FSP - Services
FSP RETAIL BUSINESS CONSULTANTS
FSP Job Description
TO CREATE AND HELP IMPLEMENT RIGOROUSLY RESEARCHED STRATEGIES THAT WILL INCREASE THE VALUE OF CLIENT RETAIL ASSETS
FSP RETAIL BUSINESS CONSULTANTS
Client Benefits Optimise sales and rent by: Identifying and exploiting market opportunities Growing tenant sales Analysing retailer sustainability Strengthening retail/F&B/leisure mix Retail insight across all project and implementation areas Standardised approach Informed by wide range of benchmarked data Operational across shopping centres, retail parks, outlet and leisure schemes, high street units Applicable across Europe and UK
FSP RETAIL BUSINESS CONSULTANTS
FSP Clients Leading institutions, developers, property companies and retailers including:
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FSP RETAIL BUSINESS CONSULTANTS
FSP Services
PRE-ACQUISITION & DUE DILIGENCE MARKET INTELLIGENCE STRATEGY
IMPACT STUDIES LEASING SUPPORT
OTHER SERVICES FSP RETAIL BUSINESS CONSULTANTS
Maximising Research Where to spend money most effectively
Informs overall strategy
Asset Management
Marketing
Merchandise categories most likely to succeed
Trading Gap Analysis
Property Management
Identifies underperforming retailers
Leasing Presents size of opportunity to prospective tenant Source: FSP
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FSP RETAIL BUSINESS CONSULTANTS
Pre Acquisition
7
Report
Overview
Benefits
Price
Town Profile
Identifies size and characteristics of catchment. Benchmark against comparable towns
Low cost overview of location
£800
Catchment & Demographic Overview
Catchment map & penetration Resident & Shopper numbers and profile Detailed Resident demographic characteristics including ACORN SWOT Analysis of centre
Base data for asset assessment including consultant visit
£5,950
Detailed opportunity research
As above plus: Trading Gap analysis Retailer Sustainability analysis Overview of current & proposed competition Suggested Tenant Mix strategy
Strong foundation for defining future strategy and leasing. Retailer performance data can inform leasing, potential for rental uplift and rent event strategy
£11,950
FSP RETAIL BUSINESS CONSULTANTS
Retailer Sustainability FSP uses a bespoke methodology to determine the sustainability of each retailer within a centre in terms of both corporate and individual unit risk.
Refers to the level of risk associated with the business overall
Vulnerable
Very Worrying
Lush Muse
Build A Bear Workshop Starbucks
Two Seasons Bijou Brigitte
6%
3%
Ann Summers
The Fragrance Shop
Zara
Linens Direct
Jones Bootmaker
Clintons
F.Hinds
H&M
Head Above Water Claire's
Cargo
Blue Inc.
YO! Sushi
Zizzi 8% Games Workshop Waterstones Healthy
Thriving
Subway
Bhs HMV 5%
Unit Risk This refers to the health of a particular retail unit.
Viable
Gap
Corporate Risk
Corporate Risk
Unit Risk
Clarks
Nando's
Office
Apricot
Herbert Brown 6%
Charles Fish
L'Occitane
Thorntons
River Island
New Look
Beaverbrooks
17%
Mothercare Pandora
House of Fraser
19%
15% M&S
Ernest Jones
Holland & Barrett Monsoon
Next
Superdry
Cineworld
H. Samuel
Boots
21%
Source: FSP
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FSP RETAIL BUSINESS CONSULTANTS
Retailer Sustainability - Centre Plan An example of a sustainable rent plan is shown, classified by unit risk – Vulnerable, Viable or Thriving.
