Hannah Jackson, Solicitor, Goughs Solicitors, considers the rise of concessions and the reimagining of commercial property
Whilst we know that Bath offers an unrivalled blend of historic charm, architectural beauty and a thriving tourism industry, we cannot hide away from the fact that like many other cities across the UK, there has been a huge shift in the retail sector in recent years.
In a retail landscape reshaped by online shopping, economic uncertainty and changing consumer habits, one trend is helping to breathe new life into our high streets: retail concessions.
At Goughs, specialising in commercial property law, we are witnessing first-hand how this flexible and innovative model is revitalising traditional retail spaces and offering real opportunities for both landlords and tenants alike.
Retail concessions involve one brand, often a smaller, independent business, operating within the premises of another, usually larger and more established retailer. Think of it as retail ‘co-working’, a collaborative arrangement that brings mutual benefit. For commercial property owners and tenants, this shift in retail strategy offers more than just aesthetic variety, it can mean increased footfall, diversified income streams and long-term sustainability.
Increased footfall, engagement & dwell time
One of the biggest advantages of hosting concessions is their proven impact on footfall. Customers are increasingly drawn to unique, curated retail environments that provide a more engaging experience than traditional shopping. By offering multiple brands under one roof, retailers can encourage customers to stay longer, browse more widely and ultimately, spend more. It’s an evolution of the department store model, tailored for today’s experiential economy.
Empowering Independent Brands
For many small or emerging brands, the cost of a standalone retail unit in a prime location can be prohibitive. Concessions offer a valuable entry point, access to desirable locations without the long-term commitment and overheads. This opens doors for creative and innovative businesses that may otherwise be confined to online-only platforms. For landlords and tenants alike, this means a rotating mix of fresh, exciting offerings that help keep the retail space dynamic and attractive.
Financial flexibility for lead tenants
From a legal and commercial standpoint, concessions provide critical financial flexibility. In many cases, the tenant can offset some of their lease costs through revenue-sharing arrangements or fixed subletting agreements with concession holders. Our team works closely with clients to draft and negotiate concession agreements that protect both lead tenants and concessionaires, ensuring clarity on responsibilities, revenue splits, and operational boundaries.
Choice and community for consumers
With more brands sharing a space, shoppers enjoy greater variety and a more bespoke retail experience. Given the presence of high quality artisans in Bath, Somerset, Wiltshire and beyond, these such concessionaires add depth and diversity to the consumer offering, something traditional retail has often lacked. It’s also an opportunity for brands to test markets before expanding more permanently.
Breathing life back to the high street
Ultimately, concessions represent more than a business trend; they are a key strategy in the revival of our high streets. They foster a more sustainable retail ecosystem that encourages collaboration, innovation and community. Overall a haven and anchor for many of Bath and the West Country’s independent retailers.
At Goughs, we help commercial property stakeholders, both landlords and tenants to navigate the complexities of these evolving relationships, ensuring that their agreements are robust, flexible and future-ready.
The future of retail is not about resisting change, but embracing it. With the right legal support, concessions can turn vacant units into vibrant destinations, reinvigorate shopping centres and make our high streets relevant again.
If you’re considering hosting or becoming a retail concession or wish to explore how your commercial property can better adapt to today’s market, Goughs are here to help.
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01249 475888
