developments to protect 
the viability and quality of the city centre. According to local planners of 
Leicester, governmental proposals from 1988 met their views and aims in 
terms of retail planning policies, for they considered the needs of a wider 
spectrum of urban population and the City Centre as the focus of 
community life. 
30  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
6 A local response: planning of city  centre  retailing  in        
 Leicester 
 
6.1 Transportation policy
 
Until the early 1960s, city centres were accessible to car owners in Britain. 
The number and average speed of cars were increasing that raised the issues 
of congestion, pollution and safety. The 1963 Buchanan Report was the first 
“no” to motorcars in the post-war era. 
The first concept of traffic control was presented by Alker Tripp in 
193826. He suggested the classification of roads (arterial, sub-arterial and 
local roads) to ease the congestion. He proposed the separation of transport 
modes to increase the safety of pedestrians. This way of traffic organisation 
included the pedestrianisation of shopping streets and construction of 
shopping arcades and precincts. A. Tripp’s proposal included construction of 
radial and ring roads to improve the accessibility of city centres as well.  
His ideas were growing influential and they were put into practice after 
the World War II, when new land use plans were prepared for cities. The 
precinct idea appeared in New Towns, in the neighbourhood centres of 
public housing estates and in the centres of heavily bombed cities. Town 
planners as Abercrombie, Adshead, Gibson and T. Sharp followed Tripp’s 
ideas in their past-war plans.  
 Since the Tripp’s concept involved extensive road building and 
widening, planners and developers had to face the resistance of retailers. 
The latter wanted to avoid the diversion of traffic from the main shopping 
area and losing their shops along the transformed ring roads and bypasses. 
They protested against the stricter traffic control in the city centre as well. 
Town planners and traffic engineers experienced similar difficulties in the 
adaptation of the concept at re-shaping the built environment in Germany 
and other European cities. Local interest groups slowed down the process of 
traffic control (Monheim, 1985). 
The 
27
Buchanan Report  was a turning point in planning urban traffic. It 
discussed the conflict of needs for accessibility and urban environment. This 
first critical approach towards motorization and town planning had 
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
significant practical impact. It was sensitive to conservation of the built 
environment and pedestrian movements and suggested the complete 
seclusion of vehicles from main shopping areas (P. Hall-M. Hass-Klau
1983). To realise it, it was necessary to construct arterial ring roads. The 
1967  Road Traffic Regulation Act permitted the conversion of highways. 
The joining of the Ministry of Housing and Local Government and Ministry 
of Transport was a further step towards the integration of traffic engineering 
into town planning. Transportation was considered as a function of land use 
that reflected the effect of the report (M. Hass-Klau, 1988). 
The environmental crisis resulted in more critical attitude towards 
motorcar. Further restrictions for the traffic (such as the introduction of 30 
miles/hour speed limit) were implemented by local authorities to save the 
built environment. Britain did less for traffic calming and pedestrianisation 
compared to other European cities in the 1970s and 1980s. The reason for 
this was that British spent less on motorcar than French or Germans and the 
number of accidents was also smaller (P. Hall, 1993). Pedestrianisation was 
often linked to housing improvement programs in the inner cities. 
Conversion of the roads in the city centre was sporadic until the late 1980s. 
British planners initiated more pedestrianisation schemes from 1988 
following the German examples. The process resulted in contiguous 
shopping areas in the city centre with the complete seclusion of motorcars. 
Town planners in Leicester followed the national trends. In 1949, tramcar 
transportation service was ceased and replaced by buses. Motorcars had free 
access to the city centre until the early years of the 1960s. The first “no 
waiting” restrictions came into effect in the Granby Street in 1959. 
Congestion resulted in critical situation on main roads in the peak hours and 
increasing number of vacant shops in the High Street. (Fig. 1) 
The  Buchanan Report had considerable effect on local traffic planning 
and management: in 1964, a Traffic and Transportation Plan was prepared 
for Leicester. The main purpose of the plan was saving historic values and 
local identity. It was a computer design plan (the first one in Britain) that 
followed American methods of traffic design. A new type of comprehensive  
 
