A quarter of all shopping space now ‘obsolete’ due to e-commerce- says property company chief Chris Grigg
A quarter of all shopping space in Britain is “technically obsolete” due to the increase in popularity of online shopping, according to Chris Grigg, chief executive of property investment company British Land.
Grigg, whose company owns half of Meadowhall shopping centre in Sheffield as well as freeholds for Debenhams, B&Q and Homebase, told The Independent that he thinks high street shops will gradually start to disappear.
“It doesn't mean they won’t continue to be used to some extent for some years to come, but they are likely to be become more marginal. What will do well are the modern shopping centres and retail parks.
“These developments are going to have to shrink down so they have got a much clearer purpose through a combination of effective stores, more residential, more mixed use. But it is a very painful process.”
Grigg added that if 25 percent of nationwide shopping floor space was stripped out, the amount of “eligible, effective retail” starts to look more "sensible", this despite heavy online usage by British consumers.
He also commented that bricks and mortar shops can still provide a benefit over e-commerce stores.
“Often the two things are intertwined as opposed to competing. Click and collect is a classic example of that, but so are returns. It turns out if you get people to bring things physically back they will go and buy something else – if they are returning by post they don’t necessarily do that.”
British Land’s retail and leisure portfolio makes up more than half of its £12bn property portfolio.