Reimagined retail: Future urban centres in a post-pandemic, hybrid working world

How can urban centres be transformed into vibrant hubs where local businesses thrive, people can socialise and engage in leisure activities? 

COVID has changed the way people work, socialise and expect to move around. As retail has moved online and people are more frequently working from home, the purpose and format of city and retail centres are being reimagined. In a recent webinar, a panel of experts discussed how we can reimagine retail and create thriving, attractive and more sustainable places for people to live.

The importance of locality and mixed use

Retail in the UK has been a major driver of activity and economic vitality in urban centres for the past 50 years. It is also the logical starting point for their revitalisation, says Tom Whittington, director of retail and leisure research at Savills.

The pandemic accelerated and amplified existing trends in retail, but created few of its own, he adds. A blended experience of online and offline shopping was already firmly established, while post-pandemic consumers began placing greater value on leisure activities.

Hybrid working has strengthened the connection to local shops, as people commute to work less frequently and are more inclined to visit nearby businesses, increasing foot traffic. Convenience stores, food, beverage, retail parks and leisure activities have all been doing particularly well post-COVID, and prime high streets are bouncing back. Consumers are at the heart of the revitalisation of urban centres; without them, there is no investment value or development drive, explains Tom.

For retail to stay relevant, repurposing is essential, Tom continues. Introducing mixed-use and alternative uses that complement retail or help right-size it to increase footfall and crossover is important, he explains. This can include co-working spaces, or health or education centres, for example.

Elements of a successful city

‘All cities compete, and the elements that make a city successful also help retain and attract talent. Retail is an essential part of that formula’, says US-based Theodore Liebman, principal at international architects Perkins Eastman and Board Member of the Consortium for Sustainable Urbanization.

Theodore explains that cities must offer good healthcare, teaching hospitals, and good quality education. People care about their health, good food, and the overall quality of life, he says, so having clean air and water, vibrant culture, arts and music and good quality parks and recreation are essential. The elements that make a city successful also make it a place where people want to stay or return.

Repurposing and thriving places

Bex Trevalyan is co-founder of social enterprise Platform Places and sustainable rental service Library of Things. She is interested in the language used to describe the people who live in a place. Rather than describing people who live in a place as consumers; people who have a transactional relationship with the place – she talks about viewing them as citizens, who have a transformational and participatory relationship with the place. ‘The places I see thriving are those that understand that, and put local people at the centre of activity to making a place’.

She cites the example of Nudge Community Builders, a community group that was set up to revitalise a once-deprived high street in Plymouth, England.  With high vacancy rates, residents local to Union Street in Plymouth felt unsafe, unwelcome and avoided the area. The project raised funding to transform a dilapidated building into a thriving marketplace hosting a variety of social enterprises. This included a local radio station, health and well-being services, food startups and affordable housing in flats above.

This transformation injected life, vibrancy and a sense of safety into the high street, encouraging local residents to participate and engage. The success of this initiative led to increased demand and enthusiasm from the community, enabling the group to lease additional buildings on the street, further revitalising the area.

‘It’s the pioneers that we can bring into certain spaces that really bring something to life and create the traction’, says Tom. One of Tom’s favourite repurposing projects is the transformation of a former department store in Angel Street, Sheffield, England. The Kommune project introduced a food hall, creating a vibrant atmosphere, above which the Kollider Incubator provides co-working spaces and support for tech start-ups and creative businesses. The impact on the surrounding streets has been significant, with previously vacant units once again experiencing demand.

Bex provides a further example. The Sparks Bristol project, Southwest UK, two local organisations, Artspace Lifespace and Global Goals Centre, repurposed a well-known chain store building in the city centre. They collaborated with local residents to co-design the look and feel of the new space.

Taking the idea of a department store, they created various departments within the large floor area. These included a department for imagination, a department for nature with an urban garden and inspiring films, and a department for energy offering advice on fuel poverty and energy efficiency, with Bristol Energy Cooperative based there. Rather than planning the entire space themselves, they partnered with hundreds of organisations, positioning them as partners rather than tenants, explains Bex.

Building strong relationships and trust between space owners and local stakeholders is essential. Securing funding for repurposing projects can be challenging. Collaboration with local authorities, community organisations, and local businesses is vital for overcoming these challenges, says Bex.

Creating usable spaces

Especially after the pandemic, connecting with others is crucial for our mental health and overall well-being, says Theodore. ‘We have enormous new opportunities because retail cannot remain as it was. People have changed. Our activities have changed.  Reimagining retail can transform our urban environment into liveable and sustainable 15-minute walking cities’, he believes. ‘We need to move away from traditional zoning practices, cities should incorporate mixed-use areas almost everywhere’.

He also stresses the importance of welcoming people of different incomes and ages and making spaces accessible for everyone. Creating areas where people can sit and relax is crucial and provides a sense of security.

Tom agrees and adds that the public realm is not just about open spaces, but about creating usable spaces; placemaking and culture are essential. He cites the example of Mayfield Park, the first new city park in Manchester for 100 years, of creating a tangible space that people can live, play and breathe.

Repurposing, rent and sustainability

In terms of mixed-use development, retail landlords with extensive spaces are becoming more flexible. For example, the average retail lease is currently about three to five years, says Tom. In contrast, entities like the NHS or hospitals are likely to sign leases for 25 to 30 years or even longer, explains Tom. From a landlord's or investor's perspective, having a long-term tenant who guarantees rent, even at a possible reduced rate, is highly valuable.

Tom stresses the importance of simultaneously addressing the carbon usage by buildings and repurposing buildings for different uses. ‘There is little point in upgrading a property to be the greenest, cleanest building if its use isn't appropriate. So, thinking about repurposing and its environmental performance [together] is absolutely fundamental for sustainability’, says Tom.

To what extent are we seeing a shift to experiential retail? After years of online-led decline, has hybrid working revitalised local retail? In this webinar, a panel of experts examine how urban centres can, and are, being transformed into vibrant hubs where people can socialise, engage in leisure activities, and support local businesses.