Recent announcements from the big stores around changes to store strategy have sent a few ripples around the planning and development industry and provoked a fair bit of criticism from some quarters, not least some of the communities who can now no longer look forward to seeing a new supermarket on their patch. But what are the wider implications for planning and development coming out of the change of approach?
Well, we firstly have to acknowledge that we should not be
surprised – this has been coming for a while. All the big 4
supermarkets have changed their new supermarket opening strategy
– small rather than big is now beautiful, with almost
perversely the major players now battling over the high street for
their new neighbourhood stores. Competition with the discount
sector has been part of the story – but not all of it. In the
background a few other things have contributed. A changing
demographic that has spawned more young and old households who
don't need or want to shop in a big store once a week is one
feature, busy families shopping online is another. Yet another
contributing factor has been the squeeze on household income which
again has led to more frequent but smaller and more localised trips
to the supermarket.
These trends should be with us for a while and consequently
provide a real opportunity to add further impetus to the drive to
revitalise our high streets and neighbourhood centres. Having the
big players repopulating the high street has to a be a good thing
– it will add vibrancy, increase levels of visitation and
create opportunities for other new businesses to re-occupy
redundant buildings. It may even lead to re-entry for higher end
discretionary spend on fresh meat, cheese, vegetables and fruit
where independents can trade more comfortably against a smaller
scaled supermarket. This segment has been seriously impacted by the
larger store concept.
Whilst is too early to call time on the large format store – they have their place, the rapidly evolving sector does create a real opportunity for regeneration, an opportunity we should take with both hands.
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