Alliance Retail Exchange: Retail space is the name of the game in the out-of-town market

A lack of quality out-of-town space continues to be the challenge faced by retailers in 2026, according to the delegates Completely Retail News spoke to at September’s Alliance Retail Exchange (ARX) event.

Demand for retail warehousing space remains high, but many retailers and operators are continuing to find a lack of churn to be the biggest obstacle to their expansion plans.

As a result, rents are expected to grow, while landlords and prospective tenants are having to be more creative to create new opportunities in the out-of-town market. This may lead to the development of new stock, the splitting of existing units, or the creation of new formats.

The event, which was sponsored by PureGym, was held at The Brewery in London and attracted over 500 delegates, including agents, landlords, and retailers.

The morning of the event saw a welcome speech and breakfast before the floor was opened to dealmaking. This was followed by a presentation by Savills’ Sam Arrowsmith and George Trimmer, which looked at the lack of out-of-town space available to retailers. The presentation highlighted how, outside of drive through formats and bespoke discount grocery stores, no new stock is coming to the market.

That said, the general mood at the ARX event was a positive one, despite external pressures. The retail industry, which took a beating during COVID, seems to have permanently turned a corner – at least in the out-of-town market. One delegate said that it is now down to town centres and other retail markets to “catch-up” with retail warehousing as a means of producing quality stock.

And when it comes to working with what you’ve got, it appears that the gym operators have emerged as market leaders in creating new formats to work with this lack of space. PureGym, for example, is rolling out smaller format locations in underserved areas as a means of meeting its expansion targets.

The afternoon saw a second presentation from Freeths’ Paul Tomkins and Dentons’ Daniel Lowen, titled The Use of AI in Professional Services: The good, the bad and the ugly. This explored the risks associated with the use of artificial intelligence in the property industry, as well as its potential advantages – a pertinent subject as increasing amounts of professionals use AI in their work.

The event – which ended with a well-received drinks reception – and its popularity showed the resilience of the out-of-town retail market. What remains to be seen is how retailers and operators will find the space they need to support their ambitious plans for expansion.