SPRING 2015 | ISSUE 5 | THE MAGAZINE OF THE COMPLETELY GROUP
SEEING THE LIGHT A new approach to movie going
KFC
An old friend gets a new look
THE DARK ART OF SEO
Does your website cut it?
Time to get
on your bike THE POWER OF TWO WHEELED NETWORKING
2 // A Different Message
Contents // 3 ISSUE #5 | SPRING 2015 EDITORIAL Editor: Duncan Lamb
DOM MILLAR
Managing Director The Completely Group
REINVENTING YOURSELF As the old saying goes: ‘Necessity is the mother of invention’. In the retail business, I guess perhaps it could be said that it’s the mother of reinvention. As we head towards our first London Completely Retail & Leisure Marketplace of 2015, the theme of reinvention is certainly recurrent in this issue of [different]. The Light is aiming to reinvent the cinema-going experience: finding a ‘third way’ which sits between the mass market multiplexes and the sometimes rarefied ‘art house’ film experience. KFC is revamping its offer so that it is more in step with society’s changing tastes for food, design and service. Pop-up shops look to challenge the status quo and reinvent the way in which shopping environments work while the guys at Jamm Living feel they have a new edge in the London residential development scene. Reinventing and reinvigorating our offer is a core commitment at
ART Creative Director: Ben Parer Art Editor: Andy Fleetwood Design: Stuart Meades, Matt Hardy and Stefen Clarke
way to up our game.
Time to get on your bike?
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Pop-ups here to stay?
28
Irish eyes smile on new Marketplace
30
Tim Jackson
PRODUCTION Production Editor: Mark Bailey Printer: Hardings Print Solutions Finishing: Celloglass MECHANICAL INFORMATION Cover Paper: Denmaur Cocktail White Lady 290gsm. Cover Treatment: 4 colour process with foil. Binding: Perfect Bound. Body Paper: Pages 3-38 – Denmaur UPM Fine Offset 150gsm Fonts: Body text – Avenir Headlines & Specials – Aachen, AT Rotis Semi Sans, Baskerville, Bebas Neue, Calvert MT, Chuck Five, Clare BT, Clarendon, Fanciside Caps, FS Lola, Journal, Olivier, Oswald, Pluto, Salome, Trend Slab Apps Used: Adobe CC PROPERTY LISTING & ADVERTISING SALES Phone: 0844 6626600 Email: sales@completelygroup.com CREATIVE & MARKETING SERVICES Phone: 01483 238 920 Email: info@completelygroup.com EVENTS Phone: 01483 238 924 Email: events@completelygroup.com ACCOUNTS Phone: 01483 238 931 Email: accounts@completelygroup.com COVER Subject: Time to get on your bike? (see p25) Cover Photography: Matt Alexander
4 Seeing The Light Two cinema veterans are aiming to change our movie viewing experience.
8 An old friend gets a new look KFC has been feeding Brits for 50 years, but it has new plans for the future.
12 Curtain raiser
Meanwhile out in the wider world, our politicians are rapidly looking
The next Completely Retail & Leisure Marketplace on April 28th promises to be the biggest yet.
to refresh their ‘offer’ as polling day approaches while the onset of spring brings the best reinvention act of all as nature miraculously makes everything seem better and fresher than it ever was before. Now wouldn’t it be great if we could all do that for our businesses?
25
08
An old friend gets a new look
PHOTOGRAPHY Photographers: Paul Harmer, Murray Scott, Matt Alexander and Christopher Bellew
The Completely Group. Whether it’s our events, our creative design service or our online listing platforms, we’re always looking for a
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Keith Pullinger
The Completely Group, Parklands, Railton Road, Guildford, Surrey, GU2 9JX Phone: 01483 238 920 Email: info@completelygroup.com Web: www.completelygroup.com To keep up-to-date with all our news follow us on Twitter: @completelygrp
16 Keeping it brief All the news that fits.
22 The mysterious art of SEO In our latest Cheat Sheet, Matt Davis explains the intricacies of Search Engine Optimisation.
25 Time to get on your bike? The power of two-wheeled networking.
28 Irish eyes smile on new Marketplace All the craic from the first Completely Retail & Leisure Marketplace in Dublin.
30 Jamm today, homes tomorrow
34 A postcard from the Far East… Is Asia losing its appetite for luxury retail? Mark Burlton gives us his view.
36 A drink with…Jo Skilton Dom Millar meets up with the Head of Leasing at Battersea Power Station Development Company.
38 Portfolio 39 The Secret Agent Our mole wonders why his fees aren’t rising as fast as rents.
We talk to a new brand in the London residential scene.
18 Pop-ups here to stay? Are they just temporary lets by another name or a retail revolution? We investigate.
VAT no. GB 770788879 Company no.4321497 [different] Spring 2015
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4 // The Light
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THE LIGHT PROVIDES AN ALTERNATIVE EXPERIENCE TO MULTIPLEXES AT ONE EXTREME AND ‘ART HOUSE’ CINEMAS AT THE OTHER. NOW ARMED WITH NEW FUNDING, IT’S ON COURSE FOR A ROLL-OUT ACROSS THE UK. WE SPOKE TO KEITH PULLINGER ABOUT THE CHAIN’S PLANS.
Seeing The
Light The co-founders of The Light – Keith Pullinger and John Sullivan – are veterans of the cinema business. Between them their CVs encompass stints at UGC, Virgin, Cineworld and Warner Village plus extensive consultancy work in the sector.
So they’ve seen the multiplex concept up close but when they created The Light they were looking to provide the more intimate experience that is most associated with art house cinemas and combine that with mainstream movie product.
Keith Pullinger, co-founder of The Light
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6 // The Light
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And it’s unlikely that expansion will stop there. Pullinger says they are tracking another 25 locations and would hope to convert at least five of those into new sites. The Light typically looks for sites that can accommodate eight screens with a total of 1,500 seats. “If we need a lot of seats for a particular movie we can double up auditoria and play it in three, four or five screens. Digital screening gives you that flexibility. So we find that having more smaller screens is actually a better model for us.”
Local authorities are increasingly keen to get cinemas back in the towns to help build the right sort of evening economy
He is straightforward about the deal that The Light offers landlords. “If you’re solely driven by getting the best covenant on your lease you’re not going to start with us, you’re going to start with a bigger company. But increasingly we’re finding that developers and landlords are thinking about the right mix in their centres as much as how much is the rent and what your covenant is.
When asked to name the best film he’s seen recently, Pullinger names The Theory of Everything. In many respects, it’s exactly the type of movie that is emblematic of what is at the core of The Light’s offer: a thoughtful movie but accessible to a mass audience. Pullinger observes: “A lot of people are quite comfortable seeing a blockbuster one week and an art house movie the next. They are looking at a broad range of films depending on their mood or the type of experience they want to have. One day they might go with their partner, another day with their family and again look at different things. “We were very aware that multiplexes were locked into Hollywood blockbusters and hadn’t really come out of that market”. The Light offers a unique independent approach to the traditional commercial multiplex concept – with a focus on customer comfort, including excellent customer service, superior sound & vision quality and value for money. Each cinema has a separate identity and a mixed programme of films that aims to respond to the community in which it sits. Its approach was first validated by its debut UK outlet in New Brighton on The Wirral. This was an opportunity which had been passed up by the major operators and eyebrows were raised when The Light took it on. The eight-screen, all-digital cinema with a cafe bar opened in December 2011 and has been a huge success. Pullinger explains: “On The Wirral there was already a Vue and an Odeon, but we believed in the developer and the location, and what they were putting together in terms of the mix with restaurants and a casino etc. The second major factor was the catchment: there are 330,000 people on The Wirral so that’s a good number of people to aim for. [different] Spring 2015
“Also going into that crowded market I think we did stand out as the operator that was willing to try that bit harder, experiment with film, think about engaging on social media: ask the audience about what they might want to see and what they wanted from The Light. We wanted it to be a two-way process.”