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
land use and traffic survey was carried out in the city: residents were 
interviewed about their travel habits.  
The proposals included the construction of interchange car parks to 
relieve the city centre and radial roads. Car parks were to be linked to 
suburban shopping and entertainment centres. In the Central Area, 
pedestrian conveyors along the routes of main pedestrian movement were 
planned that would have contained walkways down the centre of the main 
shopping streets (Gallowtree Gate and the surrounding streets of the Retail 
Market). Motor traffic was limited to commercial vehicles, limited shopping 
traffic and buses. The plan suggested 22,500 car park sites for short-term 
parking. The plan included a sketch for a one-way circulation system as 
well.  
The construction of the Central Relief Road and car parks was going on 
in line with traffic calming and pedestrianisation in the city centre that was 
considered as the most congested and endangered area in the traffic 
management plan. Constructions transformed the view of the urban core 
considerably between the 1960s and the 1990s. Free parking sites were 
ceased in the 1960s, the northern section of the Central Ring was 
constructed and a one-way system was set up in the Central Area. In the 
1970s and 1980s, the Ring (completed in 1992) was being built up and new 
multi-storey car parks were constructed on the edge of the city centre. (Fig. 
5) The majority (about two-third) of new car parks were private 
developments attached to office and shopping schemes. They were 
constructed on cleared sites (e. g. on the Abbey Street) or old buildings were 
converted (Halford Street, wholesale warehouse) into parking houses. They 
are concentrated along the Central Ring Road or on the edge of the 
Pedestrian Preference Zone. Although, construction of car parks was a vast 
investment, the Central Area is still far behind the new suburban shopping 
facilities: there are only 4,4 park sites/100m2 selling floorspace in the 
former. Multiples are required to provide at least 10 sites/100 square meter 
floorspace at the new stores or shopping centres. (In Greater Leicester, there 
are 10,3 sites/100sqm near the Asda superstore, Hinckley and 10,2 at the 
Woolco, Oadby.)  
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
Despite the increasing number of private cars, public transportation was not 
abandoned in Leicester. The local public transportation company operated 
by the city until its re-privatisation in the early 1980s was considered one of 
the most successful enterprises of this kind in the country. Although, the 
number of passengers was declining like in other British cities, its role 
remained significant in the accessibility of the city centre. About 40% of the 
visitors of the city centre use public transportation recently. It is important 
for women, because family car is usually not available in the opening hours 
for them.28 Furthermore, immigrant families with low income, having no car 
use this device for their shopping and combined trips to the city centre. For 
this reason, public transportation became part of local social policy that 
makes accessible a wide range of goods and services to disadvantaged 
sections of the urban population. 
Local transportation policy encouraged the use of public transportation. 
Private cars were prohibited on an expanding area from 1977 but buses were 
allowed to pass through most of the main shopping streets. Buses were 
preferred by planners to carry on the pedestrianisation process. The first 
element of the pedestrian shopping area was the Gallowtree Gate from 1971. 
Until 1990, there were new streets added: Eastgates (Clock Tower) in 1977; 
Belgrave Gate, Haymarket and Church Gate in 1985; Cank Street and 
Cheapside in 1986, and Market Street in 1988. It was piecemeal 
development, there was no contiguous, safe area for walking shoppers.29 
(Fig. 1) 
In 1990, traffic restrictions were extended on new streets30 and an 
adjacent pedestrian zone was formed. In 1996, traffic restrictions were 
extended on all weekdays. At the same time, the city council adopted a 
Transportation Choice Strategy in 1990, to improve and extend public 
transportation. The other condition that encouraged pedestrianisation was 
the completion of the Central Ring Road that eliminated the traffic that had 
crossed the city centre before. 
Until the late 1980s, traffic was increasingly controlled in the city centre 
that probably diverted consumers from the main shopping area, particularly, 
from shops selling convenience goods. Pedestrianisation was carried on in 
35  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
relation to the completion of the central relief road that resulted in piecemeal 
retail development. Adjacent pedestrian zone was formed only in the 1990s 
as a result of changing attitude towards the city centre. 
The need for preservation of historical values and the functions of the 
city centre as the focus of community life was stressed in the local plans 
from the 1960s on, but it was realised in the City Centre Action Programme 
between 1987 and 1995. Objections of retailers and car owners and the shift 
of retail investments towards the suburbs slowed down the process of 
pedestrianisation and traffic control that might enhance the townscape and 
save city centre retailing in long term.  
 
 
 
 
6.2 The 1952 General Plan 
The 1952 plan had to deal with a number of decaying houses, expanding 
manufacturing, increasing needs for road building and improvement of the 
environment (i. e. need for more open green space). Substantial population 
growth was predicted and the city centre was considered insufficient for the 
expanding town. The 1952 structure plan proposed the transformation of the 
area into a modern shopping, business and administrative centre. Dwellings 
and industrial estates were considered as inconsistent uses of central 
locations. Small shops satisfying daily needs were also undesired and to be 
replaced by small local shopping centres. Redevelopment of industrial and 
residential areas as offices, public buildings and shops of higher standards 
was suggested. The greatest increase was proposed retailing (50%) on 
distinct areas of the city centre. (Fig. 8) 
Planners had to consider the presence of industrial and wholesale activities, 
as well. They suggested the permission of limited expansion of light 
industry and warehouses. The former was to be concentrated along the new 
Ring Road and the latter was to be extended towards the eastern part of the 
Central Area. Regarding the population growth rate and increasing car 
ownership, urban sprawl and a substantial growth of vehicular traffic was 
36  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
predicted. To improve the accessibility of shopping facilities and offices in 
the city centre, construction of a central relief road was proposed in this plan 
first time. (One section, the widened Charles Street was ready in 1952.) 
Building of such a spacious road involved substantial land acquisition by the 
local authorities and clearance of dwellings that was supported by 
thegovernment (see the 1947 and 1957 housing acts). Construction of the 
central relief road facilitated the limitation of vehicular traffic in the city 
centre, and the first steps towards a one-way system were done. Building of 
multi-storey car parks had been started by the local government (Lee 
Circle). The accessibility of the city centre was improved by the unified 
public transportation system: special bus lines linked the suburbs and the 
inner city with the main shopping area.  
In the 1960s, proposed changes had been started: slum clearance 
programs involved the transformation of land use on the northern and north-
eastern parts of the Central Area: obsolescent dwellings were replaced by 
modern, multi-storey office buildings. As a result of the deconcentration of 
industrial activities, the area occupied by such activities was shrinking (by 
25%) in the 1960s. The number of shops was declining as a result of 
increasing rents particularly, in the sector of convenience goods. Large-scale 
stores occupied Gallowtree Gate, the main axis of the shopping area. 
Increasing demand for convenience and durable goods and the 
improvement of the physical conditions of the city centre involved 
substantial rise in the needs for retail floorspace. Although, number of shops 
was declining, their average selling space was growing and there was an 
increasing pressure on local authorities to carry on re-development 
programs to promote the expansion of retail functions. Large-scale shopping 
centre schemes offered a new, planned framework for such extensions 
without destroying the fabric of the traditional shopping hierarchy. 
37  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
6.3 The first generation of shopping centre schemes  in  Leicester:  the         
 

