Mid-sized supermarket and newsagent store formats have a challenging future in UK retail, according to a report by the British Council of Shopping Centres.
The Future of Retail Business Models says Tesco Express and Sainsbury's Local have good growth prospects over the next 10 years due to the excellent availability they offer. Waitrose is tipped for success thanks to its speciality offer and service. Discounters and organic supermarkets are also expected to thrive.
But greengrocers, butchers and newsagents are in danger of losing ground because they are failing to add value to their offering. The report also damns mid-sized supermarkets as "in-betweenies that are neither one-stop or convenient, neither cheap nor high quality."
The pressure on retailers to keep adapting is greater than ever, said Michael Green, BCSC chief executive. "Formats will need to be innovative and speed to market will be essential due to successful formats being easily imitated," he added.