Out-of-town shopping parks have changed the face of British retailing and helped it become one of the most vibrant of industries. Right now, though, landlords need to show a greater degree of flexibility to reflect the realities of the economic climate.

As car ownership grew in the 1980s, families wanted to shop in convenient, accessible outlets with parking.Supermarkets were quick to spot this evolution and geared their own store development programme towards edge-of-town sites. They were followed by general retailers. At the time town centre space was limited and expensive, so local authorities granted planning permissions in significant quantities as developers and private landlords recognised the demand from national chains. Town landscapes and the retail experience were transformed as parks were added to almost every town. Many retailers, including Halfords, expanded quickly, taking advantage of the growing volume of affordable space on these parks.

In the late 1990s it became more difficult to get planning permission for new sites and the movement slowed. Planners were concerned about the effect of new retail footage on town centres and the countryside. Some permissions continued to be awarded but there were increasing restrictions on the size and type of outlets.

This led to a scarcity of space and competition for sites as the retail sector boomed. Leases were inflexible, with upward-only rent reviews, and rents reached record levels. At this time, Halfords and others introduced mezzanines to improve space utilisation and increase ranges for customers.

The Government’s new planning policies retain the ‘town centre first’ approach, making new retail park development less likely.

Now we are working in a different economic environment. The downturn means retailers are looking even more closely at their cost bases. Next to labour, rent and rates are the largest expenditure and it’s important that we manage them efficiently and in tune with the realities of the marketplace.

Even before the downturn, at Halfords we were testing different store designs to find the optimum layout. Our ‘store of the future’ programme sought to reconfigure stores, increasing sales intensity on a slightly smaller footprint.

Another important consideration for landlords is competition from the internet. Goods sold online don’t need so much shelf space. One of Halfords’ online services is ‘order and collect’. Goods can be selected from the online range and delivered to the customer’s local store for pick-up. It’s another way of increasing sales intensity. Half of our store portfolio is coming up to lease expiry over the next 10 years, so we’ll be discussing the potential of these initiatives with landlords, as they make it possible to release some space and save on rent.

The leaseholder-landlord partnership is a key element of the retailing mix and needs some flexibility in changing circumstances. Our own experience has been reasonably positive. Some have responded well, agreeing to reduced rents, monthly instead of quarterly rents and incentives to take new leases - a good sign.

Coupled with a high street presence and an online business, edge-of-town stores are a key component of any vibrant retailer’s portfolio. But it is vital rents stay in line with the realities of the marketplace and landlords remain responsive to the retail industry as it evolves.

David Wild is chief executive of Halfords