FSP RETAIL BUSINESS CONSULTANTS
Developing a Coordinated Approach to Town Centre Policy Encouraging Renewal & Investment
Kenneth S. Gunn
FSP Services
FSP RETAIL BUSINESS CONSULTANTS
Market Intelligence Aviva Investors, Hammerson, Legal & General and M&G Real Estate
Pre Acquisition Assessments Fremlin Walk SC, Maidstone Gracechurch SC, Sutton Coldfield St Enoch SC, Glasgow
Strategy Studies Bournemouth Town Centre Strategy Croydon Regeneration - Focus Groups Royal Arsenal Woolwich
Impact and Capacity Studies Bracknell Regeneration Partnership Victoria Gate SC, Leeds Watermark, Southampton
Leasing Support Coastal House / Talbot Gateway, Blackpool Swan Walk, Horsham Union Square, Aberdeen
2 February 10, 2015
Most Improved Towns
February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 3
Top 100 Centres - Greatest Improvement
NSLSP Location Ranking 2012 Ranking 2007 Ranking 2002 Change 02/12 Change 07/12
Livingston 81 106 144 63 25
Basingstoke 78 88 134 56 10
Bury 70 97 103 33 27
Uxbridge 72 78 100 28 6
Maidstone 61 69 81 20 8
Romford 26 29 43 17 3
Derby 23 35 39 16 12
Poole 75 79 89 14 4
Solihull 62 70 73 11 8
Chelmsford 49 59 60 11 10
Understand Catchment and Consumers
February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 4
0% 5% 10% 15% 20% 25% 30% 35%
Wealthy Executives
Affluent Greys
Flourishing Families
Prosperous Professionals
Educated Urbanites
Aspiring Singles
Starting Out
Secure Families
Settled Suburbia
Prudent Pensioners
Asian Communities
Post-Industrial Families
Blue-Collar Roots
Struggling Families
Burdened Singles
High-Rise Hardship
Inner City Adversity
Wea
lthy
Ach
ieve
rsU
rban
Pro
sper
ityC
omfo
rtabl
y O
ffM
oder
ate
Mea
nsH
ard-
Pre
ssed
Expected Shoppers Residents
Source: FSP/ CES / CBRE / CACI
Understand Evolving Trends
FSP RETAIL BUSINESS CONSULTANTS 5
Source: FSP
February 10, 2015
Understand Trading Gaps
FSP RETAIL BUSINESS CONSULTANTS 6
FSP’s retail audit estimates Non-Grocery sales in High Wycombe to be £212m. This is 37% market share of shopper expenditure (£593m) The Trading Gap is £73m, of which £45m is available through better serving existing shoppers (21% uplift)
Source: FSP
0 40 80 120 160
F&B
Leisure Goods
Household Goods
Personal Goods
Clothing & Footwear
£m
Town Retail Sales Eden Centre Retail Sales Trading Gap
Town Retail Sales£72m
Eden Centre Retail Sales
£139m
Trading Gap£73m
February 10, 2015
Understand Occupiers
FSP RETAIL BUSINESS CONSULTANTS 7 February 10, 2015
Understand Occupier Sustainability
8
FSP’s retailer sustainability assessments highlight retailer and income risk across assets as demonstrated with this fictional location
Source: FSP
FSP RETAIL BUSINESS CONSULTANTS February 10, 2015
Develop Relevant Solutions
FSP RETAIL BUSINESS CONSULTANTS 9
Nice restaurants
Fashionable, trendy Safe
Culture
Good shops
Happy Our sort of people
Farmers’ market
A place to escape to
Business people
Greenery
Collage Boards from Consumer Focus Groups assist in developing Future Visions for assets
February 10, 2015
Improve Visitor Satisfaction & Performance
February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 10
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Number of Visits
Length of Stay
Spend per Visit
% Improvement over Detractor Average
Passive Promoter
Source: FSP
How Do We Encourage Investment & Renewal?
February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 11
Use Market Intelligence to create a commercial Vision
Which is realistic given the scale and nature of the market opportunity
Which is robust given market trends
Which can be delivered within a sensible time frame
Which is achievable, affordable and profitable for the investor
Which reflects the current and future needs of consumers
Which is bespoke to the town
Which is profitable for the occupier and consistent with current real estate strategy
Which can be delivered by a variety of professionals
And critically, FSP works as a team alongside Investors, Marketing Agencies and Leasing Agents to deliver the Vision
Co-ordinated Approach to Policy
FSP RETAIL BUSINESS CONSULTANTS
A co-ordinated approach must also involve investors and consumers. Ownership however, is highly fragmented and consumers are very different across the country, so policy must be flexible Consumers, occupiers and investors are dependent upon each other Every town is different and so from a practical sense, a certain amount of policy decisions must be local Weak management means that many town centres are not as efficient in converting potential expenditure into sales as they might be This suggests potential to increase turnover and investment through a co-ordinated approach Profitability is key for commercial investors and occupiers Lastly, it is important for policy to recognise and embrace successful trends, for example;
Consolidation of comparison goods into major centres Globalisation of occupiers The growth of Leisure and F&B participation The growth on convenience stores The need for value for money
12 February 10, 2015
FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE
T +44(0)1494 474740 F +44(0)1494 474262 [email protected]
www.fspretail.com www.snap-shop.co.uk
Ken Gunn Director T +44(0)1494 474740 M +44(0)7773 779919 F +44(0)1494 474262