Shopping Centre July 2017

The business of retail destinations

www.shopping-centre.co.uk

July 2017 • £8.00

Art for art's sake Artworks bring malls to life

10 SCEPTRE winners

Highlights of the 2017 awards

27 Commercialisation Art adds value to unused spaces

30 Cleaning

Cleanliness is key to customer care

CONTENTS

Editor Graham Parker 07956 231078 gparker@55north.com

Editor’s letter

Editorial Assistant Iain Hoey 0141 222 5385 ihoey@55north.com Sales Manager Trudy Whiston 01293 416090 twhiston@55north.com Events Sales Manager Graham Harvey 01474 247032 gharvey@55north.com Senior Designer Richard Chaudhry 0141 222 5300 rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 ldeakin@55north.com Managing Director Antony Begley 0141 222 5380 abegley@55north.com Editorial Board Carl Foreman, Moorgarth; Byron Lewis, Mall Solutions Europe; Andrew McCall, The ROI Team; Howard Morgan, RealService; John Prestwich, Montagu Evans; James Taylor, Workman; David Tudor-Morgan, British Land No part of this publication may be reproduced without the written permission of the publishers. JLD Media is operated by 55 North Ltd under licence from Stephens & George Magazines Ltd. The Publishers accept no responsibility for any statements made in signed contributions or in those reproduced from other sources, nor for claims made in any advertisements.

Shopping Centre is available on subscription. UK & Ireland £96; Overseas £150.

This edition of Shopping Centre is dedicated to a review of last month’s SCEPTRE Awards and the quality of the winners showcased in this review bears witness to the

Shopping Centre, 55 North Ltd, 19 Waterloo Street, Glasgow, G2 6AY www.shopping-centre.co.uk

can be very proud of those achievements too.

I'd like to thank everyone who came along to the awards dinner at the Dorchester for making it such a memorable evening, and to the sponsors for their support.

And if you’re inspired by what you see, why not think about entering next year’s awards?

Graham Parker Editor Shopping Centre

CONTENTS NEWS & ANALYSIS 5 6 7 8

Further signings at Oxford Westgate Friars Walk sells at last Green light for St Marks Outlets under the spotlight Page 6

FEATURES 10 27 30

Shopping Centre is published monthly.

ISSN 0964-1793 | Printed by Stephens & George Ltd

professionalism and dedication of shopping centre management teams across the country.

It's important to recognise excellence in all aspects of centre management, because its easy for people working behind the scenes to feel unappreciated.

The judges had a hard task picking winners from the shortlists, showing that there’s real strength in depth in the industry. There can only be one winner per category, but all the runners-up and shortlisted entries

SCEPTRE Awards – Highlights of the 2017 SCEPTRE Awards dinner Commercialisation – Artwork add value to un used spaces Cleaning – Cleanliness is key to customer care

REGULARS 32 35 35

Data – Retail facts & figures People – Sensory Shopping Days Moves – All the latest job moves

Join our Shopping Centre Linkedin group Follow us on Twitter @scnewsfeed

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NEWS

In brief...

Land Securities in rebrand Land Securities Group, the UK’s largest listed real estate company, is to operate under the Landsec brand, building on its philosophy ‘Everything is experience.’ Chief executive Robert Noel said: “In a world where people have many choices about where they shop, dine, work, live or spend time, it’s experience that matters. This is a natural evolution; in fact, people often refer to us as Landsec already. The focus on experience isn’t a new approach, it’s just a clearer way of explaining what matters to us. Our updated brand reflects our culture, our people and our approach, putting the experience of our customers, communities, employees and partners at the heart of everything we do.”

Meadowhall plans revised by BL British Land has cut the size of its planned £300m extension to Meadowhall after objections from other centres in the region. The revised application sees the removal of a food store and four cinema screens from the original plans. BL has also accepted restrictions on change of use of the existing leisure and catering space including the Vue cinema and the Oasis dining area.

Superdry signs Watford pre-let Superdry is the latest retailer to join intu’s multi-million pound redevelopment and extension project in Watford town centre.

The British lifestyle brand will open a 6,630-sq ft store in the 400,000-sq ft extension to intu Watford which, when it opens in 2018, is set to place the town alongside Edinburgh and Bristol in CACI’s top 20 national retail destinations ranking.

The extension, to be anchored by a 113,000-sq ft Debenhams store, is now around two-thirds let with Hollywood Bowl, Cineworld and a range of family friendly restaurants such as TGI Friday, Las Iguanas and Byron among leisure brands to have also signed up for space.

www.shopping-centre.co.uk

Further signings at Westgate Oxford The Westgate Oxford Alliance has unveiled Westgate Social, a new food and leisure experience at the UK’s next large-scale fashion and leisure destination, Westgate Oxford. Westgate Social will be home to six foodie favourites and will be anchored

by Junkyard Golf Club. Vendors already confirmed include Mexican restaurant, Benito’s Hat, Indian street food vendor Rola Wala and Shawa Lebanese’s Grill, with more to be announced in the coming weeks.

The £440m Westgate Oxford development has also been bolstered by the new addition of international brands Timberland and Vans, as well as best of British retailers Neal’s Yard Remedies, Hobbs, Oliver Bonas and Loake Shoemakers.

Emma Mees, senior portfolio manager at

Landsec, said: “With Westgate Social, we aim to lead the charge for next generation retail destinations by bringing our scheme in line with the rapidly changing lifestyle habits of UK and global consumers. We look forward to opening our doors in less than five months on 24th October.”

Davis Coffer Lyons advises Westgate Oxford on restaurant property leasing.

Dolphin refurb signed off LGIM Real Assets has signed an agreement with the Borough of Poole that unlocks a £26m programme of investment at the Dolphin centre, Dorset’s largest covered shopping destination.

Plans include bringing further improved retail and dining choices to the centre.

The agreement restructures the existing headlease arrangements into a single, longer lease and allows LGIM Real Assets to bring forward an 18-month improvement programme due to complete by the end of 2018.

