Two reasons why Sutton Coldfield chosen by multi-national Harvey Norman for new shop

Harvey Norman has set up its UK headquarters at Sutton Coldfield's Gracechurch Centre with its new shop set to go into the site's former BHS premises

A retail giant has revealed why it has chosen a ‘dated’ shopping centre in Sutton Coldfield as its base for its UK headquarters and its second biggest store in mainland Britain as its lease deal is confirmed.

Australian home and lifestyle retail giant, Harvey Norman, dubbed the John Lewis from Down Under, is growing its fledgling UK retail to add a fourth shop at the town’s Gracechurch Centre.

The Aussie firm has more than 300 shops worldwide selling furniture, bedding, technology and electrical appliances from its homeland to Malaysia, Singapore, Slovenia, Croatia, New Zealand and the Republic of Ireland

It is now expanding in the UK from two shops in Belfast and its first mainland shop at nearby Merry Hill in Dudley, into the former BHS site at Sutton’s main shopping venue with a 20-year lease.

Read more: Plan to transform former BHS into new look department store

Customers will have access to 'renowned brands' such as Dyson, Apple, Samsung, LG, Miele, and Sage, as well as a bespoke cooking appliance centre, Love Tech setup services, and click-and-collect options 'for added convenience'.

And as well as a shop, the retailer is using the Gracechurch Centre as its UK headquarters with officers already nestled above shops at the site.

The new shop will create ‘up to 100 jobs’, across sales, marketing, online, finance, procurement, operations, warehousing, administration and management, including several apprenticeship opportunities.

But this is a little lower than the 150 to 160 roles detailed in the planning application.

The chain’s Merry Hill shop opened last October and is said to have ‘welcomed a significant number of shoppers from across the region and beyond’.

Harvey Norman was established in Sydney, Australia by Gerry Harvey and Ian Norman in 1982 has grown into a global player and the move to Merry Hill and next Sutton is expected to support its UK expansion drive, with more West Midlands sites expected to create a further 200 jobs.

But why Sutton Coldfield as the base for its HQ and new shop?

Read more: New giant café come bakery opens replacing two long-vacant stores

Katie Page, CEO at Harvey Norman, said: “The West Midlands’ high-grade retail space and exceptional connectivity are two key reasons why we’ve chosen Sutton Coldfield as the home of our new UK headquarters and to launch our next store here.

“Gracechurch will provide an excellent hub for our growing UK team and I look forward to returning to the region soon as we progress our expansion plans.”

The Gracechurch Centre posted: “Deal done. We’re thrilled to announce that multinational home and lifestyle retailer Harvey Norman has signed a 20-year lease at Gracechuerch Centre.

“The agreement covers 53,000 sq ft of prime retail space which has remained vacant since the closure of BHS in 2016, along with UK head-quarters.

“Landlord works have commenced on-site with the new store opening anticipated in 2026.”

The centres owners said: “Since the centre’s acquisition, footfall has outpaced national trends, with a number of stores and businesses opening over the past 12 months. Harvey Norman will occupy one of the largest retail spaces in the centre.”

Alex Tarlo, founder of SAV Group, said: “The arrival of Harvey Norman marks a significant milestone in Gracechurch’s transformation and underscores our bold vision for its future.

“By choosing Gracechurch for their UK headquarters and latest store, Harvey Norman has demonstrated strong confidence in our strategy to position the centre as a leading regional retail destination.

“This lease also signals the start of substantial investment across the centre, aimed at further enhancing the visitor experience.”

West Midlands Mayor, Richard Parker, has said the Harvey Norman expansion is a sign high street shopping is coming back.

He said: “Harvey Norman’s investment is a big win for Sutton Coldfield.

“It’s proof that our high streets can thrive again, creating jobs and giving people more reasons to visit, shop, and socialise.

“With new jobs and homes on the way, we’re delivering real opportunities and making this town a great place to live and work.”

The West Midlands Combined Authority (WMCA) said it is backing plans to ‘breathe new life’ into the 250,000 square ft Gracechurch Shopping Centre through a multimillion pound investment, including new homes, leisure, retail, commercial and other uses.

It said; “Through its state-of-the-art facilities, Harvey Norman’s choice of the site for their UK headquarters will support the business’ strong commitment to employee wellbeing and development.”

Read more: Shop shares 'unfortunate' reason for closure after 25 years

Lachlan Roach, managing director of Harvey Norman UK, said: “Expanding into Gracechurch, Royal Sutton Coldfield, is a significant step in our UK growth strategy.

“This location provides the perfect setting to showcase our diverse product range while delivering the world-class service for which Harvey Norman is renowned.

“The West Midlands is a thriving community, and we are excited to contribute to its retail landscape by offering a premium selection of electronics, technology, and furniture.

“We believe in the potential of Gracechurch and look forward to working with the SAV and BPG teams to bring our vision to life.”

Harvey Norman’s investment drive is being supported by the West Midlands Growth Company (WMGC) – the region’s official investment promotion agency - which is helping the business to identify possible investment sites, in conjunction with local skills teams.

WMGC said it has also facilitated valuable introductions in support of Harvey Norman’s recruitment drive and provided the business with specialist consultancy across a number of areas, including trading in the England marketplace for the first time.

These investments follow the implementation of the UK-Australia Free Trade Agreement in May 2023, ‘removing unnecessary barriers to the UK market for Australian businesses’ and ‘strengthening trade ties between the two countries’ the WMGC said.

During the 2023/24 financial year, the West Midlands is said to have consolidated its strong track record in attracting foreign direct investment (FDI).

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According to the latest EY UK Attractiveness Survey, the region is said to have ‘bucked a general trend of FDI decline’, recording a 72 per cent rise in FDI projects.

Birmingham also entered the record books, recording 67 FDI projects – the highest number recorded by a regional city in the last ten years.

Stephen Smith, High Commissioner of Australia to the UK, added: “The United Kingdom is Australia’s second largest investment destination, as well as our second largest source of investment.

“This major investment by Harvey Norman into the West Midlands is a great example of how investment is mutually beneficial and supports economic growth and jobs in both Australia and the UK.

“The Australia-UK Free Trade Agreement, which came into force on 31 May 2023, is providing new opportunities to expand trade and investment by lowering barriers to trade and encouraging new investment.”