- Major retailers turn bullish on city centres
- Online sales struggling even as price sensitivity increases
The high street might not be dead after all. Retailers are expanding their physical estates after posting strong bricks-and-mortar sales growth, as online custom struggles after the pandemic boom. Even the sharp discounts on offer at Boohoo (BOO) and Asos (ASC) haven't been enough to keep sales up, and major retailers are adding square footage in city centres, just to underline the 180-degree shift from Covid-19-era retail trends.
Primark owner Associated British Foods (ABF) will open another 17 stores worldwide in its current financial year, which will contribute to a net 1mn sq ft of new retail space. The company, which customers have to visit in person, this week disclosed record Christmas clothing sales and an overall 20 per cent revenue uplift in a trading update covering the 16 weeks to 7 January. It noted that “footfall is now strong in major city centres as well as on high streets and retail parks”.