While there are many examples of government and business working well together to deliver improvements to the high street it is clear that the retail sector has been adapting and finding its own solutions. Redwood’s Tom Belger looks at some recent changes.
Despite well-publicised problems, it has not been all doom and gloom for the retail sector. Retail parks have seen a strong uplift in performance, thanks to their larger unit sizes and cheaper rents hitting a sweet spot with discount retailers, convenience stores, leisure operators, grab-and-go coffee outlets, as well as expanding restaurant chains. Their proximity to major road networks has also allowed them to benefit from the rise in ‘click and collect’ shopping, and their ample – usually free – parking means footfall remains consistently high.
So, can high streets and town centres follow the lead of retail parks?
With city and town centres increasingly pedestrianised and more reliant on public transport, it is hard for them to compete when it comes to capitalising on the ‘click and collect’ boom. Also, higher rents and rates for units in city and town centres often deter discount retailers.
However, leisure and hospitality are two areas which can offer hope to the high street.
Before, during, and after the pandemic, the idea of creating a reason to ‘go into town’ has been banded around in various thought leadership columns in the national and trade media. The pandemic did halt this process, but we are now certainly seeing it start to come to fruition.
Large town centre department stores have been transformed into multi-level leisure destinations that are home to activities such as go-karting, bowling, e-sports and adaptations of popular TV shows. These are then surrounded by an abundance of dining options, catering for all sorts of culinary needs.
This is a true, rounded family offer; the kids can meet their friends in the e-sports experience, while the parents shop for essentials and have a coffee whilst taking a well-earned break from the kids.
Leisure experiences are also bringing young adults back to the high street. Gen Z and Millennial groups have been slow to return to the office, but have been far quicker to return to bars, restaurants and leisure experiences – keen to return to normal socialising and un-restricted interactions.
We have supported clients really driving this agenda, helping them to promote their changing occupier mix:
- Retail & Leisure International: Lazy Sundae to Open New Manchester Outlet
- Property Week: The Cube live gameshow to come to Manchester Arndale
- EG: Ninjas take over Chelmsford retail warehouse
- EG: Giggling Squid joins Cardiff Bay’s waterfront community
As well as the socialising aspect, people increasingly want to showcase their experiences on social media which creates a FOMO (Fear of Missing Out) amongst peers. F&B and leisure operators have capitalised on this, creating strong social media teams which post regularly about new experiences people can enjoy, and thus entice them back to the high street regularly.
So, is more leisure and hospitality the way to enhance the high street? Good operators certainly can have the pulling power to entice people back, but it needs to be supported with continued investment from local authorities and landowners to create a welcoming experience for all visitors. Joined-up working and regular engagement with stakeholders and consumers has never been more important.
