The impact the collapse of large unit retailers has had on the High Street in the UK

Abstract

Purpose: The change in demand for smaller units, increase in online shopping and consumers spending more on experiences has resulted in the collapse of large unit retailers. The purpose of this study is to understand the effects of the recent closure of large unit retailers on the property market looking at how the market and market agents have dealt with large units becoming available.
Method: British Home Stores is used as a case study, within this a mixed-method approach is used. A database was created to quantify the current status of BHS’s units and 6 semi-structured interviews with property professionals involved with the units.
Findings: Almost all units have been marketed for subdivision, despite 65/75 of the occupied units being re-let to a single occupier, however, around half of the units remain vacant.
Conclusion: There is not one answer for all large units. It takes time to understand what the local market needs to maximise a large unit’s potential. This study suggests better forward planning for large retail units whether currently vacant or not, to increase resilience and decrease financial loss. With this they will be able to adapt to the current changes in the retail industry and be well prepared for future large unit retailers collapsing.
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