Aberdeen’s £40m high street revival: progress, setbacks, and the future of UK town centres

Aberdeen is investing £40 million in a bid to revive its struggling high street, Union Street, as part of a broader effort to combat vacancy rates and adapt to the decline of traditional retail. While the city has made progress—filling 33 of 57 empty units since 2023—new vacancies and economic pressures continue to challenge its recovery. The story reflects a UK-wide trend, with experts arguing that high streets must shrink, repurpose, and rethink their role to survive.

Aberdeen’s bold plan to revive Union Street

Aberdeen is betting £40 million on a plan to reverse the decline of Union Street, its once-thriving high street. The city’s efforts reflect a nationwide struggle: one in eight high street properties in the UK sits vacant, a figure that has barely budged in years. The shift to online shopping, rising costs, and competition from out-of-town retail centres have left many urban centres hollowed out.

The closure of the Marks & Spencer flagship store in August—after 80 years on Union Street—became a symbol of this decline. The empty building is now one of the first sights greeting visitors arriving by train into Aberdeen’s city centre.

Aberdeen’s strategy centres on transforming the high street into a destination for experiences. A new indoor food and drink market, funded by the council and the UK Levelling Up Fund, is a cornerstone of this approach. The city is also targeting vacant properties and neglected upper floors, aiming to repurpose them for housing, hospitality, or mixed use.

Progress and challenges

In 2023, 57 of the 198 units on Union Street were empty. By September 2026, 33 of those vacancies had been filled, with another 14 in the process of being let. While this marks progress, the coalition behind the revival effort has also seen 20 more units become vacant during the same period, illustrating the fragility of the recovery.

The Our Union Street coalition, led by Bob Keiller, is taking a hands-on approach. The group audits vacant properties, engages landlords, and improves the street’s appearance through initiatives like planting flowers outside empty shops. Grants are available to help businesses move in, and the coalition is working to repurpose upper floors—often long-neglected—for offices or housing.

David McKeith, the coalition’s operations director, reported that some landlords have been slow to embrace change. However, the group remains optimistic, citing growing interest from independent businesses and a shift in perception about Union Street’s potential.

A UK-wide problem

Aberdeen’s challenges are not unique. Across the UK, high streets have struggled to adapt to structural shifts in retail. Two-thirds of town centre experts believe UK town centres still have 20% to 40% too much retail space, according to Revo, a property industry group. More than one in 10 shopping centres nationwide are considered ripe for demolition or radical repurposing.

Jackie Sadek, a former government adviser on urban regeneration, described high streets as needing a "complete rethink." She pointed to rising business rates, labour costs, and the dominance of online shopping as irreversible trends forcing towns to diversify. Iain Nicholson of the Vacant Shops Academy echoed this sentiment, arguing that high streets must become destinations for experiences—whether dining, entertainment, or community events—rather than relying on retail alone.

Other cities have taken different approaches. In Greater Manchester, politician Andy Burnham has pushed for public sector jobs to relocate to town centres. In Bassetlaw, Nottinghamshire, the Trinity shopping centre was largely demolished and replaced with a cinema, restaurants, and green space. These strategies reflect a growing recognition that high streets must shrink and adapt to survive.

Business owners weigh in

Lauren Reid, co-owner of a fashion boutique on Union Street, described the coalition’s efforts as a "breath of fresh air." However, she acknowledged that the street’s reputation is still a work in progress, with visitor numbers remaining lower than pre-pandemic levels.

Robert Keane, a property developer active in Aberdeen, cautioned that regeneration is a long-term process. "You can’t undo decades of decline overnight," he said, adding that sustained investment and patience are critical. Meanwhile, Simon Wolfson, chief executive of Next, has called for a sharp reduction in retail space, arguing that high streets must shrink to remain viable.

Steve Norris, a director at real estate firm Lambert Smith Hampton, noted that business rates remain a major barrier. "Until the government addresses the unfair burden of rates, high streets will continue to struggle," he said.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Aberdeen’s efforts to revive Union Street reflect a broader challenge facing UK high streets: the need to adapt to changing consumer habits and economic pressures. While pouring public and private funding into regeneration projects can yield short-term gains, the long-term viability of high streets depends on reimagining their purpose. Reducing retail space, repurposing vacant properties, and creating experience-driven attractions may be necessary, but these strategies require sustained investment and collaboration between local authorities, businesses, and communities. The mixed results so far—progress in filling units alongside new vacancies—highlight the complexity of reversing decades of decline. For founders and operators, this story underscores the importance of flexibility and innovation in urban commercial spaces.

Key takeaways

• UK high streets continue to struggle with high vacancy rates, driven by online shopping and rising operational costs.
• Aberdeen’s £40m investment aims to transform Union Street into a destination for experiences, not just retail.
• Community-led initiatives and grants are critical to filling vacant units and repurposing underused spaces.
• Experts believe UK town centres still have 20-40% too much retail space, suggesting a need for radical repurposing.
• Revitalisation efforts show progress but face ongoing challenges, including new vacancies and economic pressures.

FAQ

Why are UK high streets struggling?

UK high streets face multiple challenges, including the rise of online shopping, rising business rates, labour costs, and competition from out-of-town retail centres. These factors have led to high vacancy rates and a sustained decline in footfall for traditional retail spaces.

What is Aberdeen doing to revive Union Street?

Aberdeen is investing £40 million in transforming Union Street into a destination for experiences, such as a new indoor food and drink market. The city is also auditing vacant properties, engaging landlords, offering grants to businesses, and repurposing upper floors of buildings for housing or offices.

How successful has Aberdeen’s plan been so far?

As of September 2026, 33 of Union Street’s 57 vacant units had been filled, with 14 more in the process of being let. However, 20 additional units have become vacant since the initiative began, highlighting the ongoing challenges of revitalisation.

What do experts say about the future of UK high streets?

Experts believe UK town centres still have 20-40% too much retail space and must shrink to survive. They argue that high streets should diversify into experiences—such as dining, entertainment, and community spaces—rather than relying solely on retail.

Are other UK cities trying similar approaches?

Yes. For example, Greater Manchester has pushed for public sector jobs to relocate to town centres, while Bassetlaw demolished a shopping centre and replaced it with a cinema, restaurants, and green space. These efforts reflect a growing recognition that high streets must adapt to changing consumer habits.

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