The future of retail property and how we got here

The evolution of retail property and into the future

For much of the last three decades in retail, aggressive expansion of physical space drove market share as retailers’ key strategies involved ‘land grab’, while the broadening of the grocery sector into non-food proposition created even fiercer competition.

A rapid increase in stores across high streets and shopping centres ensued, as well as the development of larger ‘big-box’ stores, frequently located in out-of-town retail parks. In part, large chain retailers and landlords were able to turn to capital markets to fund extensive real estate build-outs, leading to the development of new shopping centres, retail parks and lifestyle centres, which added to and cannibalised the traditional town centres they encroached upon. 

“A rapid increase in stores across high streets and shopping centres ensued, as well as the development of larger ‘big-box’ stores, frequently located in out-of-town retail parks”

Retail in the last decade

Over the last few years there has been a reversal of many of these trends. This was a catalyst for consumers to start looking for cheaper alternatives at a time when improvements in technology brought-about heightened transparency in pricing, service and quality, and the discounters had a much firmer foothold in the market. The past decade has seen digital transformation pave the way for more sophisticated, multi-channel retail propositions, supported by an uptake in smartphone usage and online shopping, ultra-convenient same-day home deliveries and efficient click-and-collect. The value of online was estimated at £70.3 billion in 2018 and accounted for just under £1 in every £5 spent.