Consumers prefer in-town rather than out-of-town shopping

The survey shows that in-town shopping was regularly undertaken by 61.4% of respondents, compared with 44.8% who agreed that they regularly visit out-of-town shopping centres and 38.9% who said that they regularly visit retail parks.

Key Note estimates that, in 2007, the total amount of letting area within the UK shopping centre market reached 25 million square metres, rising by 3.1% from 2006 and 15.6% higher than in 2003. Since 2003, the amount of letting area in UK retail parks has increased steadily. The market continues to capitalise on the strong demand from retailers for space in the larger retail parks and from high occupancy levels. The UK is one of the leading EU countries in terms of shopping centre space, and investment by property companies and property developers is strong, and the sale, purchase and realignment of their retail park portfolios are ongoing.

A preference for in-town shopping was particularly high among women, with 68.5% of female respondents agreeing with the statement that they regularly (defined as once a month or more often) visit in-town shopping centres. Regional differences appeared to have an influence with 72.2% of respondents in East Anglia agreeing that they regularly visit in-town centres, compared with just 43% in the West Midlands. The availability and number of shopping centres throughout the various regions are likely to play an important part in this.

The market is currently experiencing a substantial increase in supply and the volume of shopping centre space under construction at this time is at its highest level since the building boom of the late 1980s. Key Note forecasts that a significant amount of additional shopping centre retail space will be added to the market between 2008 and 2012, with 2008 being the peak year for completions.

While online shopping is steadily rising in importance, according to the survey, only 15.5% of respondents agreed that they prefer to shop online rather than visit a shopping centre. The proportion of shoppers who still prefer to visit a shopping centre remains significantly ahead of the proportion that prefer to shop online.

2.4 million square metres of additional shopping centre retail space will be added to the market between 2008 and 2012, bringing the total to 28.3 million square metres by 2012. The increase in retail space will be boosted by the planned completion of a number of major projects.