Drapers quotes Cara Imbrailo on out-of-town retail parks and fashion retailers' need for space

Retail parks are operating at near-full capacity across the UK, reflecting a sustained shift in consumer behaviour towards convenience-led shopping. With low vacancy rates and strong footfall driven by accessible, out-of-town locations, these schemes have become an increasingly important channel for fashion retailers looking to expand their physical presence. Their ability to combine essential retail, such as grocery shopping, with discretionary spending continues to underpin their resilience.

Demand for space is being further intensified by the evolution of stores into hybrid retail and fulfilment hubs. Many units now support click-and-collect, returns and online order processing alongside traditional retail operations, increasing the amount of space retailers require. This has contributed to growing competition for units, particularly as development pipelines remain constrained by planning restrictions, rising costs, and financing challenges.

The tenant mix within retail parks has also diversified significantly. Once dominated by bulky goods operators, parks now host a broader range of occupiers, including fashion brands, food and beverage operators, gyms and healthcare providers. The presence of high-frequency grocery anchors is particularly valuable, driving repeat visits and encouraging cross-shopping, which benefits fashion retailers through increased incidental footfall.

With limited new supply expected in the short term, the sector is adapting through more flexible use of existing space. Landlords are reconfiguring units, introducing mezzanine space and exploring shared occupation models and concession arrangements. For fashion brands, this environment demands a more agile approach to expansion, with greater openness to innovative formats and a focus on maximising the value of existing store portfolios.

Cara Imbrailo, Partner in our Real Estate team, writes in Drapers:

Retail parks are thriving because they are attuned to the way people actually shop today. The brands that recognise this and plan accordingly will be the ones that find room to grow.

Read the full article in Drapers here.