Source: FSP/GOAD
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FSP RETAIL BUSINESS CONSULTANTS
Leasing Support FSP’s Leasing Support Service: Provides an independent view of the market opportunity Provides a more professional approach to the occupier Improves the effectiveness of leasing (saves wasted time and effort and gets results) Recommended by leading retail agents (e.g. JLL, Cushman & Wakefield, DTZ, CBRE) Identifies and focuses upon key location strengths for the specific occupier Extends the range of relevant information passed to the occupier Communicates the realistic opportunity in a manner the occupier can understand Outputs Include; Generic Summary Documents & Presentations Occupier Specific (Bespoke) Summary Documents & Presentations Occupier Sales and Rent Estimates Profit & Loss Accounts
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FSP RETAIL BUSINESS CONSULTANTS
Output Examples
FSP RETAIL BUSINESS CONSULTANTS
Trading Gap By ACORN Group – Market Share Gap 6 Primary
Secondary
Tertiary
Market Share Gap (£m)
5 4 3 2 1 -
Source: FSP/CACI
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FSP RETAIL BUSINESS CONSULTANTS
Under-Performing Zones
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FSP RETAIL BUSINESS CONSULTANTS
Absent Retailers - General The recruitment of a selection of the below absent retailers would assist in improving Carlisle’s retail mix and achieve a higher market share. Clothing & Footwear
Personal
Leisure
F&B
American Apparel ARK Bravissimo Coast* Duffer Menswear Dune* East* French Connection* Gap Gerry Weber
Lipsy Oasis* Office Pavers* Phase Eight* Primark*
Bags ETC. Beaverbrooks* Crabtree & Evelyn* L'Occitane Savers*
Build-a-Bear Workshop* Entertainer, The* Evans Cycles Paperchase* Scribbler
Ask Italian* Bella Italia Burger King* Cafe Rouge* Carluccio's* Druckers Vienna Patisserie*
Schuh Select Shuropody* Superdry*
Household
Food
Cargo* Castle Galleries Clas Ohlson
JoJoMaman Bebe
USC
Fired Earth*
Booths Supermarkets Co-operative Food* Hotel Chocolat* Mr Simms Olde Sweet Shoppe
EAT Giraffe Handmade Burger Company Harry Ramsden's*
Jones Bootmaker*
Wallis*
Laura Ashley* Robert Dyas*
Jimmy's World Grill & Bar Krispy Kreme La Tasca Pret a Manger* West Cornwall Pasty* Zizzi*
Source: FSP 14
FSP RETAIL BUSINESS CONSULTANTS
Sample P&L Summary Table 2: P&L Analysis for Jones, Unit 6, Sample Centre Year 1 Gross Space ft2 Selling Space ft2 Productivity £ft2
Year 2
1861 1117 535
Year 3
1861 1117 567
Commentary
1861 1117 584
Assumes 6% increase Year2, 3% Year 3
£
%
£
%
£
597595 497996 258958
100.0 52.0
633451 527876 274495
100.0 52.0
652454 543712 282730
Rent Rates Service Charge Heating/Lighting Insurance and repairs
59760 32292 7500 4965 4063
12.0 6.5 1.5 1.0 0.8
63345 32776 7613 5041 4124
12.0 6.2 1.4 1.0 0.8
65245 33268 7727 5118 4187
12.0 6.1 1.4 0.9 0.8
Employment Promotion Administration Depreciation
79128 3165 2638 25529
15.9 0.6 0.5 5.1
80333 3213 2678 25529
15.2 0.6 0.5 4.8
81557 3262 2719 25529
15.0 Employment cost includes NI, pension, benefits, recruitment and training 0.5 0.5 4.7 7 year average life of shopfittings
Total Branch Costs
219039
44.0
224652
42.6
228611
Branch Contribution HO Cost
39919 26376
8.0 5.0
49843 26778
9.4 5.0
54119 27186
Profit Contribution
13543
2.7
23065
4.4
26933
Gross Sales Net Sales Gross Profit
%
100.0 Assumes VAT at 20% 52.0 Estimated Gross margin
Occupancy
F&F Cost - 50% Average stock Trading Assets ROTA
89350 74699 164049
89350 79181 168531 8
89350 81557 170907 14
Actual rent Estimate Estimate Estimate Estimate
41.9 10.0 Gross Profit less total branch costs 5.0 Branch contribution to Head Office costs 5.0 Branch profit contribution after Head Office costs F&F costs @ £140ft2 selling plus £30 ft2 non-selling Assumes stock turn is 3.2 times per annum F&F plus average stock 16 Profit contribution as percentage of Trading Assets - FSP model 25% FSP RETAIL BUSINESS CONSULTANTS
FSP Retailer Database
FSP RETAIL BUSINESS CONSULTANTS
Testimonials “Manchester City Council have worked with FSP over the last year to understand the City Centre's shopper audience, who they are where they come from, how the profile evolves throughout the year and how we can attract more shoppers to Manchester. The depth of understanding that FSP have provided in terms of Manchester's catchment has helped inform our marketing, regeneration and growth strategies for the City Centre. Their consultative approach really got to the heart of the issues involved in a complex area and helped to facilitate partnership working across different Council departments and external stakeholders. I look forward to continue our working relationship with them in the future” Peter Richards, Insight & Planning Manager- Manchester City Council
“FSP is a long standing consultancy partner to L&G, providing clear, concise, insightful research to our Asset teams. Their work helps us understand the interaction of our shoppers and retailers to ensure the optimum investment performance of our assets” Bill Hughes, Managing Director - Legal & General Property
“FSP's clear advice on market strategy has had a direct impact on our approach” Mark Gregory, Managing Director - Clas Ohlson UK
“FSP has made an effective and valuable contribution to the development of the business and will continue to help us to deliver the full potential of Princes Mall.” Andrew Glasgow, Director – Premier Property Group
“We have worked with FSP over a number of years and naturally get their analysis and opinion before making major retail property investment decisions” Bill Benjamin, Managing Director - AREA Properties Partners (UK) Ltd
“I am very pleased to have given the approval to the research as this really does appear to me to be money well spent” Robert Wood, Fund Manager, Continental European Real Estate 17
FSP RETAIL BUSINESS CONSULTANTS
FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE T +44(0)1494 474740 F +44(0)1494 474262 fspretail@fspretail.com www.fspretail.com www.snap-shop.co.uk