Spotlight on retail: Why the revival is real and what the future holds for the sector

Last week, I had the pleasure of joining a brilliant panel at BE News’ Spotlight on Retail: Revival of the Fittest event in London.  

It’s safe to say the retail sector has been through its fair share of turbulence. But the narrative is shifting. The conversation is no longer about survival; it’s about evolution, experience, and opportunity. 

Retail resilience

The audience kicked off with a show of hands on how positive they felt about the sector’s outlook with the majority leaning toward optimism which is supported by the compelling investment case for retail real estate. 

Retailers like Rituals, Next, All Saints, and M&S aren’t just expanding the number of stores in their real estate portfolio, they are reimagining their physical footprints to deliver elevated, experience-led environments. This isn’t just growth; it’s strategic transformation. 

Generational shifts in consumer behaviour and experience-led destinations

At MRI Software, we’ve been tracking these shifts closely through our Consumer Pulse report. Product availability remains the top reason people choose where to shop with 55% of consumers citing it as a key factor. But other considerations are rising fast. 

• Cost of travel is a major concern for 40% of under-34s. 

• Time pressure matters more to under-55s juggling work and family. 

• In-person interaction is valued by 38% of under-34s — a reminder that digital natives still crave human connection. 

• Over-55s prioritise seeing products in person, reflecting lower confidence in online shopping. 

Retail destinations are no longer about just shopping. 29% of consumers combine retail with leisure, and 23% attend events like cinema or live music. This reinforces the growing importance of mixed-use environments especially in larger centres over 500,000 sq ft as monitored by MRI Software’s footfall benchmarks. 

Experience is the new anchor tenant

Experiential retail isn’t just a buzzword, its fast becoming a necessity. But experience goes beyond flashy displays. It’s about how a shopper feels in-store. Cleanliness, temperature, and even scent are the details that matter. As we edge closer to 2030 and net zero targets, energy management will be critical. Optimising usage alongside footfall trends will help retailers drive efficiencies while enhancing the customer experience. 

What is retail’s role in the future of mixed-use developments?

We’re starting to see more retailers rethink their portfolios which goes beyond expanding their store footprint and diversifying into entirely new spaces. John Lewis’ move into Build-to-Rent (BTR) is a great example of this shift. It’s a strategic response to changing consumer lifestyles and urban needs. Retail is becoming more than a transactional effort and more about creating places where people live, shop, and connect. 

This type of mixed-use strategy can be viewed as a long-term play, and it opens up new ways to operate. With the right tech in place, retailers and landlords can manage diverse assets more efficiently, whether its tracking footfall, optimising energy usage, or delivering seamless experiences across retail and residential spaces. 

Property management technology plays a critical role in providing data from different uses – retail, residential, leisure – and when integrated and understood clearly, it becomes a powerful tool for decision-making and driving value which is where the real opportunity lies. 

Data: Retail’s greatest ally

One of the most exciting parts of the discussion was around data. As I shared on the panel, data will either be your biggest challenge or your greatest ally. Footfall data is powerful, but it’s only one piece of the puzzle. Combine it with consumer spend, demographics, dwell time, movement patterns, and facilities-led insights, and you unlock a 360° view of your retail environment.

This is where AI and tech come into play. Used effectively, they help retailers understand not just what is happening, but why and what to do next. A wealth of data is available at your fingertips and truly understanding this to plan strategically will be the key to success. 

Looking ahead: Challenges and opportunities

However, the sector will still face challenges in the form of business rates, employer NI, and legislative shifts continuing to shape the landscape. But strength lies in how retail leaders face these hurdles. 

Retail isn’t just reviving. It’s reinventing itself and will continue to do so in line with evolving consumer trends. The answer lies in listening to consumers, leveraging data smartly, and designing with purpose.