Out-of-town retail parks anchored by discounters skyrockets

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Out-of-town

Discount grocery stores anchoring out-of-town (OOT) retail schemes has grown by 78 per cent in the last six years.

According to new research by Savills, there are now 423 OOT retail centres anchored by the likes of Aldi, Lidl, Iceland and Farmfoods, up from 238 in 2011.

Furthermore, retail parks anchored by discount grocers have become increasingly attractive for other discount brands.

Home Bargains has more than doubled its presence at retail parks anchored by discount grocers since 2011.

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Conversely, upmarket brands like Marks & Spencer and Next have also upped their presence at these OOT parks, again more than doubling store numbers.

“Perceptions of discount grocery retailers have changed among landlords and developers as well as shoppers, highlighted by a growing number of non-discount brands such as M&S and Next choosing to sit alongside them on OOT schemes,” Savills OOT retail director Ian Hare said.

“Ongoing demand for OOT space from both food and non-food discount sector retailers looks set to continue, fuelling the development pipeline.”

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