.jpg "Reimaging retail spaces: What’s the next chapter for former Topshop units?")
In 2017 if you asked me where to go to buy a new pair of jeans, I would have undoubtedly recommended Topshop. What was once the fashion holy grail to teenage girls and middle aged women alike, we now see a familiar shaped hole on our high streets.
Given the prominence of the Arcadia group across the UK, the announcement of the group’s administration in 2020 introduced hundreds of vacant units to our shopping areas. Arcadia’s fall from grace unfortunately aligned with the pandemic, which further complicated the re-letting of units.
With Asos recently selling its 75% stake in the iconic British brand creating a joint venture with Heartland, questions have arisen surrounding the future of the brand and the potential return to high streets. This raised the question, in a hypothetical scenario in which Topshop wanted to reinstate their former units, how many would they be able to re-absorb, and what has the future held for those currently occupied?
Our analysis only covers units that remain broadly in the same configuration; developments and subdivision of units are more difficult to track. In 2019, our data shows there were just under 200 units occupied by Topshop in the UK (many of these would have also stocked Topman), and a further c.3.5m of occupied floorspace within the wider Arcadia portfolio. Since then, 18% of ex-Topshop units have been repurposed or modified in some way. This analysis focusses on the remaining stock.
New occupiers
Across former Topshop units, 58% of the portfolio has been relet. Fashion units account for just over half of these including brands such as JD Sports, Next and Flannels who have taken units in the likes of Cambridge, Guildford and Derby. JD Sports have actually absorbed more units across the wider Arcadia estate than any other brand in the UK, with a total of 16 units. This includes stores both in-town and out-of-town.
Comparison Goods are the second highest sector currently occupying historic Topshop units at 30%. Occupiers like Mountain Warehouse, Sostrene Green and Waterstones have moved into stores, seizing the opportunity to take above average sized units in prominent locations. Those remaining include a blend of convenience, food & beverage, health & beauty and service based retailers.
Ongoing vacancy
Of the 2019 stock, 42% of Topshop’s former estate remains vacant. This equates to 0.5 million sqft of vacant floorspace across the UK retail landscape. Within this vacant supply, a quarter of Topshop’s former estate has been re-let to another occupier only to become vacant again, whilst nearly three quarters has remained consistently vacant. Situations where occupiers have opened and since closed are likely to indicate broader issues surrounding the quality of the location.
The average unit size of those that have remained consistently vacant is 6,500 sqft, considerably higher than the average size of a retail unit. The generally larger size of units (particularly in the prime areas) catalyses high rent, service charge and business rates, which poses issues in re-letting despite generally good locations.
The ghosts of other retailer administrations have similarly worsened the task of re-letting units that sit alongside vacant department stores, as footfall has been depleted and forthcoming occupiers are reluctant to locate in what increasingly becomes the more tertiary pitch. Additionally, assets that have undergone ownership changes may have extended the vacancy period due to uncertainty surrounding the future of the wider scheme.
What next?
At present, almost 70 units are currently vacant that were once inhabited by Topshop in 2019. Although this may seem high, we should take learnings from success stories of new occupiers, such as Zara’s entrance into London’s One New Change Shopping Centre in 2021. The store was one of the brand’s first to feature online integration features including store mode within the Zara app, fitting room bookings, and an automated pick-up point. Zara’s subsequent opening of their new flagship store in the ex-Topshop in Trinity Leeds in 2024 similarly demonstrates purposeful uses of vacant stock.
The picture is moving in a positive direction, with a growing number of units currently under offer, which should reduce the vacancy rate of the ex-Topshop portfolio in 2025.