The Light offers a unique independent approach to the traditional commercial multiplex concept Since the New Brighton cinema opened, expansion of The Light has not been dramatic but that is now set to change following new investment into the business. A £5.2m commitment from Connection Capital has been supplemented by £4.5m of funding from the Santander Breakthrough programme which provides growth capital to businesses in the UK. The investment has already been used to acquire a nine-screen multiplex cinema in the centre of Cambridge from Cineworld. It will also be used to support the roll-out of further sites across the UK – Bolton, Sheffield, Thetford, Dundee, Stockport and Walsall – all of which are secured under a signed agreement for lease.
“And that’s been a real change, particularly with the shopping centre owners. More and more we find that shopping centre owners are talking about the same things that we are – it’s all about the experience. That’s because film and retailing are very similar. There are lots of ways now of accessing film and there are lots of retailing channels. But in both sectors, what it comes down to is the experience and what that adds.” The basis for The Light taking an outlet will be a 25-year institutional lease but Pullinger says the commercial deal and rents will vary depending on the location and its perceived trading strength. He reports: “We’re quite flexible. We don’t have a fixed way of going into any deal. So we always take a lease but in terms of how that’s structured we’ve got a mix of ones that are on standard rents and some that are on step rents and some that are on rents plus turnover. In shopping centres we like the idea of the turnover rent because we are quite dependent on the strength of the whole development. “We’re really encouraging shopping centre owners to think more about combining their marketing activity with ours. Because when we’ve got a release like The Avengers, which is coming out shortly, there’s a massive global campaign behind these movies and centres can look to tie into that and have some fun with it. It’s just another way of drawing people to a centre.” Choosing which films to show is an integral part of a cinema business and Pullinger admits that sometimes you get it wrong. “We made a classic mistake a while back of not showing Grown Ups 2 because we thought it was dreadful. It ended up taking £20m across the UK in its first week so we soon corrected that mistake in week two! “You have got to be careful of not trying to put your personal opinion onto what you programme because I think you can differentiate between what the critics might like and what’s box office success.
“For example, we’ll show Fast and Furious 7. Am I expecting it to get good reviews? No. Am I expecting it to take a lot of money? Yes. So I think really the customers decide what’s going to work, but we do try to have as much dialogue as possible and because we are listening to our customers they’re offering more opinions on what they’d like to see.”
The Light’s debut UK outlet in New Brighton on The Wirral has been a huge success
As the debate over the revitalisation of town centres and High Streets across the UK continues, Pullinger believes that cinemas have an important role to play. “In Bolton and Stockport we worked very closely with the local authorities. They were keen to see leisure in the town centres. A lot of leisure amenities in town centres in the evening have become almost exclusively drinking-led which is not what anyone really wants to see. “We believe the natural place for cinemas should be in towns, not on a retail park on the outskirts. Local authorities are increasingly keen to get cinemas back in the towns to help build the right sort of evening economy. Cinemas should be in the heart of the community.” [different] Spring 2015
8 // KFC
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KFC is celebrating its 50th year in the UK, but the chain whose famous secret recipe brought finger-lickin’ good chicken to these shores is not resting on its laurels… From its first store in 1955, KFC has built a chain of more than 870 outlets throughout the UK and Ireland and employs more than 24,000 people. Despite being in this country for half a century, the company is still expanding and has identified a further 400 locations where it wants outlets and hopes to tick those acquisitions off at a rate of 30 to 40 per year. [different] Spring 2015
That sounds a bit ambitious until you realise that, globally, KFC has nearly 20,000 stores in 117 countries and serves eight million customers a day. KFC – formerly Kentucky Fried Chicken – is now part of the Yum! Brands group which also includes Pizza Hut and Taco Bell. KFC’s origins are in Kentucky where it really was created by Harland Sanders who was a real-life colonel, albeit an honorary one who had been nominated by the state’s governor. Its UK acquisition programme is not only ambitious but it is specific, particularly from a property-perspective. The 12-page list of property requirements can be downloaded from the
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10 // KFC
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in the business. For instance, when you look at demand for breakfast and coffee, there’s a lot of growth that we haven’t realised yet. “Our new premium coffee offer and sweet treats, like muffins and cookies, are strengthening our appeal and improving convenience for our customers.” Although KFC is fairly definite about what it wants, Gardner stresses that he and his colleagues take a pragmatic approach to filtering new propositions:
The new fresh KFC approach in Bracknell
KFC development website (www.kfcdevelopment.co.uk) and reveals, for example, that not only does the company want three sites in Cambridge, but that one of them should be in Lion Yard or the Grafton Centre. Two outlets are wanted in Chelmsford, four in Leicester, seven in Nottingham and 10 in Glasgow. The list also reveals that about 90% of KFC’s desired developments are drive-thrus. Senior Acquisitions Manager Dan Gardner, who is concentrating on sourcing KFC’s desired properties within London, said: “We are focusing quite heavily on drive-thru growth and urban stores in Glasgow, Manchester, Liverpool, Birmingham and London. I am specifically searching inside the M25 for sites, as well as our urban concept for Central London. We believe there’s lots of capacity inside the M25. It’s a challenging, difficult acquisition trail to follow however our search is focused on finding sites in locations where we have customer demand.
The idea is to encourage people to dwell in our stores and to enjoy the environment and share freshly made food
“I believe we have substantial capacity to operate at least another 50 drive-thru stores within Greater London and even more with our new urban concept.” KFC has four core formats: traditional restaurants, food courts that provide KFC with a presence in shopping centres where seating is shared with other brands, smaller express stores and drive-thrus. In addition to the above, KFC are also working on a new urban concept: “We’re looking for stores in urban areas and transport hubs. So that covers everything from restaurants to what we call express stores and we’re looking at a number of other concepts too,” says Gardner. “We’re working on finding new urban units that are convenient for our customers in urban environments. Part of my role is to try and find suitable sites for us in London, including central London, where we feel there’s a strong demand from the urban commuter, office-worker and retail [different] Spring 2015
customer base. Basically customers who are hungry and short of time.” The fresh approach to restaurant design is vividly demonstrated by the new store in Bracknell, which has a much warmer, retro and health-conscious feel than typical fast food outlets. The emphasis is on showing how the food is prepared on the premises and explaining how ingredients are sourced. It is a long way from the simple red-andwhite livery that characterised the chain for most of the past five decades. Gardner is enthused by the opportunity: “We have a rolling product development programme and we’re trying to be dynamic and fluid in terms of how our stores look and feel. Our new design is based around how families and friends come together around the kitchen table to eat. The idea is to encourage people to dwell in our stores and to enjoy the environment and share freshly made food. “We’ve set upon a design which we really like and we’re comfortable with and it’s something that we’d like to get into as many of our stores as possible, as quickly as possible.” For most of his 18-year career, Gardner has been connected with the restaurant business and he came to KFC from coffee chain Starbucks only six months ago. Despite his relatively brief tenure, he is passionate about KFC and its latent potential: “The main reason why I’ve come across to KFC is that I do honestly believe there is much more potential
“We don’t want to be too prescriptive in saying ‘it’s got to be this and this alone’. We’re really keen to challenge ourselves to look at all sorts of opportunities, even if they fall outside the parameters of where and what we’ve asked for on our requirements list. We will inevitably get sent things that aren’t quite right for us, but we need to consider them like every other proposal.” KFC’s expansion, since the days of Colonel Sanders, has always consisted of franchising and in the UK around 75% of the KFC portfolio is operated by its franchisee population which strengthens and supports KFC’s expansion plans. Gardner comments: “We work very closely with them to get the best asset for our customers. We operate what we call a ‘one-system business’. We see the franchisees and the businesses that they run with us as very much part of our wider business. “KFC is set up in a way so that everybody works together, whether it’s HR, marketing, development, or any other part of the business, we’re all working hand in hand. The franchisees do the vast majority of the work when it comes to finding and opening new franchised sites and they are supported by the experts in the franchise development team, who are there to help them along the way.”
