Retailers must consider the consequences of store expansions

Does the UK really need another million square feet of retailing space? Land Securities thinks so, and has the retailers to support its view that hard demand, not speculative building, is driving the expansion. The likes of John Lewis, M&S, Primark and all the big supermarket chains want more stores, says Land Securities; what's more, they want bigger units on the edge of towns. There's no reason to doubt the accuracy of the developer's report: it is merely confirming a trend that has caused high street retail vacancies to hit 14% . But one has to wonder whether expansion on this scale makes sense for all those retailers. Surely at least a few would be better off concentrating investment in their online businesses. Out-of-town and online retailing are currently seen as natural bedfellows. That relationship may not last.