Page 16 - DIY Investor Magazine - Issue 23

PARKLIFE!
DESPITE THE ‘DEATH OF THE HIGH STREET’, THERE’S PLENTY OF LIFE IN RETAIL PARKS
The internet has transformed our shopping habits. Today, with almost anything deliverable to our doors, convenience is king - writes Calum Bruce of Ediston Property Investment Company
But providing that convenience requires much more than a warehouse and a fleet of delivery vans.
Increasingly, shoppers are demanding an ‘omnichannel’ experience; while they want to order from home or from the office, they often prefer to pick up those orders
in store, so that, for example, they can try clothes on before taking them home. And they expect the same convenience in returning goods.
According to property agent Savills, by 2022, when the growth of online shopping is expected to level out, more than 80% of sales will still involve physical stores; but our changing habits mean that many of those stores will not be located in city centres.
‘SHOPPERS ARE DEMANDING AN ‘OMNICHANNEL’ EXPERIENCE’
Meanwhile, retailers have to consider not only how
best to balance their online and offline businesses, but also the costs of storage, distribution and returns; for shoppers and shop-owners alike, out-of-town retail parks provide a solution.
We’ve all seen the gloomy headlines about high-profile closures on the high street, but it’s important to realise that people aren’t shopping less in the online era.
In fact, they’re shopping more than ever before – they’re just doing it differently.
So, while the overall volume of retail sales has been steadily rising, the number of sales made at traditional department stores has been falling fast.
And as sales at high-street stores and shopping centres decline, out-of-town retail parks are emerging as winners.
‘THEY’RE SHOPPING MORE THAN EVER BEFORE – THEY’RE JUST DOING IT DIFFERENTLY’
These retail parks offer retailers a wealth of attractions for owners and tenants alike. Their lease lengths tend to be good, and the flexibility of their units allows for easy up sizing and downsizing as business conditions change.
As a result, vacancy rates tend to be low, and retail parks are well placed to benefit from the shift to online shopping.
That’s because retail parks are perfectly placed to provide the joined-up, omnichannel experience that customers want.
Out-of-town locations allow commuters to collect or drop off items on their way home, and attractive retail parks with cafés, restaurants and other diversions offer a full ‘experience’ for families at the weekend.
DIY Investor Magazine | Oct 2019 16