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Out-of-town, in-town and e-tailing

 

Posted At: 23 December 2010 13:00 PM
Related Categories: E-tailing, Future of Retailing, Retail

 

In response to a query, raised on the SnapShop website, about the trends in retail sales between town centres, out-of-town and e-retail, FSP's Managing Director, Geoff Nicholson, writes: The share taken by e-tail is monitored both by ONS and by IMRG.  They use different metrics and with adjustments, they broadly tell the same story – the market has grown quickly but is still quite small, i.e. less than 10%.

The in-town/out-of-town split is more difficult to find but is much more significant.  FSP has done quite a lot of work, using the development of space and average sales densities, to track the increasing share of the out-of-town market.  The greatest push is coming from the supermarkets and their increasing proportion of non-food sales.

FSP has published some top-line results, tracking the market share change over the last 10 years and a projection for the next 10 years.  In broad terms, FSP expects the non-food market share of in-town retailing to drop from around 64% in 2000 to around 42% by 2020.

FSP has worked on a number of town centres that are being strangled by edge-of-town developments, particularly large supermarkets.  It is surprising that the scale of the change has attracted so little comment or political attention.  I can only presume this is testament to the power of the supermarkets.

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Comments...

Many, many thanks. You have analysed the problem in Stratford-upon-Avon exactly except we are seeing a decline in food sales due to the setting up of a number of good quality farm shops outside the town. A new Waitrose has just got planning permission on the edge of the town, joining Tesco and Morrisons with a Lidl currently being built. We have a fairly defunct shopping precinct in the centre which is now supposed to be updated but my worry is that this can only be achieved by "cannibalising" the exiting town centre shops. On the other hand 8 new restaurants have opened this year with more coming. All very strange.




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The opinions expressed herein are the personal opinion of the author and are not intended as statements of fact and do not represent the view of SnapShop or Pragma in any way.

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