EXCLUSIVE: Locals in Peterlee, County Durham, say their town centre is a shadow of what it was as shops and banks close.
Locals say Peterlee town centre has lost its soul (Image: Andy Commins)
Shoppers have said their town centre has “lost its soul” with shops boarded up, two bank branches set to close in months and a row between a property owner and local MP. Over the years locals in Peterlee, County Durham, have seen high street giants Wilko, Woolworths and Poundstretcher close and independents shut up shop in the heart of their town. Meanwhile, the town centre’s two remaining banks, Lloyds and Halifax, are set to close in March. Memories of Peterlee’s branch of Doggarts department store, described as the “Harrods of south Durham”, still linger for some locals, decades after it closed in 1980.
Local, Anne Freeman, 77, said: “It’s lost its soul, Peterlee. It’s a sad, old place.” The retired factory worker was speaking to the Express outside Castle Dene Shopping Centre, which along with Asda dominates the once-thriving town centre.

Castle Dene is owned by Praxis Real Estate Management, which told the Express it has “serious concerns” about the future of the town centre. The asset manager accused the local Labour MP Grahame Morris and Durham County Council of drawing trade away from the town centre by championing out-of-town retail developments. An allegation both denied.
Locals have seen a number of major retailers exit Peterlee town centre (Image: Andy Commins)
Anne Freeman, pictured with her son John Darby, says Peterlee town centre has lost its soul (Image: Andy Commins / Daily Mirror)
Shopper, Marie Parnaby, 38, told the Express: “Shops are closing down left, right and centre. There are more charity shops, coffee shops and nail bars than actual shops. We don’t need all those shops.”
Local, Ellen Foster, 67, said: “Everything has closed. There are beautiful parts of Peterlee but the town centre is a mess. Woolies used to be the heart of the town centre and that’s gone. The good shops are closing. We’ve just got generic shops left.”
David Chambers, 66, helps his daughter run Sweet Dreams sweet shop in Yoden Way. He told the Express: “It’s sad but no different to anywhere else. It’s a gradual decline of high streets across the country, largely due to online shopping.”
He warned footfall could drop further once Lloyds and Halifax close their branches. A Lloyds Banking Group spokesperson said that because many customers now choose to bank through their app or online, visits to the Lloyds and Halifax Peterlee branches have fallen in recent years.
They added: “Customers can use the local Post Office for everyday banking which is a short walk away, and access cash at the nearby free-to-use ATMs. Customers can also manage their money online, by calling us, or at the new Banking Hub once it is up and running.”
Marie Parnaby says there are too many charity shops and nail bars in the town (Image: Andy Commins)
David Chambers says town centres across the country have been struggling (Image: Andy Commins)
Praxis said while Castle Dene Shopping Centre has been the “traditional heart” of retail and community life in Peterlee, the town centre has been “severely damaged” by choices that diverted support and investment elsewhere.
A Praxis spokesman said central to the decline has been the “active promotion” of out-of-town retail developments, most notably Dalton Park, by Mr Morris. He claimed the MP’s championing of its expansion had “siphoned off footfall and commercial vitality from Peterlee’s historic core”.
The spokesman added: “What did Mr Morris and Durham County Council expect would happen to a town centre already suffering from an oversupply of retail units, if even more retail space was built outside the town?
“This is the antithesis of sound urban planning and an egregious example of a local MP working against the long-term interests of his constituents.”
Praxis also accused Durham County Council of approving “multiple” retail developments, including Peterlee Retail Park and Passfield Way parade. It said these decisions undermined Castle Dene’s viability.
Castle Dene was also overlooked as part of regeneration plans, according to the company. It said the town centre had not seen one penny of levelling-up funding despite it being “the one place in greatest need”.
The spokesman added: “Peterlee deserves better. The decline of its town centre has not been accidental – it has been driven by political neglect, poor planning and a complete absence of strategic vision. The community is owed answers and a commitment to real, sustained investment.”
Mr Morris accused Praxis of failing to invest in the town centre while actively seeking to block jobs, investment and growth in the local area.
He said: “The town centre lacks even the most basic facilities, from functioning lifts to public toilets. Meanwhile, remaining businesses are paying high rents but are unable to have issues addressed by the town centre management, who have accepted and overseen its decline.
“I understand Praxis may not welcome competition. However, whether it’s Peterlee Retail Park or Dalton Park, other operators have shown a willingness to invest in our community, delivering new retail and leisure facilities that people actually want to visit.”
Mr Morris accused Praxis of being “quick to blame others” but said it should instead reflect on its own “poor” management and repeated failures. He added: “They have mismanaged a vital community asset, one that should serve as the economic heart of our town.”
Graham Wood, Durham County Council’s economic development manager, said: “We recognise the longstanding issues that all high streets across the country face and know Peterlee has been amongst those most impacted by the challenges.
“The Peterlee Retail Park has been in operation for four years and, when the planning submission was made in 2019, was carefully considered in line with national planning policy and representations raised by all parties, including Praxis. The new development at Passfield Way is designed to provide local amenities to the surrounding houses, rather than a town centre retail offer.
“While the responsibility to maintain and revitalise Castle Dene resides with Praxis as the private owner, we have supported the company on a range of initiatives to stimulate the town centre.”
Mr Wood said this has included help to promote a “Win a Shop” competition; match funding to secure National Lottery monies; funding for a speciality market to help drive footfall and targeted business assistance.
He added: “We have also committed to developing a Strategic Place Plan for Peterlee, which will see the development of a long-term vision for the town through an investment and action plan.
“We will continue to work with Praxis as the owner not only as part of efforts to regenerate the area but to identify opportunities to support their financial investment in Castle Dene.”