Are London’s shopping centres pivoting away from a focus on high-end tenants, increasingly embracing mass market brands to diversify their tenant mix?
This trend is illustrated by Marks & Spencer’s new location at Battersea Power Station, Uniqlo’s role as an anchor at Coal Drops Yard in King’s Cross and a reduction in the number of luxury retailers within The Village at Westfield London.
These developments suggest a notable shift from the previous emphasis on luxury brands, prompting a crucial question: Is this transition driven by a lack of suitable aspirational tenants, or is it a deliberate strategy to blend tenant types for increased foot traffic and higher rents?
Marks & Spencer’s imminent presence at Battersea Power Station, alongside retailers like Holland & Barrett and LEGO, marks a significant departure from the destination’s earlier strategy.
Initially, Turbine Hall A at Battersea Power Station was reserved for accessible luxury and high-end brands, while Turbine Hall B embraced a more urban, youthful vibe. At that time, stores like Holland & Barrett might have seemed out of place. So, what’s behind this strategic shift?
Part of the answer lies in the quest for footfall - an essential metric for the success of any retail environment. By incorporating a blend of mass market and everyday essentials retailers, these shopping destinations are positioned to attract more frequent visits.
Shoppers might indulge in luxury a few times a year, but stores offering everyday essentials or accessible products encourage more regular visits, thus driving foot traffic throughout the entire destination.
In Westfield London, the landlord is concentrating the reduced number of luxury operators within The Village into one area to add in a new use to the mall.
This increased footfall not only benefits the retailers directly but also enhances sales for surrounding shops, restaurants and cafés.
Uniqlo’s latest opening in Coal Drops Yard is part of a strategy to give this shopping destination wider appeal. The current tenant mix appeals to a very narrow audience, which has a significant impact on footfall, turnover and the overall achievable rents. They are also diversifying away from apparel, adding in brands like Sostrene Grene, which sell homewares, gifting and craft items, again giving potential customers more reasons to visit more regularly.
In the example of Westfield London, the landlord is concentrating the reduced number of luxury operators within The Village into one area to add in a new use to the mall. Medical and wellness operators will now take pride of place on the upper level of the previously all luxury area. These are key focus areas for consumers but alsoreflect the downturn in the luxury retail market, which is facing economic headwinds, high prices and a lack of must have trends.
Landlords are now focusing on creating vibrant, mixed-use environments by curating tenant mixes that cater to both luxury and everyday needs. By integrating retail, dining, leisure and medical options, these destinations aim to draw a diverse range of visitors, creating a dynamic community and encouraging repeat visits.
However, in select destinations with a strong mass market presence, opportunities still exist to create purely aspirational mix such as Bond Street and Burlington Arcade.
This shift towards including mass market brands in traditionally high-end shopping locations represents a strategic evolution in retail. Balancing luxury with accessibility, theselocations are not only adapting to changing consumer preferences but also securing their long-term viability. The blending of tenant types is a calculated strategy to boost footfall and drive sales across the board. As consumer behaviour evolves, the success of these retail destinations will hinge on their ability to attract and retain a diverse customer base that values both everyday convenience and occasional indulgence.
Hannah McNamara is Co-founder of P-THREE
