CBRE's research reveals that the number of fashion stores operated by multiples in the UK grew by 3 per cent in the period 2007 to 2010. At the same time the number of convenience stores grew by 2 per cent and the number of catering units grew by just under 9 per cent.

And branch expansion in large format stores is accelerating the migration of retail multiples to high volume trading locations, exacerbating stock obsolescence problems in secondary shop property that is no longer viable for multiple retailers’ purposes.

Mark Disney, head of shopping centre development & leasing at CBRE said: “There is increasing polarisation in the sector with larger centres growing their market share and many retailers focusing on larger format stores. Premium shopping centres have become increasingly dominated by fashion retailers while the number of operators in many sectors of the non fashion market has contracted.”

And he warned: “Reduced supply of new space through new development is already impacting on retailers’ expansion strategies with an increased focus on opportunities in established centres leading to increased demand in those locations. Void levels in prime shopping centres have fallen sharply over the last 12 months as a result. With development activity at a low ebb and shop demand heavily skewed in favour of prime/good secondary property in dominant trading locations, occupational cost pressures for the better stock look set to grow.”

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