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WAREHOUSING THE FUTURE


RETAILERS’ INCREASED PRESENCE ON RETAIL PARKS, 2010


TOTAL AREA ON RETAIL PARKS (MILLION SQ FT)


RANK 2010 1


2 3 4 5 6


7= 7= 7= 10 11 12


13= 13= 13= 13= 17


18= 18= 20


Source: Trevor Wood Associates Key, says Skelton, is the provision of


mezzanine space, either to trade from or – especially with services such as click-and-collect – for stock. However, she adds: “Around three-quarters of changes on a retail park need planning permission, which for me suggests far too much red tape.”


Changing times Cushman & Wakefield head of out-of- town Martin Supple agrees, and says that new retailers have instigated change in many of the parks: “Tenant re-engineering and high street-style retailers have brought with them a design change, with more light and glass.” He expects to see greater sophis- tication in the grouping of retailers. For instance, British Land’s Nugent shop- ping park in Orpington has a cluster of 1,000 sq ft units, allowing these smaller units to benefit from adjacencies rather than stand as single units.


XXII Retail Week November 2011


“WERE IT NOT FOR THE DOWNTURN I’M SURE WE WOULD HAVE SEEN FASTER


CHANGE” Martin Supple, Cushman & Wakefield


He adds that Metro Bank has taken


space in Borehamwood shopping park, which he says helps to raise the retail park’s profile. In the future, he expects more types of business, such as banks, to look at retail parks. “In fact were it not for the downturn I’m sure we would have seen faster change, but of course that pace has been slowed by investor and retailer caution,” he says. Supple points out that what has


really changed is the diversification of space requirements. “Not so long ago everyone was trying to find ways of breaking down 40,000 sq ft units and chunking them into smaller 10,000 sq ft outlets. Now we’re seeing retailers like Dixons back in for 60,000 sq ft to 70,000 sq ft spaces while retailers like Everything Everywhere require 1,000 sq ft,” he says. “If you compare the current tenant mixes with even three years ago, when parks were still made up of the likes of Homebase, B&Q


RETAILER Best Buy


Home Bargains Smyths Toys


B&M Bargains The Range Dreams


New Look Peacocks Wilkinson Outfit


Maplin Electronics Next


JD Sports Matalan


Pets at Home Poundstretcher Dunelm


Mothercare World Sports Direct Currys


2009 0.13


0.28 0.29 0.57 0.62 1.00 0.52 0.43 0.33 0.55 0.40 2.58 0.32 3.43 1.86 0.99 1.41 1.24 1.18 4.57


2010 0.40


0.45 0.43 0.85 0.87 1.32 0.63 0.51 0.39 0.64 0.46 2.87 0.35 3.77 2.03 1.08 1.54 1.33 1.27 4.84


% INCREASE IN AREA 68


38 34 33 28 24 16 16 16 14 12 10 9 9 9 9 8 7 7 6


and MFI, that’s a massive difference.” More change is afoot and food is


likely to be crucial. Adam Patrick, occupational adviser at Edgerley Simp- son Howe, says: “Certainly I would say that more recently grocery consents seem to be obtained with more fre- quency, especially on parks on com- muter routes and in smaller town locations, given that the employment, spend retention and inward-invest- ment arguments are holding greater sway with local councils’ members.” Marks & Spencer’s Simply Food expan- sion is a good example of that, he says. In addition – from an occupier per-


spective – the opportunities in better quality secondary parks look promis- ing, with six or seven discounters such as Home Bargains and Poundstretcher all looking to expand. “What’s interest- ing is that the discounter requirements on parks were negligible just five years ago,” he adds. The tenant mix in retail parks is


likely to develop further. Pye points to the department stores: “Expanding across the UK has been very difficult and the lack of new shopping centre development will only increase that. Retail parks offer a more straightfor- ward and low property costs option for growth,” she reflects. Meanwhile Skelton adds that in


terms of the development of further lei- sure offers, what’s important is that the leisure is of a net benefit to the destina- tion. “If it’s going to clog up the car park at the wrong time of day then that’s not the case,” she says. Patrick cites the Lloydspharmacy


‘health village’ at Brent South shop- ping park in north London as another example of continuing evolution, with several concessions including Vision Express, Coffee Republic, Sk:n and Bet- terlife in a store of 10,000 sq ft over two floors. “It’s worked well, and the part- ners will open a larger 14,700 sq ft store in Lakeside retail park, Thurrock in January next year, with a third trial planned in the north of England in the first half of next year,” he says. Prospects for retail parks in the


medium term can also only be bolstered by the moribund shopping centre market, with retailers frustrated at looking for space likely to turn to alternatives. Yet nothing can be taken for granted,


warns Skelton: “With such a small shopping centre pipeline then of course there are opportunities for retailers to extend their store networks out of town – it works on paper but with planning favouring in-town development it’s not a slam dunk.”


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