A1 - Land Securities

THE RETAIL MAGAZINE FROM LAND SECURITIES | SUMMER 2009

THE RIGHT LEVEL OF SUPPORT Learning from the great service charge debate Better by design Cardiff’s new image Change for the better

Contents

Alma Media International Rayner’s Court, 737 Garratt Lane London SW17 0PD T +44 (0)20 8944 1155 / www.almamedia.co.uk Editor Dominic Bliss Publisher Tony Richardson / tony@almamedia.co.uk Design Deep / www.deep.co.uk Images Land Securities, Monsoon, Waitrose, Dorothy Perkins, Marks and Spencer, H&M, Apple, Jamie’s Italian, Ocean Outdoor, iStock Images, Everyman Media Group, Starbucks, Vogue, Aldi, Wally’s Delicatessen, High Road Brasserie, Prada, John Lewis, Store 21, St David’s Hotel, Burton, BBC, Edmonton Hall, Ski Dubai, Johnson Banks.

For Land Securities Tom Foulkes Tom.Foulkes@landsecurities.com T +44 (0)20 7024 5089 Claire Reynolds Claire.Reynolds@landsecurities.com T +44 (0)20 7747 2390 © Alma Media International Ltd 2009 All material is strictly copyright and all rights are reserved. Reproduction in whole or in part without the written permission of Alma Media International is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at the time of going to press, but we accept no responsibility for omissions or errors. The views expressed in this magazine are not necessarily those of Alma Media International or Land Securities.

Everyone is tightening their belts at the moment. But in the retail sector we seem to be pulling them in one notch tighter than everyone else. That’s why we’re trying to give our tenants as many financial breaks as we possibly can. The main area in which we have reduced costs for retailers is service charges – this year we believe we can reduce them by between eight and 15 per cent. On page 16 I explain our strategy for this in detail.

The other good news is at Cardiff’s new shopping area, St David’s, due to open in the autumn. Lettings take-up is already very healthy, and there’s no doubt that Wales’s biggest ever retail project will help rejuvenate the city centre and provide hundreds of new jobs.

The City of London is soon to have a stunning new shopping destination, too. One New Change, on Cheapside, right next to St Paul’s Cathedral, will feature 70 retail units across 20,000 metres of floor space, and is due to open in 2010. Find out more on page 18.

04

News Recent news, key openings, events and awards.

06

Bites News and snippets from the world of retail.

08

Latest lettings The very latest retailers signed up to Land Securities developments.

10

Hot Shop: Pasta for the people A behind-the-scenes look at the roll-out and future plans for Jamie Oliver’s chain of Italian restaurants.

12

15 RICHARD AKERS, MANAGING DIRECTOR, RETAIL

16

The 10-point plan Retail MD, Richard Akers on the new consensus between landlord and tenant that is helping the retail industry survive the downturn.

18

Change for the better A new retail destination is being developed in the City of London.

22

The big screen Trinity Leeds will be the home of the first Everyman ‘boutique’ cinema in the North.

24

At your service Service charges can be a major financial headache for retailers, yet Land Securities has managed to keep them low across the board.

Write to reply Top property executives from leading retailers give their views on the service charge issue.

27

Cardiff’s new image One of the UK’s most celebrated graphic designers, Michael Johnson, explains the new branding he has created for our St David’s centre in Cardiff.

The work-shop balance Judith Kelly, Retail Delivery Manager for St David’s Cardiff, reveals how her daily working and shopping routines intermingle.

28

Better by design The credit crunch may be a constraint on investment in new stores but some retailers are finding ways to keep their offer (and image) fresh without breaking the bank.

30

Detail: Liverpool’s media wall What shall we hang on this empty wall then?

How about a 60m long state-of-the-art television?

32

Climate control City development One New Change has the most advanced and amazing way to keep its occupants cool (and warm) without wasting any energy.

33

Competition Win a luxury spa weekend.

34

Retail portfolio A quick overview of our retail centres and developments.

Instant retail

News

Retailers and retail agents are finding life much easier thanks to a new website launched by Land Securities. www.landsecuritiesretail.com provides key information from all the properties across the company’s entire portfolio: everything from which units are available and who to call with enquiries, to all the latest retail news and industry events.

One very useful feature includes detailed maps of all the shopping centres and retail parks so that agents and prospective retailers can discover the exact layout of the sites they are interested in, and who their neighbours might be. Website-users can also sign up to an e-newsletter.

Cardiff buzz grows

Westminster’s facelift The facelift of Victoria, in London, continues apace thanks to three new Land Securities schemes which have been given the green light.

By far the largest of the three is Victoria Transport Interchange (VTI2), a six-acre sight that will comprise six buildings in all, containing housing, office space, shops, restaurants and a public library.

The masterplanners Kohn Pederson Fox have ensured the most contemporary of architectural styles complements the existing fabric of the area.

“Land Securities has an optimistic vision for Victoria,” said Colette O’Shea, Head of Development

at Land Securities. “We want to give it a new lease of life as a distinct, vibrant destination that will bring this part of the capital the recognition it deserves.”

The other two schemes, though smaller, will also add to the regeneration of this part of central London. Selborne House and Wellington House, both a few hundred yards east of the VTI2 site, will see existing post-war office blocks replaced with housing, offices, restaurants and shops. The former, designed by Pelli Clarke Pelli and Swanke Hayden Connell, will feature over 1,600 sq m

of restaurants and cafes, and 38,000 sq m of office space over 12 floors. The latter, designed

by John McAslan and partners, has plans for 9,000 sq m of residential accommodation and a 760 sq m retail unit.

“These two schemes form the next exciting chapter of the improvement process along Victoria Street,” said O’Shea. “We will continue the regeneration ripple effect, attracting new residents, businesses and visitors. You can start to see the potential of the area, finally realising the Victorians’ vision for a spectacular Victoria.”

Three major retail brands have signed up for space at St David’s, the regenerated shopping centre in Cardiff. Disney, H&M and Crew will each take units within the 130,000 sq m centre due to open this autumn.

They join the likes of Hugo Boss, Kurt Geiger, Reiss, Crabtree & Evelyn and John Lewis – the latter with its first store in Wales and largest outside of London. Ollie & Nic, the handbag, jewellery and accessories retailer, which “is a little different to the norm” will open its fifth UK store at St David’s.

“St David’s is unique throughout Europe. No other major city centre development is opening this year,” says Joanne Skilton of developer St David’s Partnership (a joint venture between Land Securities and Capital Shopping Centres). “The A-list brands that have been attracted have signed up knowing that this represents their only opportunity to get contemporary space in the centre of a capital city, and in Europe’s most talked about retail scheme of 2009.”

News 05

s e t i B

WHERE I BUY MY ESSENTIALS

RETAIL POWER

Hairdressing and wine are two of life’s finer pleasures.

We ask three Land Securities employees where they go for theirs.

Something for the weekend, Sir?

Never underestimate the importance of windowdressing and shop design.

British-born Simon Doonan is probably the most famous – and influential – windowdresser in the world.

THE DESTINATION FACTOR

Are we entering a new era in destination shopping centres where you’re as likely to ride a roller-coaster as you are to buy a handbag?

Here, in all their glory, are some of the world’s greatest mega-malls.

ASHLEY BLAKE Retail Portfolio Director Although Majestic is a national chain, the staff at my local outlet in Berkhamsted, in Hertfordshire, really know their wines. They stock good Spanish wines which pleases my wife who originally comes from the Rioja region. Majestic have reds from Labastida – the area where she used to holiday. Some of them are quite rare and haven’t yet been discovered, even by the locals.

Scissors is an independent hairdressers in Berkhamsted that had to relocate when a development demolished their former premises. They kept their clients and have expanded to doing gentlemen’s, ladies’ and children’s hair. Even with the recession on, hair keeps on growing.

SHOP AND SKI The Mall of the Emirates, in Dubai, features an indoor five-run ski slope (one of them black) alongside the 223,000 sq m of shops.

SHOP AND SUNBATHE The Beijing Mall, on the outskirts of the Chinese capital, features a man-made beach as well as 320,000 sq m of leasable space.

