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R E TA I L D E ST I N AT I O N O C TO B E R 2 0 1 9 T H E B U S I N E S S O F R E TA I L FO R M E R LY S H O P P I N G C E N T R E M AG A Z I N E M OVI E T I E -I NS D RIVE FOOTFAL L Ireland Commercialisation Sustainability Development continues on both sides of Dinosaur attractions boost footfall, Improved waste and energy management the border despite Brexit uncertainty sales and customer engagement systems drive environmental performance
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CONTENTS NEWS & ANALYSIS EDITOR'S LETTER 04 Growthpoint grabs Capital & Regional This year’s Revo conference and exhibition in Liverpool provided more questions than answers. What once was a full-on deal-making and networking 06 Cotswold outlet plans revealed fair has transformed into something less brash, with notably fewer parties but better-attended conference sessions. 08 Hammerson plans resi for Dundrum 10 Repurposing on the rise 12 Liverpool never seems as attractive a venue as Manchester, with the convention centre on the windswept waterfront cut off from the city Funding extended for high street regeneration centre, but the event still drew a 2,000-plus crowd. Placemaking, consumer engagement, tech and leisure all featured strongly as owners and their 14 Chasing the purple pound professional teams seek new ways of making their destinations relevant to 21st-century consumers. 16 The store is the star The event coincided with the announcement that Revo’s Ed Cooke is to FEATURES step down after 11 years, the last four as chief executive. He has navigated the trade body through some choppy waters with unflappability and good 18 IRELAND Development continues on both sides of humour. Presidents come and go but the chief executive provides consistency the border despite Brexit uncertainty in the organisation’s messaging. At a time when the retail property and placemaking sector needs a strong public voice the choice of his successor 22 COMMERCIALISATION could make or break the organisation. Dinosaur attractions boost footfall, sales and customer engagement 30 SUSTAINABILITY Improved waste and energy management systems drive environmental performance REGULARS Graham Parker Editor, Retail Destination 34 TECH Colliers corrals startups for class of 2019 38 DATA Retail facts & figures 43 PEOPLE St Enoch shortlisted for ICSC Solal Award 18 22 By using ClearParks’ innovative mobile and web technology Parking Management Solutions motorists have access to automatic store discounts, Great customer EO N EX IT +44 (0) 370 0427215 HER PAY FOLLOW exemptions, and much more, sales@g24.co.uk service at their THESE 5 EASY STEPS ON PAY EXIT EXIT 1 SCREEN TOUCH & FOLLOW INSTRUCTIONS 2 3 PAY HERE LAST THE YOUR leaving the motorist to simply TYPE OFPLATE DIGITS NUMBER 3 ER1 NUMB VERIFY CAR YOUR DETAILS 4 ON EXIT PAYMENT MAKE RECEIPT & TAKE 5 PARKING EASY MADE www.clearpark.co.uk shop and go without having to fingertips... queue at a payment kiosk. www.g24.co.uk www.retaildestination.co.uk OCTOBER 2019 | 3
NEWS EDITOR Graham Parker GROWTHPOINT GRABS CAPITAL & REGIONAL 07956 231 078 graham.parker@jld-media.co.uk EDITORIAL ASSISTANT Iain Hoey 07757 946 414 Capital & Regional has revealed that it is in iain.hoey@jld-media.co.uk discussions with Growthpoint Properties, South SALES MANAGER Africa’s largest listed REIT, about the investor taking Trudy Whiston a majority stake in the UK landlord which has a 01293 416 090 trudy.whiston@jld-media.co.uk portfolio of dominant in-town community shopping centres. The deal is likely to be structured through DATABASE MANAGER Matthew Jackson-Smith a combination of a partial cash offer coupled with a 020 3322 5500 subscription for new C&R shares that would provide matthew@downthefield.com capital to support the company’s strategy. Prior to the DESIGN & PRODUCTION announcement C&R’s share price had slumped to just Stuart West 01892 739 526 14.5p, down from 44p a year ago. stuart.west@jld-media.co.uk The news came as C&R unveiled its interim results for the six months ended 30 June 2019 which showed contracted rent PUBLISHING DIRECTOR Helen Richmond down 1.9% at £61.1m with CVAs and retailer restructurings 01892 739 523 mitigated by 44 new lettings