The seven-year average for annual OOT retail unit openings is 812, dipping to a low of 565 in 2014. Since then, unit openings have consistently been above average totalling 882 in 2015, 895 in 2016 and 977 in 2017, led by retailers including Lidl, Aldi, The Food Warehouse, Smyths Toys, Home Bargains, The Range and B&M. With OOT unit openings reaching 484 in H1 2018, Savills says the market appears to be on track for another relatively robust year.

Sam Arrowsmith, associate director in the commercial research team at Savills, comments: 'The OOT retail sector is certainly not immune to the structural changes affecting the UK retail market as a whole. However, these results are heartening and perhaps reflect the beginning of a change in the composition of OOT retail schemes towards a greater focus on convenience retail. Competition with online sales tends to have less of an adverse impact for convenience retailers and many do not have an online offer at all.'

Annual OOT store openings by sq ft have also consistently been level with or above the seven-year average of 10.8 million sq ft, reports Savills, reaching 11.2 million sq ft in 2017. The first half of 2018 saw 5.2 million sq ft of openings which, if repeated in H2, would see a full year total roughly on par with the longer term average.

Since 2015, Aldi, Lidl, B&M, Home Bargains and The Range have opened 479 new OOT units in the UK, accounting for circa 24% or more of total OOT unit openings each year. Beyond the convenience-led value market, Tapi, M&S Food, Next, Oak Furniture Land, Wren, Go Outdoors and Mountain Warehouse have all been acquiring space in 2018, collectively accounting for 48 units or a further 10% of total OOT unit openings.

Dominic Rodbourne, head of out of town retail at Savills, adds: 'The OOT retail market is in a period of consolidation and there is significant over rent in some cases, but it is evident that the sector still appeals to retailers and consumers and will continue to do so. The message is very much that despite particularly challenging conditions, there are a number of retailers that are still highly acquisitive at the correct rent. Many of the units that have or will become available through administrations and CVAs will be re-let speedily.'

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Savills plc published this content on 20 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 20 September 2018 08:52:06 UTC