Haymarket development  
Two distinct groups of major shopping centre schemes exist in Britain by 
location: city centre schemes and out-of town developments. The former 
type of shopping centres was evaluated as a progressive change of shopping 
streets after the World War II. The first schemes of this sort were 
constructed in the provincial towns in the late 1960s. The Midlands region 
became extremely well supplied by the end of the 1970s (Bennison, Davies
1980). 
The new model of post-war shopping centre developments was 
American. The primary role of downtown retailers was challenged by large 
suburban malls in the 1950s. Suburbanites spared time by not travelling to 
the downtown, they preferred out-of town malls. The downward spiral of 
city centre retailing and social and physical consequences of the process 
encouraged British planners to construct shopping centres on central 
locations, incorporating certain elements of the mall culture such as weather 
protection/climate control, idealised image of streetscape, elimination of 
disorder and traffic, that resulted in a pleasant and safe environment and 
predictable mix of goods and services provided by outlets of large national 
chains and small specialist shops). The carefully planned environment is co-
ordinated by a single management organisation that means uniform opening 
hours and quality of shopping conditions (Dawson, 1980). 
In Britain, property development companies, multiple retail groups, local 
authorities and interest groups (retailers, conservationists, etc.) participated 
in the construction of city centre shopping malls. The motivation of such 
developments was the increasing purchase power and changing shopping 
behaviour. The role of political and environmental factors was also 
important: developers constructed purpose-built shopping centres that were 
marked in the long-term plans by local authorities31 for face lifting of city 
centres. The role of local government as a developer was increasing in the 
1970s (Bennison, Davies, 1980). 
The number of new schemes was decreasing in the 1970 however, their 
scale was growing. The average floorspace of the outlets inside was 
38  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
increasing as well. Most of the centres were enclosed32 that resulted in 
complete isolation of the shoppers from the rest of the shopping street. The 
inner space was dominated by the retail function, but offices and 
entertainment facilities were also included at limited scale. Service and car 
park facilities were situated underground or at roof-top, in lack of available 
land.  
The physical structure of new shopping centres was introverted, their 
effect on the environment of the main shopping was not considered. The 
prevailing layout of such centres was a multi-storey, single mall usually of a 
rectangular shape following the precinct idea), without a focal area for rest 
or entertainment facilities. The building material was concrete and the 
attached multi-storey car park destroyed the townscape. Brick was often 
used for covering the facade to make the building more friendly-looking.  
The most successful centres are the large enclosed ones. Proportion of 
retail outlets is high and that of service units is low. They are well served by 
transportation facilities (buses and car park sites). The main factor of their 
success is the presence of the main “magnets”, large stores operated by 
multiple companies (Hillier Parker, 1979). 
The Haymarket Centre in the hart of the main shopping area of Leicester 
is a product of this stage. The centre was built in the 1960s (finished in 
1971) as a single mall to house specialist shops and multiple outlets. It is 
considered as a fairly small development (13300m2). The structure of the 
Haymarket area includes shops grouped along shopping arcades and a large 
pedestrian concourse. An entertainment centre was planned on the upper 
floor and an underground service area was provided with 467 car park sites. 
The development was a joint venture of the City Council and a private 
developer.33
The area had been in poor conditions before the redevelopment that was 
part of the local structure plan. It was constructed as a concrete fortification 
where shops were linked to the rest of the shopping area by long and 
monotonous corridors. The necessity of the recent refurbishment was 
proved by the shoppers' rather poor opinion about the environment revealed 
in the 1988 shopping survey.  
39  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
The impact of the centre was not revolutionary. The number of specialist 
shops and service outlets was small and the site was dominated by the 
outlets of multiples. The presence of the latter probably accelerated the 
decline of small businesses in the city centre but did not turn the trends. In 
the early 1970s, the centre enhanced the physical environment of the main 
shopping area and strengthened its position as a nodal point in the hierarchy 
of the retail sector.  
The spatial pattern of shopping was effected by the new centre. The 
majority (more than 70%) of local population purchased durable goods in 
the city centre in the 1970s. Two of the most visited stores were located in 
the Haymarket Centre (Littlewoods, Woolworth). The shopping mall was 
constructed at the end of the Gallowtree Gate (considered as the main 
shopping street in the 1970s) and nearby the Clock Tower that became a 
focal point for the shopping area in the 1970s. In this way, Leicester's first 
shopping centre supported the shift of the gravity centre of the main 
shopping area northwards.34  
Environmental deficiencies were emphasised as weaknesses of new 
shopping centre schemes. Architects criticised them for the poor standards 
of construction, their bulky size and boring facades throughout Britain. 
Historical townscapes were often destroyed by their masses. (Although, 
there were successful smaller schemes carried out e.g. in Salisbury and 
York.) The environmental effect was not favourable on the periphery of the 
main shopping area either: the process accelerated the blight of secondary 
shopping streets and the decline of small shops (Bennison, Davies, 1980). 
In Leicester, the new centre was marked in the modernist master plan 
prepared for the city centre at the beginning of the 1970s. The re-designed 
pedestrian area of the Clock Tower was the planned centre of the intensive 
pedestrian circulation with stepped walkways around. The buildings in its 
vicinity were to be used for shopping and entertainment (upper floors). The 
central role of the Gallowtree Gate was to be maintained. The street was to 
be filled up with kiosks, flowerbeds and seats. In long term, an elevated 
covered walkway with moving floor and frequent pedestrian bridges to 
department stores on both sides were planned. The secondary centre of 
40  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
shopping was to be formed in the High Street. The Retail Market (under a 
permanent roof) was planned to be one of the foci of the main shopping area 
and linked to the Town Hall Square by shopping arcades. (Fig. 1) The latter 
was considered inadequate in size and construction for the proposed civic 
centre. The main shopping area was to be dominated by high rise towers 
linked by pedestrian routes and shopping arcades to the market and the main 
shopping streets.  
Planners did not seek for preserving the historical shopping core. Their 
purpose was to create a safe and pleasant environment and provide 
sufficient space for new office and shopping developments. The Haymarket 
Centre’s bulky size was not to disturb the view of the planned high rise 
towers, it was fitted in the plan of a new and modern city centre. It was a 
potential focus of shopping trips linked to the other destinations of 
pedestrian routes. The idea of the main, extended shopping area rested on 
department stores as the most dynamic forms of retailing and the increasing 
purchase power that provided growing demand for the goods sold in the 
stores. 
The Haymarket development was criticised by planners for the blight of 
secondary shopping streets. This effect of the new centre was more 
significant in the years of depression of retailing, in the late 1970s and early 
