• UK town centre sales decline but spending will grow 0.2% in 2018

        • The UK town centre retail market been in decline since 2015, but it is forecast to rise 0.2% in 2018 and will continue to grow out to 2022, with sales in the town centre market being driven by convenience goods particularly in the food & grocery sector. However, town centre retail market will underperform against the overall growth of total physical retail sales in the UK over the next five years, which will be driven by retail parks and supermalls, according to data and analytics company, GlobalData.

          The company’s report: ‘UK Town Centres 2017-2022’ reveals that shoppers are looking to more attractive physical locations as well as the online channel to satisfy rising expectations for experience, product choice and convenience. This is particularly true for clothing & footwear with spend in town centres forecast to decline by 2.1 per cent in 2018.

          Occupied retail space in UK town centres is estimated to decline by 0.8 per cent in 2018 as retailers choose to close underperforming stores in high street locations where footfall has weakened and they continue to focus investment on destination stores in more attractive locations, while food service and leisure operators also move in to satisfy changing consumer needs.

          Charlotte Pearce, Retail Analyst at GlobalData said, “town centres are losing their appeal as the online channel is increasingly offering shoppers greater convenience and supermalls like Westfield Stratford are providing a superior all-round experience for consumers looking to shop, dine and socialise in one place.

          “With retailers investing in flagship stores in these key locations, town centre stores are often neglected, particularly by retailers with a large number of stores. As these regional stores become less attractive over time, it is inevitable that spend will shift to more attractive channels which offer a greater experience for shoppers.”

          GlobalData’s report also forecasts that food & grocery expenditure in town centres will rise 3.6 per cent in 2018, making it the fastest-growing sector within the UK town centre market. It will benefit from overall growth in the sector and the continued shift in consumer behaviour towards top-up shops and purchases of food-for-tonight and food-on-the-go items, following investment from grocers.

          Charlotte added, “food & grocery spend will prop up the town centres market while non-food sales in these locations will continue to decline as more clothing & footwear retailers close underperforming stores in the channel. Though this can have a damaging effect on a town centre, it presents an opportunity for other retailers to move in and capture shopper spend.

          “While rising costs are becoming increasingly problematic for retailers, investment in smaller town centre stores is needed in order for these locations to remain an attractive destination for shoppers. Despite waning appeal, town centres are still a key retail location, accounting for more than a third of total retail spend in the UK in 2017.”

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • Need for multi-layered approach to customer experience identified

          Need for multi-layered approach to customer experience identified

          Tuesday 19th Jun 2018 by clareb
          Despite consumers demanding an ever-more personal service, a new report from marketing platform, iAdvize, in partnership with InternetRetailing, has revealed that just half (50%) of retailers believe that they offer the same level of c...Read More...
          72 per cent of the UK fear theft of personal data from company hacks

          72 per cent of the UK fear theft of personal data from company hacks

          Monday 18th Jun 2018 by clareb
          Almost three quarters of the nation fear their personal details will be stolen every time they hand over bank details and email addresses to companies, it has emerged.   The general distrust of organisations and web-based stores emerged in a stu...Read More...
          81% of millennials would relocate up to 4,000 miles for work

          81% of millennials would relocate up to 4,000 miles for work

          Wednesday 13th Jun 2018 by clareb
          Feeling homesick? That doesn’t seem to be a problem for millennials, as new research from mobile current account, Monese, has found that 81 per cent of the generation would relocate up to 4,000 miles in the pursuit of work. ...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue