Value retailing has certainly stolen the limelight since the downturn, helped by lower consumer confidence and the associated changes in shopping behaviour. Retailers have also been able to take advantage of the large portfolios that became available when major brands went into administration. As a result, value retailers have altered the UK retail landscape rapidly, with almost a quarter of them now boasting portfolios of more than 100 stores.

But while value retailers have undergone a robust average store count expansion of 15.1 per cent, it is not the only sector of the market to have seen significant growth. Mass convenience retailers such as Greggs and Holland & Barrett have seen a considerable rise in portfolio count, now averaging 315 stores compared with 282 five years ago. However, even they have been outpaced by the 16.8 per cent growth reported for the aspirational retail sector, albeit from smaller average portfolios.

Within the aspirational sector, fashion brands have been expansive, with a 574 increase in total store count since 2009. Even within the aspirational comparison goods subsector, which on the whole has shrunk since the downturn, a number of specialists have performed well and grown their portfolios accordingly. These include Cath Kidston, Hotel Chocolat and Lakeland which have all increased their store network by at least 50 per cent since 2009.

In light of improving economic conditions, we expect the aspirational retail sector will continue to see growth. We are already aware of a number of brands within this segment which aspire to have store portfolios in excess of 100, including White Stuff, Hotter Shoes, Carluccios and Côte. We expect that many more, given the opportunity, would like to expand in order to better penetrate the UK market.

Further information

For more details, contact Savills Retail.