By Stuart Moncur

 

The evolution of retail is all around us. Throughout the pandemic we saw a shift in consumer behaviour like never before as retail spaces and places in Scotland adapted to the changing landscape.

Local high streets reclaimed some of their lost rigour with a rise in retail and food and beverage offerings to serve a population ‘working from home’. Meanwhile, more dominant retail destinations adapted in order to stay relevant and be fit for purpose.

How we use our towns and shopping centres to live, work and enjoy is continually changing but perhaps what the pandemic reminded us all is the vital role retail plays in communities.

There have been high-profile winners and losers in the retail market, but many of the retailers that suffered during the pandemic were already struggling before Covid-19 hit. And there will be more as the cost-of-living crisis continues to impact the economy, which will no doubt play out in where and how we shop.

But retail, if we look at the industry and not the individual retailer, needs to be “right-sized”, not replaced. Evolved, not eliminated.

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Case in point are the many former Debenhams and BHS stores. One wouldn’t be alone in believing the headlines that the outlook for these significant city centre buildings is bleak. Yet while they are unlikely to ever operate as the department stores they once were, we are already seeing the first signs of truly transformational development that re-defines city centres with a change of use that brings new reasons to draw footfall.

In Aberdeen the city council is leading by example by acquiring the former BHS retail unit and Aberdeen Market. Alongside associated public realm works on Union Street, the redevelopment will transform the heart of the city centre. The site has been completely re-imagined to create a unique market hall for local traders, businesses and artisan workshops, as well as leisure and cultural opportunities.

With a mixture of fixed units of various sizes alongside space for temporary and pop-up facilities, the intention is to create space suited to a variety of operators with flexibility for seasonal requirements. The proposal breathes new life into the city, acknowledging the importance for town centres to be multi-functional spaces to work, live and enjoy.

Non-retail uses play a vital role in the transformation of shopping spaces to a more dynamic, rich and purposeful mix, creating places that serve greater financial, economic and social value. We need to think of these as consumer hubs, rather than just shopping, which meet other social and civic needs such as health, education and wellbeing.

Glasgow’s St. Enoch Centre is another good example of how retail is evolving. The shopping centre, located in the city centre adjacent to St Enoch Square, was first constructed and opened to the public in the 1980s.

Originally a retail destination with an ice rink for leisure, the latter closed and was repurposed for additional retail space. The centre adapted over the years that followed but with anchor tenant BHS facing an outcome already alluded to above, the centre faced challenges with increasingly empty stores and falling footfall.

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The reimagining of the St. Enoch Centre as a focal hub within the city was necessary to ensure its future purpose and Sovereign Centros has been working towards this since it first acquired the centre.

Today the centre is once again a prime destination that has redefined Glasgow’s city centre. Anchored not by retail but by Vue cinema, the centre has been reconfigured with food and beverage on the ground floor that entices the public in.

Its success is clear to see: in the last 18 months we have agreed terms with more than 20 new operators taking space in the centre. Given its prime location within the city centre, our client Sovereign Centros recognised the opportunity St. Enoch Centre presents to become Scotland’s foremost mixed-use development, showcasing the best of retail, leisure, entertainment, hotel, commercial and city centre living.

With proposals that could take up to 20 years to deliver and 2.5 million square feet of mixed-use space, there is a long-term commitment to the area that involves revitalised shopping and leisure space, up to 1,700 homes, high quality office space, a four-star hotel, a civic square and a unique performance space.

The need to rethink our use of urban spaces doesn’t lie with retail alone – it’s a question of right-sizing everything with all stakeholders collaborating towards a common purpose.

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Public and private sector engagement is coming together like never before. Challenges around viability remain, but increasingly are being navigated through new funding mechanisms, creative uses and partnerships.

With investor, stakeholder and consumer focus ever more on environmental sustainability and social returns, how we repurpose these historic buildings and re-anchor communities in doing so is key. This means different stakeholders engaging in the master planning process, to make sure towns have a range of uses that complement each other, rather than compete.

The best town centre redevelopments tend to have strong partnerships between developers and local authorities. Some local authorities are now bringing in the concept of the 15-minute neighbourhood – the idea that good sustainable settlements provide residents most things they need to get about their daily lives, with living, working and recreation within a short walk.

Reducing travel and creating community and vibrancy – this is the ultimate in sustainability.

Stuart Moncur is head of national retail at Savills.