“Too much of anything is the beginning of a mess”
Those are the words of iconic interior decorator Dorothy Draper, although if you are familiar of her work, she clearly did not listen to her own advice!
(Greenbrier images courtesy of the Greenbrier).
Whilst Draper was not referring to high street, it resonated with me as I thought about the ever-evolving high streets we see in Central London and across the UK at storefront level, and how often the markets next “hot trend” almost always implodes on itself because of over saturation.
Throughout our lives, we have experienced more “eras” than Taylor Swift, from Frozen yoghurt (froyo), to ye olde sweet shops, vape shops, bubble tea, on demand delivery services, to posh chicken wings and maybe the weirdest – cat cafes! It could even be argued American candy stores were another hyped up flash in the pan, putting aside concerns of their legalities.
This is not to throw shade on any industry, and often these trends can define a period of time, but the current IT trend is actively acquiring sites ten-fold of what I’ve seen from previous trending cycles, and I am worried it risks damaging to a neighbourhood’s balance.
We’re currently going through an aesthetics and beauty clinic era, providing non evasive surgeries like Botox, fillers and even “3D Fat Freezing” – which sounds more like a method of torture than treatment!
Part of the reason why this industry is experiencing an uptick is due to the opening up of class-e planning which makes leasing a lot easier without requiring planning for D1, or landlords concerned about operators which fall between a grey area of retail beauty and medical.
Whilst I am not (yet) their key audience demographic, I actually think there is a place for these clinics, and they are popular for the reason.
However, whenever we are listing a retail premises, over 50% of the viewing requests are coming from the beauty sector, and it is not uncommon to receive competing offers with mirroring business plans.
Adding to this, because of the low supply of retail stock, we have also seen a spike in enquiries on lower ground floor commercial spaces and upper floor offices from operators relying solely on their online presence to drive customers to them, especially on the lower priced end of the property market.
When you consider that we are just one agency, you can imagine the impact a single industry is having in marketplaces, and it is especially noticeable when yet another clinic opens up.
But should landlords and commercial real estate agents care about over saturation?
I think LDG have a unique perspective as property agents.
We don’t hide that our biggest USP is being community focussed around the Fitzrovia neighbourhood.
Most estate agents are singularly disciplined, meaning they operate either in residential or commercial property. This means being stakeholder in an area is often specifically focussed, and most commonly in the central London commercial property markets, agents are not always as neighbourhood focussed in the way that LDG are.
It is a strength of our brand, so when it comes to commercial transactions, we constantly advise clients to consider how an operator will fit in the community, guide clients on what might provide something new, and what could be over exposed to high competition levels. Retailers agreeing to pay strong rents are great for owners investment values, however this must be balanced by their ability to endure.
This doesn’t always mean Landlords agree, and we of course have clients are focussed on the financial and leasing terms when choosing a tenant. But fortunately, we do have a lot of clients who take on board advice when we have concerns of over-saturated industries.
That being said, just because LDG are “community led” should that mean other agents and landlords should care what the rest of the street is doing?
I think they should.
Given Fitzrovia’s proximity to Harley Street, it is clear why this sector dominates our neighbourhood. Fitzrovia has in many ways benefitted from the simplification of commercial planning and it widens the coverage in the West End and its dominance as a health and wellbeing hub.
Despite this, common sense shows that high streets and neighbourhoods thrive when there is a pick and mix of retailers, from “appointment led” service businesses like the beauty sectors as well as occupiers who drive footfall, whether that’s traditional retail, restaurants or something which grabs people’s curiosity and attention. In contrast, hyper levels of competition ultimately lead to operators folding, and landlords are harmed financially.
It’s obviously hard to get a balance, and you can’t control your neighbouring landlords so the argument always will be “why shouldn’t a landlord focus on what is best for them”.
This this is true, but nobody wins when businesses piling on top of each other, especially in a micro market, whether that’s a neighbourhood in Central London like Fitzrovia, or a local town high street.
We need operators at storefront level which people can shop every day. If an area is over popularised by one sector, especially appointment led service industries, which often have a narrow target audience, it negatively outbalances the choices available in a destination and can take decades to rebuild excitement and footfall levels.
Variety is the spice of life and ultimately what makes an area cool/trendy, which is at the essence of why people to live, work and hang out there.
As for the next trend, whatever it may be, it’s important to recognise trends early to advise our clients what is a great new concept and what’s simply Taylor’s next personality, but I don’t think the wellness and beauty sector will go going away, any time soon.
(Credit: Getty Images for TAS Rights Management)
