Carmakers target the high street and shopping centres

In recent years, we have seen operators such as Tesla, Hyundai, Jaguar Land Rover and SEAT all take up leases in retail centres like Bluewater and Westfield.

Even more recently, Mitsubishi’s new retail store in Lakeside shopping centre, Thurrock, and the announcement of a further 11 sites in prime retail areas to follow, further confirms the trend.

Historically, these prime retail sites have been an exception for the automotive trade, but we may be on the cusp of them becoming a more regular solution.

On the landlord side there have traditionally been concerns around the lack of transactions that happen in these stores, while on the operator side the best sites were very often financially out of reach and not providing the infrastructure that would be needed for a full-service motor operation.

Now, however, with the potential of gap from traditional retail and the prospect of a business rates bill on empty units, landlords may be more willing than ever to look at flexible terms and rentals in the right location, including short term agreements for product launches and promotions.

At the same time, retailers who are tied into long leases and have a large amount of underperforming floorspace are more frequently considering concessions to maximise the performance of their sites. Ford are working with Rockar to take space in the Next store within the Arndale Centre in Manchester, while Tesco’s recent announcement that it is looking at new ways to use excess space may present an interesting option to some automotive brands.

Traditional retail space offers a real opportunity to the automotive industry, with innovative high-street dealerships in many ways the vanguard for the new model of retail – showroom style formats to capture and advise customers, supported behind the scenes by robust logistics and fulfilment operations.

The high street isn’t dying. Indeed, the motor trade may be just about to give it a whole new lease of life.”

Mark Frostick is a senior associate in the Automotive and Roadside team at Rapleys