Complex question of who loses out

By James Kerr BBC Northern Ireland business editor

Retailers near Victoria Square say business suffered during building

When it opened in the early 1990s, CastleCourt was the biggest development that the centre of Belfast had ever seen.

After a shaky start, the complex has played an important part in bringing shoppers down Royal Avenue and regenerating that part of the city centre.

However, retailers on Royal Avenue may have some concerns about the impact of the new rival; wondering if it will pull pedestrian traffic, and money away from this part of town once more.

Belfast city centre manager Andrew Irvine says that while there may be a short-term movement as shoppers check-out the new centre, he believes everyone will benefit in the long run.

"There is a master-plan behind this; we have two 'pulse points' - CastleCourt and now the Victoria Centre, with a good retail offer between the two.

We believe it is important to be alongside the new types of retailer that Victoria Square has brought to Belfast Barry McCahon Lunn's

"This plugs a gap in terms of high-end retail, the sort of retailing that you have had to go to rival cities to see.

"I believe that this will help reverse that flow of traffic and bring more people into the city centre."

One well-established local retailer, the jewellers Lunn's, has decided to open a new store in Victoria Square, operating from the new location and its two existing outlets.

The company's Barry McCahon says that they have invested heavily in their existing businesses to make sure that they remain competitive in the face of the increased competition.

"I think this part of town may catch a cold for a while, but like may retailers we have been investing heavily," he says.

"We believe it is important to be alongside the new types of retailer that Victoria Square has brought to Belfast."

One area where most retailers welcome the opening of the new centre is in the streets immediately around it.

Retailers in Ann Street and around Castle junction have seen the area gradually become run down.

VICTORIA SQUARE 1.8 hectres of land 17 different buildings 98 shop units 106 apartments 1,000 car parking spaces 3,000 construction staff 3,000 retail staff In pictures: The new centre

On top of this, they have had to endure several years of chaos while the redevelopment was going on.

Michael Rowan, who manages clothes store Frazer on Cornmarket, admits it has been a difficult period.

"The footfall has all but disappeared in this area over the past two years while the redevelopment was going on," he says.

"I believe Victoria Square can do us nothing but good; shoppers aren't going to just stay in the centre, they are going to spill out into this area."

What's next?

For the builders and developers, Victoria Square will quickly become yesterday's story, with the focus now on what comes next.

The next area earmarked for redevelopment is the land surrounding North Street, facing out onto Royal Avenue, opposite CastleCourt.

The scheme has been named Royal Exchange, and within four to five years the focus of the city centre may start to move northwards again as this development takes shape.

When it is completed in 2012 or 2013, the city centre in Belfast will be a very different place from the one that celebrated the opening of CastleCourt two decades before.