UK retailers are generating more sales from their stores than ever before. Sales per occupied square foot reached a record high in the second quarter of 2026.
Retail sales per occupied square foot climbed to £61.92 in the three months to June, up 23 per cent from £50.39 in the final quarter of 2019, as retailers squeezed more revenue from an unchanged amount of shop space.
Excluding fuel and online sales, consumers spent £105.3bn in physical stores during the second quarter, nine per cent higher than the £97bn recorded just before the pandemic.
Over the same period, occupied retail space across the UK remained flat at around 1.7bn sq ft, pointing to a marked increase in store productivity.
The rise in sales efficiency has also significantly outpaced rental growth, with average nominal retail rents increasing by just 4.9 per cent since the end of 2019.
The latest figures, released by CoStar Group, come amid small improvements to retail’s momentum, with sales volumes rising 1.1 per cent in the three months to July compared with the previous three-month period.
Warmer weather, a summer packed with sporting events and retailer promotions helped encourage shoppers to spend despite continued pressure on household finances.
Household goods retailers and department stores were among the stronger-performing categories, with three-month sales increasing 2.5 per cent and 0.8 per cent respectively.
Department stores benefited from demand for seasonal products including fans and paddling pools as the UK experienced several spells of hot weather.
Meanwhile, automotive fuel sales fell 3.6 per cent across the three months to July, as high petrol prices prompted consumers to cut back on journeys, potentially freeing up spending for other retail categories.
Consumer sentiment has also continued to improve, with the latest GfK figures showing confidence reaching a two-year high in August.
The growth in sales per square foot could have wider implications for retail landlords and investors, as stronger store productivity suggests some occupiers may have more capacity to absorb higher rents than they did before the pandemic.
Sales per occupied square foot have risen almost twice as quickly over the past six-and-a-half years as they did during the equivalent period before Covid.
While performance continues to vary significantly by retailer and location, the figures point to strengthening fundamentals across parts of the retail property market and could pave the way for faster rental growth heading into 2027.
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