I believe we have substantial capacity to operate at least another 50 drive-thru stores within Greater London and even more with our new urban concept members in an average store, and so it’s very important to train them and develop them. We provide a number of apprenticeships – advanced NVQs – and typically put around 3,000 people through the course each year. “And we’ve introduced a business management degree through De Montfort University that our managers can participate in”. It turns out that the final vital ingredient in the KFC secret recipe is actually customer service.
It’s a long way from the red-and-white livery that characterised the chain for the past five decades
The property development support emanates from KFC UK’s headquarters in Woking, Berkshire, where the experienced 10-strong property acquisition team is notionally based – much of their time is inevitably spent on the road. The company is committed to making working for KFC a worthwhile and progressive experience. It has won a clutch of Great Place to Work and Top Employer awards during the past few years. Gardner reports: “We have around 45-60 team [different] Spring 2015
12 // Marketplace
RECORD TURN-OUT EXPECTED FOR APRIL EVENT THE FIRST UK COMPLETELY RETAIL & LEISURE MARKETPLACE OF 2015 LOOKS SET TO ATTRACT A RECORD NUMBER OF DELEGATES. WILL YOU BE THERE? Photography by Murray Scott
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2,000 retailers, investors, landlords, agents, food and leisure operators plus a huge range of decision-makers from other areas of the property business are expected to gather at Old Billingsgate Market on April 28th for the Completely Retail & Leisure Marketplace.
As ever, the format on the day will be simple, but professional
“It looks like we’re heading for a record level of attendance,” says Completely’s Dom Millar. “The April and September Marketplaces are now established dates in the retail, leisure and property calendars. However, we’re not resting on our laurels and are planning to deliver the best – as well as biggest – event yet.” The status of the event’s core sponsors – British Land, Colliers International, Cushman & Wakefield, H&M, The Gym and Westfield illustrates the quality and dynamism of the event. As ever, the format on the day will be simple, but professional. There are no elaborate exhibition stands. Instead a segregated space within the market will feature nearly 100 fully-furnished and branded meeting areas with additional spaces around the event for delegates to hold meetings. Free WiFi access and refreshments will be provided throughout the day to all delegates. For more information, visit www.crmarketplace.com or contact Rebecca Sawyer (01483 238 924 / rs@completelygroup.com).
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14 // Marketplace
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WE ASKED A FEW PREVIOUS ‘SOAPBOXERS’ TO SHARE THEIR EXPERIENCES OF STEPPING UP TO PITCH…
SOAPBOX STARS
Daniel Auner, Soupe du Jour
“ Since appearing on Soapbox, we opened our second shop last November. Besides the shop growth, we’ve built up a presence in other distribution channels and want to continue to grow and open more shops this year. Soapbox was a great way for us to present ourself. We built up relationships with several agents after the event which is helping us with our search for new shops.”
Brendan Mitchell, David Lloyd Studio
“ Soapbox was a fantastic way to quickly and succinctly get the salient points of David Lloyd Studio’s property requirement in front of a relevant audience. Thanks to Soapbox in 2014 we generated some very useful contacts.”
Ian Leigh, Thai Leisure Group
“ I got the job of pitching from the Soapbox. I was certainly a bit nervous, but the pitch had the desired effect and opened up a number of conversations with the key people we were looking to target.”
Irina Squire, Blo Blow Dry Bar
“ Since appearing on the Soapbox, Blo Blow Dry Bar has opened in the middle of Covent Garden Piazza alongside brands like Dior, Chanel, Burberry and Molton Brown. Although the premises did not directly come from participation at the show, I secured a lot of useful contacts in the commercial property industry and was approached by agents offering potential sites for future locations.“
Thom Elliot, Pizza Pilgrims
“ It was great to get the chance to talk about our brand, and discuss what we are doing with potential landlords. It was a great opportunity to talk to some of the biggest landlords in the country to see the kind of developments they are involved in and the kind of operators they are looking for to fill their units.”
Mark Wright, Rola Wala
“ Soapbox gave me an opportunity to showcase Rola Wala to a crowd of experts from across the country. The response was incredible and a year on we have successfully translated a start-up street food concept into a retail venture.”
This April’s event will present the third crop of brands to pitch their businesses from the famous Completely Retail Soapbox. At each show, around 20 brands get the opportunity to pitch their business to an audience of landlords, investors and property agents. The catch is that they only have three minutes in which to do it. Soapbox organiser, Shelley Batey of Completely, comments: “It’s been really interesting to watch people get better at presenting in this short, sharp format. You definitely have to cut to the chase!” Brands who will be presenting at the Soapbox sessions on April 28th include Sugar Dumplin, Forexchange, Smash Burger, Carraig Donn and Jagged Edge Barbers. For more information, please go to www.crmarketplace.com or contact Shelley Batey (01483 238 686 / sb@completelygroup.com). [different] Spring 2015
It’s been really interesting to watch people get better at presenting in this short, sharp format.
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16 // Keeping it Brief
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This sporting life OK, we’re half way through the magazine so here’s the commercial break: a brief update on what we’ve been up to recently at The Completely Group…
WWW MEANS WILKINSON WILLIAMS WEBSITE! THE COMPLETELY GROUP’S HIGHLY-CREATIVE AND TECHNICALLY INNOVATIVE APPROACH HAS PROVIDED US WITH A WEBSITE THAT NOT ONLY LOOKS GREAT, BUT MANAGES TO PRESENT A LOT OF DETAILED INFORMATION IN A FORMAT WHICH IS EASY TO NAVIGATE MILES MARTEN, MANAGING PARTNER WILKINSON WILLIAMS
Rather in the style of Forrest Gump, it was not that long ago that The Completely Group’s Production Manager, Mark Bailey, suddenly decided to “run for a while”. Since then he has completed the Hampton Court Palace Half Marathon, the Surrey Half and the Brooklands Half Marathon in preparation for the Brighton Marathon. Mark’s efforts are in support of Prostate Cancer UK and you can donate on his Just Giving page at www.justgiving.com/Mark-Bailey66 Not to be outdone by Mark’s efforts, several of our team also competed in the Surrey Half Marathon with Andy Fleetwood, Wei Li, Jess Oakden, and Ben Parer all successfully completing the race.
The comprehensive overhaul of the firm’s site has created an online platform which is fully responsive (making it mobile and tablet friendly) and incorporates various new technologies and features.
The firm’s Managing Partner, Miles Marten, comments: “A state-of the-art online presence is essential for our business. The Completely Group’s highly-creative and technically innovative approach has provided us with a website that not only looks great but manages to present a lot of detailed information in a format which is easy to navigate”.
The Completely Group’s New Media Manager, James Bridge-Butler, comments: “The property section on the site is powered by CompletelyRetail.co.uk and we’ve developed a sophisticated search functionality that allows visitors to search for properties by scheme and availability”. [different] Spring 2015
You can view the website at www.wilkinsonwilliams.co.uk
Google is responding to the changing trends of internet access and will give a higher ranking to websites that are fully optimised and adaptable for mobile access. According to the Office for National Statistics, accessing the internet with a handheld device rose from 24% of all internet traffic in 2010 to 58% in 2014. All businesses should now check to ensure that their websites are optimised accordingly. The Completely Group build all new websites to be responsive by default, and are starting to re-build older sites on request. For more on search engine optimisation, see our latest Cheat Sheet on page 22.
THE 2015 COMPLETELY AMAZING BIKE RIDE Following the success of the Completely Amazing Bike Ride last year we’re going for it again this year and it’s going to be even bigger and better.
HAZELEY DAYS Hazeley Developments is a Hampshire-based residential developer building high quality new homes within 30 miles of Winchester. The Completely Group has been appointed to consult on the company’s development and corporate marketing strategy.
The Completely Group has been appointed by the KFC development team to work on a number of their upcoming property projects incorporating the fast-food chain’s new brand positioning.
