Insider Media Limited

Talks have already begun with several major names to move into Birmingham’s New Street station following John Lewis’ announcement that it would take 250,000 sq ft at the development. Speaking exclusively to Insider, Birmingham City Council leader Mike Whitby said that it was conducting discussions with some of the country’s biggest retail names. The retail giant’s move is estimated to create up to 900 new jobs and boost the local economy by £25m each year.

The new store will directly create 650 new jobs and Birmingham City Council estimates that the store will boost the local economy by over £25m every year.

Whitby told Insider that the store – which will create an estimated £100m of investment - was set to be one of John Lewis’ largest outside London, and was the company’s first post-recession opening.

“This store will be the anchor of a major development – it is the first John Lewis store to open in six years,” he said. “I believe a lot of organisations in London will be asking why John Lewis has chosen to open up such a huge scheme in Birmingham. It will generate huge interest in the city and no doubt prompt other retailers to look to Birmingham and think about investing in the city.”

Whitby added that the city council had already begun talks with several big names to join John Lewis in the New Street development.

The announcement was made at an event in Birmingham attended by David Higgins, chief executive of Network Rail.

David Higgins said: “Network Rail is helping to rebuild Birmingham by transforming New Street. The project is about much more than simply redeveloping the station.

“Today’s deal is a further sign that our plans are critical to the long term success of the city and will create new jobs and help stimulate economic growth. These exciting changes are happening as a direct result of the investment being made to improve Birmingham’s transport infrastructure.”

Andy Street, managing director at John Lewis, said: “Together with a progressive city council and Network Rail, we are pleased to play our part in the regeneration of Birmingham city centre. We will deliver a landmark, long-term investment and quality job creation. This project fulfils John Lewis’s longstanding ambition to bring our unique retail and employment offer to Birmingham. Our presence in Birmingham will also enhance competition, choice and quality for the benefit of regional shoppers.”

The new store will be located alongside the Birmingham New Street redevelopment on a site to the south side of the station. Network Rail will construct the new store alongside the rebuilding of New Street station.

Subject to planning approval, it is expected that the new store will open in 2014.