Two years ago, the new owners of Sutton Coldfield’s Gracechurch Centre unveiled bold redevelopment plans to modernize the shopping destination for the 21st century. Now, those plans have undergone a significant transformation, according to John Southall, director of Birmingham Property Group (BPG), co-owner of the centre alongside London’s SAV Group.
Originally announced in April 2024, the redevelopment intended to demolish existing units flanking the centre’s middle section and replace them with multi-storey towers accommodating around 700 apartments, a hotel, retail units, restaurants, and public spaces. While welcomed by political leaders, some locals expressed concern about the scale and height of the proposed buildings.
Fast forward to 2026, and the vision has shifted markedly. The northern section will no longer feature new residential towers. Instead, Australian retail giant Harvey Norman—dubbed the “John Lewis of Down Under”—is taking over the former BHS unit, which has been extensively refurbished with modern glass-fronted façades, brickwork, and wood finishes.
READ MORE: Dusk’s Chic Pom-Pom Bedding Set Now Just £10 – Shoppers Rave ‘You Won’t Be Disappointed’
READ MORE: I grew up half in Birmingham and half in Manchester – why the second city debate is pointless
Beyond retail, the owners have recently secured planning permission for an innovative padel court complex atop the multi-storey car park, complete with a restaurant, tapping into the country’s growing health and leisure trend. According to Southall, the complex is poised to draw visitors who will in turn boost local shops, eateries, and the broader town centre economy.
John Southall, a Solihull resident with longstanding ties to Sutton Coldfield, acknowledged national challenges impacting retail, including multiple store closures in the centre from brands like River Island and JD Sports in early 2026. However, he emphasized that new successes, like The Military Chef chocolate shop, The Victorian Tea Room’s expansion, and Silver Tree Bakery’s popularity—whose pastries even attracted Harvey Norman’s UK head office—signify a resilient retail heart.
A significant hurdle for many retailers remains business rates, not rent. Southall pointed to recent increases by Chancellor Rachel Reeves as a heavy burden on independent traders, stressing that rates are the biggest cost impacting high street vitality.
Regarding the original large-scale redevelopment, Southall confirmed a scaled-back approach. While many elements have evolved, plans for a 120-room hotel operated by a third party remain, alongside new office space to meet growing demand for modern, flexible workplaces outside central Birmingham. Residential development will continue but on a smaller scale than initially envisioned.
The southern section of the Gracechurch Centre is slated for a mixed-use scheme, combining hotel, residential, office, and retail units designed to complement the community’s needs. The refreshed plan will be unveiled by the end of 2026.
Meanwhile, improvements are underway within the centre. Following the Harvey Norman refurbishment, contractors will upgrade the middle section, including the covered shopping area, within six to eight weeks. Negotiations with prospective tenants for spaces vacated by previous retailers are active, and plans for using external areas as event spaces are progressing.
Southall revealed a desire to invigorate Sutton Coldfield’s night-time economy—currently limited compared to other areas—by attracting family-friendly leisure and dining options. Initiatives like the Mini Me 9 children’s play centre exemplify efforts to retain young families and widen the town’s appeal.
Car park facilities will also see modernization. The current outdated entry and payment systems are set for a comprehensive upgrade to enable special offers and integrated parking benefits, supporting retailers’ efforts to attract shoppers.
In a broader context, Southall mentioned ongoing interest in the nearby Red Rose Centre, which has suffered from tenant loss. BPG aims to enhance the entire town centre’s health and is in talks with Birmingham City Council about potentially acquiring the site to drive positive regeneration.
Additional investment within Sutton Coldfield complements these efforts, including a new Aldi on Brassington Avenue, the opening of a Rudy’s restaurant on Birmingham Road, and a £20 million Pride in Place fund supporting further developments. The much-anticipated Gateway Scheme, designed to improve town centre accessibility, remains a key long-term project.
Community feedback plays a vital role in shaping the centre’s future. Southall praised the support from local officials and residents, emphasizing that BPG and SAV Group are committed to listening and delivering meaningful improvements.
With multi-million-pound investments underway and a refreshed, community-focused vision, the future of the Gracechurch Centre aims to blend retail vitality, leisure innovation, and a welcoming public space at the heart of Sutton Coldfield.