This study investigates adaptive resilience of high streets in emerging markets under a “triple shock”: the COVID-19 pandemic, hyperinflationary economic volatility and intense urban transformation. The study demonstrates how functional diversity acts as an enabler for high street evolution from a “transaction-oriented” structure to an “experience-oriented” cluster of activities.
The study employs a longitudinal field investigation of a premier retail corridor of Bagdat Avenue, Istanbul, Türkiye. Data were collected through on-site surveys of 209 buildings including 318–368 retail units across 2020, 2021 and 2025. Functional diversity was operationalised through a standardized sectoral taxonomy and using non-parametric testing structural changes over time have been assessed.
The study reveals that despite unfavourable economic conditions and subsequent uncertainty, vacancies declined dramatically between 2020 and 2025. This recovery was not a “return to the old normal” but a functional transformation. While financial services contracted due to digitalization and increasing rents, the avenue “bounced forward” through expansion of experience economy, specifically in cafe and restaurant, personal care and cosmetics and jewellery and accessories sectors. Although core retail functions remained structurally stable, the high street evolved from a transaction-oriented environment toward an “experience-oriented” indulgence environment.
This study contributes to high street resilience theory by empirically demonstrating how functional diversity operates as a dynamic risk-mitigation mechanism under multiple concurrent external shocks. Findings from this research challenge narratives of high street decline and offer actionable insights for place-makers, investors and policy-makers seeking to enhance the adaptive capacity of prime urban retail streets.
