The Future of Food Chains

RE-IMAGINED

Supermarkets located within markets with a low online penetration may favour an increase in in-store inventories, transitioning sales area to storage functions. Locations in rural locations with limited amenities may re position space to include public services such as pharmacies, barbers, and opticians.

Dependant on the stores location it may be that space can be re positioned to undertake and perform omni-channel retail operations such as micro fulfilment. This is particularly likely in locations where there is a lack of suitable or affordable warehousing space, or where labour challenges can be overcome through a high density of gig economy labour as seen in urban areas.

Repositioning Supermarket space is dependant on a range of factors

and is likely to involve a blend of uses.

OUTLOOK

NUMBER OF STORES 90,000 SQ FT +

EASTERN LONDON SCOTLAND NORTH WEST SOUTH EAST

The composition of supermarket space is likely to remain largely unchanged in terms of footprint, as operators are keen to maintain footprint. However, as consumer preferences drive change, it is likely that larger retail spaces will have to be managed proactively to ensure value is still driven through real estate. Oversized supermarkets in rural locations are prime to undertake micro-fulfilment operations as online penetration of the E-grocery sector grows over time.

WALES NORTH EAST WEST MIDLANDS SOUTH WEST EAST MIDLANDS YORKSHIRE & HUMBER

50

100

Source: Storepoint.geo, 2023

59 FUTURE OF FOOD CHAIN |