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