Government can use retail and leisure sectors to unlock growth, says Revo
The upcoming Autumn Statement gives the government the opportunity to unlock economic growth by supporting the retail and leisure sectors, according to new research by Revo.
Revo – the trade body for the retail and leisure real estate sector – has partnered with insight and foresight consultancy Trajectory, as well as over 30 sector figures and academics, to conduct scenario planning, with the objective of identifying how its members can prepare for how the industry might look in 2034.
The report will be published in full later this year and looks to present new perspectives on the possible and plausible futures for the UK retail and leisure property industry.
Revo’s scenario planning looks at three possibilities of how the industry may look in 2034:
- The next normal – the UK has experienced its most stable political decade for some time, with Labour’s 2024 manifesto pledges benefitting town centre retail and leisure. Retail and leisure spaces in 2034 are recognised as community hubs, and real estate portfolios reflect this.
- Green, good, smart places – the impacts of climate change are severe and the regulatory response decisive. Virtually every citizen and every organisation is adapting to them. In retail, there is much greater collaboration between owners and operators as both focus on mitigating climate impacts.
- Rescuing retail and leisure in a polarised Britain – Another decade of stagnant growth had meant that many people feel no better off in 2034 than they did in 2024 or even 2014. With value the dominant driver of choice, and endemic price concerns, many retail environments and town centres are hollowed out – with fewer viable businesses and, in turn, creaking local infrastructure and transport.
Under each of the above scenarios, Revo and its partners have looked at the forces which may be shaping retail and leisure real estate sector in 2034. These include the growth of generative AI to the future-proofing of assets from the risks posed by climate change.
Whilst the full report will be launched later this year, the highlights from the research launched at this year’s Revo Conference call on the retail and leisure real estate sector to put community hubs and climate change at the heart of their planning for the future. The report also calls on the Labour government to put retail and leisure at the forefront of its plans for growth.
The insight also looks at the role AI can play in retail and leisure planning, administration, development, and consumer facing operations. In particular it calls for the sector to focus in the short-term focus on upskilling and training the existing workforce for the new economy.
The report also encourages the industry to embrace partnership-based relationships, such as those with data and tech providers to build and scale new digital infrastructure, and those with housebuilders to diversify portfolios.
Meanwhile, with more extreme weather including extreme heat and flooding expected over the next decade, the insight also looks at ways the sector can work together to tackle these challenges. This includes investment in more renewable energy centres across retail and leisure schemes as well as adapting to consumers’ healthier lifestyles and lower levels of private car use.
Vivienne King, founder and managing director of Impactful Places and Revo Board Member, said: “The messages of this future insight are intended to support the retail and leisure property community in positioning their portfolios brands and business interests to take advantage of emerging opportunities, prepare for potential risks and build resilience for in 2034. Retail and leisure can play a vital role in delivering economic growth to the UK and they should be central to the renewal and success of places by giving people a reason to visit, engage, spend and dwell.
“The insights also alert our sector to the need to embrace the challenges climate change poses by 2034, and our response must span decarbonisation, energy resilience, asset adaptation and the role of retail and leisure spaces as ‘safe shelters’. Retail environments should consider their own reliable energy generation, assets’ climate resilience and refuge during extreme weather events and develop mitigations against trading impacts.
“With the Autumn Statement just around the corner, this newly elected Labour government has to seize the opportunity the retail and leisure industry presents for societal resilience and economic growth. Retail and leisure spaces can support thriving and dynamic communities in which people want to spend time and money, as well as provide opportunities to support Labour’s ambition of creating 1.5 million homes over the next five years.
“In order to be best placed to thrive in 2034, we as an industry must speak with a single voice to encourage the government to continue to support the role bricks and mortar retail and leisure can play in helping to achieve Labour’s manifesto goals. This will then allow us all to navigate a pathway to a resilient 2034.”