The Covid-19 crisis has turbocharged what was already a fast evolving picture for the retail sector in our towns and cities.
Scotland’s largest city, Glasgow, is a case in point where the pandemic has seen sharply rising vacancy rates and footfall in January 2022 sitting at 50 per cent of pre-pandemic levels.
Paradoxically 2021 was in fact a busy year, with the level of leasing activity on Scotland’s prime shopping thoroughfares bearing little relationship to the chastening trading conditions.
Retailers are an optimistic bunch, and many have chosen to make property choices, often securing a bargain at the same time, in the expectation of better times ahead.
From crisis comes opportunity– and over the last six months, the retail market in Glasgow has seen a surge of entrepreneurial spirit, with a number of online retailers making their first foray into bricks and mortar shopping.
Front and centre of this trend has been the emerging market for collectable footwear and fashion items.
If you have ever sought after a pair of rare trainers or t-shirt, which may have been modelled by an influencer or manufactured in limited numbers, Glasgow now has the shop to feed your habit.
Four brands which were previously offering an online-only service have now set up their first shops in Glasgow city centre. Exceed, 1Lux, KershKicks and Hylux may be unfamiliar names for some, but strike at the heart of a fashion conscious consumer, in a city well known for its appetite for designer shopping.
The fact that a quartet of similar brands have opened recently, with Savills advising on multiple of these transactions, suggests that they have taken advantage of an untapped market.
The demand for these types of products is undeniably very strong and the opening of these stores highlights how the challenging retail climate has allowed young Scottish entrepreneurs to flourish – in particular Exceed and 1Lux, which both have been set up by youthful owners, originating from Glasgow.
The basic premise of these stores is to principally offer luxury footwear to their customers, but when you dig a little deeper, it becomes clear that they offer much more than that.
It is apparent that the business model for these brands is offering a service in sourcing trainers or pieces of clothing that are rare and difficult to find on the market.
Through their contacts and expertise, they are able to acquire these collectable items on behalf of their customers much more effectively than if the customer tried to find and purchase the products directly.
It highlights that the products they offer and can source are not just valuable in terms of their price tag but also in terms of their exclusivity due to the difficulty in acquiring these goods.
Retailing has always been a fast-paced sector, and the pace of change has never been as pronounced as it is at present.
With entrepreneurial spirit alive and kicking, 2022 promises to be an exciting period as the sector continues to modernise and evolve.
Contrary to many, those of us in the sector see a bright future for our city centres and Glasgow in particular is well-placed to bounce back strongly from the Covid-19 crisis.
We are now beginning to see encouraging signals on Buchanan Street – a bellwether for prime retailing in Scotland – where the vacancy rate has fallen from 14% to 9% over the last 12 months and we expect this to drop to under 5% by the end of this year.
There are also signs of renewed investor appetite for the city and with prices competitive compared to the 20 year average yield on Buchanan Street, 2022 is, in our opinion, a golden time for landlords to invest.
John Menzies is a retail director at property firm Savills
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