Since 2007 the number of supermarket developments has grown a staggering 57 per cent and this figure is set to rise over the next few years. This raises the question of will there soon be a supermarket on every street corner, whether it is an express or big commercial property?
According to CBRE, supermarket developments make up 38 per cent of all retail commercial property developments currently in the pipeline. This is an increase of 13 per cent, when compared to four years ago. To put it in perspective, there is 5.34 million sq. ft. of space in the UK which either has a supermarket commercial property currently being built or has plans are being drawn up for one to be constructed.
Speaking of the supermarket growth, Chris Keen, Director at CBRE said: “There are not many sectors of the UK property market that are growing rapidly these days, but supermarkets are a notable exception.
“The withdrawal of speculative developers following the onset of the 2007 credit crisis provided supermarkets with a rare window of opportunity to increase expansion activity levels, an opportunity, most key grocery players grasped with alacrity.”
Take a look around your local area, high street and shopping centre; I am sure you will agree that either a big supermarket or a small express version has popped up somewhere. But why are food retail commercial properties growing so substantially?
“With speculative development at a recessionary low, grocery development is often the only game in town and could remain so for a lengthy period.
“We do not expect the supply of new supermarkets to dry up while non-food and service operators retreat from the High Street and smaller markets.
“The internet, home delivery, and ‘click & collect’ are unlikely to fill the hole and the obvious way of tapping local, everyday non-food items and services is via supermarkets. The scramble for grocery space consequently looks set to continue,” Chris added.
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I never really thought about it, but they are popping up left, right and centre. It’s good in some ways for ease, but little independent shops will suffer in the long term.
Exactly Anna and Melinda, it is the little independent shops that will suffer the most.
Some towns are that are supporting their independent shops, like Nottingham.
I agree with the last comment. We should be supporting our local independent retailers.