Significant improvements will be made to the internal malls and entrances of the centre, as well as to the public realm and facades of Falkland Square and Kingland Crescent. At the same time the council will be investing £1.5m into upgrading the multi -storey car park, which it owns.

Mark Russell, senior fund manager at LGIM Real Assets, said: “We are poised to reposition the scheme in terms of ambience and offer, bringing new trading fascias into the centre and significantly improving the facilities available to our customers.”

JULY 2017 SHOPPING CENTRE

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NEWS

Friars Walk sells at last Queensberry has successfully completed the sale of Friars Walk in Newport to Canadian investment company Talisker Corporation. The 390,000-sq ft mall opened in November 2015 with Debenhams as anchor supported by Next, M&S, River Island, Nando’s and Cineworld.

In order to facilitate the project Newport City Council provided development finance and council leader Councillor Debbie Wilcox has welcomed the deal which will ensure the council can repay the loan it took out to finance the scheme in full.

Initially marketed at a reported £120m before the shopping centre investment market went into reverse in mid-2016, the centre

is likely to have fetched less than £100m.

David Howard of Talisker said; “We are very excited about the

Three more sign at The Lexicon Bracknell

The Lexicon Bracknell has signed three new brands – Boots UK, Office and The Entertainer – ahead of its it opening in September 2017. With less than four months to go until opening the Lexicon is now 75.6 per cent pre-let or in solicitors’ hands by floorspace, with a further 64,400 sq ft in negotiations.

Boots UK will open in a 19,500-sq ft two-floor flagship store, which will include Boots Opticians and Boots Hearingcare practices. High-street fashion footwear specialist Office is opening a 4,803-sq ft store on Braccan Walk, and the biggest independent toy retailer in the UK, The Entertainer, will be taking a 5,564-sq ft unit.

Jessica Berney, head of UK retail at Schroder Real Estate, joint developer with Legal & General, said: “Work on site is progressing well towards our September 2017 opening.

Fit-out works within M&S and Fenwick, our anchor stores, is rapidly progressing. The full line-up of brands being signed will make The Lexicon Bracknell the first choice for retail and leisure in Berkshire.”

SHOPPING CENTRE JULY 2017

newest addition to our portfolio of UK properties. Friars Walk offers a modern, well thought out scheme with a secure income stream with a lot of potential for future growth.”

Queensberry CEO Paul Sargent said: "It was always our intention to develop and sell on Friars Walk. I believe Friars Walk is at a good point as we move on. It has been successfully trading since November 2015. Last year it was awarded Revo’s coveted Gold Award for Best New Centre of 2015.

Footfall is strong, averaging over 10 million visitors a year and tenants are reported as trading well.”

Double first for Elliott’s Field retail park Hammerson’s Elliott’s Field Phase II in Rugby has achieved two sustainability world firsts, having been awarded an interim Outstanding BREEAM rating in addition to becoming the first shopping park globally designed to be carbon neutral.

Elliott’s Field Phase I, which opened in 2015, achieved a BREEAM Excellent rating, marking the first shopping park in Hammerson’s UK portfolio to receive this accreditation.

Elliott’s Field Phase II has been designed to be carbon neutral in terms of its regulated consumption, with energy efficiency measures reducing the carbon emissions created by such sources as heating, hot water and cooling and on site renewable energy initiatives offsetting the remaining carbon emissions.

Andrew Berger-North, director, UK retail parks at Hammerson, said, “Elliott’s Field Phase II marks a huge step forward for the business in its Net Positive sustainability objectives, and being credited with two world firsts is a fantastic result, demonstrative of the business’ dedication to its ambitious targets. Phase I set a benchmark for our portfolio and for the industry as a whole, and achieving BREEAM Outstanding for Phase II has raised the bar even higher. It is clear that with the implementation of forward thinking initiatives, and by encouraging retailers and contractors to get on board, we can achieve exceptional results and make a positive impact.” www.shopping-centre.co.uk

NEWS

St Marks gets green light Standard Life Investments’ proposed £150m redevelopment of St Marks has received outline planning permission from the City of Lincoln Council. The proposals include enhanced retail, new leisure space, better public realm, improved car parking, and a combination of student and residential accommodation.

The consent provides for 485,000 sq ft of new retail and leisure as well as 150 new residential units; 1,100 new student residences; a 130-room hotel and an 1,100 -space car park.

David Stewart of Standard Life Investments

www.shopping-centre.co.uk

said: “This is a tremendous outcome and we’re thrilled that that the council supports our vision for St Marks. Their decision reinforces our conviction that the proposed scheme will be a major boost for Lincoln. It’s a significant investment that we’re confident will improve the gateway to the city centre.”

The next steps for the project will include developing detailed designs and a timeline for delivery. Once these and other key milestones have been achieved, work could potentially begin in 2020 with the full scheme being completed by the end of 2023 or early 2024.

Nettlefield quits Calendar Club As pioneering property director Bill Nettelfield stands down after 19 years to pursue other opportunities, specialist retailer Calendar Club is about to embark on its annual hunt to acquire over 270 short-term mall and shop units for Christmas 2017, together with 40 for its Halloween fascia to meet the rapidly growing demand for Halloween-related goods.

Bristol-based Williams Gunter Hardwick will lead the search in the southern half of the UK, while Barker Proudlove of Leeds takes responsibility for acquiring units in the northern half.

Around 160 mall units have already been secured to trade later in the year with the newly retained agents tasked with securing the required 110-120 shops across the UK for calendars, which are ideally 800 – 1,000 sq ft and a further 40 stores for Halloween at around 1,200-1,500 sq ft.

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ANALYSIS

Outlets outperform Landsec’s £332.5m deal to buy outlets in Street, Braintree and Castleford from Hermes Investment Management has thrown the outlets sector back into the spotlight.

T

he received wisdom has been that the UK is fully supplied – or maybe even oversupplied – with outlet malls and therefore the strong growth seen in the past is unlikely to be repeated. But Landsec has made a major bet that this is not the case, staking its claim as the leading ownermanager of outlets in the UK. The deal was part-funded out of the proceeds of the sale of two city centre leisure schemes – the Cornerhouse in Nottingham and the Printworks in Manchester – and Scott Parsons, managing director retail at Landsec, said: “This acquisition adds three new destinations to our portfolio, where we see potential for growth.” He explained: “Our retail strategy is focused on the destinations that offer the most vibrant and engaging experiences for retailers and consumers alike.”