and renewals at an average of helen.richmond@jld-media.co.uk 31.2% above previous passing rent and 6.9% above ERV. remain confident that with our community centre strategy, EDITORIAL BOARD Footfall significantly outperformed the national index focussed on providing non-discretionary and needs-based Carl Foreman, Moorgarth; Bill Moss, Mall Solutions Europe; with its three London centres increasing by 0.6%. Footfall products and services, we are well placed to evolve with John Prestwich, Montagu Evans; across the wider portfolio was down 1.8%, beating the the ongoing structural changes in the retail sector, as James Taylor, Workman; Michelle Buxton, Toolbox; Jordan Jeffery, JLL; national index, which was down by 3.6%. evidenced by our high occupancy, resilient income metrics Sean Kelly, PR4Property; Lynette Chief executive Lawrence Hutchings said: “We and strong leasing performance.” Howgate, Ashdown Phillips No part of this publication may be reproduced without the written permission of the publishers. The Publishers accept no responsibility for any statements made in signed contributions or in those reproduced from other sources, nor for claims made in any advertisements. Retail Destination is available on subscription. UK & Ireland £96; Overseas £150. CROWN RAMPS UP Retail Destination is published monthly. ISSN 2632-1327 | Printed by Stephens & George Ltd Retail Destination 29 – 31 Monson Road REGENT STREET F&B Tunbridge Wells Kent The Crown Estate has continued to grow the F&B Erik Lorincz, has opened and the brand is also set to TN1 1LS www.retaildestination.co.uk offer on its Regent Street estate with six new signings open Mo Diner, putting a Mediterranean spin on the including F1 champion Lewis Hamilton’s new plant- American diner concept. based burger brand. Elsewhere on the Regent Street portfolio, meat-free Heddon Street has seen a number of openings, burger concept from F1 champion Lewis Hamilton, Neat including 10 Heddon Street by Chris Leach, Pitt Cue Burger, is opening its first outlet at 4 Princes Street. and Petersham Nurseries, while Smokestak will be Further new offerings include Honi Poke and bringing cured meats and fresh pasta dishes to Heddon espresso bar The Hagen Project, while Ergon London is Street’s food quarter. expanding its Greek deli and café at 15 Maddox Street Also on Heddon Street Kwant, a new cocktail bar by into 13 Maddox Street. All rights reserved © JLD Media 2019 4 | OCTOBER 2019 www.retaildestination.co.uk
NEWS LANDSEC ADDS TO GUNWHARF F&B Landsec has announced three new COTSWOLD OUTLET restaurant lettings at Gunwharf Quays across 9,800 sq ft of space. The premium retail outlet will PLANS REVEALED welcome The Alchemist, Bill’s and Cheltenham-based developer Robert Hitchins and local centre to the south has also been submitted and is Hubbox to the scheme. American European outlet operating company ROS Retail Outlet awaiting determination. street food chain, Hubbox, will Shopping have unveiled plans for Designer Outlet Thomas Reichenauer, co-founder and managing be welcoming guests to its new Cotswolds to be built at junction 9 of the M5 motorway director of ROS Retail Outlet Shopping, said: “With our location from mid-September in Gloucestershire. specialism in designer outlets across Europe, and our in- 2019. The Alchemist is due to The 195,000 sq ft outlet village will be opened in two depth knowledge of different markets, we see tremendous bring its all-day dining offer to phases and will feature 90 retail units, restaurants and cafes. potential for the UK retail sector. This is especially true for Gunwharf Quays from November, Construction is due to start on site in autumn 2020 with outlet shopping which has been bucking trends in the UK and restaurant group, Bill’s is the first phase expected to open towards the end of 2021. for several years generating significant interest amongst due to open in Spring 2020. The scheme is part of a wider retail development, which top brands and customers in the concept. Having been includes a new 81,800 sq ft garden centre, alongside an founded in 2011, we’re a young company but with a team CATFORD MEWS BRINGS existing M&S supermarket, Starbucks and BP petrol filling that brings experience, expertise and track-record built