SHOP AND SCREAM Berjaya Times Square in the Malaysia capital Kuala Lumpur has a full-on theme park within it, the highlight of which is the Supersonic Odyssey roller coaster.

SHOP AND SWIM At 3.5million sq m, West Edmonton Mall, in the Canadian state of Alberta, is the biggest in the entire western hemisphere. Water park, amusement park, sea lion lake, NHL ice rink, cinemas, petting zoo, chapel – it’s like a mini-city.

SHOP AND SHARK The key feature of the Dubai Mall, in the UAE, is its aquarium with over 33,000 marine animals. There’s an ice rink, too.

SHOP AND TRAVEL The world’s largest shopping centre, South China Mall, in Dongguan, has over 600,000 sq m of leasable space and districts themed on Venice, Amsterdam, Paris, Rome, Egypt, the Caribbean and California. Theme park to open soon.

JENNY MOURANT Customer Relationship Coordinator In the South Woodford branch of Waitrose, in London, they have a great range of wine. There is always a wine of the week that you can taste before you buy, and a dedicated member of staff to recommend the wine that goes best with the food you are eating.

Even though I no longer live in Epping, I still use CML Hairstudio as they know what cut I like and what my colours are. There is only one stylist so I know I’ll have her full attention. She doesn’t try to sell me expensive products like so many others do.

ANDREW DUDLEY Director of Project Management for Committed Projects For my wine I use the Vineyard in Dorking, which is close to home.

It’s an independent wine merchant owned by a chap called John Hodges, and run by him and a few fellow wine enthusiasts. They claim to stock over a 1,000 lines and determinedly do not compete with the supermarkets or chains. Saturday mornings will often see popular but informal wine tastings.

I’ve been going to Peter’s in Covent Garden for my haircuts since I started working in London 20-odd years ago. At the top of Bedfordbury, it’s a small, family-run barber shop complete with a red and white pole outside. Aside from the fact that all the barbers are enthusiastic Arsenal supporters, they are close to the office, they keep long hours and the banter is always friendly.

DECISIONS DECISIONS Jeremy Collins is Head of Retail Development at John Lewis and President of the British Council of Shopping Centres. Here he explains the best and worst decisions of his career.

MY BEST DECISION Making my move from working for a local authority in the Wirral in the early 1980s. Derek Hatton [of Militant Labour] was running around up there and the southern private firms weren’t too keen on seeing someone from that area at the time. I sent letters to Alan Chisholm at Bredero Properties, asking for a job, but received no response. So I went down to see him, which must have worked because I got the job. It was a good lesson in how to take the bull by the horns, and proof that it is worth taking a chance on people sometimes.

SIMON DOONAN – WINDOW-DRESSER For Simon Doonan it all started with a stuffed rat and some tuxedoes. The world’s most famous window dresser (he’s a mannequin’s head and shoulders above any of his rivals) first achieved notoriety after creating a punk-styled window display for a Savile Row shop in London in the late 1970s, the focal point of which featured several taxidermal rodents.

Since then Berkshire-born Doonan has revolutionised the world of window-dressing. As creative director of New York clothing store Barneys, he has worked on some of the most eye-catching, jaw-dropping displays you’ll ever see: cigarette ends, household rubbish, savage dingoes, ventriloquists’ dummies and grotesque celebrity caricatures… they’ve all appeared in Doonan’s windows at one time or another. People come specially to Manhattan’s Madison Avenue just to see the 57-year-old’s work (which he describes as “street theatre”).

But it’s probably thanks to his writing that Doonan has been so influential internationally in the world of retail. As well as a weekly column in the New York Observer he has written four books, one of which (a memoir) was made into the BBC series Beautiful People.

Doonan lives in New York City with his husband Jonathan Adler and their pet terrier Liberace.

MY WORST DECISION I always feel that the worst decisions are those ideas that are never acted upon and simply drift away.

I once ignored a tip to buy Next shares during the last recession, and that’s something that lives long with me.

They were around 10p at the time. I simply forgot to buy them. When I finally remembered, it I was too late as they were already in the ascendancy. That was certainly the one that got away, but it taught me an interesting lesson in acting on things when they present themselves.

This is something I have employed in business ever since.

SHOPULAR CULTURE Are you being served? You certainly are if you remember these famous sitcoms, all of which are set in some of Britain’s most quirky retail establishments.

1 OPEN ALL HOURS Ronnie Barker starred as the tightfisted, stammering grocer whose only interest other than his profit margins was a local nurse called Gladys.

2 ARE YOU BEING SERVED High camp and gaudy 1970s costumes supplied the laughs in this department store where the English class system had never been more apparent.

3 BLACK BOOKS Foul-mouthed, lazy, cynical and alcoholic… Bernard Black is perhaps not the best person to run a London bookshop. Besides which he detests all his customers.

4 THE MIGHTY BOOSH Surreal comedy whose latest series is set in Shoreditch shop the Nabootique which sells “jazz pencil cases, elbow patches, stationery and other essential items”. You get the idea.

5 HARDWARE Starring Martin Freeman (the miserable one in The Office), this centres around Hamway’s Hardware Store in London.

Like Fawlty Towers, only 12 episodes were ever made. Unlike Fawlty Towers, it’s no classic.

6 FAGS, MAGS AND BAGS BBC Radio 4 sitcom in which Ramesh Mahju believes his humble corner shop is actually an important cornerstone of British culture. All set in the glamorous surroundings of East Dunbartonshire.

Bite Size 07

The latest lettings for Land Securities retail developments Cabot Circus Bristol The North Face Gant Joules Bella Italia Hey Potato

Trinity Leeds Leeds H&M Bhs Topshop / Topman Marks & Spencer Everyman Cinema Willow Place Corby Vodafone Mothercare / ELC

Good news as big-name retailers and restaurateurs sign up at new Land Securities shopping centres.

Elements Square Livingston Topshop / Topman Dorothy Perkins Burton Envy Peckham’s ASK Chiquito Nando’s Wagamama

Bon Accord Aberdeen River Island Topshop / Topman Karen Millen Warehouse Coast Oasis St David’s Cardiff H&M The Disney Store

Cabot Circus, Bristol The award winning development in Bristol opened in September with over 90 per cent of units let and has continued to progress well despite market pressures. “Since opening last September we have signed The North Face, Gant and Joules, all three of whom are opening in the Quakers Friars area of Cabot Circus,” says Keith Stone, the Bristol Alliance Leasing Director.

“These retailers will make a significant contribution in extending and developing the tenant mix in Bristol’s city centre.”

Both Bella Italia and Hey Potatoes will open near to the Showcase Cinema site. Two other large units are currently with the solicitors and will be signed shortly. This will take the occupancy to a healthy 94 per cent.

Trinity Leeds Considerable letting progress includes confirmation that H&M, Bhs, Topshop / Topman and Marks & Spencer have all now signed Agreements for Lease.

According to John Grimes, M&S “has shown a commitment to the development and plans to increase the size of its existing Briggate store that will connect to Trinity Leeds, providing a fantastic 155,000 sq ft anchor for the development”.

On the leisure side, Everyman Cinema will be making its Northern debut in Trinity. Housing a luxury fourscreen cinema along with a restaurant and open-air terrace, Everyman signals

08 Lettings Update

John Grimes

Keith Stone

David Smith

Retail Leasing Director

Alliance Leasing Director

Leasing Director

the calibre of leisure and retail operators Trinity is attracting.

Sitting at the heart of the scheme, this fourth anchor will be instrumental in delivering a vibrant new setting for the heart of the UK’s third largest city.

Willow Place, Corby This 380,000 sq ft development in the heart of the East Midlands has recently added Vodafone, Mothercare and Early Learning Centre to its impressive retailer line-up. These will join existing units which include Primark, River Island and TK Maxx.

Excellent road links, generous parking provisions and pedestrian access have all helped Willow Place establish itself as a core retail destination.

