THE EVOLUTION OF THE RETAIL PARK @lk2_consultants

THE EVOLUTION OF THE RETAIL PARK @lk2_consultants

The face of retail is ever-changing and as a result, out-of-town shopping destinations are continuing to follow suit. Gary Johnson and Paul Starbuck from retail, sport and leisure specialists LK2, examine how the needs of retail park visitors are changing and discuss the perils of neglecting leisure within these prominent developments.

Before retailers and developers are able to future-proof retail parks, they must first understand why the commonplace layout, which has remained unchanged for many years, now needs to evolve. The current format is, in part, the reason that many of these developments are missing the mark for savvy consumers who are always looking to save time and maximise what little they have to dedicate to leisure activities.

Typically, the design for most UK-based retail parks is simple: a number of large box units, let by big-name retailers, fronting a large carpark. While this is uninspiring architecturally, this formula has met the needs of consumers for many years. However, thanks to changes in shopping trends and consumer habits – including the rise of internet shopping and click and collect services – alongside busier lifestyles, retail parks have to change and diversify. They need to offer a diverse range of entertainment and leisure facilities with improved public realm in order to increase both dwell time and footfall and enhance the visitor experience.

One of the most noticeable changes across the sector is the increasing number of retailers requiring smaller stores, in comparison to the warehouse style units for bulky goods that are commonly seen at the moment. Smaller units are attractive as they provide more flexibility and more choice for retailers. They also help retailers to meet the modern shopper’s needs, acting as places to collect or make orders, rather than offering traditional in-store shopping. This shift has resulted in many of the large traditional box units becoming less desirable, leading to an increase in vacant space within retail parks.

Another vital issue in the development of retail parks is the lack of paths and routes, which restrict visitors wanting to venture across a development or even go further afield. When designing a ‘retail park of the future’, the public realm, streets and routes across the development must be a design priority. These considerations help to deconstruct car parks, which is essential when aiming to encourage visitors to travel on foot from one side of the scheme to the other.

These issues are all part and parcel of general apathy towards the change needed to meet the demands of the modern consumer. However, some retail parks are already working to address this, with larger retail parks introducing leisure facilities such as multi-plex cinemas, food and beverage units, entertainment facilities and discount retail stores to fill vacant space and replicate the changes we have seen on the high street in cities and towns. More and more convenience stores and upmarket food operators are choosing to open stores within retail parks, which is a relatively new trend and a positive change.

In fact, this current trend has seen retail parks slowly increase footfall and decrease the number of vacant units, highlighting how the traditional model for retail parks can be easily modernised and evolved. With land for development becoming increasingly hard to find elsewhere, retail parks offer a number of exciting opportunities, especially for mixed-use schemes incorporating residential, student accommodation and office space. Retail parks can also be the ideal location for finance and business units, community and medical care facilities.

The offering of an over-arching “destination” enhances retail appeal and provides an opportunity for leisure facilities to be become part of our everyday life. The impact sport, leisure and recreation can have on the health and well-being of the nation is undeniable and so creating destinations that are far-reaching and accessible, can only have a positive effect on today’s consumer. Facilities that reflect a change in how we participate in sport, leisure and recreation are fundamental to this; the “urban fitness” trend provides a rationale and experience that clearly complements a new way of thinking for retail parks. Urban gyms, trampoline venues, fitness outlets and cinemas provide a varied offering and anchor a retail park’s reputation as a sport and leisure destination.

Super surgeries are also a rising trend, with more and more doctors, dentists, opticians and physios opting to share space and work collaboratively. Surgeries in close proximity to a sport, leisure and recreation site can only be beneficial, with retail parks an obvious next step which we’re starting to see already. Amidst recent discussions around GP referral schemes focussing on lifestyle and dietary changes, it makes perfect sense that linking these services together would be beneficial to individuals and communities.

Seamless infrastructure design is also vital to retail developments and something our team is often brought in to support on. Creative, interactive wayfinding signs and routes should also be considered – these could display how many calories a walk around the park could burn, or even include activities for children to take part in – encouraging them to stay active and increase dwell time. This creative approach does not end with landscaping alone and retailers will also need to develop new, more dynamic and interactive store formats too – these will make venues internet-compatible and more rewarding to visit for consumers.

When looking at existing retail parks, our team of retail and leisure experts begin by conducting research into existing retail parks, investigating how they could be transformed and regenerated to better suit the needs of retailers and consumers, providing a cohesive offering to their catchment area. As part of this research, we investigate current retail and leisure offerings, the opportunities which could be incorporated into them and the space that’s currently available.

We also consider how initiatives from organisations such as Sport England can support the developments in bringing retail, leisure and sport together. Sport England is currently leading the way when it comes to introducing ‘break-out’ sports areas into car parks and general public realm spaces. Developers working with Sport England to support its ‘Towards an Active Nation’ strategy, will see the benefits of a holistic approach that may even align to financial support. We work closely with our clients and developers to start integral conversations with organisations, like Sport England, which are looking to revolutionise sport and leisure in the UK.

Often, out-of-town retail developments come up against a tirade of objections during planning, as they are seen as having a negative impact upon nearby town centres. However, by incorporating a strong leisure offering, developers are able to overcome these challenges and in doing so, support organisations like Sport England in tackling dropping participation rates and addressing the in-activity of the nation in general. This is a key target in reducing the reliance and cost on the NHS; it’s a long-term objective, but certainly one that can be supported through this innovative way of creating sustainable destinations.

Although the face of retail is changing, developers and retailers should not shy away from embracing the next generation of consumers through implementing leisure and sport within existing and future schemes. Developers need to consider how sport and leisure can support retail within parks, helping to create more of a community destination where visitors can eat, exercise, shop and socialise all in one place – meeting the needs of a modern family or individual.

With this in mind, there is huge potential for the wholesale repositioning of retail parks via the creation of a new model which will increase values, footfall and dwell time, thereby extending the life and viability for retail park owners and developers.

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