'Jewel in the crown' department store at the heart of Meadowhall's offering

"IT'S going to be wild," enthuses Mike Crofts, the general manager of House of Fraser, as he guides me through the department store, which is undergoing a 5m refurbishment.

Once completed, it will become the jewel in Meadowhall's crown after the biggest makeover the Sheffield shopping centre has ever seen in one of its stores.

It expects double-digit growth in the first year, moving it into one of House of Fraser's top 10 stores for turnover.

A team of 100 construction workers is half-way through the redevelopment programme, which will increase store space by five per cent and create 30 additional permanent jobs on top of the present 300 House of Fraser staff.

The 40,000 sq ft store will introduce 18 new brands, including Crme de la Mer, Laura Mercier, Links of London, Swarovski, Biba and Mint Velvet.

The small marble entrance will be replaced with a floor-to-ceiling walls for a grander entry, and many of the departments will be moved around.

"When customers walked in they used to see a warehouse full of racks, but now they will get the absolute wow factor with the beauty department," says Mr Crofts.

"The beauty department used to be Meadowhall's best-kept secret, hidden away on the ground floor near the car park, but we expect sales to quadruple after relocating it."

The womenswear department is being extended on the second floor and will be joined by beauty and accessories and a new 1m caf with fresh local produce.

The homeware department has been reduced by half and has been joined by menswear on the ground floor.

According to Mr Crofts, who oversees nine stores within the House of Fraser portfolio, the refurbishment has been 10 years in the making so it's no wonder his eyes light up with excitement as he shows me design boards for the new caf and enthuses about new lighting and flooring.

"What Meadowhall has lacked is an absolute premium department store," he says. "We will become a significant reason why people will choose to come here instead of other shopping centres."

Meadowhall officially celebrates its 20th anniversary on September 4, during the most challenging economic period the centre has experienced.

In the last two years, Darren Pearce, centre director, has overseen a restructuring of the business, which has led to a streamlining of the management team and the recruitment of directors with backgrounds in retail operations and marketing.

The business has cut about 100 jobs over the last 18 months, mostly through natural wastage.

Earlier this year, Mr Pearce revealed plans to double the size of Meadowhall's Oasis food court in an effort to get a bigger slice of the night-time economy.

Eighteen months ago, he also decided to address the areas which were under-represented, such as high-end high street fashion. In the last year, 30

new retailers have opened, including LK Bennett, Lipsy and Phase Eight.

The good news is that less than two per cent of Meadowhall's retail space is unoccupied, compared with six or seven per cent at other shopping centres. Footfall is slightly down, by 1.1 per cent, but annual customer spend is up seven per cent year on year, to 756m, and it has some of the best performing stores in the country.

Retailing has become more competitive in the last 20 years, meaning Meadowhall, along with other retail destinations, has had to make sure it is constantly on the ball.

"We have to be at the top of our game, go back to basics and understand our customers," says Mr Pearce as we sit outside Starbucks in The Gallery of Meadowhall.

"The line-up within this environment is key in terms of what we are offering. We are a bit more scientific about how we operate now. We used to theme different areas of the centre and put all the shops with the same theme together, but we have mixed it up because customers are more savvy. They might buy an expensive item and mix it with something from Primark."

Meadowhall is also becoming more technology-savvy in its marketing, using the likes of Twitter, Facebook and YouTube to promote the brand, and it is also looking at creating a smartphone app.

Marketing director Richard Pinfold says: "We have got to be in tune with what is happening out there – we need to be where our customers are."

As for the prospect of future retail destinations, such as Sevenstone in Sheffield and Trinity Leeds and the Eastgate Quarter, taking away some of the market share from Meadhowhall, Mr Pearce says he's not worried.

"It signifies that the retail market is moving in a positive way," he says.

"The fact that key property owners are willing to make that investment can only be positive for the market and for Meadowhall.

"Meadowhall is an iconic brand and recognised across the country, which is an incredible draw."

From steelworks to chic works

Built on the site of an old steelworks at a cost 250m, Meadowhall was

the vision of two entrepreneurs, Eddie Healy and Paul Sykes.

The centre, which opened on September 4, 1990, has an annual footfall of 25m and plays host to 305 units including 200 independent and national stores; 10 anchor stores; 50 places to eat, and 12,000 free car-parking spaces.

The 11-screen cinema was added in 1993 and was opened by Catherine Zeta Jones.

There is 1.5m sq ft of retail floor space and the centre is a major employer in the region with 216 dedicated Meadowhall staff and up to 7,000 employed by retailers at peak times.

Meadowhall is owned by British Land and London & Stamford Investments and has a current asset value of 1.271bn.