Proposed new supermarket space at lowest level in six years
The amount of new supermarket floorspace in the pipeline has dropped to the lowest level since 2008 as retailers make a shift to smaller stores.
Figures released by global property consultants CBRE show that floorspace at the pre-planning consent stage in the grocery development pipeline has fallen over the last year from 18.51m sq ft to just 15.22m sq ft.
However, the number of proposals for new stores has however continued to rise.
CBRE said the fall in the average size of store proposal was due in part to a sharp reduction in the number of hypermarkets coming into the development pipeline as retailers look to open more convenience stores.
Never Miss a Retail Update!Chris Keen, director at CBRE, said: “The retailer’s preference for smaller store formats is showing through now with the amount of proposed retail floor space (i.e. without planning consent yet) at its lowest level since the ‘race for space’ began at the onset of the credit crisis.
“The reason for the shift to smaller stores is in part a response to changing consumer shopping patterns but also because they are require less capital expenditure to deliver, have less impact on trade of existing stores and are easier to secure planning.”
