A new era for shopping centres is dawning, driven by a dynamic shift in consumer behavior fueled by the pandemic. London’s retail sector is at the heart of this evolution, with shopping centres adapting to meet the changing demands of both shoppers and local communities.
Navigating the New Retail Landscape
To understand the future of London’s shopping centres, BusinessLDN and Avison Young hosted a panel discussion with Property X‑Change, bringing together investors, asset managers, developers, and the public sector. Kim Grieveson, Principal at Avison Young, set the stage, highlighting the evolving perception of retail and the exciting trends emerging.
Despite the challenges, new and innovative retail centres are emerging, along with creative repurposing of existing spaces. The panel agreed: the future of retail is bright, promising a diverse and dynamic landscape.
The Power of Destination Experiences
Sam Cotton, Head of Asset Management & Leasing at Battersea Power Station, underscored the significance of crafting ‘destination’ experiences that appeal to both residents and visitors. Battersea Power Station’s success showcases the importance of flexible and diverse spaces that cater to a wide range of needs.
Cotton emphasized the interconnected nature of such spaces. Retail offerings attract residents and businesses, generating significant foot traffic that benefits retailers. This interconnected ecosystem creates a vibrant and dynamic community hub.
Reimagining Shopping Centres for the Future
The panel stressed the need to challenge the traditional model of shopping centres. Offering flexible lease structures, pairing independent retailers with global brands, and sharing valuable data are all key to achieving success in this evolving landscape.
Mike Nisbet, Head of Development — Urban Regeneration at Landsec, spoke about repurposing shopping centres to serve the evolving needs of their local communities. Repurposing, although challenging, can revitalize entire neighborhoods. Landsec’s commitment to urban regeneration demonstrates their belief in the power of repurposing to create thriving communities.
Regenerating Communities and Enhancing Value
Redeveloping and regenerating shopping centres has a profound impact on both the physical spaces and the broader community. Effective community engagement and pragmatic local authorities are crucial to ensuring successful revitalization projects.
Virginia Blackman, Principal at Avison Young, acknowledged the challenges of repurposing projects, including front-loaded costs, complex vacant possession strategies, and the intricacies of site valuation. However, successful repurposing projects deliver enhanced asset value and contribute to the regeneration of the wider town centre and local economy.
The Importance of Meanwhile Uses
The panel discussed the opportunity presented by ‘meanwhile uses’ during the development of new shopping centres and the redevelopment of existing retail spaces. These temporary uses provide valuable test beds for local businesses, allowing them to gain experience in commercial spaces.
Meanwhile uses are an important cornerstone of any long-term regeneration strategy. However, it is essential to ensure that they are grounded in clear stakeholder engagement and are reflective of the community’s needs.
A Bright Future for London’s Shopping Centres
Despite the significant changes in recent years, the panel remains optimistic about the future of shopping centres. The key message: shopping centres are here to stay but they will be redefined as 21st-century spaces offering a blend of uses, inclusive and fresh designs, while still providing vital services to the local community.