Wilkinson Williams is ranked as the leading retail warehouse agent, and has leasing instructions totalling more than 20 million sq ft.
From April 21st, if a Google search is made from a mobile phone, the search results that are generated will only include websites that have been optimised for viewing on handheld devices.
RECENTLY WON
KFC PLACE THEIR ORDER
The Completely Group has built a new website for the specialist retail property consultancy, Wilkinson Williams.
IS YOUR WEBSITE ‘ADAPTABLE’?
To find out more about KFC’s expansion plans in the UK, please turn to page 8.
WE’RE JAMMIN’ Highgate-based residential property developer Jamm Living has appointed The Completely Group to develop their corporate brand and assist with their development marketing. Read an interview with Jamm Living Director, Tim Jackson, on page 30.
INVESTMENTS ON THE UP Judging by the work coming through the Completely studio, there is no let-up in the volume of property investment assets that are coming to market, Completely’s Ben Parer comments: “Already this year we
have completed 52 investmentorientated projects for 10 of London’s top-flight agencies. The work involves assets that represent in excess of 1.15 million sq ft, with a market value of close to £300m”.
ONLINE GOES FROM STRENGTH TO STRENGTH This March saw record numbers of properties listed across Completely’s portals. The comprehensive scheme databases of over 16,000 Retail, Industrial, Science and Business Parks, Shopping Centres, major Offices and Serviced Offices provides occupiers with detailed information, availability and the agents’ contact details. The number of sponsored or enhanced schemes were significantly boosted by the likes of Lothbury, New River Retail, Threadneedle and Royal London who have recently chosen The Completely Group to help promote their property assets to a wider audience.
So block out September 11th in your diary for a date with your steel horse around the Surrey Hills. For more details, please contact Shelley Batey sb@completelygroup.com
SAVE THE DATES COMPLETELY RETAIL & LEISURE MARKETPLACE
28.04.2015
LONDON
29.09.2015 LONDON
COMPLETELY AMAZING BIKE RIDE
11.09.2015
SURREY
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18 // Pop-Up Retailing
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“We’ll only use it when it is something genuinely new and interesting,” says regional director Martin Breeden of shopping centre giant, intu.
The Permanence of Pop-ups
Several pop-ups have appeared at the Broadmarsh centre in Nottingham which is awaiting a revamp and intu has also used pop-ups at the Lakeside shopping centre in Thurrock, where street clothing brand Ratchet has been successful and vacuum cleaner maker, Dyson used a pop-up to explain some of its technology. “We use it to add to the retail mix, and there are always high standards of fit-out,” says Breeden.
In the UK, one of the most interesting new semi-permanent projects is Pop Brixton
‘Pop-up shops’ feel like a very 21st century trend along with ‘flash mobs’ and adverts ‘going viral’. Cynics in the retail property business might argue that ‘pop-ups’ have been with us for decades. As Nick Morgan of Kitchen LeFrenais Morgan observes: “’Pop-up’ is just a fancy name for temporary lettings.
What often gets forgotten in the pop-up debate is that there are actually two very distinct strands of the sector. There are lettings to pop-up shops and there is also the creation of pop-up developments – semi-permanent projects that can act as income-producing catalysts which also help establish a location as a retailing destination.
The way people buy and sell is changing and nowadays businesses want to create a story, a channel and an app
“We do a lot of temporary lettings and always have. A substantial proportion of lettings in many shopping centres are temporary with a six-month rolling break.” Temporary lettings ‘keep the lights’ on in vacant shops, mitigate the rates, insurance and service charge liabilities and, of course, there is always the hope that the tenant might make a success of it and stay. The burden of business rates has undoubtedly been a driver behind the pop-up phenomenon. If a pop-up retailer occupies a property for six weeks, the landlord gets another three months’ relief from paying empty rates.
Lettings to 'pop-up' shops helped many landlords mitigate the effect of voids and rate liabilities through the recession. But what's the future for them now that the market is improving?
It will be interesting to see if a better lettings environment and the Government’s attempts to redress the business rates balance will lessen this. It certainly feels like landlords may now be in a position to get more selective about pop-up lettings.
Boxpark in London’s hip Shoreditch was the first substantial scheme of this nature. The brainchild of retail brand visionary, Roger Wade, the scheme opened in 2011 with the claim that it was the world’s first pop-up shopping mall. Constructed of refitted shipping containers, the units created low-cost, low-risk pop-up stores and is filled with a mix of fashion and lifestyle brands, galleries, cafés and restaurants . As Boxpark approaches the end of its envisaged four-year life span, its lead has been followed – although too closely in one instance. A legal action is now believed to be underway regarding the alleged appropriation of the Boxpark name by a scheme in Dubai. Back in the UK, one of the most interesting new semipermanent projects is Pop Brixton – a development which is being constructed at the corner of Brixton Station Road and Pope’s Road in London SW9. Like Boxpark, the Carl TurnerArchitects designed scheme, is using recycled and adapted shipping containers but it also includes entertainment space, serviced offices, a 10-bedroom micro-hotel and a number of live-work units.
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20 // Pop-Up Retailing
It is intended to help local businesses and start-ups, young businesses and people from the local area who are perhaps selling from a market stall at the moment
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Jamie Mackenzie of the project’s letting agents, Goodsir Commercial, reports: “Pop Brixton is entirely ‘meanwhile space’ which is available until Lambeth council can redevelop the site in about three years’ time”. “It is intended to help local businesses and start-ups, young businesses and people from the local area who are perhaps selling from a market stall at the moment.” Goodsir Commercial has offers on all the units but not all of them are from ‘first timers’. Mackenzie reports: “Some offers are from people who wouldn’t normally consider pop-up but are doing so because there is simply not enough retail space in Brixton”. The Pop Brixton line-up is now being finalised ahead of its opening in June and its offer looks likely to encompass fashion, food, bars, jewellers and hairdressers. Ultimately, it might be these catalyst schemes that provide the pop-up phenomenon’s most lasting legacy but for the present, such has been the proliferation of the temporary trend, it has spawned permanent businesses to serve it. To capitalise on the Queens’ Diamond Jubilee in 2012, Ross Bailey was selling T-shirts from a pop-up shop near Carnaby Street when he had his lightbulb moment. While stock sold from Rock & Rule’s temporary shelving, Bailey was also fielding enquiries about his premises from other would-be shop keepers and he realised that the property aspect of pop-ups might be the real opportunity. This belief gave birth to Appear Here, an agency that, using hotel bookingtype technology, matches temporary retail needs with temporarily available space. Having launched in 2013 with one employee, Bailey now has what feels like a very permanent 30-strong headcount.
Pop Brixton is entirely ‘meanwhile space’ which is available until Lambeth Council can develop the site in about three years’ time
[different] Spring 2015
He observes: “The way people buy and sell is changing and nowadays businesses want to create a story, a channel and an app. “Three retailers that have launched stores on TV’s Dragon’s Den have used Appear Here units.”
While there may be a continued role for an agency-like function to match the permanent churn of vacant space with the temporary needs of new and established retailers, the stark reality is that landlords will always choose longer term, secure income ahead of temporary pop-up lettings.
Pop Brixton is using recycled and adapted shipping containers, and also includes entertainment space
However, they may be well advised to look more closely at the retailing trends that can power pop-ups. For example, in the US, shoppers spend more than $8bn dollars on Halloween outfits, sweets and décor. This has bred retailers like Spirit Halloween which operates more than 1,000 pop-up stores for an eight-week selling season each year and has turnover in excess of $100m annually.