Shortly after the deal new research from retail analysts FSP concluded that, far from reaching maturity, outlets still have room for growth. FSP calculates that the UK has 620,000 sq m of outlet space, or a density of 103 head of population per sq m. By contrast France has 161 people per sq m and Germany 269.

But despite having all this choice UK shoppers seem to love outlets, spending €3.48bn in outlet malls in 2016, giving a sales density of €5,613 per sq m which is only exceeded by Germany and Austria. And the UK is home to Europe’s best-performing outlet, Bicester Village. The 22,071-sq m mall generated 2016 sales of €896m, giving a sales density of seven times the UK average.

FSP’s managing director Ken Gunn says: “People have been proved wrong many times – some said the UK would only support 10 outlets, and others said outlets couldn’t perform in urban locations.” He believes those who say the UK market is saturated SHOPPING CENTRE JULY 2017

FULL HOUSE AT CHATHAM The Dockside Outlet in Chatham, Kent, is fully occupied for the first time in its 15-year history following a 9,100-sq ft letting to Peacocks.

Scheduled to open in July this year, the Peacocks unit is set to house the company’s three brands: Peacocks, Edinburgh Woollen Mill and Ponden Mill – providing increased diversity to the centre’s fashion and homeware offering. Three existing tenants have been relocated in the scheme, and the unit was extended outwards into the service yard to accommodate Peacocks.

Major stores at Chatham Dockside include a newly extended 70,000 sq ft anchor store for The Range, plus Marks & Spencer, Clarks, Sports Direct, Clarks and Choice. The scheme

are wrong, too. “The sector is growing at 10 per cent-plus, so we need to revise the view that these are mature assets,” he says.

FSP analysis shows that the areas of the UK with the greatest unmet demand for outlet shopping are in the south-east and the Midlands, but Gunn believes new formats are emerging to make new outlets viable in other locations, too. “Where the UK is full is in the mid-to-upper end of the market close to the major conurbations,” he says, “but in some of the smaller places, where the McArthurGlen/Value Retail model doesn’t work, there’s more opportunity.” He points to proposed schemes like Mill Green at Cannock, Eden Westwood in Tiverton and the Scotch Corner Designer Village as ones to watch.

The UK’s latest outlet venture is Level 3, Realm’s outlet deck which will turn Princes Quay in Hull into a hybrid scheme with an outlet mall and a full-price centre trading under one roof.

And Peel’s Lifestyle Outlets scheme at Glasgow Harbour could be next. FSP’s Gunn expects it to be a success. “They’ll need to convince brands about trading in such close proximity to the city centre but we know that attitudes to this are changing.”

Gunn’s conclusion is that there’s still plenty of life left in the UK outlet sector. “Outlets are still very attractive to the UK consumer,” he says. “There’s a lot of potential in a very vibrant sector.”

is served by free parking for 1,450 cars.

Centre manager Anthony Sutton says the centre always had loyal shoppers and retailers. “It had its problems but with brands like Clarks, Choice and Mountain Warehouse trading since the beginning tenant retention has been good,” he says.

But he says the scheme has been transformed since it was bought by specialist retail asset manager WD two years ago. “WD made the building more efficient, with full LED lighting, and took steps to maximise the natural light in the building,” he says. “The lower the service charge, the happier the tenants are.”

The adjoining leisure district is highly complementary with outlet retail, with a new marina, cinema, hotel, and F&B that has bought Chatham Dockyard back to life as a distinct destination for shopping, dining and leisure. The latest addition is a new indoor trampoline park, Flip Out. The Dockside Outlet has consent for a 2,500-sq ft catering unit pod in the scheme's front boulevard.

All this helped the scheme attracted 2.25m visitors last year. At last, it seems Dockside’s time has come.

www.shopping-centre.co.uk

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SCEPTRE AWARDS 2017

Sceptre celebrations A night of celebration at the Dorchester on London's Park lane saw the 2017 SCEPTRE winners revealed.

SHOPPING CENTRE JULY 2017

www.shopping-centre.co.uk

SCEPTRE AWARDS 2017

www.shopping-centre.co.uk

JUNE 2017 SHOPPING CENTRE

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SCEPTRE AWARDS 2017

Marketing Manager of the Year

Commercialisation Innovation of the Year

WINNER

WINNER

Phil Maclean The Valley shopping centre

POP! by Mackney intu Derby

In 2016, The Valley’s marketing reach topped 3m, up from 1.7m in 2015, and helped to drive a 16 per cent increase in footfall. At its heart is a broad and lean marketing strategy built around paid-for advertising, with budget of £120,000.

Creation, design and maintenance of the website; full social media management; creation, implementation and management of events; copywriting, photography and management of all PR activity are all carried out in-house.

Mackney Photography at intu Derby created personalised children’s photography in a pop up studio, where youngsters could have their picture taken in front of mind-blowing props.

Originally scheduled to be open for just six weeks, the shop reopened, because of high demand, for another five weeks. Customer feedback was overwhelming; with people saying they had never seen anything like the imagery created by Mackney.

Pop! by Mackney transformed an empty shop at intu Derby into a magical wonderland, adding a new revenue stream and revitalising its mall presence.

RUNNERS-UP

RUNNERS-UP

Christine Macdonald, intu Braehead Dierdre King, Pavilions shopping centre

New kiosks at Hermes’ centre:mk Appear Here & Hammerson: Link Street, Bullring

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SHOPPING CENTRE JULY 2017

SCEPTRE AWARDS 2017

Retail Liaison Management Award

Operations Manager of the Year

WINNER

WINNER

Diana Nabagereka London Designer Outlet

Lee Holland The Glades, Bromley

Since 2015 Diana has helped deliver the highest likefor-like growth in retail sales across any UK shopping centre: sales grew 21 per cent, footfall 16 per cent, average spend 45 per cent and tenant occupancy from 81 per cent to 97 per cent.

