Editor: The 3.9% drop revealed in the latest Office for National Statistics retail sales volume report for non-food stores sparked panic in the headlines. Commentators and analysts rushed to outline the chaos on the high streets, with doom-mongering soundbites and accelerated calls for Bank of England rate cuts.
While tension can make for a nice story and the impact of inflation can’t be ignored, despair over UK retail is overblown. When taking a closer look at the wider retail market and shifting consumer spending habits, it is seemingly on the right track.
There is a gap forming in the market for savvy independent retailers to exploit. Waste-conscious consumers are increasingly moving away from bulk purchases and are opting for higher-priced, sustainable and long-lasting items.
In this new landscape, are retail sales volume figures the most appropriate measurement? Probably not.
Sustainability is at the forefront of consumer desire and shifting spending habits are providing independent retailers with a platform to thrive – if they operate the right environmental, social and governance (ESG)-friendly model.
We’re also witnessing retailers investing heavily in key retail sites around the UK and the overall economic outlook is looking more optimistic. Just this year, we have seen Landsec double down on its investment into UK retail, with the chief executive rolling out plans to invest upwards of £500m over the next couple of years.
At the same time, British retail moguls are considering a significant bid for Meadowhall (pictured) and other key regional sites.
The waters seem to be steadying regarding inflation and with interest rates expected to drop twice this year, perhaps a fertile ground has been sown for growth.
Retailers that are tuned into the subtle shift in behaviours and that harness the popular ESG-friendly model will get consumers through the door.
Occupiers that continue to innovate, changing and breaking new boundaries, will be the ones succeeding. Retail is not dying; it’s simply evolving.
Richard Saunders, partner (retail), Hartnell Taylor Cook
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