The repurposing agenda: how do we reimagine our retail spaces for the future?

Head of Shopping Centre and Retail Investment
Savills

The repurposing agenda: how do we reimagine our retail spaces for the future?

When Savills embarked upon its initial retail repurposing focused campaign, little did we know that a global pandemic was around the corner and that the retail sector was on the brink of facing the most significant set of challenges seen in generations.

For a long time repurposing has been the natural turn of events in dealing with space that time and demand has moved on from, and breathing a new lease of life into tired properties. The term ‘repurposing’ might seem relatively new but in reality the concept has been going on for years.

However, fast track to today and with the accelerated increase in vacant and redundant retail space hitting the market, the repurposing agenda has shot to the forefront of the property debate.

Add into the mix the need to not only repurpose but to do so sustainably, it’s clear we have quite a task on our hands. The launch of the latest edition of Savills Re:Imagining Retail explores exactly this, looking at how we can deliver sustainable repurposing to create towns and shopping centres that are future proof, green, offer solid investment opportunities and provide what communities need.

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.

This considerable shift cannot be done in isolation. Public and private sector engagement is coming together like never before and we have already seen that the best town and city centre redevelopments tend to have strong partnerships between developers and local authorities. In addition, planning policy has arguably never been more supportive and the recent changes to use classes allow for far more flexibility. There are also an increasing array of government funds to help get developments off the ground with 15 types of funding options for regeneration, from the Future High Street Fund, Getting Building Fund and Public Works Loan Board. The world is certainly starting to wake up to the fact that change that is afoot.

Let’s not kid ourselves, the task that lies ahead of us is nothing short of monumental but at Savills we are genuinely excited and have measured positivity and passion about what we are seeing in this market and believe there will be better, more balanced sustainable places as a result. There is a once in a generation opportunity to right previous wrongs, creating destinations that serve greater financial, economic and social value and we’re looking forward to being a part of that.

Download Savills' Re:Imagining Retail report here.

Mark Garmon-Jones

Head of Shopping Centre and Retail Investment
Savills

The repurposing agenda: how do we reimagine our retail spaces for the future?

Related

Stay in touch

Upgrade your plan

Choose the right membership for your business