UK Shopping Centre

and High Street Spotlight

UK Shopping Centre and High Street Bulletin
UK Shopping Centre
and High Street Spotlight

2 May 2017, by Mat Oakley

2017 is expected to be a challenging year for retailer's margins. Import and operational costs are all experiencing upward pressures

Summary

■ While the current level of retail sales growth remains robust, we question whether shoppers can continue to spend at this level by dipping into their savings or taking on more unsecured debt.

 

■ In the occupational market there are signs that retailers are becoming increasingly cautious about expansion. Retailer's margins are likely to remain under rising pressure over the next quarter as import inflation rises.

■ We are moderately optimistic about the remainder of the year for the shopping centre investment market. While the volume of transactions in Q1 was lower than average, there is a lot of stock being prepared for sale. Rising yields away from the primest end of the market may well attract some more opportunistic buyers into this sector.

■ The investor base in the high street shop market has definitely broadened. Private investor demand for the best of the best remains strong, and we definitely expect to see more institutional competition at this end of the market in the remainder of 2017.

Articles from 'UK Shopping Centre and High Street Spotlight – Q1 2017'

UK shopping centre and high street

While the current level of retail sales growth remains robust, we question whether shoppers can continue to spend at this level

 
 

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Key contacts

Mat Oakley

Mat Oakley

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8781