1990s. The centre had an unfavourable impact on the liveliness of the city 
centre as well: it was closed in the evening and the whole area became 
„dead” in the heart of the city. Such unfavourable effects were experienced 
in the 1970s and supported the shift of planning philosophy towards 
preferring smaller scales and saving historical and aesthetic values of the 
city centre in the 1980s. 
41  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
6.4 Controversial approaches towards retail planning: the 1970s and 
 1980s 
As a consequence of the depression of the late 1970s, demand for durable 
goods was declining. The growth rate of population was moderated, and 
local authorities had to consider two characteristic trends: increasing 
deconcentration of inhabitants and rising proportion of ethnic minorities in 
the inner cities.  
The City Centre suffered from heavy job losses in the 1970s as a result of 
the decentralisation. Master plans prepared for the area were dominated by 
smaller schemes that served the whole population, such as the improvement 
of the environment of the market, subsequent extensions of the 
pedestrianised area and face lifting of historical buildings in shopping 
streets. Transformation of land use was also encouraged. Industrial use of 
land was shrinking and factories were re-used for service purposes. Local 
government intended to stabilise such trends and consolidate the urban form 
in the 1970s and 1980s (even by rising the residential density) that was a 
complete reversal of the expansive plans of the 1950s and 1960s.  
The 1971 Structure Plan for Leicester proposed saving the primary role 
of the city centre in the shopping hierarchy as the centre of retailing of 
durable goods. “Proposals for shopping development elsewhere must have 
been reviewed in the light of the effect on the potential of the city centre to 
fulfil its primary role.”35 Attractiveness of the city centre was to be 
increased through environmental improvements (see the proposals of the 
master plan for the city centre). The idea of forming shopping precincts 
dominated the proposal that included the main shopping street, the 
Haymarket Centre and the Market Place as primary centres of retailing. The 
1971 plan considered the process of population growth and urban sprawl as 
well. Shopping facilities for new suburbs were planned as extensions of 
existing centres or additional facilities in locations with good private and 
public transport access. 
The plan suggested a substantial increase in shopping floorspace in the 
central area (78000m2 until 1991). It was a slight over-estimation of the 
future growth rate. Since the plan was prepared before the trends towards 
42  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
decentralisation of bulky food and non-food goods occurred, it would not 
allow for the expansion of floorspace that has happened in suburban centres. 
As a consequence, retail planning policy shifted from the original (1971) 
proposals to more flexible attitude towards suburban developments. The 
new stores provided mainly convenience goods and could not compete with 
the city centre on the market of durable goods.  
The  1976 Structure Plan Written Statement proposed new suburban 
shopping facilities to meet areas of need for convenience goods in the north-
east, north-west and south-west of Leicester. This need has been matched 
with the development of the Co-op superstore at Thurmaston, the Tesco 
store at Beaumont Leys and the Asda store at South Braunstone. (Fig.4) The 
reason for permitting such schemes was the increasing demand of suburban 
population for convenience goods as a result of the urban sprawl. New 
large-scale developments eliminated the deficiencies in food provision of 
the population. They were carried out by the largest national chains 
(Sainsbury, Tesco, Asda) that have been increasing their share on the market 
of convenience goods significantly since the late 1960s. The stores operated 
bus services that corresponded with the 1971 Structure Plan proposals. 
Deconcentration of shopping facilities resulted in declining share of the city 
centre
 on the market of convenience goods: superstores were closed on the 
main shopping area (e.g. the Tesco supermarket in the Lee Circle) and new 
ones were opened in the suburbs.  
Since the attitude of the central government became more flexible 
towards the out-of town schemes in the 1980s, new large- scale covered 
centres were built on the periphery of cities along arterial roads throughout 
Britain. They included multiple outlets and specialist shops selling 
convenience and durable goods. Variety of goods and services and the 
generous provision of car parking facilities diverted the demand of 
suburbanites from traditional inner city shopping centres. Local planners 
predicted an increasing demand for durable goods.36 They considered 
American shopping malls as great commercial success. The downward 
spiral of retailing in the downtown as a result of sprawl of shopping 
facilities and the high costs of bringing this function back to the city centre 
43  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
inspired the planners to rely on planning control over developments on 
peripheral locations.  
In Leicester, the only major out-of-town shopping centre scheme 
(London and Edinburgh Trust Scheme, the Fosse Park) was carried out at 
the junction of the A46 arterial road and the Inner Ring, in the vicinity of 
the M1 Road. The new centre became extremely popular among retail 
investors: national and international chains occupied the area, but proportion 
of small specialist shops of the selling floorspace remained low. It became 
the main rival of the main shopping area as well. Shoppers preferred it for 
the good accessibility and the generous car park provision (96% of the 
contributors used motorcar in 1994) that made the Fosse Park the largest 
magnet of food shopping. Since the importance of combined shopping trips 
was increasing, the new out-of-town centre increased its share on the market 
of durable goods as well but the primacy of the main shopping area was not 
endangered severely in segment of the market. Other regional shopping 
centres such as City Centre of Nottingham, Loughborough, Hinckley and 
Belgrave Road also had considerable part in the non-food shopping trips. 
Local planners had consider their attraction in planning shopping facilities.  
The development resulted in a considerable loss for a group of city centre 
retailers. The Marks & Spencer’s (the most visited store in the city centre in 
the early 1980s) suffered a substantial (about 20%) loss of turnover after the 
opening of the Fosse Park. The company suspended the plans of the 
extension of the floorspace on the Lewis’s site. Secondary shopping streets 
(outside the central core) were also effected: the floorspace for selling 
comparison goods decreased by 23% between 1984 and 1992. The impact 
of the shopping centre on the central area has been estimated as much as 
10% recently.37  
To stop the decline of retail turnover in the city centre, local authorities 
objected each application for the extension of the Fosse Park in the 1990s. 
The actions of local planners and the boom in retail investments in the 
1980s weakened the impact of the Fosse Park. As a consequence, the 
number of vacant shops was decreasing in the city centre. 
44  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
6.5 Actions for preserving the city centre 
New developments on the periphery of the city (such as the Fosse Park 
scheme) and its consequences challenged local planners. Preservation of the 
city centre and its retail function was emphasised in local plans in the 1980s 
already. Governmental policies towards housing, country and town planning 
and retailing were criticised by local planners in the late 1980s because 
major out-of-town shopping centre developments reinforced the 
decentralisation process and involved social issues such as the increasing 
differences between the supply of white suburbanites and disadvantaged 
social groups (immigrants, elderly and poor households).  
In the 1980s, local authorities supported suburban developments of 
private developers (the Fosse Park had been approved by the local 
