HDH research predicts top retail destinations will continue to grow
Cities and shopping centres across the UK could see consumer spending increase by more than a million pounds – or in one case, just under a billion – by 2025, new figures have shown.
Topping the table of 50 retail centres is London’s West End, where spending is expected to rise from £12.9bn to £13.7bn, followed by Glasgow, which is forecast to receive an additional £158m over the next seven years.
Compiled by Harper Dennis Hobbs, the Retail Spend Potential index takes into account the supply and demand for retail services in each area. Supply includes factors such as available retail floor space, the quality of brands currently trading and competition from nearby cities and centres, while demand is based on consumers’ spending power and location.
Even though major shopping destinations such as Birmingham, Manchester and Edinburgh – which are expected to see increases of £248m, £112m and £153m respectively – are all represented in the top 10, the full list also identifies smaller towns and cities like Hull, Derby, Peterborough and Bolton as showing strong potential.
Head of retail consultancy Jonathan De Mello said: “There’s no denying that the retail landscape is challenging, however, I hope that retailers will take comfort from the fact that many of our cities and shopping centres are performing well and are now on course to attract even more spending. London’s West End is home to some of the world’s best-known shopping streets and brands, and with a number of high-profile infrastructure projects nearing completion, it’s no surprise that it ranks highest.
“When you look beyond the top 10, it’s interesting to see just how many smaller cities appear. We’re so used to seeing reports about ailing high streets across the regions that it’s easy to forget that retailers are holding their own and, despite the inevitable growth in online spending, should see consumer spending climb.”