A look at how Europe's surplus department store space can be evolved to enhance and improve our retail environments.
As seismic waves hit the US retail market, a scapegoat was quickly found for the colossal collapse of numerous retail formats – the oversupply of department store space. Many in Europe drew half a sigh of relief and prophesised that our market would not face the same struggles, or at least not in the same way. However, as a new tale of retail plays out, some geographies in Europe see even our smaller department store format struggling to stay afloat amidst these tides of change.
The department store concept is not dead, but it does require constant evolution and innovation to survive.
As with the retail market overall, micro level analysis is required to identify oversupply of
the department store format. Obsolete stores have a myriad of reuse options and there is
a growing body of global case studies showing these re-use, remodel, repurpose options
in action.
"For obsolete stores, there are numerous re-purposing options available and a growing body of global case studies of re-use / remodelling / repurposing examples."
So What Does Innovation
Look Like?
Alternative Retail Use
Arndale Centre, Manchester
Intu and M&G Real Estate, the owners of the Arndale Centre, took on the long leasehold of the former BHS store on Market Street. Uniqlo has made an offer on part of the site left empty by BHS. Another party is said to be keen on the remaining space, meaning the Arndale’s currently unloved corner could soon be fully occupied by internationally renowned retailers.
"Re-use options are dependent on building specifics, location, demographics, neighbouring environments, competition and the existing retail and leisure offer"
F&B, Leisure or Entertainment
Market Hall West End, Oxford Street
Market Hall West End has taken over a large swathe of the former BHS site. It features 25 restaurants, four bars and stalls selling produce, along with event spaces and a demo kitchen. The markets have something for everyone, and the overarching theme is ‘quality’. All under one roof, you can find as good a curry, pizza and vegan burger as you can anywhere in London. This project is
operated by Try Market Halls, which is now
also offering yoga and co-working space.
Circle Centre Mall, Indianapolis
Punch bowl social is a competitive socializing concept introduced to Circle Centre Mall in 2016. The nearly 2,200 sqm space operates as a bar, casual restaurant, table games and vintage arcade rooms along with a private karaoke booth. Punch Bowl Social is situated where US luxury department store Nordstorm once was, which was once the anchor of the Indianapolis shopping centre until it closed in 2011.
New Retail Concepts
Re:store, US
Re:store is also riding this new creative wave by merging co-working with retail. The startup provides the infrastructure to bring together independent brands to sell their products in a shared physical storefront. The store also doubles as a coworking space where retailers can opt to work together in an office-type setting.
Kushan Shopping Centre, Shanghai
LifeHub @Kunshan is an 800,000 sqm retail, residential and office development located an hour’s drive from Shanghai. The mall features a ‘Hub Novo’ section, operated by online brands only. In addition, it also has a fulfilment centre where click & collect is available along with changing rooms, so consumers can collect, try on and make a return via the lockers provided. It also hosts a children's theatre, hosting over 500 events per year.
Demographic Realignment
Mosaic, Shanghai
Originally opened in 1932, the former department store at 353 East Nanjing has undergone a comprehensive business upgrade to attract young customers. Pradera Retail Asia has redeveloped the store into a fun-oriented shopping, leisure and F&B destination for China’s fast-growing consumer class. Elements include M-Square, a youth-themed lifestyle area,
plus Shanghai Dungeon, developed in
conjunction with Merlin Entertainments, as
well as co-working areas.
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