authorities as well) and they spent considerable amount of public money on 
saving the City Centre from the consequences of such decisions. To 
improve the access to the city centre shops and stores, local public 
transportation
 system was re-organised and an extensive pedestrianisation 
was initiated in the Clock Tower area and the main shopping streets 
between 1985 and 1993. Such steps resulted in a spatially continuous 
pedestrian shopping precinct. 
Small scale retail development schemes were carried out in the 1980s as 
well. They were redevelopment and infill schemes38 improve the built 
environment. They were related to traffic regulations, increasing capacities 
of car park sites39 and pedestrianisation. The St. Martin’s speciality 
shopping precinct built in the second half of the 1980s provided smaller 
units for specialist shops, crafts, boutiques and tourist shops. Such schemes 
have been carried out permanently in the city centre since the 1960s as a 
result of the redevelopment of obsolescent buildings. The new precinct was 
made a focal point of shopping trips in the city centre extending the main 
shopping area from the surroundings of the Gallowtree Gate westwards, to 
the Market Street. (Fig. 1) 
At the end of the 1980s, the coincidence of changing governmental 
policies and investment boom in the retail sector, there was an increasing 
interest in the future of the main shopping area. The City Centre Action 
45  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
Programme (1987-1995) in Leicester targeted the revival of the city centre 
functions. The plan included pedestrianisation, a new purpose-built 
shopping centre, covered market, frontage refurbishment, more attractive 
and better parking facilities, new housing in the Central Area, establishment 
of speciality and festival shopping areas, organisation of exhibitions and 
cultural events, promotion of speciality shopping and development of 
leisure and catering services. The Haymarket Centre had been bought by a 
consortium led by Arlington Securities in 1988 that intended to invest in the 
improvement of the internal and external appearance. The transaction was 
inspired by the increasing uncertainty of the future of out-of-town 
developments and it was encouraged by local authorities as well, because 
the planned renovation met their purposes.40  
As a result of the program, retail floorspace increased by over 45000 
m2(1988/1992) in the City Centre. Proportion of durable goods was growing 
further. The program proposed an extension of the pedestrian area and the 
complete exclusion of vehicles (even the buses) from the Clock Tower area. 
The result was a quality open space that links the southern and northern 
parts of the main shopping area. The actions for the renewal of the 
environment of the Haymarket centre, increasing support for small 
restaurants and cafés were initiated to sustain the viability of the city centre. 
Retaining the residential function of the centre was also stimulated through 
conversations (i.e. “living over the shop” programs). To encourage the 
transformation, the City Council used compulsory purchase orders and 
grants for residential schemes. To gain sufficient space for the extension of 
shopping and residential area and satisfy the increasing demand for modern 
office floorspace, local authority initiated a renovation program of industrial 
and old office buildings as well.  
The most important step towards improving shopping conditions in the 
city centre was the implementation of the Shires scheme. It was a 
redevelopment scheme in the vicinity of the Clock Tower area. The modern 
mall was opened in 1992, on 45000m2 floorspace with a substantial car park 
provision (i.e. 1000 sites on the top floor). Since then, it has been extended 
by 48000 sq. ft. and car park facilities were also enhanced (by 900 sites). It 
46  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
was undoubtedly the largest scheme since the World War II that has taken 
up a lot of new retail growth in the City Centre and its success provided a 
new focus for the central shopping core. (Fig. 1) 
The implementation of the scheme was started in the years of prosperity 
of the retail sector. Additional developments were planned such as the 
redevelopment of Lewis’ Place in the vicinity of the Haymarket centre41, 
refurbishment of the Retail Market and construction of a shopping precinct 
between the latter and the Shires. Such combination of shopping 
developments and their location at the focal points of the main shopping 
area resulted in an extension of the central core with the Shires in its focus. 
The streets linking planned nodes were “filled up” by shops, restaurants and 
cafés. As a result of the developments, the number of shops has not declined 
since 1992 that is a significant deviation from the national trends.  
The success of the Shires rested on the presence of multiples such as the 
Debenhams and House of Fraser that occupied almost 60 % of the 
floorspace. Number of smaller shops specialised mainly for fashion goods 
are housed in the centre as well. The mix of goods and different types of 
shops attract the majority of shoppers.  
Conditions of shopping centre developments changed in the 1980s. 
Improvement programs for inner cities were initiated by the central 
government and more attention was paid to the future of the main shopping 
area. There was a political indication behind the policy change that 
coincided with the aims of local programmes: to save the city centre as a 
focus of community life and improve shopping facilities for the population 
of inner cities. The prosperity of the sector provided private capital 
resources for the schemes in the late 1980s. 
The  indirect effect of the developments was an increase in private 
investments outside the planned centres. Both multiple companies and local 
speciality shopkeepers (selling durable gods) may be considered as winners 
of the process occurred in the 1980s and 1990s. Multiples considered town 
centre as the most desirable place for their outlets, because the new schemes  
accommodated small businesses that have important complementary role 
attracting specialised demand. But many of the independent retailers were 
47  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
effected by the developments badly. The gravity centre of the main 
shopping area shifted northwards that had negative micro-regional impact 
on the secondary shopping streets of the southern shopping area (i.e. the 
Granby Street and its surrounding). This part of the city witnessed a 
growing number of vacancies and increasing role of services.42 (Fig. 1) 
Results of shopping surveys made in 1984 and 1995 proved a 
considerable improvement of the image of the main shopping area
Particularly, a wide range of goods, good accessibilitysafety, high quality 
of the layout and the extension of the covered shopping facilities were 
highly appreciated. The Shires became the most visited place in the city 
centre (it is a primary aim in 42% of the cases). Other developments such as 
St. Martin shopping precinct (21%) and the Retail Market (18%) also must 
be considered successful according to the shoppers and retailers as well.  
The empirical results proved that the pattern of shopping trips inside the 
city centre is dependent on household incomes and ethnicity. The Shires is 
in the centre of white middle-class shoppers’ trips. The City Centre is 
attractive for the majority of young people with no regard to ethnicity or 
incomes. The Retail Market is also a popular destination, but the proportion 
of Asians and elderly is higher. The Haymarket centre is specialised for the 
demand of lower income groups, particularly, for ethnic minorities. Multiple 
outlets, such as Sainsbury’s and the C&A are in the focus of shopping trips. 
Such division of shoppers and their movements was formed by the new 
developments. The lower prices of the Haymarket centre or the Retail 
Market that are favourable for households with lower income is a result of 
the competition reinforced by the Shires scheme. The main shopping centre 
became more colourful, offering more durable and specialised goods for 
each group of shoppers.  
 
