Train of thought

Train stations have historically relied on commuter traffic and the stations' retailing has largely comprised of a functional offer aimed at the time-poor. However, with just 12% of commuters now planning to travel five days a week in the UK, train station space needs to adjust to generate greater revenue from other user groups.

Despite the fall in footfall (National Rail and TFL is currently at 50% of usage compared to pre-pandemic), train stations have numerous factors in their favour. First, trains are a comparatively environmentally friendly method of transport, currently accounting for only 1.4% of UK domestic transport emissions. And part of the Government’s plan to decarbonise transport involves encouraging greater use of rail as an alternative for planes, cars, and lorries.

Greater community engagement
The central location of train stations means they can serve the needs of the local neighbourhood. Jiaxing Railway Station (The Train Station in the Forest) in China attempts to do this by integrating into a surrounding park - offering a public realm that the local catchment will be drawn to, counteracting the traditional loud and busy train station environment through biophilic design.

Within the UK, St. Pancras and Manchester Piccadilly are good examples of stations that have transformed into destinations in their own right. A Network Rail report found that approximately one-quarter of King’s Cross station (seen above) users visit solely for its retail and F&B, with no intention of catching a train. Within three years of the redevelopment of Manchester Piccadilly (which includes 21,500 square feet of high-quality retail) footfall increased from 19million to 28million, and average spending rose 40% higher than the national average.

Having a more engaging and less functional offer doubles up by better serving leisure travellers – whose proportional share is primed to increase through the reduction in commuters and the government push towards rail usage over a plane – that typically have a longer dwell time than commuters.

Continued importance of commuters
Train station evolution is contingent on externalities, such as provisions in the surrounding vicinity, immediate adjacencies, and available space. But train stations will always need to serve transient passengers, who prioritise speed and convenience. In part, this can be accomplished through increased investment in efficiency. Examples could include Amazon’s Just Walk Out technology. Should high-speed parcels become more prevalent, train stations could also offer convenient locations for click-and-collect and parcel returns at low operational costs. Japanese online grocer Cookpad Mart has also started trialling grocery pick up inside train stations.

Incoming Rail Freight
Transporting goods by rail can be 76% more environmentally friendly than by road. In 2019, heavy goods and light-duty vehicles accounted for 15.9% and 15.7% of UK transport greenhouse gas emissions, respectively. As such, the UK government has outlined a set of initiatives to encourage rail freight growth.

At the heart of unlocking demand for rail freight is having Strategic Rail Freight Interchanges (SRFIs), which allow for easy handling of shipping containers between rail and lorry. Rail freight is also having a resurgence as a carrier of light goods with high-speed passenger trains being used to carry goods directly into city centre stations - the final leg of delivery would then be conducted via bicycle or van. An early front runner for such a service is a company called Orion, which has started to haul packages from a Royal Mail facility in Glasgow to a distribution centre in Brent using passenger trains, and whose trains have been noted visiting Euston station.

From our work on stations in the UK, Europe, Asia, and the US it is apparent that as user mix continues to evolve, so too must the commercial strategy to maximise commercial revenue.

Bikram Sandhu