The Changing Physical Landscape of Retailing

This chapter considers the changing physical requirements that retail businesses have both today and in the future. Urbanization, technology, and regulation are identified and discussed as the major drivers of retailers’ changing space requirements, in terms of both the amount and the type of space that retail enterprises require. Overlaying these considerations are the impacts of COVID-19 on shopper behaviour and, especially, the accelerating migration of sales online and attendant remodelling needed of both individual stores and store networks. Differences between presently mature and emerging markets are discussed. Small, convenience orientated stores are identified as a format with continued strong growth prospects. By contrast, the future for the large space hypermarket format is identified as being under considerable pressure. The changing role of shopping centres and the challenges of excess space in many locations are discussed. The enduring appeal of physical shopping space for many is presented in the form of a case study of the hugely successful Bicester Village ‘Luxury Outlet Mall’ in the UK.