What often gets forgotten in the pop-up debate is that there are actually two very distinct strands of the sector For landlords they offer a sophisticated, secure source of income on a permanent/temporary basis each year. The number of Halloween pop-up stores has grown steadily at a rate of 8% a year since 2005. Spirit Halloween report that sourcing space is becoming challenging and that the general leasing environment has become more positive. Interestingly, they now see themselves as having to compete with occupiers who are prepared to take space for as long as…one whole year. A pop-up sign of things to come here? [different] Spring 2015
22 // Cheat Sheet
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Almost overnight, Google implemented changes that were affectionately nicknamed ‘Panda’ and ‘Penguin’
Search Engine Optimisation SEO in 2015 is unrecognisable from the search techniques that we may have used even two or three years ago. There used to be a time when if you had more backlinks (links from a third party website that come into your website) than your competitors, then that in itself might well have been enough to see your company topping the Google charts. But not anymore.
Matt Davis Davis is Managing Director of xxxxxx the online and xxxxxxxxx social media consultancy, The Bright Click
Google’s objective is simple. When you enter a keyword into its search engine, it wants the 10 most relevant websites to be listed at the top of the results page.
as the leading search engine – it wanted to show the searcher the best natural, or ‘organic’ results on page one – not results that had been manipulated by businesses simply for their own advantage.
If I did a search for ‘dentist London’, but Google showed me a list of dentists in Manchester – then as a search engine it has let me down, and therefore as a consumer I might think twice about using it again.
So almost overnight, it implemented changes that were affectionately nicknamed ‘Panda’ and ‘Penguin’ – and these updates pretty-much focussed on the quality of website content, and the links that come into the website.
However if for the same search it showed me a list of dentists in London, I clicked on the first result it showed me and that website or phone number no longer works – then in a similar way, it has let me down again, as the information it has shown me is just as irrelevant. In the ‘old days’, Google based the popularity of a website on how many other sites linked to it because it didn’t have much else to go on. The problem was however, that this became very easy for companies and agencies alike to fake. So for example, someone could simply purchase some backlinks to their site, or even set up a number of fake sites that linked back to their own. Google eventually wised-up and took massive steps to retain their authority
[different] Spring 2015
In a nutshell, SEO can be split into two categories – ‘on-page’ and ‘off-page’. ‘On-page’ is all about the content and performance of your site – how valuable the information on your site is (it’s what the user ultimately came to see, after all), how often the search keywords are implemented and where, how easy it is to navigate, how quickly it loads, how good it looks on a smartphone or tablet. ‘Off-page’ tends to concern the links coming into your site and how authentic they are, as well as links from Social Media sites (‘Social Proof’ is becoming increasingly more relevant as a ranking factor) and other factors including site security and more. However the ‘on-page’ factors are not only the most important, but are also often in your direct control to implement. This April has seen Google introducing further measures to refine the search process as it responds to the increasing number of users who access the internet using handheld devices. Against this backdrop, search engine optimisation remains a moving target and every business should ensure that its site is configured appropriately. [different] Spring 2015
24 // Cheat Sheet
Here are five factors that you can influence to improve your site’s SEO performance:
Page titles and key words. It’s your job to tell Google what your business does and to include unique keywords on each page of your site that you would want your site to be found for. It’s also important to think about the terms a searcher might be using as opposed to industry-specific terms. For example, Estate Agents will have a ‘Lettings’ department, but a Google user is far more likely to search for ‘Property For Rent’. So having the keywords ‘Property For Rent’ (and ideally the location in this instance) in the page title, the page URL, and the first couple of lines of content on the page would be a great start. Responsive Layout. How does your website look when it’s viewed on a smartphone or tablet? Over 65% of searches now begin on the move and over 80% of social media use takes place on these devices – how your site performs when viewed in this way can therefore make a huge difference to the user. Do they have to pinch the screen to view the main text for example? If they do, Google knows this and will penalise your website in the rankings accordingly. Making your site mobile-friendly can be easier than you might imagine – but if you’re planning a new website in the future this needs to come as standard from the off. Navigation and content. You’ve done the hard work – you’ve attracted a potential customer to your website – now you want to keep them there! Simple navigation that makes the user experience as pain-free as possible is a must. The longer someone spends on your site, the more Google sees that visit as relevant in relation to the keyword they searched for to find you, so give them plenty of valuable and relevant info to digest. Videos are great for this and can be keyword optimised on YouTube as a bonus. Google loves a Frequently Asked Questions (FAQs) page so try and include one on your site. This is particularly powerful as we now often tend to search with questions rather than phrases.
[different] Spring 2015
Site load speed. Images on your site should be optimised for web performance – it’s possible to make high-resolution images look great on a website but to ‘weigh’ the same as a low-resolution image. The process is called re-sampling (this is different to just re-sizing) and can be implemented on basic image-editing programmes. This is especially important for when sites are being viewed on a mobile internet connection (for example 3G or 4G). It’s also worth paying for a premium hosting solution. Cheaper options can be appealing to the wallet but can dramatically slow down how quickly your site loads. Google wants your home page to display in roughly half a second and your users want this too. It’s frustrating when you’re waiting for a site to load – don’t give your visitors an excuse to look elsewhere.
How does your website look when it’s viewed on a smartphone or tablet? Google my business. Every business in the world has the right to take ownership of a FREE business page, provided by Google and now linked to Google’s own Social Network, Google+. Just head over to google.com/business to claim yours. Here you can assign business categories, post images, descriptions, videos and updates, plus your customers can leave reviews (Google loves these, particularly for local businesses). Most importantly – it’s an easy and obvious way to tell Google who you are, what you do and where you do it, and a link from your website to your Google+ Business page will give your website a sure-fire SEO boost.
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Time to get
ON YOUR BIKE? Cycling has become the property business's favourite recreational sport. We have two great opportunities for you to get involved. Photography by Matt Alexander
Not that long ago, if the property industry had a weekend sporting pastime then it was probably golf.
for the start of Europe’s biggest retail property exhibition.
But today as the number of second-hand golf clubs on eBay rockets so does the sale of bikes of every description from basic mountain bikes through to the Specialized S-Works Venge Di2 2014 Road Bike which will set you back somewhere in the region of £7k.
For the first time, the Completely Group will be sponsoring a team in the ride. ‘Fresh’ from taking part in the Cycle to... MIPIM, Completely's Managing Director, Dom Millar, explains: “The ride to MAPIC is about half the distance of the London to Cannes ride, so it's quite approachable and should be considered by anyone in retail who has a road bike and is en route to MAPIC anyway”.
Brought into the public eye by the extraordinary exploits of Wiggins, Hoy, Trott, Cavendish and their medal-laden compatriots, cycling has become the property sport. It is, in many ways, a sport for the 21st century: it accommodates all abilities and all sexes whilst promoting health and – in the context of business – a chance to bond and network. When Completely Group staged its first Completely Amazing Bike Ride last year, we were amazed by the response and we’re now backing another major ride this year: the cycle to November’s MAPIC retail property show in Cannes. Following the success of the annual Cycle to...MIPIM,the Cycle to...MAPIC is now also establishing itself in the property industry’s cycling calendar. This year the distance of the ride has been extended and will take participants on a four-day endurance ride of approximately 750km on a route from Barcelona to Cannes arriving in time
Millar was one of more than 100 riders who completed the 1,452km ride from London to Cannes. He reports: "Averaging 170km per day over six days, The Cycle to... MIPIM was the most physically demanding challenge I'd ever taken on. “However, with the camaraderie and encouragement from fellow riders, the flawless organisation and support and the knowledge that we were raising so much money for such deserving causes, the days flew by and I loved – almost – every minute of it. [different] Spring 2015
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26 // Cycling & property
a view
from the saddle...
