The shift back to bricks and mortar
After years of pandemic disruption and a rapid tilt toward online shopping, UK retailers are re-backing physical stores. New data from a leading property group indicates that capital is flowing back into bricks-and-mortar locations, with shopping centres and food stores at the forefront of a broader revival in physical retail. The trend suggests that the so-called unloved asset class is enjoying renewed investor confidence as consumers return to experiential, in-person shopping.
What the data shows
The latest market research reveals a measurable shift in strategies across the retail and property sectors. While online channels remain important, retailers and property investors are reallocating capital toward tangible spaces where customers can see, touch, and try products. Shopping centres, often anchored by major food and leisure tenants, are taking a lead role in this revival, followed by high-footfall high streets and speciality clusters. The data points to a more balanced approach—one that leverages the strengths of both digital and physical channels rather than treating them as opposites.
Why now? the drivers behind the revival
Several factors are converging to push physical stores back into the spotlight. First, experiential shopping remains a powerful draw; consumers increasingly seek events, demonstrations, and immediate product testing that online platforms struggle to replicate. Second, food retail continues to be a resilient anchor, attracting regular footfall and creating spillover benefits for nearby shops. Third, landlords and retailers recognise that a mixed-use, well-occupied centre can stabilise rental income and support long-term property value in volatile markets. Finally, supply chains and fulfillment expectations have evolved—store networks act as both showroom spaces and mini-distribution hubs, shortening delivery times and enhancing service levels for customers.
Which sectors are leading the revival
The revival is not uniform across all retail formats, but the leaders are clear. Shopping centres with integrated leisure and dining options are drawing crowds back, with smaller convenience-led formats expanding within those hubs. Food stores, ranging from supermarkets to fresh-food specialists, are driving repeat traffic thanks to daily necessity and evolving formats that mix quick-service concepts with grocery shopping. Department stores and fashion outlets are recalibrating their store formats to offer immersive experiences, while household brands experiment with pop-ups and modular fixtures to maintain relevance in a crowded market.
What this means for shoppers and investors
For shoppers, the trend translates into easier, in-person access to a wider range of experiences and services, from rapid click-and-collect collections to in-store events and tastings. For investors, the signal is clear: physical spaces can offer stable income streams when paired with strong tenant mixes and well-located sites. Property groups are increasingly valuing strategic partnerships with food operators, entertainment providers, and cultural anchors to boost occupancy levels and long-term demand. Retailers that blend digital convenience with compelling in-store experiences are well-positioned to capture both new customers and the loyalty of existing ones.
Challenges and future outlook
Despite the optimistic data, the sector faces ongoing challenges. High street rents, evolving consumer preferences, and the need for adaptive space configurations require careful planning and ongoing investment. Regulatory considerations, energy costs, and the push toward sustainable, climate-conscious operations also shape decision-making. Still, the current trajectory suggests that the UK’s physical store network could become more dynamic and resilient, with centres evolving into multi-purpose destinations that combine shopping, dining, and entertainment in a single, accessible footprint.
Bottom line
The latest data confirms a turning point for UK retail: physical stores are no longer sidelined but are central to growth strategies. As shopping centres and food stores lead the revival, retailers and property investors are betting on a future where bricks-and-mortar experiences complement digital capabilities, delivering tangible value for customers and returns for investors alike.