Diana worked with head offices and store managers on touch-points affecting the guest journey and propensity to buy, including staffing, VM, welcome, pricing, store layout and stock levels and packages. She distilled this into a Best Practice Retailer Guide, now used across the Realm portfolio.

Lee began his career at The Glades 17 years ago as a cleaner and has risen to the position of operations manager. His biggest achievement to date was taking a lead on due diligence when APFC purchased intu Bromley in 2016. Lee’s outstanding centre knowledge made the process easier for all parties.

In addition, Lee successfully oversaw the build of the centre’s new Restaurant Terrace development.

Since completion dealing with food wastage has been a priority and over 99 per cent of the centre’s waste is now recycled.

RUNNERS-UP

RUNNERS-UP

Steve Gribble, Gloucester Quays Designer Outlet Rachel Moss, Festival Place

Paul Lucas, intu Braehead Samantha Crowden, Woolshops

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JULY 2017 SHOPPING CENTRE

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TAKE A FRESH LOOK AT

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SCEPTRE AWARDS 2017

Young Achiever of the Year

Short Term Retailer of the Year

WINNER

WINNER

Michael Dennison Manchester Arndale

Mountain Salts CastleCourt shopping centre

Michael Dennison joined Manchester Arndale in 2008 as an apprentice at the age of 17, before rapidly progressing to site electrician, followed by lead shift engineer. Now site supervisor for operations, he has responsibility for all technical equipment across the 1.4m-sq ft centre, managing a team of 19 technical engineers across multiple disciplines.

As well as acting as the first point of call for retailers and occupiers for technical issues or queries, Michael also makes proactive visits to offer advice on subjects such as energy efficiency.

Mountain Salts, the first of its kind in Northern Ireland, was the brainchild of a local farming couple who identified a demand for Mountain Salt health products. After a successful trial weekend in August 2016, the couple developed a bespoke kiosk to trade over Christmas that not only beautifully displayed the glow of each individual lamp, but also made it practical to serve customers quickly.

The kiosk generated turnover of £60,000 and increased footfall to stores in the vicinity and on the back of this success the Mountain Salts brand is expanding internationally.

RUNNERS-UP

RUNNERS-UP

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Christine Dolan, Quayside shopping centre Hannah Skerrett, The Grafton Centre

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Mobros, Highcross Argos, Centre:mk

JULY 2017 SHOPPING CENTRE

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SCEPTRE AWARDS 2017

Energy Management Award

Waste Management Award

WINNER

WINNER

Middleton Grange shopping centre

intu Trafford Centre

Middleton Grange installed the town’s biggest PV array and backed this up with a comprehensive energy efficiency package, installing timers and photocells everywhere with energy efficient light fittings throughout the centre and service areas.

Air handling units were decommissioned and new machine-room-less lifts installed.

Generating 261,189 kWh of renewable electricity per year and reducing electricity consumption by 60,000 kWh, the package is equivalent to providing electricity to over 1200 homes over the 20 years of operation.

intu Trafford Centre produces over 6,500 tonnes of waste every year. In 2016, the centre set itself a target of reducing its food waste by more than 90 per cent through a major programme of change with retailers capturing food waste at source and converting this into reusable energy to power the local community.

Food waste recycling has increased by 92 per cent in just 12 months and on top of a £15,000 reduction in costs to the centre, enough energy has been created from food waste to power 153 homes for one month.

RUNNERS-UP

RUNNERS-UP

Charlestown shopping centre intu Chapelfield

Canary Wharf The Hildreds Centre

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SHOPPING CENTRE JULY 2017

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SCEPTRE AWARDS 2017

Security Team of the Year

Customer Service Team of the Year

WINNER

WINNER

Westfield London

Gunwharf Quays

Securitas took over the security contract at Westfield London in August 2016 and, since mobilisation, has delivered a range of innovative, products and services that have helped make the centre safe and secure and, in addition, has enhanced the Westfield brand.

Already, Securitas has redeployed resources to work with Metropolitan Police officers and reduced crime by 15.8 per cent at the centre.

A National Security Inspectorate audit in February 2017 reported that the Securitas service at Westfield London is ‘superb’ and ‘best in class.’

The Gunwharf Quays guest relations team are exceptional in their dedication in exceeding their guests’ expectations. Regularly achieving 100 per cent in mystery shops, in the past year the team achieved a 52 per cent growth in gift card sales and a consistent improvement in overall guest satisfaction.

The Gunwharf Quays team have truly embraced team work and service excellence, to deliver a world class service and experience to all of their guests.

RUNNERS-UP

RUNNERS-UP

The Water Gardens Centrale shopping centre

Lisnagelvin shopping centre Bluewater

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JULY 2017 SHOPPING CENTRE

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SCEPTRE AWARDS 2017

All Ireland Manager of the Year

Manager of the Year – Small Centre

WINNER

WINNER

Marion Acreman MacDonagh Junction

Charles Barratt Merlin’s Walk

Results driven and leading by example, in the past 12 months Marion has driven increases in turnover, footfall, car park usage, dwell time, social media engagement and website visits all without increasing the service charge. And during the period the centre welcomed five new tenants and two new pop up units.

Marion expects excellence from her team and recognises exceptional service and standards. To achieve this, she has implemented centre-wide performance reports, staff objectives and feedback loops.

In 2016 Charles Barratt drove a sales increase of 2 per cent at the 24-unit Merlin's Walk, with footfall up 0.8 per cent while achieving a 2.24 per cent saving on the 2016 service charge budget. Since he took over at the centre in 2013, dwell time has grown from 27 to 65 minutes.

In addition to managing Merlin Walk, Charles was appointed by NewRiver Reit and Workman Retail to manage the Capitol shopping centre in Cardiff as well as mentoring the team at St Elli, Llanelli.