During his MIPIM ride, Dom Millar wrote a blog which gives a flavour of the experience. Here we join him on Day Four of the ride. “Four hours sleep and I can't face breakfast. Must have been ‘something I ate’ the previous night. Maybe. “I head out into the dark hotel car park and am faced with a tough choice: get on the coach and fester, or do stage one on the bike and get some fresh air. I opt for the latter. “The pace is fast as we go through the relatively flat roads to our first stop at St Bonnet en Bresse. I opt to get close to the front of the peloton and after a few kilometres I take the wind at the front for a while with John, one of the excellent ride ‘captains’. I discover this is a great way to get rid of a hangover. “Being part of a 105-cyclist peloton riding down the Croisette in Cannes with our motorbike escorts in glorious sunshine was just one of the many memorable experiences of the ride." This year’s MIPIM ride has so far raised £253,000 for charity beneficiaries: Coram, the UK’s first dedicated children’s charity, which receives two-thirds of the money raised; along with Article 25, Emthonjeni Trust, Multiple System Atrophy Trust and Tom’s Trust. It brings the overall total raised by Cycle to…, organisers of the annual multi-day ride, to more than £2m. Nick Hanmer, Chief Executive of Cycle to..., commented: "It's hard to believe that it's the tenth edition of Cycle to...MIPIM since Peter Murray and 16 fellow riders made the journey completely unsupported, beginning the Cycle to... history of a fundraising cycle challenge. “In that time, we've seen the property industry weather some serious downturns but the support and generosity for the ride has never waned and we're extremely grateful for all the support we've received during our ten rides to MIPIM." More details of the MAPIC and MIPIM rides can be found at www.cycle-to.org [different] Spring 2015
The riders arrive in Cannes at the end of last months Cycle to...MIPIM
Looking ahead to November, Dom Millar comments: “These endurance rides seem to be very addictive and I have to admit I'm hooked. So I'm delighted that we’ll be sponsoring a team. I just hope I'll make the grade for one of the places!". If you’d like to discuss the opportunity to join the Completely team, please contact Rhian Fletcher at Cycle to... on 020 7520 0380 or email rhian@cycle-to.org And for those who fancy something a little less rigorous, don’t forget the annual Surrey Hills Completely Amazing Bike Ride in September... See page 17 for details.
“I do a couple more 50km stages and they are also pretty flat and fast. I'm losing a battle with a sharp pain in my left shoulder, so one of the physiotherapists attempts to fix me. The three of them are busy, all the time. This kind of endurance event pushes the body to the limits, and there are about 30 people attempting to ride all the stages and all 1,500km. Hats off to them. “The reception we've received across France has been so warm and supportive. They love cycling and cyclists. On one stage we pull into a village and the lead vehicle steams up a residential road. A group of about 10 locals cheer and take photos as we pass. We wave back like pros only to pull up quickly about 50 metres past them. We've taken a wrong turn. The whole 80-strong peloton, motorbikes, support vehicles all turn around clumsily and we go past the same crowd, who are killing themselves laughing at our blunder!
“Stage 5 is hilly. Really hilly. The group breaks up pretty quickly as the hills really accentuates everyone's differing abilities. This is where the really good cyclists come into their own, both on the quick ascents and the steep descents. It's awe-inspiring to watch the best riders cope with these conditions. “Overnight is at another Novotel in Valence. At dinner, awards are handed out to those who have done the Cycle to...MIPIM ride more than seven times during the 10 years it's been going, and there are many! One chap has done all 10! The newbies like me are definitely in the minority.
The reception we've received across France has been so supportive “I'm off to bed early to get a proper night's sleep. We have the luxury of an hour more in bed tomorrow – the wake up call's at 5:45am! Almost there: just two shorter days and 400km to Cannes…” For more of Dom's blog, go to completelygroup.com
Day four by numbers: Cycled
211km
Calories burnt
7,500
Morale
8/10
Body
3/ 10 [different] Spring 2015
28 // Marketplace Dublin
The inaugural Completely Retail & Leisure Marketplace for the Irish property market was a major success.
smile Irish eyes
on new Marketplace
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feedback I believe that CR Ireland was an extremely positive experience. Karl Stewart, DTZ Sherry FitzGerald
I found the event excellent, and the general feedback from everyone else that I have been speaking to has been as positive. Simon Plunkett, Douglas Newman Good Commercial
Photography by Christopher Bellew
More than 420 retail and leisure property professionals gathered in Dublin at the CHQ building on the south bank of the Liffey for the first event of its kind in Ireland. The new event brought together leading UK and Irish retailers, property agents, landlords and investors to discuss a wealth of leasing and investment opportunities in a straight-forward and simple environment, focused on deal-making.
Thank you for a really enjoyable and beneficial event in Dublin. It was a well organised and more than worthwhile exercise. I, for one, felt that I got a lot out of it. Guy Mauduit, Caffé Nero
The sponsors of the event were Savills Ireland, Iceland, Wetherspoon, Chartered Land, H&M and CBRE who all contributed to the impressive line-up of exhibitors on the day. More than 140 retail brands were represented by delegates and included Tesco, Primark, Boots, Dunnes Stores, Insomnia Coffee Company and O’Briens. The Competely Group’s Dom Millar reports: “We were thrilled with the response to this inaugural Marketplace in Ireland – with a huge uptake registering ahead and on the day. “The event also came at the perfect time for the Irish economy and its recovery as there is now a strong and positive demand for space on prime High Streets and shopping centres – throughout Ireland and Northern Ireland.”
[different] Spring 2015
95%
of attendees did business or will do business as a result of attending the event
92%
of attendees felt the event addressed the needs of the industry
94%
of attendees will attend next year
[different] Spring 2015
30 // Interview
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JAMM TODAY, HOMES TOMORROW Tim Jackson was once a professional musician but now he’s making a name as a London residential property developer with a reputation for doing things slightly differently. We spoke to him about the new Jamm Living residential concept.
Working as a professional musician and recording studio manager is not an obvious grounding for a career in property development. But for Tim Jackson, it provided an understanding of the new young-and-upwardly-mobile population that populate north London’s rediscovered ‘villages’. This demographic is one of the main targets for Jamm Living, the new residential property brand being created by Jackson and his business partner Eli Robinson, through their company SaS (Secure A Sale) Investments. The name – ‘Jamm Living’ – is a conscious nod to music – think jam sessions, Pearl Jam, The Jam etc – and an unapologetically contemporary approach to the design, construction and interior fit-out of new homes. The duo has very deliberately turned their backs on the pastiche Period architecture favoured by many of the larger development companies. “We are not building Edwardian pastiche. We are building what is modern using modern energy-efficient materials and making best use of light and views,” Jackson says.
[different] Spring 2015
We are using modern energyefficient materials and making best use of light and views TIM JACKSON
[different] Spring 2015
32 // Interview
Developments commonly feature home entertainment centres, under-floor heating, triple glazing with solar panelling atop the roof, highly efficient boilers and levels of insulation that make the homes very energy efficient. “They are not quite passivhaus [the low energy design standard] but in most months they will put more energy into the grid than they take out,” Jackson says. He adds that in many cases home owners will need only to switch on their heating for an hour in the morning and an hour in the evening to stay warm.
For Jackson the leap from music to property development came via estate agency “Money talks. People aren’t interested foremost in whether their house is saving energy until you point out to them that their energy costs will be minimal,” he says. For Jackson the leap from music to property development came via estate agency. He was working as a professional musician having graduated with a music degree from the University of Salford. He had established his own recording studio in London’s Wood Green, and was working with several of the musicians who have since gone on to provide accompaniment for the contestants on TV talent show The Voice. Then, in 2004, at the age of 26 and a year into his marriage, Jackson reassessed his life, decided that although he was enjoying what he was doing, the future lacked certainty.
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“That was quite an achievement at that time when banks were reducing their exposure.” The idea of SaS was to help people to sell their property in an illiquid market and the company acquired properties in distress situations at a slight discount, quickly improved them by replacing kitchens and bathrooms, and sold them on. Between 25 and 30 homes passed through their hands during the brief nine month-long window of opportunity after which interest rates fell to their current levels, buyers were no longer buying and sellers ceased selling. Jackson and Robinson had to decide what to do. Then came the opportunity for a more substantial development: eight flats in Notting Hill where deals with several prospective buyers had fallen through. Jackson and Robinson saw the property on 25 March but had to complete the deal by 1 April in order for the vendor to comply with the Charities Act 2006. “We didn’t really know what we were doing but within six months had refurbished and sold the flats. Our investors were very happy and we made a good profit for them,” Jackson says. Jackson and Robinson had found that while being small meant they couldn’t vie on equal terms with larger companies and volume housebuilders, it did make their company more nimble and flexible in the face of difficult purchases and they were able to take on projects that others would reject. “It is a lot easier when you are not competing with these buyers,” Jackson says.
