As a number of well known high street retailers continue to struggle, what is the future for retail property on the UK’s high streets? TJ Hughes and Jane Norman have recently gone into administration, and HMV and Waterstones continue to struggle – what will happen to the empty commercial property these defunct brands will leave behind?
Retail properties are unlikely to be occupied by stores such as W H Smiths, Game or Jessop’s in the future, as these are shops that offer products that are increasingly bought elsewhere.
It is possible there will be a high volume of unoccupied space available but who will want to fill it? It won’t be retailers who occupy the middle ground, offering products that are easier and cheaper to buy online with Amazon or Play, or in the supermarkets where a shoppers can not only buy their weekly groceries but also the kids birthday presents, a new duvet set and a pair of slippers.
So the question is what products and services will consumers still make the effort to go to the high street for? This is the question those in the retail commercial property industry need to have at the forefront of their thinking.
Rarely will major online retailers or supermarkets offer expert knowledge in specific product areas, or provide the customer service you would look for if buying a luxury item.
Jewellers Pandora is a case in point, offering high quality, hand finished, modern and genuine jewellery products, in outlets that are modern and inviting. New Pandora stores are continuing to popup all over the country.
In addition, it is unlikely that consumers will accept the idea of going to Morrison’s for a dental check up, a bikini wax or a catch up over coffee with friends, meaning the service sector will continue to thrive on the high street. Matthew Hopkinson, from the Local Data Centre, predicts ‘[the high street is] going to be full of services, and social aspects. It’ll be full of hairdressers, tanning salons, cafes and restaurants. There might be doctors and dentists there. And it’ll become very leisure-focused.’
With this in mind, to continue to be successful in the future it will be important to consider where the future of the high street lies, and how the empty properties that will doubtless become available can be best presented to the prospective businesses expected to flourish. Will one HMV store need to become four smaller, specialist outlets? Do retailers need to accept that there is no longer any point competing with the supermarkets and focus on offering shops and a service that they do not?
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