The online share of retail sales is still above its pre-pandemic trend, but a closer look suggests that is perhaps not as bad for the retail sector as it looks. For example, the share of online clothing sales has declined over the past year, which implies the hit to high street and shopping centre demand is easing. And while the share of household goods bought online has held up, we suspect much of that reflects ‘click & collect’ orders which may boost footfall to retail parks. That’s one reason why we think retail rents will grow by around 2% p.a. over 2024-28, compared to the 3.4% p.a. fall seen over the previous five years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services