Elements Square, Livingston Land Securities’ £130-million extension of the existing Almondvale shopping centre, now collectively known as The Centre, has been busy with new lettings. Arcadia Group has two double-store units that have opened, featuring Topshop, Topman, Dorothy Perkins and Burton. Highstreet fashion has also arrived in the form of Envy, a young retailer that now has over 50 outlets around the UK and stocks fashionable brands such as Firetrap and Bench.

St David’s, Cardiff “The scale and significance of the St David’s development can now

be fully appreciated on site,” explains Keith Stone. “Currently well over 50% of the development is committed and John Lewis is progressing well with their fit-out. With its 3000 space car park and close proximity to the bus and railway stations, we expect the retail centre of gravity to shift in the city centre.” The Hayes and Eastside restaurant and café areas are both expected to open fully let whilst recent announcements for the Grand Arcade include both H&M and The Disney Store. “We also have a significant number of additional retailers being confirmed at the moment which will add well-known UK and international retailers to the tenant mix. Retailers already signed up at Cardiff include Reiss, Crew, Fraser Hart, Radley and Hugo Boss amongst others.

Bon Accord, Aberdeen In January this year, River Island followed recent commitments from both Arcadia and Mosaic Group to open a new flagship store at Bon Accord and St Nicholas in Aberdeen.

The retailer has signed a 15-year lease for a new 11,180 sq ft store in Bon Accord’s central atrium and is due to begin trading this summer.

New stores for Topshop / Topman, Karen Millen, Warehouse, Oasis and Coast are all opening their doors for the first time, as well as a newly constructed 54,000 sq ft Next store that opens soon.

Latest lettings

Hot Shop, A1’s regular feature, profiles exciting international retail brands opening in the UK now.

TV chef Jamie Oliver’s latest venture is a chain of no-nonsense Italian restaurants, one of which is due to open at St David’s shopping centre in Cardiff. Rob Richardson discovers the philosophy behind the chain.

The best ingredients we could find both locally and in Italy. And seasonal, too. Made with care but delivered without lots of fuss.

“Since I was a teenager I’ve been totally besotted by the love, passion and verve for food, family and life itself that just about all Italian people have.”

In his 2005 book Jamie’s Italy, TV chef Jamie Oliver first revealed his obsession with all things Italian. The accompanying TV series, Jamie’s Great Escape, even had the cheeky Essex boy travelling and cooking his way round Italy in a camper van.

Now he’s taken his Italophilia one step further by launching a chain of restaurants under the banner Jamie’s Italian.

The latest restaurant in the chain will be at St David’s shopping centre in Cardiff. Designed to be “affordable and accessible”, it will be the sixth venue to open – four already exist in Oxford, Bath, Kingston and Brighton, while London’s Canary Wharf and Guildford will be added later this year.

Simon Blagden is Managing Director of the chain.

“Cardiff was certainly on our A list for where we wanted to be,” he says. “It’s a great site that we have within St David’s – away from the main restaurant area which is perfect for us.”

Blagden says the company made a conscious decision to launch restaurants in provincial cities before eventually tackling the London market.

It’s all part of their aim to “create a neighbourhood venue, inspired by the ‘Italian table’ where people relax, share and enjoy each other’s company”. For this reason, they want to encourage walk-in diners: table bookings will be available only to parties of more than eight people.

Restaurant reviewers have been showering praise on Jamie’s Italian ever since the first venues opened last autumn. In The Times, Giles Coren made particular reference to the way “clever design mixes modern mega-dining room with rustic Italian

folksiness”. He said it was “streets ahead of any Italian chain I can think of anywhere in the world”.

The chain also won the ‘Emerging Concept’ award at the 2009 Retailers’ Retailer of the Year awards; and Blagden himself picked up the ‘Rising Star’ award.

“We have a formula that works in terms of layout and design,” Blagden adds. “But each restaurant is designed differently from the next. What we provide is an affordable, accessible restaurant, where the average spend is £10 a head at lunchtimes, £20 in the evenings. We have top-quality ingredients, well prepared and all with a Jamie twist on them. We focus on pastas, grills and salads, and also strongly on anti-pasti.”

For the ultimate rustic feel, these anti-pasti are brought to the table on planks of wood. All the pasta is made fresh each morning and the meats are sourced from local suppliers and also direct from Italy. Free-range chicken comes from family farms in the West Country, while squid comes in overnight after being landed off the south coast of England. “Rustic, simple dishes,” claims the restaurant’s website. “The best ingredients we could find both locally and in Italy. And seasonal, too.

Made with care but delivered without lots of fuss.”

It’s all part of Oliver’s grand scheme to get British people enjoying wholesome, local ingredients and eating organically whenever possible. But, in the end, Jamie’s Italian is proof of just what a close affinity he has to the Mediterranean nation.

“I should have been Italian,” he says on the website. “The truth is, when I’m in Italy I feel Italian.

There is such diversity in lifestyles, cooking, traditions and dialects. This is why as a chef I find this country so exciting and what inspired me to create Jamie’s Italian.”

Hot Shop 11

At your service Service charges can be a major financial headache for retailers, yet Land Securities has managed to keep them low across the board. Alison Clements discovers how.

Service charges are under the microscope right now. The property industry is being urged to operate as efficiently and transparently as it possibly can. Many besieged retailers simply won’t survive the recession without the support of their property partners, and with big-hitters such as Phil Wrigley of New Look and Philip Green of Arcadia working with landlords for flexibility on rent payment schedules, leasing agreements and service charges, the landscape is, of necessity, evolving.

Fortunately Land Securities is ahead of the game.

When it comes to service charges in particular, the hard work to hone down costs and pass on the benefits to retailers is well underway. “There’s no need for a knee-jerk reaction from us,” says Nick Peel, Head of Retail Property Management at Land Securities. “We’ve been looking at economies of scale for the last two and a half years, and have always sought ways to manage our centres as costeffectively as possible.”

Peel is particularly proud that Land Securities can announce a reduction in the service charge budget for 2009/2010, averaging 4.5% for shopping centres and 6.4% for retail parks. For 2008/2009 there was no increase, despite the higher prices hampering the wider economy. Land Securities tenants have benefited from cost savings for some

time now. Peel says that elsewhere in the market, some landlords are typically raising service charges in line with inflation.

So how has Land Securities managed to keep costs down? Firstly by consolidating purchasing power, says Peel. Procurement of gas and electricity, for example, is done for the whole estate of shopping centres, retail parks and the London office portfolio combined, giving Land Securities greater economies of scale. “We buy the majority of our electricity through a flexible purchasing contract allowing us to buy two or three years ahead, but also giving us the ability to trade and benefit from wholesale price movements,” Peel explains.

Economies of scale can be increased further if landlords team up with shopping centre tenants, and this is an area that Land Securities is looking into.

New procurement software that simplifies the tendering processes has allowed the company to make great savings on engineering and building fabric maintenance. “From eight individual supply firms that participated in the tendering process recently, we have achieved savings in excess of 15 per cent on one of the tenders,” Peel reveals.

He is confident that ongoing negotiation can deliver similar savings in areas like security and cleaning contracts, all of which will benefit the retailer.

“Of course in areas such as marketing and PR, shopping centres do need a degree of investment because we can’t lose sight of the need to increase footfall and dwell time,” Peel adds. “Consumer marketing budgets have been cut in the last two years, but we will monitor changes in footfall and re-appraise marketing investment if that’s thought to be necessary. By tightly managing such issues on a site-by-site basis we should get the balance right.”

A core value at Land Securities is sustainability, and Peel has many examples of green initiatives that cut down on financial as well as environmental costs. A new cleaning system has been introduced across Land Securities centres, saving 20 per cent on traditional cleaning consumables.

“Rainwater harvesting projects in centres such as The Centre in Livingston, Cabot Circus in Bristol and White Rose in Leeds will be successful, too,” Peel says. “It provides almost cost-free water for our toilets and cuts down the associated bills.”

Large investments in waste recycling has meant that Land Securities is fulfilling its corporate social responsibilities as well as saving money. Heating has been turned down in shopping centres. Across the board, low energy lighting, metering, and a ‘switch-off’ mindset engendered in centre staff is paying off. “We may be facing challenging times,

Service Charges 13

but as a company Land Securities has no intention of ceasing to being innovative and creative about how we run our centres,” says Peel.

