Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

Occupier Demand for Retail Warehousing and Foodstore forecast to increase in 2016

  • 11.49 m sq ft of occupier demand for retail parks, solus retail warehouse & foodstore units  – up by 6% on 2015
  • Demand from the core non-food sector up by 20% to 7.3m sq ft by virtue of significant demand from value retailers (such as B&M & Home Bargains) but also highlighting increased demand by the home furnishing sector
  • Occupier  demand from the foodstore sector is down to 3.8 m sq ft – a fall of 19% driven by record low level of demand for large food stores/hypermarkets but the decrease is being offset in part by significant requirements for smaller foodstore  formats from operators such as Aldi, Lidl, Iceland & M&S Foodhall
  • Restaurant / Beverage demand is up to 0.6 m sq ft – a fast growing sector with new operators entering the market
  • The overall scale of demand supports 31,000 Jobs


Demand for retail parks, solus retail warehouse & foodstore units in Great Britain is forecasted to increase by 6% to 11.49 m sq ft in 2016 according to C&W’s annual forecast. C&W’s specialist Retail Warehouse and Foodstore Team forecast aggregate demand from over 200 multiple occupiers regarded as the core occupiers in the sector.

Aldi, Lidl and B&M are at the vanguard of 29 retail and restaurant occupiers which are looking to acquire at least 100,000 sq ft of new floor space over the next 12 months. In addition, 35 occupiers, including Next, Tapi Carpets, Wilko, Costa and Poundland will each open more than 10 new sites next year.

Martin Supple, Head of Retail Warehouse Agency said “Overall occupier demand is forecast to be higher in 2016 driven by an increase in demand from the core non-food sector – we are predicting increase in activity from the home furnishing and fashion sector which will benefit retail parks in particular. Foodstore demand is changing fast with the smaller operators such as Aldi, Lidl and M&S expanding aggressively and increasingly seeing new opportunities within retail parks.”

Stuart Lunn, a Senior Retail Director at Cushman & Wakefield, said: “We are seeing changes in the make-up of demand behind this increase – including a number of long standing occupiers such as Next seeking to relocate and open new formats. The scale of demand is capable of supporting 31,000 full time equivalent jobs, demonstrating the importance of the retail sector to the UK economy.”

The Cushman & Wakefield data show smaller format convenience food store operators (including the likes of Aldi, Lidl, Netto, M&S, and The Food Warehouse by Iceland) with opening requirements totaling 2.815 m sq ft in 2016, which is a significant increase on previous years.

Reflecting the improving economy and housing market there is increased demand in the bulky goods and home furnishing sector driven by the likes of Steinhoff, Tapi Carpets, Wren Living and Homesense. Total floor space demand in this subsector is up to 2.42 million sq ft in 2016.

Stuart Lunn added: “Buying home furnishings is something which continues to inspire customers to visit stores. It’s a very personal hands-on experience and has so far proved hard to replicate via pure e-commerce channels, which is why capital continues to back significant floorspace expansion in the sector.

 “In the catering sector, it is expected that 33 occupiers will have aggregated requirements for over 250 new openings totaling 670,500 sq ft in 2016.  Food and beverage / restaurants are now considered a lynchpin of tenant mix on successful retail parks, and total floorspace demand has doubled over a three year period.”

Store Opening Requirements Forecast (Sq Ft)


Sub group

Year on Year Increase

(from 2015 to 2016)




















The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.