RUNNERS-UP

RUNNERS-UP

Kevin Doyle, Laois Shopping Centre John Jones, Kennedy Centre

Jean Sharples, Atlantic Village Shopping Centre Charlotte Jarrett, Clifton Down Shopping Centre

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JULY 2017 SHOPPING CENTRE

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SCEPTRE AWARDS 2017

Manager of the Year – Medium Centre

Manager of the Year – Large Centre

WINNER

WINNER

Nikki Wilson Cook Market Place Bolton

Liam Smith Fort Kinnaird

Market Place Bolton has been transformed by an award-winning £20m refurbishment implemented while the centre traded effectively throughout.

Nikki balanced intrusive construction works with tenant’s trading expectations, reassuring customers and tenants that it was “business as usual” while maintaining crucial relationships with stakeholders, media and Bolton Council.

From having 30 void units in 2015, Market Place has 63 new leases, 50,000 sq ft of additional floorspace, new toilets and public art. Negotiating new service contracts has reduced the service charge levels from £5.78 to £5.20.

In 2016/17, in addition to managing the 560,000sq ft shopping centre and meeting the needs of retailers and shoppers, Liam has worked very hard on developing deep seated community relationships.

With his team he has also delivered a very strong marketing event from concept to delivery.

As a result of extended trading hours, footfall grew by 21.5 per cent and sales by 14 per cent while dwell time increased from 91 minutes to 108.

RUNNERS-UP

Ian McLelland, East Kilbride shopping centre Cormac Hamilton, Trinity Walk

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Daniel Kitchen, Swan Centre Shelley Peppard, intu Milton Keynes

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RUNNERS-UP

JULY 2017 SHOPPING CENTRE

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SCEPTRE AWARDS 2017

SCEPTRE Grand Prix

WINNER

CBRE CBRE is the winner of this year’s SCEPTRE Grand Prix.

As a measure of all-round excellence in shopping centre management, points are awarded for winners, runners-up and shortlisted entries across all of the SCEPTRE Award categories on the same basis as the FIA uses for the Formula One championship.

According to research from Trevor Wood Associates CBRE manages 11.5m sq ft of UK shopping centre space, making it the fourth largest manager of shopping centres, and 11.14m sq ft of retail warehousing.

RUNNERS-UP Workman intu

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JULY 2017 SHOPPING CENTRE

COMMERCIALISATION

STATE OF THE ART

It is the aspiration of most artists to have their work viewed by the masses, and shopping centres provide a commercially based platform for thousands of viewers every single day.

COMMERCIALISATION FUNDAMENTALS FROM ANNABEL LING, ACCOUNTS MANAGER AT FORUM CENTRESPACE Co-operation “Before we take on board any scheme, we must analyse how the commercialisation activity will align with the core tenants, and ensure we are bringing something new to the table alongside the existing tenant mix.”

Experience “Commercialisation is not exclusively about maximising mall revenue, it is about enhancing the shopping experience, adding variety and promoting customer loyalty.”

A Leg Up “Commercialisation can provide a great platform for start-up businesses who are looking to test their innovative products or services on the mall." www.shopping-centre.co.uk

Art and consumer goods are juxtaposing ideas. The former generally needs to be original and non-replicable in order to be considered a success. The latter needs to be, to a degree, replaceable in order for the retail industry to continue.

You can replace a t-shirt but you can’t replace a Monet.

It is, however, the simple t-shirt on its rack that is likely to be viewed thousands upon thousands of times more every single day than the carefully constructed artworks that hang in galleries. Most of us possess stronger desires to visit our favourite clothes shops, deliberating over the same jeans or jackets, than we do wandering the halls of art galleries. Art falls into the luxury item category. Unlike jewellery and technology, its fundamentally static nature

makes it most functional in a gallery. And what is a shopping mall if not a gallery?

The elaborate architecture, the rows of exhibition rooms, the experience, individual or shared, of looking at intelligently designed, carefully organised products. It feels akin to the gallery experience, and in the modern age of e-commerce, experience is the biggest advantage shopping malls can

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COMMERCIALISATION

boast. Positioning art in malls is, therefore worth considering, especially if the talent is there, and from pop-ups to dedicated stores to commissioned pieces, it has been a proven fit in some shape or form.

Following the launch of The Hub, a new dining and leisure development at the East Kilbride shopping centre, the EK team were looking to give their centre something a little different, and so hired local artist James Klinge, renowned in Glasgow for his many murals around the city, the UK and Australia, to design something for their centre.

“We wanted James to create 12 paintings that not only summed up the centre’s vibrancy, but made our visitors stop, take a minute and think about what they were looking at,” says Ian McLelland, centre director at EK, East Kilbride, explaining the basic brief they gave James for the commission.

“I actually prepared two designs, but one of them they just outright told me was too corporate,” says James Klinge. The rejected design in question included three panels plastered with the centre’s ‘Come Get It” tagline, with artistic impressions of F&B brand symbols in the background. “It was going to have graphics of different brands in the centre like Nandos and Pizza Express but they didn’t like it, it was too obviously commercial.”

McLelland explains that they wanted something that wasn’t prescriptive. “You can look at some other art installations in shopping centres and tell that it's commissioned to advertise the centre,” he says. “We wanted something authentic, something real that people would see here and not see anywhere else."

"It was difficult to really imagine it coming to life because the centre was still under construction when they came to me with the idea,” James remembers. “I thought initially they wanted me to create vinyls to install but they said no, we want you to use the wall as the canvas which is perfect for me because whenever or SHOPPING CENTRE JUNE 2017

wherever I paint I like to treat whatever I'm working on as a canvas.” James worked on the 12 murals during the night, usually starting work around 9pm, saying that because of the late opening hours of the centre, there were often people still wandering around while he was at work.

“People are interested in the process and seeing it come to life and giving them that created that extra level of engagement," he says.

The murals themselves are holding screens for shopfronts, masks for the constriction work going on in the units behind them. The murals will be removed when the stores are ready to open. When asked about what will happen to the murals once the units are ready to start trading, James was unconcerned. "I'm not going to release them as a print,” he says. “They were made for EK and that's what it's about, it's a unique offering. I'm a street artist and being a street artist you know that your work isn't permanent when you're doing it. I'm just grateful to have been given another amazing, public platform."

