What: landlords may have to consider repurposing unfilled retail sites for leisure or residential use

Why is it important: the collapse of Debenhams and Arcadia has left the country with 15 million square feet of empty retail space

The collapse of Debenhams and Arcadia has magnified a problem for landlords: what to do with the glut of redundant retail space tainting Britain’s towns?

Neither Boohoo nor Asos, which have picked up Debenhams and Arcadia brands have opted to take on the leases for the shops. That means almost 15 million square feet of space will hit the market in the UK. Debenhams sites will be even harder to fill than the individual units left behind by Arcadia, because of their larger floor space.

Potential new tenants include discount stores B&M and Home Bargains, as well as fashion brands that have performed better during the pandemic, such as Zara, Mike Ashley’s Fraser Group and JD Sports, which last week announced plans to raise almost GBP 500 million as part of an expansion drive. Are also considered leisure and gym activities as well as turning spaces into flats and offices.

As an example, a Coventry shopping centre anchored by a Debenhams was recently sold for GBP 4.9 million. Eight years ago, the mall was valued at GBP 37 million.

What will happen to all of Britain’s empty shops?