Land Securities wants its successes to be passed on more widely across its own estate and beyond, for the good of the entire industry. A landlords’ and retailers’ working group was set up at the end of last year, specifically to help both parties cope with the economic downturn. Together Land Securities, other major landlords and major retailers including Next and Arcadia Group have reduced costs in pilot centres.

The White Rose shopping centre in Leeds, for example, delivered a 13 per cent reduction in its annual service charge within a three-month timeframe, reducing the budget to just £7.25 per sq ft.

Peel says the working group developed a 10-point plan (see page 16) to reduce service charges which it is making available to the industry.

“These recommended measures could help the whole retail sector if they’re widely adopted.

It’s an opportunity for property owners to work in partnership with retailers, and we feel it will help all parties ride out this storm.”

The range of measures recommended include more efficient delivery of security, cleaning and customer services, re-tendering of key supply services, and focusing on only the most effective media advertising and marketing.

Nick Peel Head of Retail Property Management

Historically there’s been uncertainty about whether service charge items are legitimately recoverable and Land Securities believes this needs to be overcome before collaborative work can deliver results.

“Some property groups are accused of carrying out building and repair work which retailers shouldn’t have to pay for, yet service charge funds pay for it,” says Peel. “We’ve worked very hard to reassure tenants that we’re fair and open regarding service charges.”

Indeed, Land Securities’ service charge booklet, which clearly sets out individual centre costs, has attracted industry recognition for its outstanding levels of transparency. Land Securities won the Landlord of the Year 2008 Award at the Property Management Association annual lunch last year, praised for its “approachability, willingness to listen to tenant needs and overall efforts to collaborate in current difficult trading conditions.”

“Our commitment in this area is underlined by the fact that we have a two pronged attack on service charge transparency underway for 2009/10.

First, an external roadshow, where we are taking specific service charge detail to our leading retailers and engaging them in the process, rather than wait for them to contact us! And second, we have replicated our White Rose project with an internal

service charge Taskforce, that is ‘kicking the tyres’ of every shopping centre forecast and making stringent efforts to reduce costs even further.

“At Land Securities we understand that retailers quite rightly want to get value for money for their service charges,” says Peel. “We’re in this business for the long term, so it’s incumbent on us to help our retailers survive and prosper, even more so in challenging times. This isn’t something that’s descended on us suddenly because of the economic climate. We have been proactive on it for years now, and will continue to be so.”

Tightening Belts White Rose shopping centre in Leeds is a shining example of how service charges can be kept to a minimum. By cutting costs they have managed to reduce their annual service charge by 13 per cent to just £7.25 per sq ft.

The result of three months’ collaboration between Land Securities, centre managers, managing agents and retailers, these savings have been made in the following areas: • • • • • •

Security Cleaning Customer services Energy Maintenance Centre management

Write to reply With the continued cooperation that has risen from the 10-point plan much progress has been made on the issues facing the retail industry. Here A1 has gathered comments from two of the key parties.

John Gray

Jonathan Spaven

Chair – PMA Shopping &

Property Director

Service Charge sub commitee

Matalan

The effect of costs on profit margins should always be appreciated, but in times of tighter sales and tougher economy they rightly come under even greater scrutiny.

Service charges are a massive overhead against the performance of any unit within a shopping centre or retail park, and as such need to be understood and appreciated correctly to enable a balanced view to be taken as to their validity.

It is therefore vitally important that retailers have detailed liaison with their landlords, at all levels from centre management upwards, so that each party can build an understanding of the needs and requirements of the other. In this way the service charge expenses that are legally recoverable may be massaged out of the picture, or reduced, against mutual agreement. They are ‘nice to haves’ and ought to be removed during difficult times and this approach has worked successfully at White Rose, Leeds and others recently.

The Shopping Centre sub-committee of the PMA, chaired by myself, and the Out of Town sub-committee chaired by Shani Viner of DSGi plc, have long lobbied landlords, their agents and scheme management to increase the amount of clear communication with respect to the service charges levied. We have, and hope to continue, spread best practice to improve performance and reduce costs across the industry, benefiting all parties. The continued development of the RICS Code of Practice is in the forefront of that process.

The result of all this would be reduced tension and improved trust between landlords and occupiers generally – and hopefully greater efficiency within service charges.

Land Securities have been prepared, over the years, to engage with retailers addressing cost queries and re-tendering of services. This approach has seen them regarded as one of the better landlords.

However a recent increase in the costs of managing the services on out of town parks has caused some consternation.

Landlords and managing agents have to understand that the service charge monies effectively belong to the tenants. Most out of town retailers just want to keep it simple clean, well lit car parks with basic landscaping and good signage and, only if necessary, security.

At the end of the day we just want to be left alone to retail.

Stop Press The good news is that as we went to press, our operations team are confident of announcing retrospective cost reductions – delivered through the issuing of credit notes on many of our retail parks for fiscal year 2008/09.

On top of this the team are also confident that through active management this downward pressure on occupier costs will continue for 2009/10.

Service Charges 15

The 10-Point Plan 1 2 3 4 5 6

7 8 9 10

Engagement with retailers Hours of operation Cleaning and environment Waste management Security Administration, procurement and purchasing of services Plant and fabric maintenance Utilities and energy management Customer service Marketing

“We can save retailers anywhere between eight and 15 per cent on their service charge costs.”

It’s a bold statement, but Richard Akers, Managing Director of Land Securities Retail, is confident that his tenants will all benefit from the company’s new Richard Akers 10-point plan (see box) Managing Director, Retail on service charges – the result of a working group that he recently chaired with Chris Harris, Head of Property at Arcadia.

“If we can consistently achieve this level of cooperation and partnership, anything could be possible,” he says. “The great thing about our 10-point plan is that not only can it be used this year to make big savings, but in years to come it provides us and our customers with a consistent and agreed framework with which we can scrutinise and review service charges.”

So how did it all come about? What motivated this kind of approach? “It partly came out of the discussions we were having with retailers about monthly rents,” Richard explains. “We were first to market existing leases with a proposition for the change from quarterly to monthly rents, and it was during these discussions that the frustration with service charges came up. We realised that the agenda for most retailers was all about cutting costs.”

Richard found there was a fundamental difference between the way Land Securities (an asset-backed business) looked at costs and cost savings, compared to the way a retailer (an operationally focused business) looked at them. “It was this difference in outlook, this difference in approach, from which the frustration stemmed,” he adds. “The group of landlords and retailers put together by Philip Green set up a sub group to look at service charge and it was at that point that collaboration started to creep in.”

The fruits of this kind of approach – progress through collaboration and consultation – are something that Richard is keen to see elsewhere in the business. “If you look at property, it is inherently inflexible,” he says. “Whereas our customers’ business – the business of retail – is dynamic and fast-moving.

Our role is to use our expertise and experience to arbitrate between these two conflicting dynamics and to inject flexibility into the occupation of buildings. This could be in the area of monthly rents, or initiatives such as the 10-point plan, or more clearly worded short-form leases. We’re reviewing every area of our business through our customers’ eyes.”

Richard believes communication with tenants is crucial for commercial success. “We’re keeping an eye firmly on the future and looking for areas where we can improve, adapt and innovate,” he says. “The key to this is to understand that, ultimately, if we are able to change something for the benefit of our customers, and strengthen their position then, in turn, we strengthen our own position. It’s a real win-win situation.”

What about the economic downturn?

Richard Akers explains how the retail arm of Land Securities is responding to the recession. “The current economic environment is proving incredibly challenging, not only to our retail customers, but to us as well.

We are responding in three ways.”

1 Addressing costs “This includes the service charge work, but also the work we are leading with our key trade bodies such as the BCSC and the BPF, lobbying government around the issue of increases in business and empty rates.”

2 Being as flexible as possible “We were the first property company to positively engage on the issue of monthly rents. In response to requests from our customers we’ve spent a great deal of time on plain English, short-form and turnoverlinked leases; and we’ve been extremely responsive and proactive in the reconfiguration of store portfolios.”

