The retail industry has been significantly impacted by the ongoing pandemic, and the latest Vitality Rankings by strategic retail property consultancy Harper Dennis Hobbs highlight this trend. Surprisingly, it is smaller towns that are leading the way in terms of retail health, while traditional retail hotspots are lagging behind.
The Vitality Rankings assess the health of high streets and shopping centers, and the top 20 list is dominated by towns like Beaconsfield, which claimed the coveted top spot. These smaller commuter towns continue to benefit from the shift in shopping habits due to remote working and changing consumer preferences.
Notably, larger centers are also showing signs of recovery, with places like Kingston-Upon-Thames, York, and Chester moving up the rankings this year. Harper Dennis Hobbs analyzes factors such as vacancy rates, residents’ movement, and suitability to local consumer demand to determine the health of high streets and shopping centers.
Although larger retail centers in the UK have been bouncing back over the past 18 months, they still have progress to make. However, smaller commuter towns continue to dominate the rankings. Beaconsfield and Henley-on-Thames, in particular, have experienced significant growth since 2019, benefiting from the increasing tendency for consumers to shop locally.
Other towns that have made it to the top 20 include Wimbledon Village, Tenterden, Sevenoaks, Skipton, Reigate, Harpenden, Farnham, Berkhamsted, Ilkley, Ringwood, Harrogate, Cobham, Beverley, and Brighton Central.
According to Andy Metherell, the Head of Consultancy and Analytics at Harper Dennis Hobbs, the rankings now reflect the hybrid working model and the return to normalcy following pandemic restrictions. Shoppers are gradually returning to city centers and regional malls, leading to the rise of larger centers in the rankings. However, affluent commuter towns are still reaping the benefits of behavioral changes caused by hybrid working, which explains their continued dominance in the top spots.
Metherell also mentions that seaside towns and domestic tourist hotspots have managed to maintain their positions in the top 50, thanks to the influx of visitors over the summer. However, he warns that the rankings may see changes in January 2023 as the cost-of-living crisis starts to impact spending levels and consumer confidence. Factors such as inflation, rising interest rates, increasing energy bills, and a squeeze on household income are expected to affect all areas, especially those that are less affluent.
Useful links:
1. Harper Dennis Hobbs
2. UK Government Business Support Helpline
