The retail park renaissance

The shifting retail landscape is continuing to cause a ripple of confusion, risk and uncertainty for investors and developers alike, however, innovation has a key part to play in the sector. Director Paul Starbuck considers how this unpredictable landscape could be the ideal backdrop for revitalising the world of retail as we know it.

Regionally, we have seen significant news for the retail sector, including the recent announcement that Valentine Retail Park in Lincoln is now on the market as a £46.33m investment opportunity. The large retail park is home to some big national brands, including Next, TK Maxx, Costa, Carphone Warehouse and most recently Hobbycraft. Considering the success of the park, it is interesting that it is being sold at this time, while it is still expanding and securing new brands.

I believe it possibly indicates a desire for some retail developers to downsize and strip-back their retail portfolios. For example, Hammerson recently backed away from a £3.4bn deal to buy its rival intu’s portfolio of UK-wide centres amid investors’ concerns about the health of the UK high street.

Although the above landscape sounds like it’s filled with doom and gloom, it is important for investors to look at the opportunities that are presenting themselves as a result of this change. There is a huge opportunity for leisure, entertainment, community and potentially sports facilities to be become part of our everyday life, especially on retail parks such as Valentine in Lincoln, thereby offering something very different to the norm.

Widening the uses of these sites helps to create an ‘experience destination’, where visitors are able to engage in a range of activities. This increases two key things for business owners: dwell time and customer spend – rather than spending an hour or two shopping at a retail park, families may be more inclined to spend the day if the right mix of facilities is offered.

Initiatives from organisations such as Sport England can also 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 align to financial support.

Using our unique SportsLab and StreetLab concepts, our team specialise in ‘re-thinking’ spaces in this way. We start by undertaking detailed research into current need for offerings in the area, the space currently available and the opportunities which could be incorporated into it and whether it is possible to build over existing units to exploit “air rights.”

If the new owners of Valentine Retail Park look at another successful retail park in Lincoln, St Marks, they would be able to see how its owners Standard Life Investments are embracing this change. The owners are currently undertaking a £150m redevelopment of the site, with plans including riverside restaurants along the River Witham, a cinema, 1,100 space multi-storey car park, a 130-bed hotel, 1,100 student flats and 150 residential flats.

So, has the world of retail been damaged irrevocably by the internet? I don’t think so, the team at LK2 believe new technology and ways of living will actually drive the retail and leisure sectors to become more community-based, offering real tangible experiences and memories to consumers.

Image created in association with Lead 8.