UK Shopping Centres Seek New Life as Online Sales Erode Retail Footprint
As traditional retail hubs face closures and redevelopment, some centers are diversifying into leisure, housing, and community spaces to ensure their future.
Medium-sized shopping centers across the UK are grappling with declining footfall and rising vacancies, prompting a search for innovative survival strategies. The rise of online shopping has fundamentally altered consumer habits, leaving many of these retail hubs struggling to adapt.
The Brunel Centre in Bletchley, Buckinghamshire, exemplifies the challenges. Once a bustling destination, it now faces demolition next year to make way for housing and a health center, with only a small retail component remaining. "It is a sad old building, isn't it?" commented Keith Ely, a local councilor who recalled its vibrant past. Similarly, the Grafton Centre in Cambridge is planning a redevelopment that includes retail alongside a life sciences hub, a model that may not be replicable nationwide.
Analysis by commercial property firm CBRE indicates a national vacancy rate of 16% across UK shopping centers in the second quarter of the year. However, this figure is significantly lower for major, destination centers. Research by estate agents Savills highlights that almost 73% of consumer spending in shopping centers occurs at the largest sites, with secondary, or medium-sized, centers capturing less than 18%.
"There are too many in the UK and many don't have a future," stated Subjit Jassy, director at Pioneer Group, which owns one such center. He noted that the traditional retail model of expansion to boost turnover has been undermined by the internet.
Despite these trends, some centers are finding success by diversifying their offerings. Dr. Kardi Somerfield, a marketing lecturer at the University of Northampton, observed that destination centers with high occupancy are thriving, and that centers incorporating leisure and entertainment can "extend the day" and attract customers into the evening.
In Milton Keynes, local councilor Ed Hume emphasized the need for vibrant town centers, suggesting that incorporating more housing could increase footfall and support local businesses. Similar strategies are being explored in Norwich with the Anglia Square development, which is set to be primarily replaced by housing.
Other centers are focusing on becoming community hubs or leisure destinations. Market Walk in Northampton is being transformed into a leisure and entertainment space. Weston Favell, a 1970s-era center on the outskirts of Northampton, has seen increased footfall since the pandemic by integrating a mix of a large supermarket, national brands, independent businesses, and community facilities. The center manager, Kevin Legg, believes their model is relevant and being emulated by others.
Weston Favell is also fostering community engagement, with Silhouette Youth Theatre planning to establish a 250-seat theater within a former retail unit. George Grande, voice lead at the theatre group, highlighted the benefits of a central location for accessibility and visibility, attracting new members who discover their activities within the shopping center.
These shifts indicate a broader trend: the future of medium-sized shopping centers may lie not solely in retail, but in becoming multi-functional spaces that serve as community anchors, entertainment venues, and residential locations.