2020 brought about the acceleration of the already monumental changes to the retail landscape and many trends that were creeping into effect pre-Covid have been forced to mature almost imminently. Ecommerce sales soared to record highs of 36% of total retail sales, online supermarket sales almost doubled from 7% to 13% and retail vacancy across the UK reached 12%, equating to 95 million sq ft.
Furthermore, with changing consumer trends we estimate that by the end of the decade almost 308 million sq ft of retail space will be redundant, increasing to 492 million sq ft by 2040. It’s not that they don’t function as retail spaces, they simply have too much of it.
So what does this mean for the future? As the old adage goes, with challenge comes opportunity. The era of siloed retail spaces is over and we must adapt and transform these locations to encompass not only retail but leisure, healthcare, education, experience and wellbeing. They need to sit with residential and workspace, expanding their use to different day parts, as well as fitting to the needs of a diverse consumer base.
Retail still has its place, but perhaps not solely as retail places. We need to think of these as consumer hubs that are no longer just about shopping, and more about mixed-use, sustainable communities.