A recent report by property giant Landsec and Bradshaw Advisory has brought to light the potential profitability of sustainable retail sites compared to traditional retail premises. Landsec, known for its ownership and operation of popular shopping centers like Bluewater, Lakeside, and St David’s, conducted a comprehensive 10-year study to explore the growth potential for brands that rent space in sustainable retail destinations.
The research findings indicate that brands operating in sustainable retail destinations could experience a significant increase in revenues of up to 13%. Additionally, these sustainable retail destinations have the potential to attract up to 6% more footfall, which can inject up to £100 million into local economies. These economic benefits underscore the advantages of operating in a sustainable retail environment.
The report also sought to understand what sustainability means to consumers, brands, and local authorities in the context of retail. The study found that “localism” ranked as the most important aspect of sustainable retail among consumers. From the perspective of sustainability, consumers identified the creation of job opportunities for local people and the utilization of local suppliers as the top two factors. Moreover, there was a strong preference for having local, independent brands in shopping centers and high streets. This preference for localism was particularly pronounced among middle-aged individuals.
The findings of the report received support from local authorities across the UK. Prominent councils such as Leeds, Portsmouth, Glasgow, Manchester, and London councils such as Camden, Westminster, and Lewisham agreed on the importance of promoting localism in retail. This alignment between consumers and local authorities emphasizes the crucial role of sustainable retail in fostering vibrant retail environments that have positive impacts on both communities and the planet.
Bruce Findlay, the Managing Director of Retail at Landsec, emphasized that the retail industry needs to place a greater focus on sustainability. He highlighted the importance of collaboration with brand partners and local authorities in order to achieve sustainability goals, unlock opportunities for local communities, and create value for cities. By embracing sustainability, the retail sector can become a catalyst for positive change, benefiting both the environment and local economies.
The research conducted by Landsec sheds light on the potential profitability of sustainable retail sites. It emphasizes the significance of working together with brands and local authorities to achieve sustainability goals. By doing so, the retail industry can contribute to a better future while simultaneously enjoying the benefits of increased revenues and footfall. As consumers and local authorities continue to prioritize sustainability, the case for sustainable retail will only grow stronger.
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