Transforming urban retail environments: A strategic framework for digital-age regeneration

Ufuk Bahar
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Ufuk Bahar: Urbanist Architecture, UK

Journal of Urban Regeneration and Renewal, 2025, vol. 18, issue 3, 239-251

Abstract: Urban retail landscapes are undergoing unprecedented transformation, driven by digital disruption, shifting consumer behaviour and structural economic challenges. This paper presents a practical framework for urban regeneration professionals to address the decline of traditional retail spaces while seizing opportunities for creative revitalisation. The first section examines the current retail transformation landscape in England, highlighting the impact of e-commerce, integrated physical-digital retail strategies (known as omnichannel approaches where retailers combine traditional stores with digital platforms) and emerging technologies, including augmented and virtual reality. It explores changing consumer expectations, with a growing demand for experience-driven retail, convenience and sustainability. Key challenges, including rising vacancy rates, economic pressures and the homogenisation of urban centres, are contextualised with relevant examples and data from across the UK. The second section explores innovative retail format solutions, including adaptive reuse strategies, mixed-use developments and flexible retail spaces. It assesses the financial viability of emerging formats and demonstrates the importance of integrating physical and digital experiences to meet modern consumer needs. Case studies showcase successful adaptive approaches that prioritise economic and social value. The final section provides a strategic implementation framework, offering practical guidance for retail space conversion, navigating regulatory and planning considerations and fostering meaningful community engagement. It emphasises the importance of collaboration, sustainability and place-based approaches to create resilient and vibrant urban centres. Drawing exclusively from the UK context and experience, the paper delivers actionable strategies for transforming struggling retail environments into sustainable spaces that may serve entirely different purposes from their original retail use. By aligning innovation with local needs and market realities, the paper provides a framework for ensuring urban cores remain dynamic, adaptable and future-proof in the digital age. While the examples and policy contexts discussed are specific to England, the principles and approaches outlined may have broader applicability.

Keywords: urban retail transformation; adaptive reuse; digital disruption; mixed-use development; omnichannel retail; placemaking; smart cities; retail innovation; experiential retail; urban resilience; high street revitalisation; stakeholder collaboration; economic urban vitality (search for similar items in EconPapers)
JEL-codes: R00 Z33 (search for similar items in EconPapers)
Date: 2025
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