Level pegging

Central to the post-pandemic recovery is the government's commitment to `level up' economic performance outside of London and the South East. Increased public spending in provincial towns – in total £3.6 billion has been set aside in a levelling up fund – creates potential to significantly impact physical retail environments in these areas.

The impact on physical retail could be direct – through funds aimed at reviving struggling high streets and shopping centres (a further £830 million has been allocated in a Future High Streets Fund) or indirect: improved transport infrastructure, such as bus routes, cycle access and rail connectivity could help drive shopper footfall, as could investment in local leisure facilities and services, such as libraries and healthcare.

But what is the role of retail and how it could be utilised to assist in `levelling up' and be understood by those in charge of the purse strings?

Future high streets
The government has identified struggling high streets as an area for focus, given their centrality to many communities across the UK. The aim is, in their words, to `transform high streets into vibrant hubs for future generations'. Consideration must be given to the fast-changing commercial needs of residents, workers and the local community; high streets are increasingly less-dominant in terms of their retail provision and are likely to require new footfall drivers to help assist in drawing attention and footfall back.

As an example, Worcester city centre, which has struggled in recent years with empty shops, a poor-quality street environment and anti-social behaviour – will be assisted by a £17.9 million investment to bring a diverse leisure, residential and cultural offer to the city. Coupled with improved connectivity with the station, it is hoped these plans will help develop underused space at the Scala Theatre and Corn Exchange. However, with strong out of town provision, Worcester risks a segregated in-town leisure offer and out of town retail offer.

Mixed-use spaces
Regenerating town centres increasingly means embracing mixed-use development. In Birkenhead, £24.6 million of government funding is being used to transform the historic market area and former House of Fraser store into, among other things, a new office space, with a range of food drink outlets and a new park.

Similarly, Telford Council have set out an investment plan aimed at `connecting places and communities.' The station quarter will be upgraded to create a new gateway from the train station to the town centre. There will be a digital skills hub; 1,665sqm of new office, retail and leisure space; as well as 1km of upgraded walking cycling routes. The benefit of mixed use is that as well as office and residential occupiers acquiring physical space, they also bring additional users (office workers and residents); providing an additional source of demand for retail, F&B and leisure provision.

Challenges in provincial locations are ensuring there is enough demonstrable demand for government investment in office and residential to be augmented by the private sector.

Changing uses
Greater public investment in town centres presents opportunities to change the use of prime commercial space. For instance, in Stockport, the former Debenham's unit is being demolished to be replaced by a £500 million hospital. Such changes present a perhaps once-in-a-generation opportunity to fundamentally alter a town centres' key proposition and make the key drivers of visitation things that people need to do, as well as want to do. The introduction of education facilities in town centres presents a lasting opportunity to locate a diverse population of students and staff in a central location. Ulster University's new Belfast campus will relocate 15k students and staff to the city centre, creating a completely new opportunity for physical retail.


The pandemic exacerbated pre-existing challenges for town centre and high street locations. Government investment and funding in provincial towns will unlock further private sector spending in these areas, help drive footfall to struggling physical retail locations and encourage more environmentally conscious modes of travel, such as via public transport and cycling.

To ensure this investment creates lasting value and commercial success, careful attention needs to be paid to the peculiar and fast-changing needs of potential users in specific locations. It is likely that coordination with local councils and authorities to assess local needs will help ensure commercial provision is relevant and sustainable.

Jamie Parker