Stratford City is set to be shopping and Olympic destination

Marks & Spencer has joined Waitrose and John Lewis to become one of the first retailers to commit to the site. M&S has signed a contract with the developer to establish a flagship store in the area, despite chief executive Sir Stuart Rose's recent announcement that it was 'throttling back' its expenditure programme by £200m.

The 140,000ft2 store will be small-er than the retailer's flagship 170,000ft2 Marble Arch outlet, but will house its full range of clothing, food and homewares.

Waitrose and John Lewis have also committed to anchor stores in the complex, with the latter opening its first branch in East London. The retailer's Oxford Street and Bluewater stores are currently its closest to the area.

Westfield is hoping the Stratford City site will rival London's West End, which is struggling to remain the UK's most attractive shopping destination. Eight UK shopping centres are due to open by 2010. Among these is the Liverpool ONE development, which will house the biggest Debenhams in the UK.

'The Stratford development is expected to put the East End of London in the top 30 UK retail locations by 2017,' says a spokesman for Experian, which collates retail property inform-ation about British shopping centres.

Another sector looking to cash in on the regeneration programme, and the expected £2bn boost to tourism revenue, is budget hotels. Westfield Stratford City has planning consent for almost 35,000m2 of hotel space across two locations, which are likely to be snapped up by market leaders Premier Inn and Travelodge.

The latter's £1.4bn Olympic growth strategy includes plans to add 200 hotels to its UK portfolio, of which five will serve the Olympic area. Meanwhile, Whitbread-owned Premier Inn is also planning to pick up sites in the area as part of its programme to open 43 hotels within the M25 boundary before the Games begin.

Westfield Stratford City will also provide leisure and entertainment opportunities. The Chestnut Plaza outdoor shopping and dining space will host concerts and events as it looks to establish itself as a cultural destination.

While some retail analysts believe that the Westfield development is essential to East London's regeneration, others warn that some shops may struggle to continue operating after the 2012 Games. Many travel insiders are also concerned that hotel expansion in the area may result in a bulk of empty stock after the Olympics.

However, Nick Gray, managing director at retail design agency Live & Breathe, which works with Zavvi and Bluewater, claims the development's 'community feel' will sustain it.

'It is not just a regular shopping centre,' he says. 'A community is being built around it that will attract a wider consumer audience. It is likely to provide a blueprint for future shopping centres in the UK and abroad.'

Data file: Stratford City

• Stratford city will cost £4bn to build and will cover 120 acres.
• The first phase will be completed in 2009. The city is scheduled to finish by 2020.
• The site will encompass seven zones, including a city-centre retail development (Zone 1).
• Westfield Stratford City will cover 1.2m ft2 and will house 300 food outlets and shops, including John Lewis, Waitrose and Marks & Spencer.
• Stratford City will have 5000 homes and more than 1200 apartments.
• It is served by the Central and Jubilee Tube lines, North London overground and National Rail. A DLR station will link directly with Canary Wharf and City Airport.
• During London 2012, Zones 2-7 will house the Athletes Village, facilities and spec-tat-or services.
• A Stratford International Station will offer Eurostar services, giving access to Paris, Brussels and other European destinations.
• London 2012 will bring in 9.6m ticketed spectators, with 2.6m overseas spectators expected to travel to the Games. 
• Public transport is designed to bring 240,000 spectators an hour to the area. Most will pass through Stratford City.