The divergence in performance between different types of retail locations is becoming ever more divergent, according to property giant Landsec.

As it issued full-year results, Landsec chief executive Robert Noel said that the “structural change in shopping habits” and rising costs faced by retailers were creating conditions in which only the best locations could thrive.

Noel reported that Landsec’s new Westgate Oxford shopping centre is now 96% let or in solicitors’ hands and that its wider portfolio was “well let and adaptable to changing customer expectations”.

Noel said: “Retailers are operating in tough conditions. As for retail real estate, the gap between the best space and the rest keeps growing.

“To thrive, an asset must be dominant in its catchment and provide convenience or experience. The successful leasing of Westgate Oxford speaks volumes for the value of experience-led destinations – delivered in the right way in the right locations.

“There’s clearly an important role for great physical retailing in a multichannel world, not least enabling brands and shoppers to connect in a variety of exciting ways.”

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