Unit 3

• Between 1970 and 2006 the Tertiary sector component of the UK economy grew from 50% to 78% of GVA ( Gross Value Added - the value of goods and services produced in the UK)
• Gentrification


  The displacement of working-class populations in an area, as more affluent population move in. The process results in increased house prices and changing local services to reflect the changing demographic.
• Stage 1: The 'Early Stage'


  1. In run-down, deindustrialised working class inner city locations, artistics/hipster groups move in to take advantage of low rent/cost buildings and housing. These incoming groups are known as 'urban pioneers'

  2. New trendy artistic hipster community develops with associated new services e.g. ethical stores and coffee shops.
• Stage 2 : The 'Transitional Stage'


  1. Reputation of the area is enhanced as a 'trendy' hipster location

  2. New more affluent, liberal/left wing residents ( jounalists, lecturers, media and creative IT workers) move in to area attracted by the positive social vibe

  3. Tourist/visitor numbers increase as people visit bars/restaurants and other services in the locality

  4. Demand for both residential and commercial property increases with subsequent rise in price/rents. Investment in and renovation of building improves environmental quality and appeal

  5. Working-class population outpriced who subsequently leave the area

  6. Existing low value services cannot afford higher rents and replaced by higher value value products and services reflect more affluent population
• Stage 3 : The 'Late Stage'


  1. Reputation firmly established as trendy affluent and upcoming area

  2. New wealthier residents attracted are from higher income managerial and business classes

  3. Private sector corperate investment results in: New exclusive housing devlopments, Corperate tertiary office based employment develops, Services are increasingly orientated to the highest income groups

  4. Original working class and urban pioneers are priced out of area and forced to relocate
• Shoreditch is an 'inner city' area located in the 'East End' borough of Hackney, northeast of the City of London (the financial heart of the capital)
• In the 1980's, Shoreditch had faced deindustrialisation of the garment and furniture industries, as a result, the area contained many buildings, workshops and warehouses which had fallen into disrepair
• 1990's – Stage 1 of gentrification


  1. The area around Hoxton Square started to attracted a new artistic community including people such as Damien Hurst, Tracy Emin and Alexander McQueen

  2. Illegal warehouse raves took place in empty warehouses and 'greasy spoon' working class cafes still operated in the changing mixed community

  3. Steet art was created on many buildings reflecting the artistic community
• The 2000's - Stage 2 of gentrification


  The area had become one of the trendiest places in London attracting an influx of hipster types and business with rising property prices
• The 2010's to present – Stage 3 of gentrification


  By 2010 the demographics of Shoreditch where representative of a wealthy middle-class population with changing services to reflect the growing affluence
• Professional occupations


  Percentage increased from 7% to 18% between 1991 and 2011 in Shoreditch, according to census data.
• Skilled trades occupations


  Percentage fell from 14% to 7% between 1991 and 2011 in Shoreditch, according to census data.
• In 2015, Versace opened a London store in Shoreditch


  Anti-gentrification protests occurred as local people felt disenfranchised by the growing affluence and corporate characteristics of the area
• As a result of gentrification, lots of niche small businesses are created. Some businesses suffered heavily from anti-gentrification protests such as the Cereal Killer Cafe, in Shoreditch
• In 2015, paint and smoke bombs were thrown at the Cereal Killer Cafe, customers were threatened and the business was sent harmful messages on Twitter
• New corporate driven developments

  • Galliard Homes "The Stage", where three bedroom apartments can cost £2.57 mil
• Brindley Place


  In stage three of gentrification
• Brindley Place gentrification


  1. In the 1990's, £200+ mil was spent on water decoratives such as blue corridors, in retail, hospitality and a sea life centre

  2. By 2004 all of the office buildings were complete, creating over 10,000 jobs

  3. The scheme also contained 143 new houses and apartments in the Symphony Court development, which was designed to encourage more people to live in the city rather than outside of it (re-urbanisation)

  4. The mixed land use meets the employment needs of the long-term residence of Ladywood
• According to the 2011 census, the number of homes rented from the council varied greatly at Ladywood 137C (inside the redeveloped area) and Ladywood 136A (outside of the redeveloped area), just 1% percent to 73% respectively, furthermore the England average was 9%
• In Ladywood 137C 71% of people were educated to degree level and 80% were aged 20 to 44, whereas in Ladywood 136A just 19% were educated to the same level and 42% were between the same ages
• Re-urbanisation


  The movement of people back into urban areas that have previously experienced outward migration. The process attract more affluent young members of society employed in the growing service sector (tertiary and quaternary) of the economy
• Local multiplier effect


  The growth in a component of the local economy from an initial investment in another part of the economy
• Reasons for continued decline of central urban areas

  • Internet Shopping, which was accelerated by COVID-19
  • Out of town shopping centres
• In 2014, retail specialist the Harper Dennis Hobbs devised a unique ranking of the top 500 British retail centres, which scores the quality of the retail offer: The Vitality Index. At position 500 was Dudley.
• The Vitality Index


  • Took in consideration factors such as the proportion of premium/luxury retail outlets, the proportion of low value retail, the proportion of vacant premises
• Dudley High Street in the 1970's contained many large departments stores such as Debenhams and Beatties, as well as a range of 'High Street' stores including Marks & Spencer's, Woolworth's, C&A and Curry's, none of these stores remain
• Today much of Dudley's High Street is dominated by vacant premises or low value discount type stores
• Merry Hill retail centre


  • Located on the site of the de-industrialised Round Oaks Steel works, the area became part of an 'Enterprise Zone' in the 1980's to encourage regeneration
  • Constructed in a series of phases between 1985 and 1989 covering a total area of 125 acres
  • Has 220 stores including major anchor stores such as Debenhams, Marks & Spencer.
  • Attracts over 20 million visitors per year, an average of 385,000 per week
  • Employs in excess of 4000 staff
• The Waterfront office park development


  • Located just 600m from the Merry Hill Shopping Centre, constructed between 1990 and 1994, covers an area of 60 acres
  • Contains over 45 000m2 of office space
  • Employs over 3000 people in tertiary sector occupations
  • Key employers include: Barclays, Prudential and Virgin Media
• The Bullring


  • Costing £530 million, covering 26 acres and containing 160 shops including large department stores such as Selfridges, attracts 40 million shoppers each year from a the West Midlands and beyond
• The Metro: Opened in 1999 this light rail system connects Wolverhampton with Birminghman centre. Passing through Dudley's outer eastern districts it has made travel to Birmingham easier for many thus reducing the number of people who may otherwise have travelled to Dudley for their shopping needs
• The West Midlands shop vacancy rate is around 18.9%, whereas in Dudley it is about 1/3