Cost model: Reinventing retail assets

Primark Birmingham shutterstock_1366677212

In the face of tough market conditions, landlords, developers and owner/occupier retailers are looking at new business models

01 / Economic context

Retailers and retail asset owners are suffering under the strain of business-rate liabilities, the increasing prominence of internet shopping, falling footfall, strong demand for discounting and rising operational costs. In addition, consumer trends are changing to reportedly favour brands offering individualism and easy access. Last year was one of the toughest periods for retailers/retail asset owners, with a net loss of 7,550 units. 

An analysis of 650 town centres by The Local Data Company revealed that, increasingly, retail units are undergoing structural changes, with units being converted into residential or office use, split into smaller units or even demolished as landlords seek to reduce their exposure to a difficult market. 

Read more…

Already registered? Login here

To continue enjoying Building.co.uk, sign up for free guest access

Existing subscriber? LOGIN

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Enjoy company features, CEO interviews, architectural reviews, technical project know-how and the latest innovations.

  • Three free news, comment or feature articles per week online
  • Breaking industry news as it happens
  • Breaking, daily and weekly e-newsletters

Get your free guest access  SIGN UP TODAY

 

Subscribe to Building today and you will get unlimited access to:

      • All stories including expert analysis and comment from industry leaders
      • Our league tables, cost models and economics data
      • Our online archive of over 10,000 articles
      • Building magazine digital editions

View our subscription options and join our community