However, as Jackson says: “You also always have to have a plan B. Generally most land has some value. The key also is knowing the cost implications of everything that you may have to do. That is where a lot of people come unstuck. You should never go into anything on the basis that it will all work 100%.”
Always interested in property, he secured an interview with London estate agent Foxtons and got a job as a trainee negotiator. “Foxtons is aggressive – in a good way – it is very meritocratic and rewards success, but you have got to give it 100%,” he says.
SaS is also very choosy: “We buy perhaps 1-in-500 of the things that we look at. People out there are prepared to pay silly money for projects with planning, but we will always take a planning risk using our expertise and knowledge of local markets and customers.”
It was at Foxtons that he first worked with Robinson – an ex-graphic designer who was then his manager. After four months, the two of them opened Foxtons’ Muswell Hill office and two years later while Robinson opened the firm’s St John’s Wood branch, Jackson opened the firm’s Hampstead office.
The duo’s latest project is in north London’s Muswell Hill where, with partner Clovelly House, it has bought a redundant former pub, night club and car park. Jackson and Robinson had previously introduced the opportunity to another party who eventually decided not to proceed.
But by 2008 the world was in financial crisis, the UK economy was looking at years of austerity ahead and the property market was responding accordingly. “We had to ask ourselves if we wanted to be estate agents in such a tough market,” Jackson recalls. At the age of 31, Jackson left Foxtons with Robinson to set up SaS Investments. The two spent six months assembling a group of high-networth individuals who had not previously been property investors. NatWest Bank agreed to match the development funds that the company secured elsewhere. [different] Spring 2015
“We have good relationships with the community and the local councillors. We can’t compete with the big housebuilders but we can be a lot more nimble on planning and we always build places that we wouldn’t mind living in ourselves. “Even our one-bedroom flats have underfloor heating, speaker systems and quick-clear bathroom mirrors. It’s like when you buy a Mini, you get all the same toys that you would in a Mercedes.” The other ace up their sleeve was a preparedness to take a risk on planning. In order to buy a property before a planning application had been submitted, they used their deep knowledge of the areas in which they work to judge a scheme’s likelihood of gaining consent.
The complication that had deterred them was the presence of the London Centre for Children with Cerebral Palsy (LCCCP) at the back of the site. The centre’s lease was virtually up and locally it was assumed that any development would either see the LCCCP evicted or would need to work around it. SaS had another idea: include LCCCP in a joint development, relocating it for the duration of the construction phase, and bringing it back to a new facility that is double the size of the original and secured on a 999-year lease.
With the support of local celebrities such as broadcaster Robert Peston, and actress, Maureen Lipman, the plan gained the support of the local community and convinced the council.
We are local developers and like to contribute to the community in which we live “We are local developers and like to contribute to the community in which we live,” said Jackson. The project is about to start construction and marketing is due to start in May – shortly after the General Election. Jackson is optimistic about the London property market over the next year or so, but inevitably, the election result will have an impact. “The election is a big factor, not in terms of which party gets in, but how stable things are – especially if there is another coalition. But we assume that interest rates will remain low and that the economy will continue to grow. “And, London always has a lack of homes and a steadily growing population.” [different] Spring 2015
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34 // Manifesto
All around the high-rise glitz and bling of Hong Kong and Shanghai diamonds are losing their lustre, luxury leather stores are tightening their belts and the catwalks have started to go to the dogs. The omnipresent expensive watch retailers wish they could stop time and the hyper cars are selecting reverse gear.
Mark Burlton is Head of Cross Border Retail at Cushman & Wakefield
The wealthy Chinese are reinventing themselves before our eyes and switching from revolution to evolution – and the luxury market isn’t happy. The goose has stopped, or at least slowed down, laying its golden eggs and it appears nobody told the retailers in their marble palaces. Add to this a revised downwards forecast of 7% growth in GDP from the ruling Communist Party and you get the impression that a few says forecasts are going to have to be revised, and not in a good way. I love Asia in so many ways including its rather brash five-storey high shop fronts blasting their logos for brands that in London would be blocked by listed building control, conservation areas and – dare one say it – more conservative tastes.
For the most luxurious of retail brands, the Far East has been paved with gold. But are times changing? We asked Mark Burlton, Cushman & Wakefield’s Head of Cross Border Retail, for his take on the current shopping mind-set.
But I love the neon blast here as the sun goes down and shoppers head out after work for another hedonistic binge. I love the sense of pride in what they have and if I could afford to join them I undoubtedly would.
I love the neon blast here as the sun goes down and shoppers head out after work for another hedonistic binge
Downtown Hong Kong
But times have changed almost unfeasibly quickly and I think the luxury market may be about to bleed a little into its collective silk handkerchief. Sure, there is still enough money in circulation but the way it is being spent has changed. The Hong Kong shopper is now just as likely to hop on a plane to Tokyo, Seoul, Paris, London or even New York to satisfy their magpie-like desire for shiny things. Great news for those cities perhaps but pretty shocking news for the domestic luxury mall owners.
And there are more signs of changing times. The latest Barclays European Luxury Goods report shows that while the Chinese customer has grown spending in Europe at a massively respectable 33.7% year-on-year, the decline in Russian spend is an alarming 51.2% for the same period. Ying and Yalta you might say. So where are the good news stories for luxury retailers? Well they are few and far between but I would favour Europe and America over Asia right now as I believe growth will be flat in Asia at best. So who is set to benefit? For me the answer is the ‘bridge brands’ and those purveyors of affordable luxury. Step forward Michael Kors, Jack Wills and Ted Baker. Say hello to Maje and Sandro and mingle with The Kooples. The list goes on and I predict great things for those who come to Asia in their own right rather than through partners. You will find doors open that were previously closed and you will find an emerging middle class ready to embrace your style and your sensible price architecture. The trend is set to be repeated in the ever expanding waistlines of the food and beverage sector. Only five years’ ago mall landlords, not just in Asia, would cluster their restaurateurs in less than 10% of their sales area. This has now expanded to a portly 20% minimum and the appetite for new trends, chefs and culinary kudos is insatiable. But signing up today’s coolest cucumber in the culinary world can be quite a gamble when your mall development is some time away from completion. All you can do is hold your nerve, travel, learn from the mistakes of others, travel and travel again. My culinary hotspots are Tokyo (where the power of social media alone can create lines around the block for the most prosaic cupcakes), New York, London and Las Vegas (I kid you not). Vegas and similarly Dubai are incredible importers of the best in dining.
Andrey Bayda / Shutterstock.com
[different] Spring 2015
For those based outside of Asia, we look forward to welcoming you to our home markets at any time. We’ll even buy you lunch… [different] Spring 2015
36 // A Drink with
// 37
class tenant mix offered in an iconic building steeped in heritage. In addition to the retail mix, we will create an urban food hall that will offer the best artisan food vendors sitting alongside renown restaurant operators. The Electric Boulevard will see more than 50 large units open in 2020 to create London’s newest High Street designed by Foster + Partners and Gehry Partners. The street will be the southern pedestrian gateway, linking the new Northern Line Extension tube station with the rest of the development.
Food is clearly an essential part of the shopping experience these days. What sort of culinary experience can we expect at Battersea? Top restaurants and chefs from around the world have already expressed interest in being part of the development and we look forward to confirming our first partners later this year. We will curate a bespoke offer of culinary delights from established brands but through a range of concepts – from food stalls, pop-ups, cafés and fine-dining.
