Retail Consultancy | FSP | Research Services

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

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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