Build: Perspective – Retail

Market sentiment in early 2026 – at least until the breakout of conflict in the Middle East – broadly reflected a state of cautious optimism. In terms of footfall, the story had been relatively positive throughout 2025 – before growth stalled in Q4 2025, possibly as a result of uncertainty from the late Budget. Q1 2026 saw a rebound for both Shopping Centres (+0.9%) and Retail Parks (+1.3%), meaning that a decline for High Streets (-0.3%) meant overall footfall increased by 0.4% for the sector as a whole.

Vacancy rates on the High Street (13.4%) and in Shopping Centres (16.3%) have continued to trend downwards throughout 2025. Retail warehouse vacancy rates continued to fall in 2025, recording a 60 bps contraction to stand at 4.3% in Q4 2025.

One of the key factors in the decline in vacancy rates and a clear vote of confidence amongst occupiers has been the volume of retail reopenings in the last year. More than 1,500 multiples expanded their presence across the UK, opening 8,200 stores in 2025 – an increase of 7% since 2023.

There has been a notable shift in the types of brands driving this expansion. In 2023, multiple retailer openings were dominated by brands with 100+ stores (55%), with only a third of openings coming from stores with 50 or fewer stores. This pattern reversed in 2025, with retailers with fewer than 20 stores accounting for half of all openings.

The shifting profile of retailers entering the market is already influencing build programmes. Newer operators, still refining their design and procurement processes, are generally working to slightly longer timelines, particularly where contractor relationships are not yet established.

Simultaneously, the growing number of brands taking new space is placing additional pressure on labour availability, further extending some programmes.

In the most competitive locations, acquisitive retailers are increasingly prepared to pay a premium for accelerated fit-outs to maximise trading time. However, rising materials costs remain a major constraint, reinforcing the preference for retrofitting and lighter-touch enhancements as retailers balance new format requirements, including self-service solutions, with cost control and sustainability commitments.

A small but notable number of schemes, particularly within mixed-use developments, are also seeing extended lead-in times due to additional obligations under the evolving Building Safety Act. Collectively, these trends point to a more varied and complex delivery landscape in 2026, shaped by both market dynamics and the changing ambitions of an expanding retailer base.

_{Read the articles within Savills Build: Perspective report below}