With a project such as this there is, as McLelland says, likely to be response from the public. But for EK, the endeavour paid off. “Even the people you’d least expect will come up to you and says: ‘I really like that’" McLelland says. "My wife wants me to take one when they're getting replaced but I don't think that'll fit above the mantelpiece," he laughs.

Whilst a commissioned, non-corporate piece of art is a theoretically nice concept, not every location will have its large-scale James Klinge artist, and not every location will have the empty shopfronts to cover.

Opening a shared retail space created for artists and designers, The Creative Lab at Flemingate, Beverley, was recently launched by local artists Mikey Mathieson and Chris Kidd, offering a platform for artists from around the area to exhibit and sell their work.

“Initially, we approached a number of www.shopping-centre.co.uk

COMMERCIALISATION

"We see 250,000 people coming through our doors every week - how many art galleries can say that?"

Ian McLelland, centre director, EK, East Kilbride

www.shopping-centre.co.uk

artists via a variety of mediums to sell the concept of the space and managed to open with 30 creatives on board,” say Matheson and Kidd. “Since we have opened the response has been so positive that people are actively searching us out.

We now have 50 creatives in the space and applications continue to come in daily.”

Similarly, at Basingstoke’s Festival Place, pop-up arts and crafts have become a fixture with the likes of That Gallery, an artist-led pop-up exhibition currently hosted in a prominent 12,175-sq ft unit and the All Our Own Crafts gallery, currently trading in a 2,400-sq ft unit.

Over all the temporary pop-up shops the centre has opened since 2014 they have sold crafts handmade by dozens local people, and also hold regular workshops in the shop for interested visitors to learn a new craft for themselves.

In Cardiff, St David's Public Art Programme was part of the regeneration of Cardiff City Centre and included seven art projects within the shopping centre.

This included a charity campaign called “We Loves The ‘Diff” which raised £30,000 for three local homeless charities.

“Customers love local initiatives, and at St David’s art has proved to be a fantastic medium for engaging shoppers, the local community and businesses to help raise

awareness of the work of charities,” says Colin Flinn, regional director at intu. “It also offers a real point of difference for our shoppers and means we can support local cult brands such as I Loves the ‘Diff, enabling more people to discover their work, adding to area’s arts and cultural scene.”

Taking the concept of art in a different direction, Fareham shopping centre in Hampshire worked with the Space to trade, installing a borrowed, mint condition 1995 Ford RS Cosworth, on loan from the Ford Heritage Museum.

“The definition of art is largely personal, but in the main, ‘art’ consists of a deliberate action that evokes an emotional response,” says Space to Trade’s Nancy Finch. “And the Cosworth on display at Fareham shopping centre certainly evoked response from the public.”

Art is a distinctly subjective concept, getting the offering right can be difficult.

Will it fit with the aesthetic of the centre?

Will people like it? Can it be controversial?

If it’s a commissioned piece, is it genuine art, or does its commercial innateness tarnish its artistic integrity? There are many things to consider in deciding what role art can play in a centre, but it is certainly something that can add to the experiential pull of retail.

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CLEANING

TREAT EM CLEAN, KE Centre cleanliness is expected, and it should never be neglected. Industry experts give their advice on keeping up standards.

The British public love to complain.

As soon as they don’t like something, someone is going to hear about it, and with social media and review sites like TripAdvisor it is easier to do than ever, and impossible to hide. A negative review can have a hugely detrimental effect on any business, and a reputation is often a difficult thing to rebuild – making a centre’s cleanliness vital.

“The rise of social media means hygiene complaints can be instantly shared to a wide audience, allowing negative impressions to spread infinitely quicker than word of mouth,” says Steve Nurdin, marketing manager at Cannon Hygiene.

“But, the size of most shopping centres can make spotting and responding to problems a slow and potentially inefficient way to maintain cleanliness. Instead, having solutions in place than can work in tandem in the background will help prevent minor issues becoming media sandstorms.”

As shopping centres, particularly the larger ones, strive for destination status, they are under pressure to maintain a constant high standard of cleanliness, but the large volume of people passing through each day can put a strain on facilities, and if it is not managed properly then the centre is at risk of anything from a damaged SHOPPING CENTRE JULY 2017

reputation to a lawsuit.

“Washrooms are usually the main target for accusations of poor cleanliness,” continues Nurdin. “Facilities managers should harness new hygiene technologies to support their cleaning regimes. For example, automated fragrance diffusers can help keep washrooms (and other areas where odour might be a problem) smelling fresh throughout the day – there is nothing much more off-putting than a bad smell.

“Investing in high quality, automatic hand driers and soap dispensers also promotes an impression of cleanliness and wellbeing.

In general, care should be taken to make sure facilities are attractive and fit-forpurpose, reassuring customers that the centre operates a genuine commitment to hygiene and reducing the opportunity for unwanted complaints.”

The washroom is important in setting the cleanliness standard, but it’s just one area that needs monitored. Axis Group, a security, cleaning, front-of-house and support services organisation, was recently awarded a three-year contract to deliver cleaning and security services to Houndshill shopping centre in Blackpool.

Simon Giles, group finance director and COO at Axis Cleaning & Support Services, explains the challenges that operators face

in implementing a cleaning strategy.

“The best cleaning companies treat every client as unique,” says Giles. “Obviously they are going to cover the fundamentals, but every centre comes with its own challenges, from layout to location to the building materials. They’re all going to have different specifications that need to be tended to.”

He uses Houndshill as an example, explaining how its being exposed to the elements adds a different dimension to consider in the cleaning process. The Blackpool centre is located by the sea making it susceptible to the wind, and its outside canopy is constantly under pressure from the salt water, which he says www.shopping-centre.co.uk

EEP EM KEEN

needs special consideration and treatment.

He emphasises that such challenges need to be met by a dedication to the job.

“One of the problems is that it needs a little extra cleaning, and in these austere times, some of the building framework is technically the responsibility of the local council,” he explains. “But we’re going to deal with it because at the end of the day it’s having an impact on the overall aesthetic of the centre. There’s a lot to tackle, from the salt water from the sea to the large number of seagulls, but we’re confident that we’ll be able to handle them.”

