UK retail parks market set to outperform high streets over next five years
A new report has proven that retail parks are becoming more attractive to shoppers as they become less dominated by electricals & DIY retailers and more by high street fashion & beauty brands.
According to GlobalData, the UK retail parks market is expected to grow by 13.8% between 2017 and 2022, with the sector set to outperform the high street. Brits are increasingly choosing retail parks over high streets for their convenience and improving tenant mix, with 90% of consumers saying they have shopped at a retail park in the last year. Additionally, 54.3% of those surveyed by GlobalData said they visit a retail park at least once a month.
“The retail parks landscape is changing drastically as discounters in particular are rapidly expanding their share of the market. Indeed, retailers such as Aldi, Lidl, Home Bargains, and Poundland have grown their presence, leveraging their low price points to draw in shoppers,” says Charlotte Pearce, retail analyst for GlobalData.
Over the next years, discounters will increase their presence in the market by 6% to 20.3%, helping retail parks generate high footfall and attract a broad range of shoppers. On the other hand, traditional retail park retailers from the electricals and DIY & gardening sectors will see their share of the overall market decrease.
The report reveals there are growing opportunities for clothing and footwear retailers in retail parks as the tenant mix shifts away from more traditional sectors. Retailers who secure openings at new or expanding retail parks will benefit from first mover advantage and have almost total control of the market at that location, avoiding the high levels of competition seen on high streets and shopping centres.
“Despite the clear opportunities offered by retail parks, offline retail remains a challenge as consumers continue to shop online. Retailers must embrace multichannel and support the growth of click and collect in stores, highlighting the convenience of retail park stores for consumers, such as free parking and ease of access,” concludes Pearce.
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