06/06/2025
Insights
Southern Hampshire's high streets and secondary retail sectors are marked by both challenges and emerging opportunities. While the region grapples with broader national retail headwinds, including rising operational costs and shifting consumer behaviours, there are signs of resilience and adaptation, particularly among independent retailers and community-focused initiatives.
We have pulled together all the key facts and figures to help you understand what is going on in this South East area. Keep reading to learn more.
Market dynamics: Challenges and adaptations
The retail sector in Southern Hampshire, as in much of the UK, faces significant challenges. Notably, the closure of longstanding retailers like Beales in Poole underscores the pressures from increased operational costs, such as higher National Insurance contributions and minimum wage hikes, which have rendered some traditional business models untenable. Additionally, the shift towards online shopping continues to impact foot traffic on high streets, leading to store closures across various retail categories.
Despite these challenges, there is a notable trend of independent retailers leading leasing activity across the South East. Flexible rental terms and a focus on unique, community-oriented offerings have enabled these businesses to adapt and thrive in the current environment.
Rental trends and investment outlook
Rental growth in Southern Hampshire’s retail sector has been modest. As of late 2024, average retail leases showed limited growth of 0.9%, with shopping centre rents experiencing declines due to factors like increased remote working and online shopping. However, retail parks have demonstrated resilience, with low vacancy rates and stable rents, reflecting consumer preference for accessible shopping experiences with ample parking and a mix of shop types.
Investment activity has been cautious yet focused, with yields beginning to stabilise after a period of decline. Investors are showing interest in properties with potential for redevelopment or change of use, particularly in urban logistics and residential conversions.
What does the future hold for retail in South Hampshire?
Looking ahead, Southern Hampshire's high street and secondary retail sectors are poised for gradual recovery and transformation. Stabilising interest rates and a clearer economic outlook are expected to bolster occupier and investor confidence. The emphasis on sustainable, high-specification retail spaces, coupled with community-focused initiatives, will likely continue, aligning with evolving consumer priorities and regulatory standards.
As the region adapts to these trends, the area’s retail market is set to remain a dynamic and integral part of the UK's commercial property sector.
How can Eddisons support retail property in Southern Hampshire?
As a national property consultancy with a strong presence in Southern Hampshire, we are actively seeking opportunities to market retail properties for both lease and sale in the region. We have a network of over 30 UK offices and a team of more than 450 experts, allowing us to combine nationwide reach with local expertise.
Please call 0132 933 9008 or use our contact form below to register your interest in our services, and a team member will be in touch as soon as possible.
