Growth by sector

In the Value grocery market there are currently 423 OOT schemes containing an Aldi, Lidl, Iceland or Farmfoods, up 78% on 2011, when just 238 contained one such grocer (Figures 1 & 3). Strong shopper demand for Value grocery retail has seen landlords and developers welcome the sector into OOT retail parks in recent years, increasingly as anchor tenants.

It is not just grocery that has seen distinct growth in the Value sector. The same can also be said for a number of Value brands in other retail sectors served by the OOT market. Value orientated fashion retailers for example have also steadily increased in stature. The number of schemes open, trading and home to one or more of the UK’s major Value fashion retailers (Figures 1 & 2) increased by 7% between 2011 and 2014, the total number of schemes rose from 413 to 443. By 2017 the strength of this growth had increased considerably with a total of 564 schemes, a 37% growth on 2011 figures.

^{Source: Savills Research, Geolytix}

^{Source: Savills Research, Geolytix}

The most substantial growth in retail park occupancy however, is in the OOT Comparison Goods Value market. Only 238 OOT schemes contained one or more Value Comparison Goods operators in 2011 (Figures 1 & 2). These retailers have all sought to greatly expand their portfolios in the last 5/6 years. By 2014 the number of schemes anchored by a Comparison Goods Value retailer had grown 80% to 429. However, it is since 2014 that we have seen an explosion in this form of retailing in the OOT sector. In 2017, 779 schemes are home to one or more of these retailers, equating to a 227% increase on 2011.

^{Source: Savills Research}

The performance of OOT schemes containing a Value grocer, Comparison Goods brand or fashion retailer has also improved since 2011. For schemes containing a Value grocery retailer vacancy rates have fallen from 12% in 2011 to 8% by 2017. The same is true for schemes home to Value fashion or Comparison Goods, decreasing from 7% to 6% and from 9% to 8% respectively. What is clear is the Value retail market has been successful in filling some of the voids that came as a consequence of the recession, as they seek to thrive in the space and an economic climate where other less bargain driven retailers have struggled.