In Amanda French’s article, “Physical Retail Isn’t Dead – It’s Evolving”, we examined why traditional bricks-and-mortar shopping continues to hold strong appeal for customers despite the growth of online retail. With online retail having plateaued at just over 28% of UK retail sales and remaining below its pandemic peak, the physical store remains firmly at the heart of how customers choose to spend their money. The question now is not whether physical retail survives, but how the market is allocating space across different formats. One clear trend is emerging: retail parks are attracting significant and sustained demand.
The data behind the trend
British Land, one of the largest retail park owners in the country, reports 99% occupancy across its 1,200-unit portfolio. Savills puts available floor space across UK retail parks at just 1.8%, with 91% of existing occupiers choosing to renew rather than relocate. CBRE confirmed in 2025 that retail parks recorded the lowest vacancy rate of any major retail sub-sector, alongside the strongest five-year rental growth across UK retail as a whole.
As Savills’ Johnny Rowland notes, the result is “a structural imbalance between supply and demand” that is “creating a highly competitive environment, particularly for well-located schemes. While lettings volumes appear below trend, this reflects an accurate shortage of new and available space caused by a lack of available land, high build costs and challenging appraisals as well as the general covenant strength of the sector.”
Why retailers are expanding into retail parks
The old image of retail parks as the natural habitat of B&Q, DFS and Halfords no longer tells the full story. Food, fashion, homewares, leisure and value retailers are all expanding their presence in these locations. The format is well suited to the way customers increasingly shop and are strategically located near major roads and motorways, with easy access and plentiful free parking, allowing customers to visit several retailers in a single trip.
Home Bargains was the fastest-growing retail park tenant in 2025, according to Knight Frank, with 265 units. Aldi and Lidl now each operate more than 100 retail park sites. Next, M&S and Skechers have all pursued out-of-town strategies alongside their city centre presence, reflecting what Savills describes as a more holistic approach to expansion, recognising the complementary role of different formats in reaching different catchments.
Matthew Reed of British Land summarises the retail parks’ appeal through what he calls the “three A’s”: affordability, accessibility and adaptability, which make parks “the format of choice for many of the UK’s best-performing retailers. Customers value the convenience of easy access and free parking, while retailers benefit from larger, more flexible stores that support everything from traditional shopping to click-and-collect and returns.”
It is not the death of the high street
The growth of retail parks should not be read as a story of high streets and shopping centres losing out. Strong demand for retail park space sits within a broader retail property market that continues to evolve across all formats. High streets, shopping centres and retail parks each serve distinct purposes within the customer journey, and retailers tend to use a combination of all three. It reflects where the demand is sitting right now.
What this means in practice
For retailers, the practical implication is straightforward: waiting for a retail park unit to hit the open market is no longer a viable strategy. Space is being absorbed before it becomes widely available, so early engagement with landlords and agents is important.
For developers, the supply gap remains an opportunity, but the planning process presents challenges, with applications taking nearly two years.
Across the market, the 2026 business rates revaluation is reshaping the cost equation for every format.
The next phase of physical retail
The conversation is now around how retailers use physical space most effectively. For some, that will mean investing in flagship stores in town and city centres. For others, it will mean larger, more accessible and operationally efficient stores on retail parks. The combination of retail parks, shopping centres and high streets is exactly what is helping physical shopping to remain vibrant and relevant.
If you are an occupier looking to expand your retail or leisure estate whether on the high street, in a retail park or across both, Clarke Willmott’s retail and leisure team can advise on location strategy, lease negotiations, business rates challenges and all aspects of your property requirements. Contact Michaela Walker or Amanda French to find out how we can help.
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