Retail Bulletin - Q2 2017

Q3 2017

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  • Shopping centre investment volumes remained subdued in Q2, with approximately £750m transacted and H1 sales therefore standing at £1.187bn, a little over 20% down on the equivalent period last year.
  • The High Street investment market was starved of stock in the run up to the General Election, but there has since been a notable increase in activity, with new assets being brought to the market towards the end of the quarter.
  • There has been a marked turnaround in supermarket sales growth, with the ‘Big 4’ reporting increasingly healthy figures. This has translated into more positive sentiment once again towards investment in the food retail sector, with a number of new institutional requirements emerging for supermarket income.
  • High Street footfall grew 2.3% in April, the fastest growth since March 2014. This was ahead of the three-month average of 1.4%.
  • The national town centre vacancy rate was 9.3% in April 2017, down from 9.4% in January 2017. This was largely due to sharp declines in Greater London and the South East, whilst high street vacancy rates in most other regions rose over the same period.
  • Although retail sales volumes fell by 1.2% between April and May 2017 (ONS), the more stable three-month on three-month measure saw volumes increase 0.6% in the three months to May 2017. On an annual basis, retail sales saw 2.3% growth.