FSP core retailer services - Site Selection Support, Benchmarking and Location Strategy

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FSP Retail Business Consultants Retailer services

FSP RETAIL BUSINESS CONSULTANTS


Our Core Retailer Services At FSP we offer a variety of services that, with our industry experience and local knowledge will provide insight and direction to assist your growth.

Location Selection

Brand & Consumer Research

Expansion Strategy

Turnover Estimation

The FSP approach is not simply about analysis. At its heart, FSP Directors’ are retailers and over 100 years of retailing experience is directed into every project to test, challenge and provide advice, before it is offered to clients. 2

October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Location Strategy – Catchment & Demographic Profiling Location strategy projects combine a lot of the FSP data availability together: Our overviews can include demographics, competition from other retail locations and Zone A rents. Models are built based on criteria supplied from clients to identify sites with the best level of potential. Westbourne Grove 2 Mile Catchment

ACORN Groups % Lavish Lifestyles Executive Wealth Mature Money City Sophisticates Career Climbers Countryside Communities Successful Suburbs Steady Neighbourhoods Comfortable Seniors Starting Out Student Life Modest Means Striving Families Poorer Pensioners Young Hardship Struggling Estates Difficult Circumstances Not Private Households

GL %

Index

2 8 3 20 12 0 6 9 0 2 4 3 2 1 1 24 3 1

348 3 290 35 2 3 43 85 0 111 14 121

GL % 19 13 36 21 11

Index 84 93 117 95 113

0

% 31 24 31 13

GL % 27 31 28 14

Index 115 79 111 94

0

0

9 0 57 4 0 0 2 1 0 27 0 1

-

100

200

300

3 290 35 2 3 43 85 0 111 14 121

Age % 0-15 16-24 25-44 45-retired Retired +

Resident Profile & Demographics Residents 2014 Households 2014 F&B Spend (£m) Average household Income (£) F&B Spend per head (£) Sushi Eaters Penetration % Office Workers

50

100

150

200

84 93 117 95 113

Lifestage

Catchment 436,417 201,104 427 91,170 979 10

GL

Index

-

51,655 939 7

176 104 137

50

100

150

200

176

Pre-Family Family Empty Nesters Retired Seniors

50

100

150

200

150

200

115 79 111 94

104 137

Social Economic Grade

2,114

Population Projections 2019 2024

16 13 42 20 13

%

GL %

Index

AB

38

29

130

Catchment

% Change

Change

C1

33

33

100

459,461 480,219

5 10

23,044 43,802

C2 DE

9 20

15 22

60 88

50

100

130 100 60 88

Source: FSP/CES/CACI

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October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Location Strategy – Demographics FSP use demographic information to show where potential customers are located. The example below is the demand surface for Luxury shoppers in London and Assured shopping in France.

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October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Location Strategy – Market Segmentation

Combining this analysis with target profiling from any retailer will help ensure that the optimum sites are selected.

70 60 Number of Retailers

FSP are able to deliver extensive insight to the individual shopper profiles and segmentation for any location.

50 40 30 20 10

In the example displayed, The fashion mix is split between Young and Assured. The majority of Clothing and Footwear retailers are in the Upper Middle price point, with a third of retailers occupying the Middle position. Zone A Rent (£/ft²)

425

Approx. Annual Footfall (millions)

15

% Residents

50

% Tourists

40

% Workers

10

Nearby Tube Stations (Annual Exits, millions)

0 Clothing & Footwear

C&F FISH

Personal Goods

Household Goods

Leisure Goods

Department Stores

C&F Price

Classic Family 2% 4%

Food & Beverage

Others

Premium 4%

Middle 41% Assured 44%

Young 50% Upper Middle 55%

Oxford Circus (40) Piccadilly Circus (20) Source: FSP/CES/Colliers/Transport for London/NWEC

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October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Benchmarking – Location Comparison Benchmarking is used to help retailers compare and understand understand tenant mix. Are there towns with a similar population and demographic profile? How does a particular location compare to an existing site in your portfolio? This analysis is carried out using NSLSP catchments and ACORN correlations. In the case of Outlet Stores, we compare the retail mix to a range of benchmark slides – We typically look at merchandise mix, price positioning and FISH information stored in our FOC database. 100%

Shopping Population Correlation 320

19%

11%

16%

24%

8%

18%

22% 18%

28%

160

75%

50%

80

25%

0

0%

60%

% Outlets

240

Correlation Coefficient

NSLSP Principal Shopper Population (k)

18%

50%

40%

25%

50%

50%

57%

50%

16%

14%

15%

20% 28% 17%

22%

0%

Young

October 23, 2015

12%

100% 80%

6

15%

Assured

Family

Classic

FSP RETAIL BUSINESS CONSULTANTS


Benchmarking – FISH Customer Segmentation Paris

FISH is FSPs unique classification of fashion Occupiers and Consumers by purchasing attitude.

Old 2%

Classic 13%

Young 25%

FSP can classify all Clothing and Footwear retailers into specific categories indicating the Lifestage and fashionability of each brand. Through this methodology we can compare benchmark locations across Europe to ensure the closest fit to any brand target shopper. The grid below clearly shows where particular brands are positioned according to Lifestage and attitude. Such grids can show either competing or complementary retailers.

Fashionable

Individual

Family 20%

Assured 40%

Safe

Barcelona Young

Classic 16%

Old 3% Young 25%

Assured

Family

Family 26% Classic

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October 23, 2015

Assured 30%

FSP RETAIL BUSINESS CONSULTANTS


Site Selection Support – Targeted Location Summary Reports FSP can also work on an ad hoc basis. We can supply retailer summaries for any individual location that a retailer may consider entry into and wishes to understand deeper. These are a perfect support tool for internal store approval processes. It is typically 4 pages of key points, KPIs and information that can help support any internal decisions.

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October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Qualitative Research, Concept & Brand Testing Mini Depth interviews and focus groups can help a brand to understand more clearly individual aspects to their business, including customer perception, new store concepts and product launches. FSP believes that the provision of intimate local knowledge coupled with qualitative research to understand the positioning of your brand will best equip your company to succeed in this market.

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October 23, 2015

FSP RETAIL BUSINESS CONSULTANTS


Simon Rosenberg Senior Consultant

FSP RETAIL BUSINESS CONSULTANTS

T +44(0)1949 474740 M +44(0)7495 638285 F +44(0)1494 474262

19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE

simon@fspretail.com

T +44(0)1494 474740 F +44(0)1494 474262 fspretail@fspretail.com www.fspretail.com www.snap-shop.co.uk


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