For all shopping centres, one of the biggest challenges is footfall. Fluctuation in footfall is likely throughout the year, Giles www.shopping-centre.co.uk

says, including significant increases in the summer holiday and Christmas periods.

The dramatic influx of people to take into account, can ramp up cleaning issues really quickly, and so teams need to have a strategy.

“Technology is one of the best tools we have at our disposal for this,” says Giles. “An example of this is the Overtech system.

It uses heat mapping technology to track where people are moving and shows us the areas that have the most people, which usually means we need to pay them extra attention in terms of cleaning, so if the system shows that there is an increase in footfall in a certain location we can deploy our cleaning teams to focus on those areas.”

The technology allows centre teams to observe and tackle things like spillages and slippages straight away, so as soon as something happens it can be addressed before it becomes a bigger problem. “We aim for a quick turnaround,” Giles says, “and when the footfall goes up, so do the spillages, so do the risks and so we need to be able to stop potential problems faster than ever and reduce downtime to an absolute minimum.”

One of the mantras of the Axis Group is the importance of communication among teams. The group provides a wide service that covers more than just cleaning, with the option of employing teams of cleaning and security staff and make sure the operations are linked rather than separate due to the significant crossover between the two.

“We offer a cleaning service, a security service, or both,” Giles tells. “The combined service is preferable because it creates a more straightforward dialogue. Everyone is part of the same team and when there’s more communication it’s much easier to get things done quickly and efficiently when everyone shares the same ethos, even down to things like uniform. It’s about being consistent and that really makes a

CLEANING

difference.”

The staff Axis employs are more than just cleaners and security guards. They receive training to make them centre ambassadors who can help with things around the centre as a whole rather than just their specialist area. “If someone needs directions or help in any kind of way then it can only take thirty seconds to help someone out,” he says. “Again, we strive to give customers the best experience and cleanliness and security are one part of that.”

The important thing when it comes to cleaning, according to Giles, is communication. A shopping centre is a mammoth operation to manage and a lack of communication among staff is likely to increase the risk of problems arising. The likes of cleaning and security are background noise to consumers, their presence rarely observed, but their absence at the most crucial time can have a significant, negative impact. It is important, therefore, to make the processes such as cleaning as smooth and unobtrusive as possible to minimise disruption. The old adage that “the customer is always right” is perhaps most relevant to the likes of cleanliness as at the end of the day maintaining a clean centre is one of the fundamental footfall drivers.

“From our perspective, it’s the customerclient relationship that is important,” Giles says. “We want to help ensure that when a person visits a shopping centre they have the best possible experience, and a clean centre should be a fundamental part of that. That is our key pitch when it comes to any retail environment.

“I actually come from a retail background, and it’s going to sound a bit cheesy but I’m going to use the term ‘retail is detail’. It might sound a bit daft but it’s true. It applies to shops, to food courts, to bathrooms to windows; in other words the centre as a whole. Everything has to be clean. Floor to ceiling without exception.”

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DATA

Rental growth returns In its latest Midsummer Retail Report, Colliers International said that although average prime rents and the overall level of empty shops have improved slightly, the gap between the best and worst retailing locations has become more pronounced.

Colliers’ head of UK retail, Mark Phillipson, explained: “UK prime retail rents are up 1.8 per cent year-on-year – the best increase since 2008 while prime shop vacancy is down 0.2 per cent – the first nationwide improvement since 2014.

“But the proportion of the 420 locations we monitor which saw rents fall more than doubled, while the volume of shops that have been vacant for more than a year increased by 20 per cent. Both these measures had been previously improving during the past two years, and this reverse signals a step-change which is widening the gulf between the best and the rest.”

Even in London – which has seen double digit rent increases in recent years – rents have only moved up by 3 per cent, and Colliers are predicting that they will remain flat for the next 12 months. The consultancy estimates that on Bond Street – one of the world’s most prime shopping locations – around 25 shop leases are being quietly marketed by the brands.

Head of central London retail agency Paul Souber said: “London is still a phenomenally strong shopping environment but the market has cooled. The more positive news is that the capital is still creating new flourishing pitches. The shopping offer on Tottenham Court Road is being transformed and we’ve seen top rents on the street increase by 7.5 per cent – more than double the London average”.

The strongest performing retail market was Scotland where top rents increased by 4.5 per cent year-on-year.

The polarisation of the sector is also impacting the attitudes of investors who are buying retail assets with many shifting their focus to the logistics sector to take advantage of the growth in online retail.

The retail investment market is experiencing a shortage of stock at present but this may be about to change according to Colliers’ head of retail capital markets, James Watson. He said: “An increased supply of stock from forced sales in the secondary markets may not be that far away. This is not great news for those who are sitting on assets where the debt-value equation is heading in the wrong direction, but it will be positive for buyers who are sitting on a mountain of cash”.

Cambridge comes out on top Harper Dennis Hobbs’ 2017 Vitality Index – which looks at the quality of retail in a centre – finds Cambridge moving up six places to come out on top, with Westfield London in second and Knightsbridge remaining in third place.

The Vitality Index ranks all retail centres in Britain by quantifying the ‘retail health’ of each centre through: a combination of the proportion of up-market shops; the proportion of value-led shops; the vacancy rate, and the proportion of ‘undesiraSHOPPING CENTRE JULY 2017

ble’ shops – such as pawnbrokers, money lenders, and bookmakers. In addition, these variables are also compared to the demographic composition of the centre’s catchment area and a greater score is given to areas whose retail mix is optimally adapted to the local community.

London still dominates the national retail scene and 34 per cent of the top 50 most vital centres are located in the capital. However, quality retailers are increasingly gravitating towards a few very strong shopping centres and high

streets, and this concentration of quality retail within the city is at the expense of the typical London high street.