A DRINK WITH…
In terms of how the multi-site role compares to a single site focus, that’s easy. Whilst the 42 acres of the site at Battersea Power Station forms a single development, it is actually a series of clusters that work together to create a community. Helping to define what each distinct phase is allows us to establish what a new neighbourhood needs and which tenants are best placed to help deliver our ambition.
JO SKILTON
Jo Skilton has one of the biggest and best jobs in retail property. As Head of Leasing at the Battersea Power Station Development Company she is overseeing the creation of a massive new shopping environment in London. Dom Millar met up with her for a drink in the shadow of those famous chimneys.
[different] Spring 2015
What sort of retail mix will we see at Battersea? We’re currently focused on delivering the first three of seven phases. Circus West is set to open in 2016 with up to 40 units establishing the tone for the whole development. A riverside ‘village’ offer will serve the needs of the local community, drawing on the largely independent offering of ‘local heroes' alongside award-winning chefs.
Hi Jo, what will you have? A glass of bubbles please, but I don’t drink alone… so what will you have?
You’ve gone from a role at intu where you were involved with many shopping centres to a single focus at Battersea. How has that been? At intu I was the Retail & Leasing Director for five years. I was responsible for the delivery of all new retail space and new retail contacts so it was a great opportunity to expand my network having worked in both airport and outlet environments prior to that.
You can’t beat face time in this business The Power Station will open in 2019 with c.115 retail units spread over the ground and upper ground floors of the central Boiler House and the two amazingly authentic Turbine Halls flanking it. The Power Station retail offer will be the showstopper on site – a best-in-
How do you keep the retail offer in the eye line of your target brands and keep it fresh over a prolonged period?
Barry questioned whether or not I had enough retail experience. I told him that I shopped every Saturday and I knew where I wanted to go, what I wanted to buy and what retailers offered the best experience. I said that nothing could prepare me more than being in a retail environment as a shopper. I convinced him and the rest, as they say, is history!
What’s the most indulgent thing you’ve ever bought yourself? To be honest, it’s not the “what” but the experience. There is nothing better than going out with nothing in mind and coming home with shopping bags. To give you flavour of this… I like Selfridges for me, Borough Market for food, Soho and Shoreditch for restaurants and if you ask my husband he’d tell you I have a certain penchant for shoes and bags!
How do you unwind when you’re away from the office? Believe it or not, I go shopping! I also love visiting places abroad (ideally when the sun is shining) and exploring the shops, bars and restaurants. I also really enjoy a spa weekend to absolutely relax and unwind.
You can’t beat face time in this business. Myself and my team invest a huge amount of time and energy at industry events and meeting retailers on and off site. My team are some of the best networkers I’ve had the pleasure of working with and we are never short of support from across the business which is great.
What’s the next big milestone for the development as a whole? There seems to be a major milestone every week! The opening of Circus West next year is something that the whole business is focused on. However, this year will see our first commercial partners confirmed, future phase and public realm design proposals revealed, work on the Northern Line Extension will start and the iconic chimney rebuild programme will progress.
Are you a retail addict away from work or is it too much like the day job? Since working in Topshop on a Saturday and spending every penny before I left the shop that night to working in Battersea, retail has always been a large part of me. I remember being interviewed by Barry Gibson when I was a Graduate Trainee at BAA Plc. wanting to move into the retail team.
The Duchess Jo and Dom met at The Duchess which is a traditional London pub that offers a wide choice of 20 draught beers, over 250 premium spirits and an excellent range of wines by the glass or bottle. The décor is smart, eclectic and quirky; and the food is also great. On the first floor, the private bar and its roof terrace command arguably the best view of its neighbour, the iconic Battersea Power Station. So why not visit and watch the power station transforming? The Duchess
101 Battersea Park Road London SW8 4DS 020 7498 7611
duchessbattersea.co.uk
[different] Spring 2015
38 // Portfolio
Ultimately, at The Completely Group we hope that our work speaks for itself. We also hope you’ll come to our events, and check out our listing platforms. In the meantime, here’s a snapshot of some work we’ve done. You can see more on our website (www.completelygroup.com) in the Portfolio section.
Pinnacle branding
The British Land rebrand Completely Retail roll-out
CBRE Project Wolf
KFC advertisement
The Centre, Livingston investment brochure
The Sands investment portfolio for Colliers International
Jamm Living branding
Berkeley West London Look West newsletter
Hill View brochure for Mantle
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The Secret Agent // 39
NEVER MIND THE VALUES: WHAT ABOUT MY FEES!?
For anonymity and the avoidance of a P45, the identity of the Secret Agent must remain hidden. In the latest missive, our mole is contemplating fee levels... There’s a lot in the property press at the moment about rents and values getting back to pre-recession levels – well, in London at least. On that basis that I’m an agent, I’m therefore rather looking forward to fees also getting back to their pre-crash levels. Billionaire art dealers will pay £180 per sq ft for an office in St James’s, Bond Street Zone A’s have surged past £1,100, and overseas money is comfortable buying investment kit at yields under 4%. These are all benchmarks which are either at par or above what was prevailing when Girls Aloud and Craig David were still in the charts. Accordingly, the casual observer would be forgiven for thinking that agents’ fees are now gradually edging up to a similar parity. Not a bit of it. The stark truth is that fees – whether you’re talking about leasing or investment – are probably still on average about 40-60% below what they were in the Noughties boom. As the crash took hold, commentators confidently predicted that there were simply too many agents serving the UK property scene and that hundreds would leave the sector and go into other businesses.
This gloomy prognosis prompted the marvellous gag: “What do you say if you want a Chartered Surveyor’s attention?”
It’s the run-of-the-mill everyday deals that won’t see the disproportionate fees any more. And that’s right and proper: we should make our money because we’re good – not just available.
“Big Mac and fries, please mate” But after seven years of relative business famine there has been no great exodus from the profession. Agents seem to be as numerous as ever, but fees are still at their ‘get-work-wherever-you-can’ levels. So will we ever return to the good old days when you could trouser 10% of the first year’s rent for putting an occupier together with some offices or persuading a retailer that they simply had to be on Sloane Street? I think not. Whisper it, but some of the fee structures of the past were not linked to the actual performance that was notionally being rewarded.
the casual observer would be forgiven for thinking that agents’ fees are now gradually edging up
Today, you can still make a very tidy living in the agency game: my five-years-outof-college colleague has just made £600k commission on a single investment deal. But, in every sense, he made that deal happen and was involved in everything from the tax structure to picking the client up at Heathrow. [different] Spring 2015
Our convenience business is going from Our property business is going from strength to strength and we are . strength to strength
e new.sites@sainsburys.co.uk
w www.j-sainsburys.co.uk/convenience
looking for new sites.
Our latest convenience
We have opened over 100 stores in the last year, more than We now run over 650Co-operative shops, employ around 15,000 people and Morrisons, Tesco, or Waitrose. have exciting, ambitious plans to continue growing in the future.
If you know of an opportunity for a new Sainsbury’s Local check out our website or better still call us. We UK s convenience market growth, with promise you a quick response and pay Our Locals sales of now account for 40% of the UK’s convenience market growth, with sales of £1 £1.8 billion and year?on?year growth of 19%. for successful referrals. We now run over 700 convenience stores and employ around 16,000 people and have exciting, Our Locals account 27% for the ambitious plans to now continue growing in the of future.
billion and year-on-year growth of nearly 17%. We Weopening are around opening about two convenience are two convenience shops a week. Over 7,000,000 customers shop in Sainsbury’s Locals each week and we were recently named We’re always looking for new sites. Convenience Retailer of The Year for the fifth year To find out more come and meet running at the Retail Industry Awards.
our convenience team on Tuesday 30th September and hear about our • future Visible and accessible plans and requirements. Our • award-winning 1,500 - 9,500 sq ft gross team will be on • Stand Backup and can11am be split – over two floors 42sales from 12pm with • samples Parking not essential, depending on location of our Taste the Difference • products. Leasehold or Freehold Flexible requirements
• All sites, buildings and units considered