U.K.-based retail parks are slated to grow faster than high streets through 2022.
The U.K. retail parks market is projected to grow 13.8 percent between 2017 and 2022, with the sector set to outperform the high street, according to U.K. research and consulting firm GlobalData.
According to the company’s latest report, the U.K. retail parks’ growth will be driven by new retail parks as well as extensions of existing ones.
However, GlobalData also found that retail parks are becoming more “attractive” to consumers as they become less dominated by out-of-town retailers within such sectors as electrics and DIY gardening and more dominated by high street retailers across clothing and footwear as well as health and beauty.
Furthermore, of 2,000 respondents, 90 percent of consumers have shopped at a retail park in the last 12 months, with 54.3 percent visiting at least once a month.
“The retail parks landscape is changing drastically as discounters in particular are rapidly expanding their share of the market. “Indeed, retailers such as Aldi, Lidl, Home Bargains and Poundland have grown their presence, leveraging their low price points to draw in shoppers,” says Charlotte Pearce, retail analyst, GlobalData. “Over the next five years, discounters will increase their share of the market by 6 percent, rising to account for 20.3 percent of retail park sales. This will demonstrate their ability to attract a broad range of shoppers and generate high footfall.”
In contrast, traditional retail park sectors have also seen their share of the overall market decrease over the past five years, with electricals’ share falling by 3 percent and DIY and gardening dropping by 1 percent, according to the company.
“Despite the clear opportunities offered by retail parks, offline retail remains a challenge as consumers continue to shop online,” says Pearce. “Retailers must embrace multichannel and support the growth of click and collect in stores, highlighting the convenience of retail park stores for consumers, such as free parking and ease of access.”