Birmingham and Glasgow are the most improved centres near the top of the ranking, as both have benefited from new retail developments. Brent Cross has fallen out of the top 50 as a result of the preparation for works to modernise and expand the centre. It is likely that this drop will be temporary and the centre will increase its score upon completion within the next five years. www.shopping-centre.co.uk

Find out more about these suppliers Visit: shopping-centre.co.uk/directory Tel: 01293 416090 Email: trudy.whiston@jldmedia.com

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COMMERCIALISATION

Swarco

Destination Space

0174 882 4624

0161 743 4644

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Decx

Forum CentreSpace

01773 835552

0191 226 8844

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Fizzco Projects

InnerSpace

01427 666029

0161 477 3652

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Gala Lights

Shoppertainment Management Ltd

01622 882424

0161 817 5221

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info@shoppertainmentmanagement.co.uk

BlueFrog Cleaning Services

Space to Trade

01903 262 555

028 406 60138

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www.bluefrogcleaning.co.uk

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Vileda

Coinfactory

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www.shopping-centre.co.uk

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Find out more about these suppliers Visit: shopping-centre.co.uk/directory Tel: 01293 416090 Email: trudy.whiston@jldmedia.com

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PRODUCTS & SERVICES GLAZING

Glazing Refurbishment

Premier Park

01638 730 612

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Clearhill

Scheidt & Bachmann UK Ltd

02840 622028

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www.scheidt-bachmann.com

Shopping Centre Mangement

UKPC

01372 386983

0333 220 1030

www.shoppingcentremgt.co.uk

www.ukparkingcontrol.com

Shoppertainment Management Ltd

Vehicle Control Services

0161 817 5221

0114 261 7111

info@shoppertainmentmanagement.co.uk

alunc@excelparking.co.uk

LEISURE VENDING

MARKETING

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JFR Promotions

Latimer Appleby

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ANPR International

VSG

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Excel Parking

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G24

Sign Options

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Find out more about these suppliers...visit www.shopping-centre.co.uk/directory To advertise in Products & Services or in the Shopping Centre online directory please contact: Trudy Whiston at twhiston@55north.com or call 01293 416 090 www.shopping-centre.co.uk

JULY 2017 SHOPPING CENTRE

PEOPLE / MOVES

Ellandi and Workman introduce sensory shopping days

Workman Retail and Elllandi shopping centre teams have been working together to help make their shopping centres more accessible and their latest initiative aims to provide a comfortable and welcoming atmosphere to shop in for people who find shopping centres overwhelming.

While for the majority shopping is a way of relaxing and socialising, for people with a sensory processing condition a visit to a busy shopping centre can be just the opposite. Crowded stores, bright lights, piped music and noisy tannoy announcements can lead to sensory overload, meaning that shopping centres can become confusing, intimidating and frightening places.

The landlord and managing agent worked together on an initial trial at The Howgate Centre, Falkirk and Mercury Mall in Romford where the Sensory Shopping events have been very well received.

The events were well publicised and some shoppers travelled many miles to visit the centres because they know it will be a more comfortable experience.

Now Sensory Shopping Days are being rolled out at Marlands shopping centre, Southampton; Eastgate Centre, Gloucester; Grays shopping centre, Grays, Essex; White River Place, St Austell; Bouverie Place, Folkestone; Chelmsley Wood shopping centre, Chelmsley Wood; Priory Centre, Dartford; The Swan Centre, Eastleigh and Pentagon shopping centre, Chatham.

On the designated days hand dryers are switched off and paper hand towels provided. And where possible, quiet zones are provided for anyone to use, particularly aimed at those who are feeling overwhelmed, overloaded or anxious.

Staff are being trained by local groups such as Dementia Friends, National Autistic Society and other local charities and groups to ensuring that the staff feel more comfortable dealing with and approaching customers who may be experiencing difficulties in the shopping centres. Some have even taken to learning basic sign language too and where possible we are getting the retailers themselves on board to reduce or turn off music and to join in on the training.

Ellandi property director Mark Robinson commented: “To thrive, shopping centres need to be safe, inclusive and welcoming places for all of the community. Having a child with sensory perception disorder makes me well aware of the challenges faced by people and carers with more severe conditions and we are proud to support this initiative across our portfolio with Workman.” www.shopping-centre.co.uk

This month’s moves . . .

SAVILLS has promoted LARRY BRENNAN, head of Savills Ireland’s retail team, to head of European retail agency. At the same time the firm has recruited KEVIN SWEENEY as a director in the retail team in Dublin from Westfield shopping centres in Sydney. Savills has also promoted OLI FRASER LOOEN to head of cross border retail investment in Europe.

ST MODWEN PROPERTIES has appointed JENEFER GREENWOOD as a non-executive director. She was previously executive director and head of retail at CBRE and director of sales and lettings, Great Britain & Ireland for Grosvenor.

valuation advice to a wide range of investors.

KNIGHT FRANK has recruited SAM WATERWORTH and WILL LUND to its retail investment team. Both join from Cushman & Wakefield, where they each gained several years’ experience in their specialist markets. Waterworth will join as an associate, focussing on high street investments, whilst Lund joins as a qualified surveyor, continuing his work in the shopping centre sector.

MCARTHURGLEN has promoted MICHAEL NATAS to joint managing director of development. He was previously deputy managing director of the development division.

HRH RETAIL has promoted investment specialist RICHARD WARD to partner. His investment team has transacted nearly 30 retail deals over the last 12 months.

BENSON ELLIOT has restructured its management team with MARC MOGULL moving from his current role as managing partner to executive chairman and chief investment officer. Co-founder TRISH BARRIGAN will take on the MONTAGU EVANS has appointed position of managing partner.

EMILY PATEY as SAVILLS has appointed senior surveyor JONATHAN CORISH as within the retail commercialisation manager in management the firm’s Glasgow office. He joins team. She previously worked at Lambert Smith Hampton, where from SpaceandPeople where she managed a mixed portfolio of he was a venue development manager. At the same time asset classes.

Savills has bolstered its retail agency team in Scotland with Retail valuation specialist the appointment of VICTORIA ANDREW DAVIE has joined FREED who joins as a surveyor CUSHMAN & WAKEFIELD as from JLL where she a partner in the valuation & worked in shopping advisory team. He joins from centre property CBRE where he was a director management. providing shopping centre JULY 2017 SHOPPING CENTRE

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