3 Being sympathetic to administrations and store closures “This is a particularly sensitive subject at the moment. Our priority is with the customers who have continued to trade and pay rent so we are not keen on renegotiating terms with retailers coming out of administration. However, we also must maintain the vibrancy of locations and where there is a viable longterm retail business, we have assisted with short term agreements or concessions. We are fully aware of the responsibility we have and the priorities we are juggling, but some of them are very new to us and it’s taking a lot of work to get the balance right for everyone.”

THE IO POINT PLAN Service charges for retailers don’t need to be expensive. Richard Akers, MD of Retail at Land Securities, has come up with a plan to reduce them.

Portfolio 17

Change for the better A brand new shopping destination in the City of London is spearheading a retail revolution in the capital’s financial district. Dominic Bliss visits the site of One New Change.

Weekend and evening shopping in the City of London. It’s a tough idea to sell – both to retailers and shoppers – but with their latest development at One New Change, on London’s Cheapside, Land Securities is determined to change the way people think of retail in the heart of the capital’s financial district.

Due to open in late 2010, One New Change will feature 70 retail units spread out over 20,400 sq m of floor space, along with office space of over 32,500 sq m. Although no retailers have yet been announced, Land Securities says 30 per cent has already been let in areas such as high street fashion, lifestyle brands and restaurants. 40 per cent of the office space has been pre-let to American legal firm K&L Gates.

“In recent times, the City has not been seen as a shopping destination,” says Kathrin Hersel, Land Securities’ Development Manager on the project. “However, historically, Cheapside was the trading heart of the City of London. What One New Change will do is bring critical mass to an area that is in desperate need of a shopping hub.”

Right next to St Paul’s Cathedral, One New Change is both central and within one of the most architecturally rich parts of London. Land Securities is confident their retail tenants will be able to attract office workers, tourists and local residents. In the new offices – on the upper floors of One New Change – there’s a capacity for as many as 3,500 employees, and then within 10 minutes’ walk there are a further 112,000 potential customers working in other office buildings. Tourism will be big business, too, with 5.1 million visitors to the City every year, including 750,000 to St Paul’s Cathedral itself. It’s hoped that Londoners living in the catchment areas of Clerkenwell and Islington to the north, Southwark to the south, and Docklands to the east, will also come and shop.

For the last hundred years or so, London’s retail centres have been gravitating to the west of the City. But planners within the Square Mile are hoping that One New Change – and other retail areas such as 150 Cheapside, 107 Cheapside, Bow Bells House, 1 Old Jewry and Paternoster Square – will help transform the

One New Change 19

We’re seizing this opportunity to return Cheapside to its position as the City’s leading shopping area.

area into a seven-day-a-week destination. Cheapside may yet grow to rival other great shopping areas in the capital such as Oxford Street or King’s Road.

“Cheapside was the City’s principal market place and high street in Saxon times,” said a spokesman from the Cheapside Initiative, the organisation managing a co-ordinated approach to the regeneration of Cheapside. “During the 20th century its position declined as shops were lost to office development. In recent years there has been a revival in the Cheapside area’s status, with a major expansion in the quantity of shopping floor space under construction and proposed.

We’re seizing this opportunity to return Cheapside to its position as the City’s leading shopping area.”

To complement the new shops, pavements will be widened, parking, public transport and pedestrian access improved and public spaces enlarged. Various cultural events and themed markets will attempt to lure in new shoppers.

Thanks to its 70 retail units, the linchpin in this retail initiative will be One New Change. Occupying an entire city block, bordered by New Change, Bread Street, Watling Street and Cheapside, the development is already shaping up to be an

impressive architectural achievement. “A breathtaking monument to modernism,” is how the developers are describing it.

There will be seven and a half floors altogether – retail on lower ground, ground and first; offices on the next four and a half.

The angular, faceted building, designed on a north east/south west axis to promote connection between Bow Bells and St Paul’s has a public roof terrace with stunning views back to St Paul’s Cathedral, and sheared sides to the building which ensure sight lines to Sir Christopher Wren’s Baroque masterpiece are not compromised. Open pedestrian alleyways slice through the retail floors of the development in order to bring in light and fresh air, and to give it the feel of a traditional high street instead of a shopping centre.

Construction company Bovis Lend Lease has already erected the four central cores of the building and built as far as the second floor. With progress right on schedule, Land Securities is confident that tenants will be able to start fitting out their units midway through 2010, opening for business later the same year.

Sir Christopher Wren, who took slightly longer to build St Paul’s Cathedral (30 years longer, in fact), would no doubt be impressed.

One New Change 21

Leeds’ latest release The key leisure attraction at the new Leeds shopping centre, Trinity Leeds, will be a cinema radically different from your normal multiplex. Rob Richardson finds out more.

Scattered popcorn, sticky floors, noisy punters and unenthusiastic staff – the average cinema experience can sometimes be straight out of a cheap horror movie. But one media company – Everyman Cinema – is trying to change all that. “It’s not just about the movie,” they say. “It’s about the experience.”

At Trinity Leeds, Land Securities’ new shopping centre in Leeds, Everyman are to open their latest cinema – a 25,000 sq ft, four-screen complex that will be the main leisure attraction at the development. “This is a real coup for the city,” says John Grimes, Retail Leasing Director on the project.

“Everyman is an innovative, independent cinema operator that creates a personalised viewing experience, combining film, events and live entertainment within its premises. Customers can relax in luxurious surroundings and enjoy a true entertainment experience.”

The Everyman brand is growing fast. Last year Everyman Media Group acquired the Screen chain of cinemas, with its seven sites throughout the Southeast, for around £7 million. Trinity Leeds will be the first venue outside of this area and will lead the company’s expansion nationwide. Fifty venues are planned within the next 10 years.

“The Trinity Leeds site will be a first for Everyman in some ways,” explains the company’s Chief Executive Kath Sloggett. “Especially as this will be our first venue with its own restaurant and will also have an open-air roof terrace.

At Everyman, we like to reflect the communities that we’re nestled in.”

Although the finer details of the Leeds cinema have not yet been finalised, it’s expected to resemble some of their better venues in the south of England. Take Everyman’s flagship branch in Hampstead, in north London, for example, where visitors are greeted with a concierge station, reception lounges and cloakroom facilities. Food and drink, ranging from organic milk chocolate buttons and macadamia nut brownies to Pinot Grigio, Chardonnay and Champagne, can be delivered directly to the cinema seats.

These are no ordinary cinema seats. Oh no, at the Hampstead Everyman you get sofas, double seats with tables and armchairs scattered around the auditorium. Some film reviewers have noted just how easy it is to nod off during the latest American romantic comedy.

Not that rom-coms are the type of fare on offer at Everyman. They prefer critically acclaimed movies, art house, short films and some selected live performances.

Both Trinity Leeds and the city council are happy that Everyman cinemas tend to attract older, more affluent viewers. “This is exactly the type of high-quality operator we want to see in Leeds,” says Leeds City Council Leader Andrew Carter. “Trinity Leeds provides a high-quality mix of shopping, leisure and entertainment facilities that will create jobs and draw people into the city by day and night.”

Everyman is an innovative, independent cinema operator that combines film, events and live entertainment.

New cinema 23

Michael Johnson Creative Director, Johnson Banks

CARDIFF’S new image The Welsh capital’s new shopping area – St David’s – has been totally rebranded in advance of its autumn opening.

Dominic Bliss meets Michael Johnson, the brains behind this rebranding.

At first glance it looks a bit like a swarm of bees.

Hundreds of tiny yellow blobs conglomerate to form the letter ‘D’. (‘D’, as in David; as in St David’s.)

This graphic logo forms the keystone of the rebranding of Cardiff’s new St David’s shopping area. When it opens in autumn this year, this conglomeration of dots will be used in lettering and images to promote the hundreds of shops, cafes, restaurants and apartments that comprise the entire development. The artwork will be used in brochures, on websites, on hoardings, on signs, on store guides – anywhere it can bring St David’s to the attention of potential shoppers.

