Last call for the mall? How shopping centres are reinventing themselves
In the internet age, medium-sized retail hubs are looking for new ways to survive and thrive.
By BBC News
Shopping centres are being reshaped as changing shopping habits and online retail put pressure on medium-sized sites across the UK.
The BBC report says some centres are moving beyond a traditional retail-only model, with plans involving homes, healthcare, leisure, entertainment and community facilities.
At the Brunel shopping centre, the site is due to be transformed into residential flats and a health facility, with a limited amount of retail space retained. The report also refers to redevelopment plans elsewhere that would combine shops with a life sciences centre.
Market Walk in Northampton is set to become a leisure and entertainment space rather than remaining focused solely on shops.
Dr Kardi Somerfield, a marketing lecturer at the University of Northampton, said leisure facilities can extend the length of time people spend in town centres and attract visitors during the evening. She also said some destination shopping centres are operating at almost full occupancy, suggesting the sector does not have one single future.
The report highlights Weston Favell, a shopping centre on the eastern edge of Northampton that opened in the 1970s. Centre manager Kevin Legg said customer visits had increased every year since the pandemic.
Weston Favell combines a large supermarket, national retailers, independent businesses and community facilities. A church inside the centre is being used by Silhouette Youth Theatre, a charity working to make the arts more accessible.
Silhouette’s voice lead, George Grande, said the shopping centre’s public transport connections and visibility helped the organisation reach more people. The group plans to create a 250-seat theatre in part of a former Wilko store next year.
The BBC report says research by commercial property firm CBRE put the vacancy rate across UK shopping centres at 16% in the second quarter of the year, although larger centres recorded a significantly lower rate.
It also says Savills research found that almost 73% of consumer spending in shopping centres between April and June took place at the biggest sites, while less than 18% was recorded in secondary or medium-sized centres.
The report describes a shift away from the old model of retailers expanding mainly to increase turnover, with online shopping changing the role of physical retail space. Some centres are therefore being considered as places to live, work, meet and take part in leisure activities, as well as shop.