Last year, the number of retail units that let on Scottish out-of-town retail parks totalled 82, marking an 8 per cent uptick on the long-term average.

On the face of it, the increase in activity appears to contradict the negative headlines around the retail sector with daily reports of new administrations and CVAs (Company Voluntary Arrangements). However, the corporate failure of some retailers is creating an opportunity for others, releasing vacant units onto an otherwise constrained out of town retail market.

Key retailers driving activity in Scotland include Aldi, Lidl, The Range, Home Bargains, Iceland/Food Warehouse and B&M, as well as a number of bulky goods retailers. In addition, we have also seen a number of new entrants to the market who recognise an opportunity to secure representation, with Homestore & More securing its first UK stores at Craigleith Retail Park in Edinburgh and Mavor Avenue, East Kilbride in 2018.

As the wider retail sector continues to struggle against changing consumer habits and rising costs, 2018 was dubbed ‘the year of the CVA’, with big brands including Carpetright, New Look and Homebase – all of which had a dominant retail park presence – opting in favour of a CVA and Maplin, Toys R Us and Fabb Sofas going into administration. 

While you would be forgiven for assuming the out-of-town retail market was in distress, the events of 2018 show signs of a retail revolution rather than a recession.

The result was a release of vacancies across Scotland’s retail parks, generating increased churn in the sector and opportunities for new entrants. Let’s not forget out-of-town parks in particular are host to a number of retailers that are arguably more defensive to the growth of online retail, offering products that customers want to inspect before buying such as furniture, carpets, kitchens and bedrooms.

This is one reason why we believe retail parks continue to serve a much needed purpose. Equally, the discounters who have been successfully expanding do not offer the ability to buy online and therefore the focus for them remains on physical stores.

So it’s not all bad. Despite the endless negative press coverage around retail, in reality only roughly 3 per cent of units in the UK out-of-town market were affected by either a CVA or administration in 2018.

While some retailers struggle, others are adapting with the changes and harnessing the new ways in which we shop. As an industry, we need to support these changes and provide the right real estate for the job.

If retailers active in the market are exploring options to sub-divide existing units to make them fit for purpose, landlords need to be receptive of these wishes to ensure retail parks have longevity in an ever-changing marketplace.

Further information

Read more: Spotlight: UK Retail Warehousing