UK town centre shopping is set to come under pressure as higher interest rates dampen consumer spending and competition from out-of-town retailers intensifies, a report said today (13 June).
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However, the report, from retail analyst Verdict Research, had better news for town centre food retail outlets.
The report forecast that overall town centre retail sales will grow by 6.5% between 2006 and 2011, against total retail sales growth of 15.4%, but it suggests town centre grocery retailing will fare better than some other categories, such as electrical goods.
“Supermarket chains are likely to achieve strong growth in the period, particularly as non-food ranges are bolstered,” said Verdict, part of the Datamonitor Group. “With out-of-town development becoming increasingly difficult as a result of planning restrictions, the likes of Sainsbury and Tesco will look to extend their town centre stores wherever possible and build new town centre stores as opportunities arise.”
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