It’s the brainchild of Michael Johnson, Creative Director at London-based branding company Johnson Banks. “There’s this idea that the whole

of Cardiff, and the whole of Wales – and indeed quite possibly the whole of south-west England – is coming together to visit St David’s,” he explains. “That’s what led us to this idea of the coagulation of people that you see on our artwork. People coming together.” Indeed, the images look very reminiscent of demographic footfall diagrams – something which will be familiar to anyone working in retail.

Johnson and Senior Designer Julia Woollams devised the original swarm of yellow blobs and quickly realised it would work well with other images and symbols. Their branding portfolio includes examples of illustrated shopping bags, coffee cups, flowers, coat hangers, cocktail glasses – all of which will deliver a unified message whether they’re advertising shops,

cafes, bars or restaurants. “It’s a graphic style that can be applied to many other things,” says Johnson who has previously worked on branding for More Than Insurance, Christian Aid, the British Film Institute and Save The Children.

“We’ve become well versed at making our brand designs very flexible,” he adds. “For example, when we worked for Save The Children we knew they might need branding for a government campaign, or for a charity supporter, or for something in a shop, or on TV. There’s a massive range of possible applications. It’s the same with St David’s, so we deliberately tried to see how wide and flexible we could make the branding.”

This makes business sense. Anyone from a signwriter or local newspaper to a hoarding manufacturer or TV station may end up using the St David’s branding. The more flexible it is – without of course diluting the message – the easier it is to manipulate.

Johnson says he was tempted to experiment with branding that was recognisably Welsh.

“There’s this feeling of ‘New Wales’ right now,” he explains. “What with the Millennium Stadium, Charlotte Church, the music scene, and cultural things like that. But we ended up thinking there was a danger of locking the St David’s identity too closely to that, which might be a mistake.”

Johnson and his colleagues had to tread carefully. St David’s retailers will be hoping that customers come not just from South Wales, but from further afield too. And thanks to the draw of the Millennium Stadium, a lot of weekend traffic comes from all over the UK, even mainland Europe.

“Maybe it was better to sidestep all those Wales clichés,” Johnson adds. “We’re trying to make St David’s look international and get across the sense of it being a European hub.”

With over 55 per cent of shops already let, including a Hugo Boss, Jamie’s Italian and Wales’s first John Lewis, plus a phased programme of marketing events planned for the summer onwards, Johnson’s hopes may well be achieved.

There’s this idea that the whole of Cardiff, and the whole of Wales – and indeed quite possibly the whole of south-west England – is coming together to visit St David’s.

Rebranding St David’s 25

A

e f i l e h t day in

ing? and shopp s, rk o w e in comb ecuritie employees Manager at Land S entre. y s u b o d How vid’s c elivery y, Retail D Cardiff’s new St Da ll e K h it d Ju at ypical day spends a t

8.30am

We have a reta iler coming in today, bringing international te an am for a site vi sit and technica I make sure we l meeting. have drawings printed ready to the site and an take round y information they’ll need. As has brought so the retailer me of their team from the Unite our full team, d States, including retail delivery manag design consulta ers Vindico, nt Cord, M&E engineers Fore and project man man Roberts agers from our main contractor Lease are all av Bovis Lend ailable to mak e their visit real ly worthwhile.

Judith Kelly Manager Retail Delivery

8am

As I currently spend a few days a week on site at our St David’s development, I often stay over in Cardiff.

I’m not usually a hotel bre akfast person so I stop in Starbucks for coffee on the way to our office.

St David’s is a fantastic pro ject to be involved with and Cardiff is a very vibrant city to spend time in.

The scheme is a joint venture with Capital Shopping Centres, a mixed-use develo pment of retail, catering, anchor store John Lewis, apa rtments and a new library. It also encompasses a refurbishment of the existing St David’s centre.

Starbucks

9am

We get everyo ne kitted up in protective equi make our way pment and onto the site fo r the tour. Mos three hours is t of the next spent surveyin g the retailer’s a meeting to an unit, chairing swer technical questions and any design quer assisting with ies.

12pm

Our retailer’s te am leaves our offices and the spent answerin next hour is g emails and ch ecking technica our document l drawings on management sy stem to send to retailers.

1pm Keeping up appearances Shop windows and signage must both lure in customers, but also remain in harmony with neighbouring units and the city surroundings. Just how is this tricky balance achieved?

Bright lights, loud music, obtrusive signs, scented products… there are many ways that shop units might upset their neighbours or fail to blend in with the overall architecture of a shopping centre. Which is why at St David’s in Cardiff, as with all their shopping centres, Land Securities ensure the quality of retail design is always very high.

Policing this quality is the job of Retail Delivery Manager Judith Kelly.

Along with a team of retail design consultants, she has devised design guidelines for Cardiff which cover in detail everything from the architecture of shop fronts, floor materials and fire-proofing all the way to lighting, logos, signage and even the Welsh language printed on that signage.

“It’s not that we want to replicate the design from unit to unit,” she explains. “In fact we want to get each shop looking quite individual. But we do ensure each shop works within our design criteria.”

St David’s is divided into several distinct areas, including St David’s Way East, Town Wall South, Town Wall North, Cathedral Walk, The Hayes Arcade, Grand Arcade and Eastside. Each section has a different look and feel; and therefore slightly different design criteria.

“The idea is not to tell people how to sell their products,” Kelly stresses.

“Because retailers know how to do that far better than we’d ever know.

Also, we need to work within the retailer’s own branding guidelines.

Our purpose is to get the very best retail design out of them.”

Kelly only intervenes when the design becomes obtrusive.

A jeweller’s, for example, may use very strong lighting that causes

glare in shop windows opposite.

Or a delicatessen may sell spicy food that upsets neighbouring shops. “It’s sometimes a bit like being a member of the United Nations,” Kelly says. “Ultimately, if it came down to a standoff between retailer and landlord, we’d have to work towards a compromise.”

So does this mean retailers can’t install really radical shop fronts?

“Not at all,” Kelly insists. “Years ago I was working on a Ted Baker shop fit at Bluewater. They had this idea of putting in a drawbridge entrance into the shop. It was a fantastic idea and we gave them as much encouragement as we could. It’s great when a retailer has a radical idea like that.”

Kelly is hoping retailers at Cardiff will surprise her with their design plans. The last thing she wants to see is row upon row of identical shop units. But, so far, not a drawbridge in sight.

The focal point of shopping in Cardiff is the many traditional arcades. It’s this kind of retail experience we’re aiming to reflect in St David’s. As it’s lunchtime I head for Wally’s Delicatessen on Royal Arcade where they have a great fresh deli offer as well as really unusual food products from a wide range of countries.

You can easily window-shop in the Arcades: Melin Tregwynt in Royal Arcade has a beautiful range of Welsh-produced high-quality homewares and clothing. Seren and Rouge in David Morgan Arcade stock some unique designer labels in

Wally’s Delicatessen 5.30pm

clothes and accessories.

I then go to Borders to buy The Old Wives Tale

by Arnold Bennett – it’s the latest book I’m reading with my book group.

2 .pm

design ers and our livery manag de il the ta h re it r ith ou ’s happy w am review w at everyone th re the su t en ha We have a te w ed to ly to see cause we ne ’s great final It r. fa e. so consultant be et pl ed iv it’s com ts we’ve rece ok like when design concep is going to lo re nt ce e th in retail design

3pm

here we or’s office w ain contract m r ou ells of at sh e ng a meeti make to th I head off to ilers need to ta all to re w e of th n s a sectio change discuss any from moving ng hi yt an be can ions. their units. It it configurat me of the un so ng ti uc tr recons

11pm

I’m at Cardiff cent ral station for my train back to London. The lur e of Arnold Bennett gives way to this month’s Vogue from WH Sm ith.

When I get home there’s a parcel waiting from Net-a-porter, one of my favourite websites for shopping.

It’s this season’s must-have sunglasses – the Prada tortoiseshell butterfly.

Net-a-porter.com and matchesfashion. com are great if you like labels but lack the time to go shopping. It’s far too easy to shop but everything’s delivered within a day or two and comes beautifully packaged.

