According to Strutt & Parker, bricks and mortar retailing is set to see further significant structural change as it continues to adapt in the face of the online retail juggernaut. With pop-up retail, shared retail space and street food set to play major roles going forward.

Due to the seemingly endless opportunities offered to UK consumers by the online retail marketplace they have become increasingly difficult to please in the offline world with Click and Collect and Multichannel retail emerging as the two key manifestations of the need to evolve physical retail in response.

This adaptation is also being witnessed in the ascent of concepts such as street food, pop-up retail and shared retail, all of which cater to UK consumers’ demands for authenticity, uniqueness and variety in the retail environment, whether it be for food or comparison goods.   

Strutt & Parker cites statistics from Cebr and EE’s annual Britain’s Pop-Up Retail Economy report, research which records the pop-up retail sector as growing at 12.3 per cent in the year to June 2015, with a turnover of £2.3 billion and a total employ of over 26,000 people.

Strutt & Parker point out that perhaps the most dynamic retail environments in London at present are actually the various street food markets, citing the popularity of Borough Market at London Bridge, Brixton Market, and Maltby Street Market in Bermondsey.

Strutt & Parker highlights Brixton Market as a prime example of a diverse, food-led, retail environment delivering success for both itself and the wider area. Other than the market itself becoming wildly popular on the back of its reinvention as a ‘foodie’ destination, it has helped to drive strong footfall on Brixton High Street itself, with rents rising 80% between 2009 and 2015 from £145 per sq ft to £250 per sq ft – well above the rises seen for comparable areas in London. Although Strutt & Parker caution that this has to be viewed within the prism of Brixton’s wider regeneration, and exceptional transport links, it does aptly demonstrate the role this kind of retail environment can play in driving growth.

Thomas Grounds, partner in research at Strutt & Parker said: “Pop-up space is coming to the forefront of offerings in a number of retail environments as landlords increasingly come to terms with the key role they play in refreshing the retail environment and keeping consumers coming back for more. The future challenge for landlords will be weighing up the positive impact of these units on visitor experience and overall footfall/sales, versus the valuation impact of the short leases needed to enable them.”

Rob Williams, head of retail agency and development at Strutt & Parker added: “Across the entire retail spectrum, from boutique arcades to retail parks we are seeing landlords increasingly seeking to incorporate some flexible space for pop-up operators. Pop-up food stalls and quirky retailers have become a staple of many people’s shopping habits, who increasingly demand department stores, high fashion, electronic goods and independents all under one roof. The facilitation of rental growth through a more diverse line-up should encourage the incorporation of even more new concepts into our shopping environments.”