According to a new report, retailers in York are seeing an exodus of customers to neighbouring towns. JAMES COOK looks at whether the city centre needs more department stores to keep punters here.

is York experiencing a shopping boom or shopping doom?

Well, the answer to that appears to depend very much on who you speak to and, more importantly, what you read.

The Press told yesterday how a new report by consultants GVA Grimley claimed that, since 2001 the 37 per cent of customers' money spent in the city centre had fallen to 28 per cent, with shoppers turning instead to Leeds, Hull, Harrogate and out-of-town centres such as Clifton Moor and Monks Cross. It claimed city centre shops were capturing a far smaller share of local business than seven years ago, partially due to the lack of any new department stores.

The study said the city centre, while being generally healthy and performing well, could suffer further losses if nothing was done.

But today former council leader Steve Galloway, City of York Council's executive member for city strategy, hit back saying shopping in York was still punching above its weight.

He even said the study was misleading and that city centre shops are trading as strongly as ever.

Coun Galloway said the actual amount being spent in the city centre was increasing and the city centre retail economy was doing well compared with other towns and cities in the country.

He said the city would benefit from another central department store and the Castle Piccadilly area would be a likely site.

He added the £10m investment in city centre including the new Boots store would pave the way for a strong future economy in York.

He said: "I am very confident about the future success of the city centre retail economy."

Ian Gillies, leader of the Conservatives in York, said: "I think the problem we have in the city centre is suitable sites for large department stores.

"I think we're constricted by the nature of the city centre and the lack of a suitable site for John Lewis or whatever, so therefore it's extremely important that we get any future developments right on various fronts, including the retail front."

Nick Brown, chairman of the Brown's department store, said York was bucking the nationwide trend with the city centre showing a small increase in retail success.

He agreed the Piccadilly site would be a potential area for development.

He said: "The new influx of retail into York is very strong and York is actually going against the national trend.

"It was a bit of a surprising report to read.

"Where the White Swan is in town would be a wonderful site for a new department store."

Coun David Scott, leader of the Labour group on York council, said: "This fits into what we've been saying about the decline in the city centre retail for York - with Coney Street being the example."

He said he had warned about two months ago that Labour was concerned retail in the city was not matching customers' expectations.

He said there was a need to attract a department store to York in order to ensure retail in the city matched today's consumer expectations.