UK Shopping Centre Market - Winter Review & Outlook 2019
In this report, a team of experts from across JLL analyse the current state of the retail market across the UK and highlight key themes for the upcoming year. The report reveals that 'we' as consumers are driving the change in the retail world through smart phones and one click technology, but the physical store is far from dead as most commentators would like us to believe
In order to see growth in this sector, according to Nick Hart, JLL’s Head of UK Retail Investment, there is a need for landlords to be at the forefront of change – working with retailers to offer flexible leasing structures that innovate and work with technology and thereby affording retailers and customers the omnichannel solutions of tomorrow.
Our research reveals that many of the macro indicators supporting retail spending remain broadly positive for households and consumers. However, the single biggest constraint to consumer confidence and spending remains Brexit, keeping consumers understandably apprehensive throughout H2 2018.
The ‘golden quarter’ traditionally offers retailers the opportunity to gain sales from consumers who are finally ready to prioritise shopping. This past year’s Christmas build-up proved nerve-wracking for retailers, as rising costs, the ongoing shift to online and declining confidence combined with the political and economic uncertainty created a challenging backdrop. For any retailer in any sector, a failure to adapt to the requirements of the modern customer will lead to obsolescence.
We are seeing an increasing interest in the shopping centre sector from across both European and Global investors who have raised significant equity and are looking at the various markets and sub sectors around the world seeking “yield”.
JLL expect that in 2019 we will see the bottoming out of the contagious negative retail sentiment that we have seen throughout 2018. Retail is the most dynamic and innovative sector in the UK and whilst we are forcing that change as the consumer, we are witnessing a new era in retailing which is innovative and setting the benchmark for the future omnichannel world.
Read more in the UK Shopping Centre Market winter review & outlook