As retailers store portfolios become increasingly focused on quality over quantity, many brands are becoming far more selective about where they open stores. While high street vacancy nationally edged down to 13.2% in Q1 2026, vacancy across our sample of affluent cathedral cities and historic towns fell by an average of 9.1% YoY in Q1 2026. The best-performing locations continue to attract occupier demand despite a challenging economic backdrop.

The appeal of affluence, tourism and experience

Locations such as Oxford, Cambridge, Bath, Chester and Windsor benefit from both affluent resident populations and strong tourism economies, creating multiple sources of demand throughout the year. For retailers, this means access not only to loyal local customers but also to visitors who are often in a leisure mindset and more willing to make discretionary purchases.

This helps explain why a growing number of brands are focusing their expansion activity in these markets. Rodd & Gunn has opened stores in destinations including Bath and Chester, while Barbour continues to target locations such as Cambridge and Windsor that align closely with its British roots. In many cases, the location itself enhances the purchase occasion, with consumers drawn to brands in places that reinforce their identity, authenticity and sense of origin. Together, these examples show how retailers are increasingly prioritising markets that complement their proposition rather than simply chasing scale.

A related opportunity can be seen in Britain's coastal destinations. While many of these towns have relatively small permanent populations, they attract significant seasonal spending during peak holiday periods. Goose & Gander has expanded into coastal locations such as Padstow and St Ives, reflecting confidence in the strength of domestic tourism and the spending power it brings. These destinations demonstrate how concentrated visitor demand can support premium retail and hospitality operators despite their modest year-round resident base.

The same pattern can be seen across food and beverage. Cornish Bakery has built much of its growth strategy around affluent tourist destinations rather than major cities, while Amorino's expansion reflects the spending potential of locations where tourism and leisure drive footfall. As consumers increasingly seek experiences alongside purchases, destinations that encourage people to spend time as well as money are becoming increasingly valuable.

Character, scarcity and long-term demand

The environment itself is another important part of the appeal. Historic high streets offer retailers something that is sometimes difficult to find in modern retail formats: character. Whether a converted listed building, a prominent corner unit overlooking a market square or a shop within a centuries-old streetscape, these locations provide a sense of authenticity that enhances the customer experience and reinforces brand positioning.

Paradoxically, some of the challenges associated with these locations are also what make them attractive. Planning constraints, listed buildings and conservation requirements can make acquiring and fitting out stores more complex, but they also limit the supply of prime retail space. With fewer opportunities available, competition for the best units remains intense, helping to support occupancy and sustain retailer demand whilst creating distinctive tenant line-ups.

While major cities and shopping centres remain important components of store portfolios, success on the high street is no longer simply a question of size. Across the UK's most desirable visitor destinations, affluence, tourism, heritage and scarcity are combining to create some of the most compelling retail opportunities in the market.

Further information

Contact Olly Eades or Stuart Moncur

Savills Retail services