Retail parks are a staple of modern shopping, offering consumers convenient access to a variety of stores in a single location.

Typically situated near major roadways and featuring ample parking, these developments are designed to attract shoppers looking for a more convenient alternative to traditional high streets.

For investors and businesses, retail parks present opportunities due to their strategic locations, consumer draw, and ability to adapt to changing shopping habits. In this guide, we’ll explore what retail parks are, why they matter, and provide examples of some well-known retail parks across the UK, with a particular focus on the West Midlands.

What Are Retail Parks?

Retail parks are large shopping complexes located outside town or city centres, usually consisting of a cluster of large-format stores (also known as “big box” stores) like supermarkets, electronics retailers, home improvement stores, and fashion outlets. Unlike enclosed shopping malls, retail parks feature standalone stores with their own entrances and are surrounded by large parking areas.

Retail parks are designed for convenience. They are easily accessible by car, offer free parking, and allow consumers to shop across a variety of outlets in one trip. Their design makes them popular for stores needing substantial square footage, such as furniture retailers, garden centres, and home improvement stores.

Why Are Retail Parks Important?

Convenience and Accessibility: Retail parks are strategically located near motorways and main roads, making them accessible for consumers from a wider area. This accessibility is a key factor driving their popularity, as it allows shoppers to visit multiple stores in a single trip. For example, Merry Hill Retail Park in the West Midlands is situated near the M5, providing easy access to shoppers from Birmingham and surrounding areas.

Changing Consumer Trends: As shopping habits evolve, retail parks have adapted to meet consumer needs. With the rise of e-commerce, many retail parks have integrated click-and-collect services to blend online shopping convenience with physical store visits. Retail parks have become essential for brands that want to offer customers both physical shopping experiences and online order pickups.

Flexibility for Retailers: Retail parks offer larger, more flexible spaces compared to traditional high street locations. This allows retailers to create larger showrooms and display areas, particularly valuable for furniture, home electronics, and DIY stores. The flexibility of space means that retailers can adapt their layouts to match seasonal trends and demand.

Investment Opportunities: For investors, retail parks offer attractive returns due to the long leases typically secured by large retailers. This provides a steady rental income and less tenant turnover compared to smaller high street shops. Additionally, the relative stability of retail parks makes them a reliable investment during economic downturns, as they continue to attract consumers seeking convenience.

Examples of Well-Known Retail Parks in the UK

Merry Hill Retail Park, West Midlands

Location: Near Brierley Hill, Dudley, in the West Midlands.

Overview: Merry Hill Retail Park is adjacent to the Merry Hill Shopping Centre, one of the UK’s largest indoor malls. The retail park features a mix of home improvement stores, electronics retailers, and fashion outlets, making it a one-stop destination for shoppers.

Accessibility: Close to the M5 motorway, Merry Hill is easily accessible from Birmingham, Wolverhampton, and the wider Black Country region.

Fosse Park, Leicester

Location: South of Leicester, off the M1 motorway.

Overview: One of the most successful out-of-town shopping centres in the UK, Fosse Park features major brands such as Next, Primark, and Currys. Its recent expansion has added more dining options and retail units, enhancing the overall shopping experience.

Accessibility: Located near the junction of the M1 and M69, it draws consumers from across the East Midlands.

Gallagher Retail Park, Wednesbury

Location: Situated in Wednesbury, close to the M6 in the West Midlands.

Overview: This retail park is home to large-format stores like IKEA, Decathlon, and B&M. The Gallagher Retail Park is well-known for its variety of home improvement and furniture stores, making it a destination for those looking to furnish or renovate their homes.

Accessibility: Its location near Junction 9 of the M6 makes it highly accessible for shoppers from across Birmingham and the wider West Midlands.

How Retail Parks Are Adapting to Changing Retail Trends

Integration of Leisure and Dining: Many retail parks have expanded beyond traditional retail to include leisure activities such as cinemas, gyms, and a variety of dining options. This has turned retail parks into destinations for entire family outings, extending their appeal beyond just shopping. Retail parks like Teesside Park in Stockton-on-Tees have integrated a wide range of restaurants and entertainment facilities, making them a more attractive option for longer visits.

Focus on Sustainability: The shift toward sustainability in retail has also influenced the development of retail parks. Newer retail parks are designed with energy efficiency in mind, incorporating features like solar panels, green spaces, and eco-friendly materials. For example, Prologis Park in Coventry has made efforts to include sustainable practices in its design.

Click-and-Collect Services: With the rise of online shopping, retailers within retail parks have adopted click-and-collect services, allowing customers to pick up online orders directly from their stores. This trend has been particularly beneficial for stores offering larger items like electronics, home appliances, and furniture, as customers appreciate the convenience of being able to inspect their items before taking them home.

Retail Parks vs. Shopping Malls: Key Differences

Cost Efficiency: Retail parks often offer lower rental rates compared to shopping malls, which can attract a variety of tenants, including discount retailers and supermarkets.

Design: Retail parks consist of separate buildings with their own entrances, making them different from enclosed shopping malls. This layout allows consumers to park close to the store they plan to visit, reducing the time spent navigating through a larger indoor space.

Focus on Larger Retailers: Retail parks are particularly appealing to big box stores like B&Q, Homebase, and Currys, which require larger spaces to display their products.

Key Statistics on Retail Parks in the UK

According to Savills UK, the total investment volume for retail parks reached £1.8 billion in 2022, highlighting a steady interest in this asset class despite broader challenges in the retail sector.

British Retail Consortium reports that retail parks saw an increase in footfall by 2.5% year-on-year, as consumers seek out convenient shopping options.

In the West Midlands, retail parks like Castle Vale Retail Park in Birmingham have seen a 5% increase in demand for retail spaces as more businesses look to expand into areas with high consumer accessibility.

Conclusion: The Role of Retail Parks in Modern Shopping

Retail parks continue to play a vital role in the retail landscape, providing consumers with a convenient, accessible shopping experience. They offer a blend of retail, leisure, and dining, catering to evolving consumer preferences and adapting to changes in the retail sector. From Gallagher Retail Park in Wednesbury to Fort Kinnaird in Edinburgh, these developments provide opportunities for retailers and investors alike.

For businesses, retail parks offer a chance to reach a broader audience while benefiting from lower operating costs compared to high street locations. For consumers, they provide the ease of shopping, dining, and entertainment in a single, convenient location. As the retail landscape continues to evolve, retail parks remain a dynamic part of the shopping ecosystem, adapting to the needs of both businesses and shoppers.

With a strong track record and adaptability, retail parks are likely to remain a key component of the UK’s retail environment, offering stable returns for investors and essential services for consumers.