8.30pm

My partner collects me from Paddingto n and we head for the Hi gh Road Brasserie in Ch iswick.

It’s one of our loc al restaurants and lin ke d to both Soho House and Babington Ho use Hotel.

rasserie B d a o R h ig H

The work-shop balance 27

There’s more to retail design than making a space look good. In the battle to keep customers loyal it can be a valuable weapon for retailers. John Ryan reports.

“Raise the drawbridge!” “Batten down the hatches!”

“Repel all boarders!” These, and similar phrases might seem to summarise retailers’ attitudes to store design in the current economic climate. And it’s hardly surprising. With margins under pressure, customers thinner on the ground and suppliers lobbying for better payment terms, it’s possible that store design is no longer top of the agenda.

Yet it remains a fact that a significant number of the design consultancies used by retailers to change the look of their shops are busy. There’s a good reason for this. Tamar Kasriel, director at trend consultancy Futureal, says that in a slowdown shoppers have a tendency to trade down or to drop out of a category altogether. Practically, this can mean that where the default food shopping choice might have been, say, Sainsbury’s – suddenly Aldi or Lidl may become favourites. For retailers witnessing the phenomenon, Kasriel poses a simple question: “Having found that Aldi’s not that bad, will shoppers come back when the upturn comes?”

And there’s the point. Without providing consistent reasons for shoppers to return, the chances are that they may not, and store design

consultancy. “But there is still a market out there of many millions of shoppers. Retailers need to find a way to make them choose their offer above their competition.”

He makes the point, however, that with budgets under pressure, making an in-store splash is now more difficult and that many retailers are opting to head down the graphic rather than environmental route when considering how to keep stores looking fresh; because it’s cheaper.

Translated, this means frequent changes of store perimeter wall treatments, looking at the way in which lighting is used and regular examinations of visual merchandising.

Finlay Caldwell, Chairman and Chief Executive at budget fashion retailer QS, says that the Store 21 fascia launched by QS in 2008 as a way of renewing its portfolio, is the outcome of careful design thinking. “The Store 21 format has been successful because we have created a good shopping experience on a tighter budget,” he explains. “My advice to retailers would be to look at what you want to achieve in terms of lighting, flooring, etc and invest in good design. If you

Even at the most price-conscious end of the market, design is a means of retaining an edge over your competitors.

Better by design

is a significant weapon in the struggle to keep customers engaged with a retail brand. In tough economic times, there are plenty of reasons for people not to go shopping, so retailers need to consider the business they are engaged in.

Put simply, a lot of retailers, particularly those that are active in the mid-market, sell the same, or very similar products. This means that store design remains one of the few differentiating tools.

And it needn’t be too expensive.

In mid-market fashion, River Island has been one of the most consistent performers through both good and bad times, its increasingly international reach proving the efficacy of its formula. The retailer also happens to have worked with London-based design consultancy Dalziel & Pow for almost two decades. A weekly store design meeting is a central plank of River Island Chief Executive Richard Bradbury’s modus operandi.

Walk into a River Island store more than once and it becomes apparent that change and remerchandising are the norm, with trials being conducted on an almost continual basis – ensuring that shoppers keep coming back. “There is no doubt that funding [for store design] is hard to find,” says David Dalziel, Creative Director at the eponymous

prototype a design then it can be engineered to achieve what you need it to be as a retailer.”

Even at the most price-conscious end of the market, therefore, design would appear to have a part to play as a means of retaining an edge over your competitors.

It is, of course, relatively straightforward to consider what can be done in fashion stores, but even in an area as apparently anodyne as food retailing, design makes a difference. In growth terms, Sainsbury’s, Morrisons and Waitrose are all riding high at the moment. It is fair to remark that all three appeal to very different customers, but store design has ensured that, when faced by price-aware shoppers, they have managed to increase their market shares. And allowing for the fact that changing store layouts in supermarkets tends to be more problematical than in other sectors, owing to the heavier nature of the midshop equipment, this is an area where graphics really have come to the fore.

It’s simple, then. Keep faith with store design.

Not only is the price of failing to do so likely to be high, but there is a good chance that when things improve, the retailer that has invested will be well placed for future success.

Store Design 29

The new Media Wall at St Johns shopping centre in Liverpool is so big and bold that it may well become one of the city’s landmarks. Charles Howgego stands in its huge shadow.

The great wall of Liverpool

Ninety metres across, 13 metres high, brightly coloured, and with a huge TV screen slap bang in the middle of it, Liverpool’s new Media Wall is trying to steal the limelight from other famous landmarks both in the city and around the UK. It’s impossible to miss. As you emerge from Liverpool Lime Street railway station, you find yourself at the crest of a hill, surveying the city in all its glory. Before you lies the main thoroughfare into the shopping heart of Liverpool, and, overlooked by the famous St Johns Beacon, the giant St Johns shopping centre. Enveloping this centre, in a huge swathe of coloured fabric, and a striking seven by 31-metre TV screen, is the St Johns Media Wall.

Designed by Hakes Associates Architects and built by Land Securities last year to coincide with the city’s 2008 European Capital of Culture, the Media Wall has a high-tensile fabric skin, made of reinforced PVC, onto which is emblazoned brightly coloured and iconic Liverpudlian images such as the Beatles, famous footballers, the Grand National and the city’s two cathedrals. Last year films promoting cultural events across the city were also broadcast from the screen. With a full-colour resolution of 1536 by 336 pixels, it’s the largest

LED screen used for commercial purposes in the whole of Europe.

Over the next five years the council will be able to use airtime for future city promotions.

And it seems the Media Wall has made quite an impact with the locals.

“The feedback from the city is that we have created another landmark for Liverpool,” says Tom Venner, Development Manager of the project at Land Securities. “We hope it will become a real landmark of the north.”

Land Securities have partnered with Ocean Outdoor and F&P Media Group to deliver the project. Ocean has run similar operations on the outside of the iMax cinema and Westfield Shopping Centre (both in London), and recently created the first advertising site in Trafalgar Square.

While we may now take huge advertising hoardings for granted, it looks like televisual technology could soon see many more giantformat video and digital adverts becoming part of our cityscapes.

Everyone from Apple to Warner Brothers, Adidas to Wrangler and Alfa Romeo to Volvo have recently used these hi-tech behemoths to advertise their products. Ocean Outdoor say they have plans to add to their roster of large-screen Media Walls in all major cities.

Detail 31

The Land Securities Retail Competition

Using the ground’s natural energy for heating and cooling means London’s new office and retail development One New Change will cut down its carbon footprint.

900 tonnes every year. This is the amount of carbon dioxide that One New Change will avoid emitting thanks to the new underground ground-source energy system being installed beneath the building’s foundations. That’s almost a gigawatt-hour, or a billion watt-hours, of energy saved every year.

It works by using the earth and deep underground water as a source of heat in the winter, and of cold in the summer. This earth and water stays at roughly the same temperature, whatever the time of year.

In winter the heat extracted can be used towards heating the building; in summer heat is transferred back into the ground, helping the building’s air conditioning system. At One New Change the landlord and all the retail and office tenants will benefit from this ‘geothermal technology’.

“It was a condition of planning permission that at least 10 per cent of the total energy used on site should come from renewable sources,” explains Land Securities’ project engineer Iain Trent. “We explored a number of options including wind and solar. But this was the only method that could realistically provide what we needed.”

Installed by Cementation Skanska and their partners Geothermal International Ltd, the system cost £4 million. But it’s hoped that this outlay will be recouped in saved energy within just a few years.

The principle behind it is fairly simple. Firstly two boreholes were drilled 140 metres deep into the chalk aquifer beneath the building site in London’s Cheapside – one to take the water out, the other to put it back again. The boreholes have a capacity of around 10 litres a second and, whatever the time of year, supply water at a constant temperature of 14 degrees centigrade.

The second area involves concrete piles within the building’s foundations which have water pipes embedded in them. Water pumped around these pipes is used to extract heat from, or transfer heat to, the concrete and earth around it, depending on the time of year. There are 194 energy piles beneath One New Change, with nearly 24 miles of pipe work.