 
48  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
7 Final findings 
 
 
Deconcentration of urban population and economic activities involved a 
dispersal of services satisfying the needs of residents throughout Europe. 
Increasing rents and congestion of the central areas of cities inspired 
investors to move their plants to the periphery of cities. Deconcentration of 
consumer services (including retailing) and manufacturing has been started 
in the 1960s and such activities were followed by producer services in the 
1980s and 1990s. Business services, institutions of public services of higher 
order remained in city centres and so did the restaurants and speciality 
shops. The process of dispersal of urban population and services was 
particularly advanced in Belgium, the Netherlands and in the western lands 
of Germany. 
As a result of the suburbanisation process, shopping centres on peripheral 
sites were constructed in the 1970s throughout the western part of the 
Continent. The process was supported by the developments of national 
chains that had an increasing share on the retail market and formed 
strategies at international scale in the 1980s to answer the challenge of the 
Single Market. The impact of organisational concentration, spatial dispersal 
of shopping centres and increasing scale of stores involved the decline of 
corner shops and decline of city centre functions until the late 1980s. The 
increasing role of international chains raised the issue of local identity in 
this period: European cities feared of losing it and the problem was 
associated with the spiral decline of inner cities that effected the viability of 
the city centre as well. Extensive pedestrianisation and re-development 
schemes (widely using the precinct idea) were implemented throughout 
Europe particularly, in Germany. Town planning turned towards small scale 
schemes in inner cities and city centres but American-type shopping malls 
and out-of-town food stores remained in regional plans.  
The  British case has always been considered as a particular one. 
Although, organisational changes occurred just like on the Continent, new 
forms of retailing were present on the market to less extent. Furthermore, 
49  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
British retail companies established less outlets and branches in Europe than 
Germans, French or Dutch organisations did. Britain represented a different 
way of control over the expansion of large retail companies, as well: spatial 
consequences 
of the developments have always been highly considered.  
The peak of planning control over the sprawl of retail stores was in 1968 
in Britain. The planning act set up a framework for planning retail provision 
at larger scale for an entire region. The planners’ purpose was to save the 
existing shopping hierarchy in behalf of the residents of inner cities and 
provide sufficient supply of convenience goods for the suburbanites. Such 
attitude resulted in a fairly compact spatial form of retailing compared to 
Germany, the Netherlands or Belgium: the majority of new stores remained 
in the inner area of cities and construction of new shopping malls was 
allowed only on central sites.  
The reversal of this policy occurred in the 1980s: the Tory government 
limited the activity of county planning bodies and at last, the organisations 
were dissolved. As a consequence, the only adequate level for planning 
regional shopping centres in the framework of regional structure plans was 
deceased. Central governmental control was taken over retail developments 
and the entire planning process in the 1980s. Direct intervention was known 
in Europe in the case of building out-of-town shopping centres (see Jacques 
Chirac’s steps against the construction of shopping malls in France in the 
1980s). The British control was rather strict compared to other countries of 
Europe and the decision-making process was slow and bureaucratic. In this 
way, the relatively small number of large scale peripheral developments was 
implemented. 
There was an increasing need for renewal programs of city centres as a 
consequence of the urban sprawl, financial difficulties of local authorities 
and lack of planning control over retailing at regional and county level (e.g. 
Fosse Park development). The high number of disapproved schemes and the 
increasing demand for durable goods turned the investors towards city 
centres again in the late 1980s. Local planners received financial support for 
the revitalisation programs in the way the Tory planning policy allowed it: 
private capital was used not only for gaining profit and stimulate economic 
50  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
growth of cities but also for the benefit of the residents. Improvement 
schemes of inner cities
 supported by the central government (as a 
consequence of the social unrest of urban poor) also contributed to the 
enhancement of city centre retailing.  
The decline of city centre retailing endangered community life and the 
supply of disadvantaged social groups of inner cities. The decay of 
traditional shopping streets might involve the fall of other functions of the 
city centre in favour of out-of-locations. The problems were recognised and 
remedied by the re-invention of retail planning, successful renewal schemes 
and  co-operation of settlements in large scale developments in Britain. To 
avoid harming public welfare, spatial consequences of decisions of 
enterprises and multiple companies must be considered and integrated into 
long-term planning proposals by local leaders. Lack of co-ordination and 
planning strategies may involve urban decay, fading identity, losing sense of 
community, and social unrest. This is a lesson that the East European 
countries should learn from: there is a need for long-term planning at local 
and regional level, as well. 
 
