Just how many stores does a retailer need to be a national player in 2015 and beyond? During the height of the recession, 50 to 80 stores was the figure often cited. This was backed up by a growth in online shopping which pointed towards a reduced requirement for physical stores.

In fact, while this has been the case for some sections of the market, most current retailers are finding that a larger store portfolio is necessary to deliver adequate returns and ensuring true national coverage.

Savills research shows that all multiple retailers with more than 25 stores have expanded their portfolios over the last five years. The most significant expansion has been among retailers with more than 75 stores, with an average increase in store count of 36. When considering the value and mass retail sectors in which average portfolios are generally in excess of 100 stores, the expansion has been even more pronounced. These sectors reported an average increase in store count of 88 and 49 respectively

Looking ahead, we expect this trend to continue, particularly for retailers such as Pure Gym, Evans Cycles, Byron Burger and Poundworld which are under private equity ownership and therefore driven by investment returns. For shopping centres and high street locations that fit the bill for these expanding retailers, the growth will feed positively into occupational demand and rising rents.

Further information

For more details, contact Savills Retail.