The retail landscape across the UK and Europe will evolve dramatically over the next 20 years and we have been identifying areas where retailers and landlords should start ‘future proofing’ in order to remain competitive.

For me there are three key issues. Firstly, we have to assess the changing European demographic. By 2030 a quarter of the population will be over 65, and by the end of the next decade at least one third of of over-65s will be using the internet, compared to fewer than 1 in 10 today. Retailers are therefore going to have to evolve to meet the challenge of catering to both a rapidly ageing population, as well as more dynamic younger consumers.

The ‘online vs offline’ debate lingers on, but let’s face it, we are all comforted by the fact that the biggest share of retail sales continues to take place in physical stores. As our therapists encourage us all to disconnect from the virtual and reconnect with the ‘real’, shopping will become evermore significant as consumers continue to engage with the tangible, well-placed retail space. This leads to the second key issue: ageing stock. There is currently more than 110 million sq m of shopping-centre space in Europe. Clearly, by 2025, it will be 10 years older and these high levels of mature supply will mean increased refurbishment projects as owners and investors try keep pace with competition and consumer preferences.

The final issue is that by 2025 consumers will be seemlessly shopping via digital, traditional and other channels and logistics will continue to create new challenges for retailers. Future consumers will expect next-day, same-day or even same-hour delivery meaning retailers and logistics providers will have to be capable of managing much more complex order and distribution channels. For parts of Europe that are remote or under developed, or where internet usage is in its infancy, this will be particularly difficult.

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