High street is outperforming retail parks & shopping centres6th April 2014

New research by business advisory firm Deloitte has revealed that high street shops are actually outperforming retail parks and shopping centre.

According to Deloitte, there is evidence that the "click and collect" culture is sending people back to the high street. Only 20 per cent of high street shops affected by 27 high profile administrations since 2009 are still vacant.

The study shows that discount stores account for nearly one in five of all vacant shop relettings. Shops vacated as a result of administrations and acquired by discounters account for nearly 50 per cent of shops acquired since 2008.

Another growth sector is convenience stores, which are responsible for nearly 12 per cent of space acquired post-administration. Deloitte believes that this change of pattern in shopping habits has been caused by both the recession and mobile commerce. It is indicative of the fight by major supermarkets to gain control of high street space.

Ian Geddes, head of retail at Deloitte, said: “Historically, retailers have talked about “destination” shopping locations. However, different and more cautious consumer spending patterns have joined forces with a technology-powered convenience culture which demands that goods and services are available as and where the consumer demands.

“Rather than taking shoppers away, the internet is pushing people back to shops with the growth of “click and collect”. The evidence suggests that we may be entering a new era of “en route” shopping, powered by mobile shopping and the demand for collection points strategically located at a point between where the consumer is travelling from and to.”

Charity shops, pawnbrokers and bookmakers form a limited part of this growth - less than 0.01 per cent of post-administration shops have become pawnbrokers or bookmakers, compared to 3 per cent of shops occupied by charity shops.

Ian Geddes said: “It is likely that the rate of expansion by bookmakers may not be as aggressive as widely believed, with new openings often offset by closures. The growth in online and mobile gambling would appear to make any substantial long term growth in overall betting shop numbers unlikely.”

Shops in some regions have done better than others, with Greater London (18 per cent vacancy rate) and Scotland (37 per cent vacancy rate) at opposite ends of the scale. 

Hugo Clark, director at Deloitte and author of the report, said: “The results of this research are surprising and seem to challenge a number of myths around the state of the high street. They would suggest that far from being dead, the high street appears to be showing great resilience and a capacity for reinvention. It seems that a structural shift is taking place with the high street emerging as an unexpected winner.”

Written by Richenda Oldham