A heat pump system will eventually transfer the energy for heating or cooling into the shop units and offices within One New Change. Once up and running in 2010 it will provide 1.7 megawatts of heating energy and 1.8 megawatts of cooling energy. Land Securities believe it will be one of the largest ground-sourced energy systems in the entire country.

Win a luxury spa weekend at the stunning St David’s hotel in Cardiff The Question How many luxury apartments will the new St David’s shopping centre have?

For a clue visit www.stdavids2.com

In this season’s issue of A1 we are offering one reader the chance to win a fantastic 2-night spa break for two at the luxury St David’s Hotel in Cardiff.

The St David’s Hotel & Spa is a striking, contemporary landmark overlooking Cardiff Bay. With water lapping its edges and breathtaking views across the Bay the hotel also houses The Marine Spa, which offers an extensive choice of luxurious beauty treatments.

The hotel is only a short walk from the cosmopolitan centre of Wales’s capital city.

This prize includes: • Two nights stay in a Junior Suite, including full Welsh breakfast for two guests.

• Two 30 minute treatments in the award winning St David’s Marine Spa, including use of the facilities throughout the duration of your stay.

• Three course dinner on one night in Tides Bar and Grill, overlooking Cardiff Bay.

Simply answer the question adjacent to have the chance to win this fantastic competition.

Please e-mail answers to: A1@landsecurities.com by Monday 5th October 2009.

Entrants must be aged 18 or over. UK residents only.

Employees of Land Securities and Alma Media International and/or their families are not permitted to enter. Land Securities’ decision is final. For full terms and conditions e-mail: A1@landsecurities.com The winner of last issue’s competition was Harriet Thompson of Sainsbury’s. Harriet won £500 of gift vouchers for The White Company.

Please note the prize does not include transport to and from Cardiff. All additional expenses including wine and other drinks, spa treatments etc incurred during the stay are to be paid for by the prize winner.

32 Corporate Responsibility

Competition 33

Shopping Centres

Retail Parks

Location

Property name

Area sq m (sq ft)

Principal contact

Phone number

Location

Aberdeen

Bon Accord Quarter

47,844 (515,000)

Katherine Armstead

0141 331 4409

Bexhill-On-Sea

Birmingham

Bullring

110,000 (1.2 million)

Rob Callaghan

020 7024 5414

Blackpool

Blackpool Retail Park

12,782 (137,583)

Suzi Clay

020 7024 5128

Birmingham

Priory Square

26,013 (279,900)

Charles Clarke

020 7024 2318

Bracknell

The Peel Centre

15,384 (165,592)

Nick Duffield

020 7024 5485

Bristol

Cabot Circus

135,000 (1,453,000)

Rob Callaghan

020 7024 5414

Chadwell Heath

Goodmayes Retail Park

9,230 (99,000)

Suzi Clay

020 7024 5128

Cambridge

Christ’s Lane

7,282 (78,350)

Andrew Rawlings

020 7747 2336

Chester

Chester Retail Park

13,944 (150,100)

Hermione Mackrill

020 7024 5486

Cardiff

St David’s Shopping Centre

39,735 (427,000)

Rob Callaghan

020 7024 5414

Chester

Greyhound Retail Park

18,859 (203,000)

Hermione Mackrill

020 7024 5486

Corby

Town Centre / Willow Place

68,740 (740,000)

Andrew Rawlings

020 7747 2336

Chesterfield

Ravenside Retail Park

9,615 (103,500)

Nick Duffield

020 7024 5485

Exeter

Princesshay

49,256 (530,000)

Lucy Lilley

020 7024 5488

Derby

Meteor Centre

16,920 (182,130)

Jack Busby

020 7024 5487

Glasgow

Buchanan Galleries

57,600 (620,000)

Katherine Armstead

0141 331 4409

Dundee

Kingsway Retail Park

27,768 (298,900)

Jack Busby

020 7024 5487

Leeds

Leeds Shopping Plaza

53,670 (557,500)

Gerald Jennings

0113 261 5355

Edmonton

Ravenside Retail Park

11,845 (127,500)

Nick Duffield

020 7024 5485

Leeds

White Rose

63,170 (680,000)

James Larmuth

0113 386 2177

Gateshead

Team Valley Retail World

35,083 (377,650)

Nick Duffield

020 7024 5485

Liverpool

Clayton Square

16,553 (180,000)

James Larmuth

0113 386 2177

Livingston

Almondvale Retail, South&West

35,284 (379,800)

Nick Duffield

020 7024 5485

Liverpool

St Johns Centre

33,450 (360,000)

James Larmuth

0113 386 2177

Milford Haven

Havenshead Retail Park

6,910 (74,389)

Jack Busby

020 7024 5487

Livingston

The Centre

88,720 (950,000)

Katherine Armstead

0141 331 4409

Northampton

Nene Valley Retail Park

13,657 (147,000)

Hermione Mackrill

020 7024 5486

London

Lewisham Centre

34,523 (371,500)

Ailish Christian

020 7024 5066

Poole

Commerce Centre 1

19,328 (208,011)

Nick Duffield

020 7024 5485

London

Southside, Wandsworth

49,239 (530,000)

Ailish Christian

020 7024 5066

Taplow

Bishops Centre

7,925 (85,300)

Suzi Clay

020 7024 5128

London

Shopstop, Clapham

4,170 (44,884)

Ailish Christian

020 7024 5066

Thanet

Westwood Cross

44,129 (475,000)

Hermione Mackrill

020 7024 5486

London

Stratford Shopping Centre

31,224 (336,000)

Tom Venner

020 7024 5196

West Thurrock

Lakeside Retail Park

35,000 (376,778)

Hermione Mackrill

020 7024 5486

London

W12, Shepherds Bush

27,127 (291,900)

Andrew Rawlings

020 7747 2336

Workington

Derwent, Derwent Howe

13,991 (150,600)

Jack Busby

020 7024 5487

Sunderland

The Bridges

47,840 (515,000)

Gerald Jennings

0113 261 5355

Welwyn Grdn City

The Howard Centre

22,296 (239,900)

Anna-Louise Lancaster

020 7024 5411

Worcester

Cathedral Plaza

19,463 (210,000)

Andrew Rawlings

020 7747 2336

Area sq m (sq ft)

Principal contact

Phone number

Outlets

Property name

Area sq m (sq ft)

Principal contact

Phone number

Ravenside Retail & Leisure Park name 24,131 (259,750) Suzi Clay Principal

5128 No. Location Property Area sq m (sq ft) contact 020 7024 Phone

Developments

Location

Property name

Area sq m (sq ft)

Principal contact

Phone number

Location (anticipated opening) Property name

Hatfield

The Galleria

29,729 (320,000)

Deepan Khiroya

020 7024 5436

Cardiff (Autumn 2009)

Livingston

Designer Outlet Centre

26,790 (288,300)

Deepan Khiroya

020 7024 5436

Glasgow (2013)

Buchanan Galleries

65,000 (700,000)

Nick Davis

020 7024 5203

Portsmouth

Gunwharf Quays

39,484 (425,000)

Deepan Khiroya

020 7024 5436

Leeds (2012)

Trinity Leeds

92,900 (1,000,000)

Bob De Barr

020 7024 5470

Liverpool (2013)

St Johns

33,444 (360,000)

Nick Davis

020 7024 5203

Liverpool (2009)

Clayton Square

17,187 (185,000)

Nick Davis

020 7024 5203

34 Retail Portfolio

St David’s Location

89,891 (967,500) Lester Hampson 2337 No. Property name Area sq m (sq ft) Principal contact 020 7747 Phone

Retail Portfolio 35

John Lewis, M&S and Debenhams 1.4m sq ft 3,000 car parking spaces Annual footfall of 30.5m1 73% of Cardiff’s prime retail space2 Opens 22nd October 2009

Contact Keith Stone: keith.stone@landsecurities.com 020 7024 5425 or 07801 621 750 Or Jo Skilton: joanne-skilton@capshop.co.uk 020 7887 7076 or 07785 925 281 1 Space Syntax, Feb 2009

2 Experian, Feb 2009