Demand for warehouse retail space is continuing to expand following the pandemic. Last year saw a record number of out-of-town retail store parks open across the UK.
Retailers are recognising that accessibility is key for customers and with many offering online ordering, the provision to stock, pick and pack goods directly on-site is growing. Choosing to collect from store is a regular customer choice. This means that, rather than paying for postage, customers don’t incur extra costs and can choose a convenient time to collect. With many out-of-town retail stores offering free parking and later opening times than their high-street counterparts, its an obvious lucrative choice for retail companies to establish their presence within out-of-town retail areas.
The pressures of Retail Space
However, with the popularity in warehouse retail space, also comes higher price hikes for land, which together with the increased demand to build quickly is escalating costs at a premium.
This comes at a time, when retailers are calling on the UK government to provide a reduction in business rates, having endured severe hikes in rate prices over several years. Furthermore, with inflation at its highest in 40 years, they are mindful that consumers are becoming far more vigilant on spending which could squeeze profit margins and any further investment.
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