 
 
 
 
 
 
 
 
Notes 
 
                                                           
1 I interviewed six retailers on the declining Granby Street and five in the High Street, that 
is considered to be increasingly prosperous. 
2 The term “inner city” is used as the area between city centre and the suburbs. In functional 
terms, it could be identified as the “transition zone” of Burgess’s concentric model.  
3 It is defined as a shopping centre situated outside the built-up area of the city, providing 
most of the goods and services available in the main shopping area in the city centre. It 
includes at least one department store and the whole retail floorspace takes at least 400 
000sqft with substantial car parking facilities.  
4 Hypermarkets are self-service shops of more than 10 000sqft floorspace selling food 
predominantly. 
5 Without considering the boundary change in 1966 that resulted in 15500 rise in the 
number of inhabitants in Leicester. 
6 Population density was (and still is) extremely high in  Wycliffe. 
51  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
                                                                                                                                                    
7 In 1991, the proportion of households having no car was 72,4% in this ward. 
8 Particularly, in Castle Ward. 
9 According to the shopping survey prepared by the City Council in 1992, 29% of the 
interviewed city centre shoppers did their weekly shopping on their way home from their 
workplace. 
10 Convenience goods are sold by grocers and provision dealers and other food retailers. 
Durable goods are provided by clothing and footwear shops, household shops, other non-
food retailers and general stores. Nomenclature of the 1971 Census of Distribution was 
used. 
11 The national average was 61% in 1991. 
12 In the 1970s, number of city centre commuters increased by 11% in Leicester. 
13 Source: Shopping Survey of Leicester City Council, 1988. 
14 The source of data was the Census of Distribution, 1961 and the Shopping Survey of 
Leicester City Council, 1992.  
15 Their number increased from 367 up to 7000 between 1961 and 1980 in the UK. They 
are self-service stores selling convenience goods. 
16 Their selling technique and range of goods sold is similar to that of supermarkets but 
their floorspace is over 10.000 sq. m. 
17 Superstores are large retail units with at least 2500 m2 of selling area, situated outside 
conventional commercial centres. Food and non-food goods are sold by self-service and 
extensive car park facilities are provided. 
18 Retail enterprises having less than 10 branches 
19 Sainsbury, Tesco, Dee Corporation, Argyll (Fine Fare/Lo Cost/Safeway), Asda 
20 ST. Matthew’s East/Humberside Road, St. Matthew’s Wes/Belgrade Gate, 
Blackfriars/Highcross Street: the vacancy rate far exceeds the city average. Physical and 
social environment is being eroded. 
21 Superstores are single level, self-service stores offering of food and non-food 
merchandise with at least 25.000 sq. ft. sales area and supported by car parking.  
22 The source of the data is the City of Leicester Local Planning Papers by J. Dean city 
planning officer, Nov. 1992 
23 Retailing in Inner Cities. National Economic Development Council, Economic 
Development Committee for the Distributive Trades, 1981. 
24 „The Future Pattern of  shopping”, prepared by the National Economic Development 
Office in 1971. 
25 The expression is used as a synonym of the main shopping area.  
26 A. H. Tripp 1938: Road Traffic and its Control. London: Edward Arnold 
27 „Traffic in Towns”, 1963 
28 Source: Shopping Survey, Leicester City Council, 1992. 
29 The first step of pedestrianisation was always a temporary traffic exclusion between 7.30 
a.m. to 6.00. p.m. From Monday to Saturday that was followed by full time restrictions 
with exceptions (buses, taxi, loading vehicles) and as a final step, banning all vehicles.  
30 In 1990, Belvoir Street, High Street, Carts lane, Guildhall Lane, Silver street, in 1991, 
Horsefair Street, Halford Street, Granby Street, Bishop Street, Market Place, Market Place 
South and Market Place Approach, in 1993, Charles Street and Loseby Lane were added. 
31 They were redevelopment schemes in local plans. The land was acquired by the local 
52  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
                                                                                                                                                    
authority using its right for compulsory purchase. Vast areas transformed in this way like 
the Victoria Shopping Centre in Nottingham, Eldon Square in Newcastle-upon-Tyne or the 
Haymarket Centre in Leicester.  
32 In the 1960s and 1970s, many of them were planned as shopping precincts. Although, the 
precinct has never been defined, it was widely used by urban and traffic planners after the 
World War II. 
33 Taylor Woodrow Property Devp. Ltd. 
34 Source of data: Shopping Survey, Leicester City Council 1984 
35 Shopping Survey, Leiceseter City Councli, 1988 Part 2.2. 
36 They were right: there was a bom in the demand for durable goods in the second half of 
the 1980s. 
37 An estimation by J. Dean, City Council of Leicester, 1992. 
38 Royal Hotel/Sun Alliance in the Horsefair Street, 12-18 Belgrave Gate and 53-57 Church 
Gate, in fill development with car parking, Picture House, in Granby Street, an infill 
development, Furnitureland, Church Gate, a retail warehouse. 
39 Car park tariffs were the lowest among the regional shopping centre in the East Midlands 
Region and the car park supply was exceeded only by the level of the car park provision in 
Nottingham. 
40 Central Governmental policies shifted towards a more rigid and stricter control over such 
developments from the late 1980s. 
41 In the original plan, the new development and the Haymarket Centre were to be linked by 
a covered shopping arcade. The plan was abolished because of the declining demand and 
retail investments in the 1970s.  
42 This phenomenon is considered as a symptom of  decline of shopping streets. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

