From Development to Asset Optimisation: What Savills’ Outlook Reveals about European Retail 

Savills’ latest outlook provides a clear view of how European retail is evolving after several years of disruption. While the market has stabilised, the research highlights a more disciplined and selective phase, in which performance is increasingly driven by execution rather than expansion. 

Across Savills’ analysis, several recurring themes emerge, painting a picture of a retail landscape that is more operationally focused, more polarised in performance, and less tolerant of inefficiency at both asset and portfolio levels. 

A Market Shifting from Expansion to Optimisation 

One of the most consistent signals in Savills’ outlook is the continued constraint on new retail development. Planning pressures, capital discipline and changing retailer strategies mean that new construction is expected to remain limited across much of Europe. 

 As a result, attention has shifted towards asset optimisation. Refurbishment, repositioning and incremental operational improvements are now the primary levers for driving performance. In this environment, relatively small changes at a day-to-day operational level can have a disproportionate impact on footfall (~8%), dwell time (~15%) and tenant outcomes, particularly in established retail destinations where large-scale redevelopment is not feasible. 

Retail Polarisation Raises Expectations 

Savills also highlights the intensification of retail polarisation. Demand, rental growth and investment are increasingly concentrated in prime locations, while secondary assets face greater pressure to adapt and reposition. 

For prime assets, this concentration brings heightened expectations. Any friction in the customer journey becomes more costly, as competition for both consumers and occupiers intensifies. For secondary schemes, the margin for inefficiency is even narrower, with repositioning strategies relying heavily on removing operational barriers and improving the overall experience.  

In both cases, consistency, clarity and ease of use are no longer optional, but fundamental to protecting value. 

Execution Becomes the Deciding Factor 

Constrained development pipelines and increasing polarisation point to a market where execution matters more than expansion. Assets most likely to outperform over the coming years will be those that operate smoothly, adapt quickly, and maximise the value of every visit. 

This places renewed emphasis on asset optimisation and operational details often overlooked but highly influential, arrival and departure experiences are a prime example. As the first and last touchpoints of a visit, they shape perception, influence behaviour and affect the likelihood of repeat visits.

Parking as a lever for operational optimisation 

From our perspective, working with retail assets across the UK, refurbishment and tenant strategies are important, and day-to-day operational levers, such as parking, play a key role in supporting these strategies, with a significant impact on customer satisfaction and asset performance. 

Well-designed parking systems can support clarity, reduce friction and reinforce a sense of fairness and consistency. Poorly managed parking, by contrast, can undermine otherwise strong retail environments, erode customer goodwill and place additional strain on on-site teams. 

This is where Hozah comes in. Our no-touch, ANPR-based parking solutions help landlords and operators:

• Unlock new revenues and/or increase revenue (~20%)
• Streamline arrival and departure driver experiences
• Reduce operational friction
• Improve flow and free up on-site team hours
• Support fair, consistent compliance

All of this is achieved without major capital investment, helping asset owners focus on optimisation rather than expansion. 

A Selective Market Rewards Operational Discipline 

Savills’ outlook points to a retail market defined by selective growth, rising expectations and a clear focus on performance. In this context, the difference between assets that simply function and those that truly perform increasingly lies in how effectively operational details are managed. 

Parking and access strategies are a tangible example of this principle in action. To see how Hozah helps retail assets optimise operations and enhance the customer experience, explore our case studies