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Emerging brands can secure favorable lease terms now by proving local demand through 90-day pop-ups before the landlord market tightens.
12,000 additional stores
across the UK by 2026
12,000-store
figure implies roughly
4,000 brands
opening an average of three locations each
1,200 brands
opening ten
According to research published by Savills and reported in Retail Times, emerging retail brands are positioned to open 12,000 additional stores across the UK by 2026. The projection marks a structural shift: while large national chains continue steady expansion, the next wave of physical retail growth will be led by a fast-growing cohort of new entrants building regional footprints before scaling nationally.
The mechanism is timing and landlord appetite. National brands occupy prime high street and shopping centre anchors, but their expansion rate has plateaued. Landlords seeking to diversify tenant mix and capture younger demographics are actively courting emerging brands willing to commit to multi-year leases in secondary and tertiary locations. The emerging brand accepts higher per-square-foot rent in exchange for landlord marketing support, flexible build-out terms, and co-tenancy with complementary brands. The landlord gets a differentiated mix and a potential future anchor if the brand scales.
This works because the emerging brand's store economics differ from a national chain's. A national retailer models stores as distribution nodes optimized for volume. An emerging brand models stores as marketing spend: the physical location builds brand credibility, generates content, and converts online browsers into loyal customers willing to pay full price. The store doesn't need to carry the full P&L in year one. It needs to prove the brand belongs in physical retail and create a local customer file the brand can remarket to for years. Savills' research suggests landlords and emerging brands have aligned incentives for the first time in a decade.
The 12,000-store figure implies roughly 4,000 brands opening an average of three locations each, or 1,200 brands opening ten. Either scenario creates a narrow window: the early movers secure favorable lease terms and preferred co-tenancy before the cohort floods the market and landlord leverage shifts back.
For a physical product brand, the steal is a regional test-and-learn sequence before committing to a lease. Identify three adjacent postcodes where your online customer concentration is highest. Negotiate a pop-up or shop-in-shop with an existing retailer in each postcode for 90 days. Staff it part-time, track customer acquisition cost, repeat purchase rate, and average order value for in-store versus online. If in-store repeat rate exceeds online by 20% and CAC is lower, approach landlords in those same postcodes with your 90-day performance data and propose a two-year lease with a six-month break clause. Offer to co-market with the landlord's social channels in exchange for 50% off first year's fit-out costs. Your negotiating position is proof of local demand and willingness to walk if terms don't pencil.
Run the play in parallel across three regions. The brand that opens three stores profitably in 2025 will have pick of 30 locations by late 2026. The brand waiting for perfect certainty will negotiate from a position of weakness when 4,000 others are bidding for the same space.
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