53  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
Discussion Papers, No. 26.
                                                                                                                                                    
 
 

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54  
 

Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
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Nagy, Erika : Fall and Revival of City Centre Retailing: Planning an Urban Function in Leicester, Britain. 
Pécs : Centre for Regional Studies, 1999. 57. p. 
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57  
 




Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain 
                                                                                                                                                    
 
 
 
 
 
The Discussion Papers series of the Centre for Regional Studies of the 
Hungarian Academy of Sciences was launched in 1986 to publish summaries of 
research findings on regional and urban development. 
The series has 4 or 5 issues a year. It will be of interest to geographers, 
economists, sociologists, experts of law and political sciences, historians and 
everybody else who is, in one way or another, engaged in the research of spatial 
aspects of socio-economic development and planning. 
The series is published by the Centre for Regional Studies. 
Individual copies are available on request at the Centre. 
 
Postal address 
Centre for Regional Studies of the Hungarian Academy of Sciences 
P.O. Box 199, 7601 PÉCS, HUNGARY 
Phone: (36–72) 212–755, 233–704 
Fax: (36–72) 233–704 
 
 
Director general 
Gyula HORVÁTH 
Editor 
Zoltán GÁL 
 
* * * 
58  
 

Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain 
                                                                                                                                                    
Forthcoming in the Discussion Papers series 
Changes in the Politico-geographical Position of 
Hungary in the 20th Centuryby Zoltán HAJDÚ
 
Papers published in the Discussion Papers series 
No. 1  OROSZ, Éva (1986): Critical Issues in the Development of Hungarian 
Public Health with Special Regard to Spatial Differences 
No. 2  ENYEDI, György – ZENTAI, Viola (1986): Environmental Policy in 
Hungary 
No. 3  HAJDÚ, Zoltán (1987): Administrative Division and Administrative 
Geography in Hungary 
No. 4  SIKOS T., Tamás (1987): Investigations of Social Infrastructure in 
Rural Settlements of Borsod County 
No. 5  HORVÁTH, Gyula (1987): Development of the Regional Management 
of the Economy in East-Central Europe 
No. 6  PÁLNÉ KOVÁCS, Ilona (1988): Chance of Local Independence in 
Hungary 
No. 7  FARAGÓ, László – HRUBI, László (1988): Development Possibilities 
of Backward Areas in Hungary 
No. 8  SZÖRÉNYINÉ KUKORELLI, Irén (1990): Role of the Accessibility in 
Development and Functioning of Settlements 
No. 9  ENYEDI, György (1990): New Basis for Regional and Urban Policies 
in East-Central Europe 
No. 
10 RECHNITZER, János (1990): Regional Spread of Computer 
Technology in Hungary 
No. 11  SIKOS T., Tamás (1992): Types of Social Infrastructure in Hungary (to 
be not published
No. 12 HORVÁTH, Gyula – HRUBI, László (1992): Restructuring and 
Regional Policy in Hungary 
No. 13  ERDŐSI, Ferenc (1992): Transportation Effects on Spatial Structure of 
Hungary 
No. 14  PÁLNÉ KOVÁCS, Ilona (1992): The Basic Political and Structural 
Problems in the Workings of Local Governments in Hungary 
No. 15  PFEIL, Edit (1992): Local Governments and System Change. The Case 
of a Regional Centre 
No. 16  HORVÁTH, Gyula (1992): Culture and Urban Development (The Case 
of Pécs) 
59  
 

Discussion Papers 1999. No. 26. 
Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain 
                                                                                                                                                    
No. 17  HAJDÚ, Zoltán (1993): Settlement Network Development Policy in 
Hungary in the Period of State Socialism (1949–1985) 
No. 18  KOVÁCS, Teréz (1993): Borderland Situation as It Is Seen by a 
Sociologist 
No. 19  HRUBI, L. – KRAFTNÉ SOMOGYI, Gabriella (eds.) (1994): Small 
and medium-sized firms and the role of private industry in Hungary 
No. 20  BENKŐNÉ Lodner, Dorottya (1995): The Legal-Administrative 
Questions of Environmental Protection in the Republic of Hungary 
No. 21  ENYEDI, György (1998): Transformation  in  Central  European       
Postsocialist Cities 
No. 22   HAJDÚ,  Zoltán  (1998):  Changes  in  the  Politico-Geographical      
Position of Hungary in the 20th Century 
No. 23   
HORVÁTH, Gyula (1998): Regional and Cohesion Policy in  
Hungary 
No.24   BUDAY-SÁNTHA,  Attila  (1998): Sustainable Agricultural 
Development in the Region of the Lake Balaton 
No. 25  LADOS, Mihály (1998): Future Perspective for Local Government    
Finance in Hungary 
No. 26  NAGY, Erika (1999): Fall and Revival of City Centre Retailing: 
Planning an Urban Function in Leicester, Britain 
No. 27   BELUSZKY, Pál (1999): The Hungarian Urban Network at the End 
of the Second Millennium 
No. 28  RÁCZ,  Lajos  (1999):  Climate  History of Hungary Since the 16th 
Century: Past, Present and Future 
 
 
 
 
 
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