UK Retail Location Feasibility Studies: Post-Pandemic Considerations
UK Retail Location Feasibility Studies: Post-Pandemic Considerations
Blog Article
The COVID-19 pandemic reshaped the retail landscape in the UK, accelerating the shift to e-commerce, altering consumer behaviour, and challenging the viability of traditional brick-and-mortar locations.
As the country continues its recovery, retailers looking to open new stores or reposition existing ones face a dramatically altered playing field. In this new era, retail location decisions can no longer rely solely on pre-pandemic assumptions. Instead, they demand a rigorous and nuanced feasibility study process that accounts for emerging trends, hybrid models, and evolving customer expectations.
A feasibility study and analysis for retail location selection now requires a multidisciplinary approach. It must incorporate data-driven insights about foot traffic, e-commerce integration, public health trends, transport accessibility, and the rise of localism. Retailers—especially small and mid-sized enterprises—are under pressure to make informed, resilient decisions that will serve them not only in the current landscape but also in the face of future disruption.
Shifting Retail Dynamics in a Post-Pandemic UK
Prior to the pandemic, high streets, shopping centres, and retail parks were the focal points of UK retail activity. However, lockdowns and social distancing regulations in 2020 and 2021 significantly reduced footfall and pushed consumers toward online alternatives. According to the Office for National Statistics, e-commerce peaked at over 35% of total retail sales during the height of the pandemic.
Though these figures have since moderated, the e-commerce habit remains strong, and many consumers now expect a seamless blend of online and offline experiences. This “phygital” landscape—where digital and physical retail converge—requires retailers to reevaluate their location strategies. Feasibility studies are central to this process, helping determine where, how, and whether a physical presence is still relevant.
Key Factors in Retail Location Feasibility Studies Post-2020
1. Footfall Patterns and Urban Mobility
Post-pandemic footfall has shifted in many UK towns and cities. While some central business districts have struggled to recover weekday traffic due to remote work trends, suburban high streets and local centres have seen revitalised activity. This decentralisation trend makes it critical to conduct location-specific footfall analysis rather than rely on pre-COVID benchmarks.
2. Consumer Behaviour and Localism
The pandemic fostered a “shop local” mindset, as consumers became more inclined to support nearby businesses. Feasibility studies must now include local demographic profiling, loyalty behaviours, and community engagement potential. The most successful post-pandemic retailers are those embedded in their communities, offering more than just products—delivering service, trust, and familiarity.
3. Health and Safety Considerations
Sanitation protocols, space design, and customer flow management remain top of mind for consumers and regulators. Retail locations must accommodate these concerns through flexible layouts and the ability to implement distancing or health measures. These requirements should factor into any physical site evaluation.
4. Integration with Omnichannel Strategy
Retailers are increasingly seeking locations that can double as both showrooms and fulfilment hubs. Locations with rear access for delivery vehicles, storage space, and room for click-and-collect infrastructure are gaining traction. A feasibility study should assess whether the property supports not just customer-facing retail but also logistical flexibility.
5. Economic Viability and Rental Market Shifts
Commercial real estate markets have undergone shifts in pricing and availability, particularly in urban areas. While some landlords have lowered rents or offered favourable lease terms to attract tenants, others have exited retail altogether. Financial modelling within a feasibility study helps determine whether a potential location meets budget constraints and offers long-term viability.
The Role of Real Estate Experts in Location Strategy
As retailers reassess their location portfolios, many are turning to real estate advisory services to guide the process. These professionals offer insights on zoning regulations, lease negotiations, property trends, and valuation, ensuring that site selection aligns with both operational needs and long-term growth strategies.
Real estate advisors can also facilitate portfolio rationalisation—helping retailers exit underperforming leases while identifying high-potential areas for expansion. Their local market knowledge and access to commercial property data make them indispensable partners in feasibility assessments.
Case Study: Independent Retail Chain Reimagines Location Strategy
A UK-based independent clothing retailer with ten stores across the Midlands experienced a 40% drop in footfall during the pandemic. Rather than retrench entirely, the company undertook a strategic feasibility study and analysis of its locations.
The study revealed that suburban outlets near residential zones had recovered more strongly than city-centre stores. It also highlighted untapped demand in smaller towns with growing populations and limited fashion retail options. With guidance from real estate advisory services, the company negotiated early exits from two urban leases and opened three new locations in suburban areas with lower rent and strong community ties.
The result: increased in-store sales, a rise in brand loyalty, and better integration of its e-commerce fulfilment through hybrid in-store pickup services.
Technology’s Role in Enhancing Feasibility Studies
Advancements in data analytics and mapping tools are transforming how retailers approach feasibility assessments. Geographic Information Systems (GIS), mobility data, and real-time consumer analytics enable businesses to:
- Analyse catchment areas by demographic and income levels.
- Predict traffic based on commuting patterns and events.
- Identify retail voids and oversaturated areas.
These tools provide more granular insights than traditional methods and empower businesses to make location decisions backed by robust evidence.
The post-pandemic environment presents both challenges and opportunities for UK retailers. While physical retail is far from obsolete, its role and purpose have evolved. A retail store is no longer just a point of sale—it is a brand experience, a logistics centre, and a community anchor.
To navigate this complex terrain, a thorough feasibility study and analysis is essential. It ensures that decisions are not only based on intuition or historic data but grounded in current realities and future-proof strategies. When combined with the expertise of real estate advisory services, retailers can make confident, resilient location choices that align with new customer behaviours and economic conditions.
As the UK retail sector adapts, those who invest in detailed feasibility planning will be best positioned to thrive—creating spaces that meet the needs of modern consumers and withstand the uncertainties of the years to come.
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