UK construction activity September 2024: Retail   

Main contract awards and detailed planning approvals all declined compared to the previous quarter and last year. More positively, project starts grew quarter-on-quarter.

Retail overview

Totalling £522m, retail work starting on site during the three months to September climbed 3 per cent against the preceding three months to stand 14 per cent lower than a year ago. There were no major projects starting on-site (£100m or more), a decrease on the previous quarter and a year ago. Underlying project-starts (less than £100m) experienced a 6 per cent growth against the preceding three months on a seasonally adjusted (SA) basis to stand 16 per cent over last year.

Retail main contract awards totalled £175m, a decrease of 56 per cent against the preceding three months to stand 48 per cent down against the same period a year ago. There were no major projects during the period, unchanged against both periods. Underlying contract awards decreased by 52 per cent (SA) against the preceding three months to stand 48 per cent lower than the previous year.

Detailed planning approvals, totalling £272m, decreased 43 per cent against the preceding three months and the previous year. Underlying approvals slipped back 33 per cent (SA) compared with the preceding three months to stand 43 per cent down against the previous year. Like project-starts and main contract awards, there were no major consents.

Types of projects started

The value of supermarket starts grew 32 per cent, to total £256m, accounting for 49 per cent of all retail work starting on site. Shopping centres experienced a 62 per cent increase against last year’s levels to total £48m, a 9 per cent share of retail project starts.

In contrast, standing 55 per cent lower than a year ago, shops totalled £137m to account for a 26 per cent share of retail work. At £18m, petrol filling stations decreased 6 per cent on the previous year, accounting for a 4 per cent share of the retail sector. Unlike last year, there were no retail warehousing projects commencing on site during the period.

Regional

The South East was the most active region, accounting for 19 per cent of all retail starts nationwide, thanks to the value having doubled against the previous year to total £100m. Accounting for a 12 per cent share, West Midlands also jumped 157 per cent on a year ago, totalling £61m. Accounting for 10 per cent, the East of England grew 159 per cent on a year ago to total £52m.

At £48m, Yorkshire & the Humber also experienced a strong period, with starts having increased 58 per cent compared with a year ago to account for 9 per cent of the retail sector. In contrast, accounting for a 12 per cent share, project-starts in the North West fell 15 per cent compared with a year ago, to total £65m. Accounting for 9 per cent, Scotland slipped back 8 per cent against last year to total £46m.

The South East had the highest proportion of retail approvals, with a 27 per cent share, despite having decreased 31 per cent against last year’s levels, to total £73m. The North West fell 66 per cent against the previous year, accounting for 10 per cent of the sector and totalling £32m. Approvals in the South West slipped back 31 per cent to total £25m, a 9 per cent share of retail approvals.

In contrast, accounting for an 18 per cent share, Yorkshire & the Humber increased 59 per cent on a year ago to total £49m. Totalling £17m, Scotland more than doubled against last year, accounting for a 6 per cent share of retail approvals.

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