The store experience is a focus for brands and retailers intent on driving consumer engagement, enhancing their profile and boosting sales. As a result, we are seeing more innovative interior designs and in-store services and experiences in flagship locations around the world. But these efforts run the risk of falling flat if the surrounding public realms don’t match the quality of the stores.
This is less of a challenge for shopping centres, which are already pedestrianised and under the control of single landlords who can implement necessary improvements and instigate activations. On high streets, however, the situation is more challenging. Landlords and tenants rely on local government and public bodies to enhance the public spaces beyond their storefronts. Such improvements are becoming crucial as consumers increasingly prioritise experience – and it’s not just the public realm design, air quality, security and safety for instance, are also key concerns on city-centre high streets.
The focus to date for major high street destinations has largely been on enhancing connectivity through infrastructure projects. These have kickstarted development and increased footfall on major high streets, as demonstrated by the relatively recent opening of London’s Elizabeth Line and its effect on Oxford Street.
But that is only one part of the equation. While transport projects can bring more people to the area, the question remains: how do you convince them to visit in the first place, to visit more frequently, stay longer and ultimately spend more?
The answer increasingly lies in enhancing public spaces. So, what do these projects actually look like, and do they deliver?
Creating a global retail and leisure destination
While the tenant mix underpins a high street’s appeal, public realm improvements elevate it to a destination. On Insadong Street, Seoul’s ‘cultural street’, public realm improvements had to balance honouring the street’s historic past with meeting the changing needs of the modern consumer.
Utility poles were removed, pavements widened, street planters added and parts of the street repaved with traditional Korean black tiles. This helped facilitate more events, such as the annual six-day Insa festival. Today, the street accommodates over 70 businesses, including traditional restaurants, galleries and cafes.
Pedestrianisation is a key tool for high street public realm initiatives. Puerta del Sol, a public square in Madrid which draws 110 million visitors annually, became fully pedestrianised in 2021. Enhanced seating areas and landmarks encourage visitors to linger. Jorge Alonso-Allende Osborne, Cross Border Senior Retail Consultant, Savills, says, “These improvements have transformed Puerta del Sol, making it a preferred location for retail and leisure brands. Investment into the surrounding streets has attracted new entrants, including popular names like Apple and Sephora.”
However, it is difficult to directly attribute increased footfall and spending to these initiatives, because they occur against a broader economic and geopolitical backdrop. Yet, any investment into the public realm appears to generate additional investment, all of which culminates in making a more attractive environment for consumers and, in turn, brands and retailers.
Street activation
Public realm initiatives not only make high streets more visually appealing but also present unique opportunities for temporary street activations. These enable brands to engage with consumers in immersive ways, particularly in pedestrianised areas. For instance, the pedestrianisation of New York’s Times Square allowed water flavour brand Waterdrop to install a pop-up tennis court in collaboration with Novak Djokovic, drawing in thousands of fans.
Likewise, the extension of the Nanjing Road East pedestrian zone in Shanghai facilitated on-street activations from brands, including Gucci’s first-ever outdoor event on the street.
According to Alex Glavas, Director, Savills Global Cross Border Retail team, “Such activations not only maximise the potential of pedestrian zones, but also cater directly to consumers by turning public spaces into vibrant, experiential destinations, encouraging longer visits and deeper brand connections.”
Enhancing store frontage
Public realm improvements, be they full or partial pedestrianisation, give retailers the opportunity to better “activate” their storefronts. Sam Foyle, Co-Head of Global Retail, Savills, says that “without vehicles blocking sightlines, storefronts become more prominent and accessible to foot traffic, fulfilling their role as billboards.”
Careful consideration
However, these enhancements – in particular pedestrianisation – are not a one-size-fits-all solution. It’s essential to balance improved customer experience with practical concerns such as accessibility, safety and potential impact on existing businesses and residents. Larry Brennan, Head of European Retail, Savills, explains: “It’s not just about pedestrianising the street; it’s about understanding the purpose and the goal. It’s about creating a space where the environment encourages people to explore, shop and engage with the brands around them.”
In some cases, poorly planned pedestrianisation has had to be reversed. Nick Bradstreet, Head of Asia Pacific Retail, Savills, points to Sai Yeung Choi Street South in Hong Kong, which reopened to cars in 2018, just eight years after being pedestrianised. The U-turn followed more than 1,000 noise complaints from residents about the disruption caused by the buskers, singers and dancers.
“Pedestrianisation isn’t a silver bullet,” says Bradstreet, “Simply closing a street isn’t enough. Careful planning is essential to manage the space effectively and ensure it benefits both businesses and the community.”
What next?
The next generation of high street public realm improvements in major global destinations is already underway. Paris’ Champs-Élysées will get an ambitious €250 million makeover that is envisaged to turn the 1.2-mile stretch into an “extraordinary garden” where pedestrians are prioritised and vehicle traffic reduced. London’s Oxford Street will also undergo an estimated £150 million pedestrianisation transformation.
As public spaces evolve, the next stage is likely to extend to the digital. Just as brands and retailers have embraced a “phygital” approach, aligning physical and digital experiences to create deeper connections with their customers, so too will the best global retail and leisure destinations.
