More than two decades after the last garments left the production line, the former Dewhirst site in Sunderland has been fully transformed into a modern retail destination. The final phase of the scheme, consisting of drive-thru units for Greggs and Starbucks, is now open to the public at Pennywell Industrial Estate, completing the regeneration project led by UK Land Estates.
The two outlets are adjacent to the already trading Wickes, Aldi and KFC stores, meaning the site now hosts five national and global brands. UK Land Estates, which is among the largest owners of commercial property in North East England, was granted planning permission in 2022 to develop the seven-acre site into an edge-of-town retail park. Investment in the project is understood to have surpassed £10 million.
A historic industrial site reborn
The origins of the site go back more than a century. Dewhirst, once a household name in clothing manufacturing, made menswear jackets, trousers, waistcoats and top coats for Marks & Spencer. At the time of its closure, the company relied on M&S for around 90% of its sales, and bosses said the Pennywell plants were not 'sufficiently profitable' to keep open. The Leechmere factory closed in 2002, and the Pennywell operation ceased production a year later, with the loss of hundreds of jobs. For roughly two decades, the site remained largely vacant.
Today, the landscape is very different. The retail park now offers a diverse mix of amenities for residents and businesses in the area. DIY enthusiasts can visit Wickes, while Aldi covers everyday grocery needs. The addition of Greggs and Starbucks, alongside KFC, provides food and drink options for those on the go, making the site a one-stop destination for many shoppers.
Why demand for out-of-town retail is booming
According to Tim Witty, development director at UK Land Estates, interest in the site has been intense since planning permission was first obtained. He said: “We’ve seen a real surge in demand for well-connected, out-of-town retail parks over recent years and the redevelopment of the former Dewhirst site is a prime example of this. As soon as we were granted planning permission in 2022, we were inundated with queries from parties looking to capitalise on the site’s prime location, so it is fantastic to finally see it complete and bearing fruit.”
Witty added: “In Wickes, KFC, Aldi, Starbucks and Greggs we have been able to attract five national and global brands to the site, creating dozens of jobs for local people while providing a major lift to the city’s economy. It has been a fantastic project to be involved in and I’m sure as we look ahead to 2026, there will be yet more sites to follow as we seek to capitalise on the seemingly increasing popularity of the North East as a great place to invest and do business.”
Boost for Sunderland and the wider North East
The completion of the Dewhirst scheme is a significant milestone for Pennywell and the wider Sunderland area. Located on the edge of the city, the retail park benefits from strong road links and easy access from established residential neighbourhoods, making it a convenient destination for shoppers arriving by car. The project is also expected to contribute to the local economy through new jobs and increased footfall.
UK Land Estates, which has its roots in the North East, continues to be a major player in the region’s commercial property market. Its principal holdings include Team Valley, Teesside Industrial Estate and Tyne Tunnel Industrial Estate, along with a portfolio of other assets. The success of the Dewhirst redevelopment, according to the company, underscores the growing appeal of the North East as a destination for investment and business growth.
