Driving growth in off-prime retail property

With a distinct identity away from the mainstream high street, off-prime sites are at the heart of the community and provide an ideal location for certain retailers. With plans to open 50 new stores each year, Domino’s Pizza is one such company due to a need to be close to customers’ homes. This is why the company’s particular focus is on off-prime retail sites.

Andy Emmerson, Business Development Director at Domino’s Pizza, explains, “It’s no coincidence that, while consumers appear to be spending more of their time closer to home, the off-prime retail property market is booming. And this trend looks set to continue with consumers favouring more environmentally friendly life choices and the added convenience that comes with local shopping.

“Our research shows that over the long-term, local shop investments have consistently delivered stronger annual total returns and lower volatility than the IPD All Standard Shops benchmark. This is due to local shopping being more resilient to economic downturn and major comparison shopping competition.

“Looking ahead, our expectation is that the local shopping market will continue to perform well, benefiting from important demographic and environmental trends, and changing consumer preferences and behaviour.

“Domino’s requires a healthy property pipeline to support our expansion so sourcing quality off-prime pitch is a top priority. When it comes to identifying and securing potential locations we always try to turn round deals within a matter of weeks.”

Domino’s Pizza, which already has 470 stores in the UK and Ireland, aims to open 50 new stores every year as 60 percent of the population still live in an area where Domino’s cannot deliver. If realised, the expansion plans could see the company fill over half a million square feet of new retail space over the coming years.