up LEISURE TO LEWISHAM station. A planning application for 850 homes, school and over many years.” Developer Really Local Group has officially opened the doors to its first-of-a-kind venue, Catford Mews. Acting as a creative community hub for South London, the 14,000 sq ft venue will provide a multi-screen cinema, live entertainment space for music and comedy, pop-up food market with local traders, and eventually co-working areas and exhibition space.The cinema is the first multiscreen in Lewisham in almost 20 years and offers 220 seats across three screens and is fully accessible, with wheelchair access NEW DEALS LIGHT UP THE BEACON and hard-of-hearing screenings. VODAFONE REVAMPS EXPANSION PLANS Three new stores have signed for the £85m extension of new brands to the centre which is particularly impressive Vodafone will take on at least to the Beacon in Eastbourne: Global footwear brand considering the current economic climate within retail. It 24 empty premises by the end Skechers, British clothing group Quiz and UK shows the appeal of the Beacon that has transformed the face of this year and fit them out as stationery and lifestyle brand Neon Sheep. of shopping in Eastbourne.” new retail stores as part of its These latest names join H & M, Next, FatFace, Schuh, franchise programme. The first of Jack Wills, New Look, Flying Tiger, Paperchase, JoJo the new stores opened this month Maman Bébé and Lovisa’s on the ground floor of the in Morecambe, Lancashire, and extension. Nando’s is trading on the first floor with new St Austell, Cornwall. The brand restaurants Taylor’s Restaurant and Sports Bar and The Bok plans to use vacant retail outlets to Shop due to open in the autumn. The centre’s eight-screen help breathe life into high streets Cineworld opened last month on the second floor and and offer local entrepreneurs announcements of further signings are expected soon. the chance to manage the new Andrew Rice, fund manager at developer Legal & stores. This is the first time that General, said: “These are all quality brands that reflect Vodafone has extended its franchise the high level of confidence in Eastbourne as a shopping operation to include empty shops. destination and expand the already significant offer for our customers. Since the first phase of the extension opened before Christmas, we have seen the steady arrival 6 | OCTOBER 2019 www.retaildestination.co.uk
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NEWS COLONNADES COMPLETE Croydon Council has completed the HAMMERSON PLANS purchase on the final phase of the Colonnades retail and leisure park, generating more than £150,000 a year in additional income for RESI FOR DUNDRUM Hammerson has submitted plans for a strategic vibrant and sustainable residential space adjacent to our frontline services. The council housing development at Dundrum Town Centre. This flagship destination in Dublin. Just a short walk from now owns the whole of the Purley is Hammerson’s first application in Ireland as part of Dundrum’s retail, leisure and community amenities, Way site, with the second phase its City Quarters concept and will be carried out by the Building 5 will have easy access to a range of public comprising three additional units, Dundrum Retail Limited Partnership, a 50:50 joint transport services and large employment hubs.” two of which are occupied by venture between Hammerson and Allianz. It is intended that construction work for the proposed McDonald’s and Nando’s. Around The proposed residential development will consist of development will begin in 2020. £7m was paid by the council for 107 apartments for long-term rent, in addition to a ground this purchase. The entire site is floor café, located on a site known as ‘Building 5’ close providing an annual income of to the Sandyford Road entrance of the Dundrum Town around £1.4m net of interest and Centre Red Car Park. other costs, which will help protect In line with local and national policy, the development council services for residents. will also provide a range of sustainable transportation measures including high quality cycle facilities, car club COOKE TO QUIT REVO spaces and electric car charging facilities. Retail property trade body Revo Simon Betty, Hammerson director of retail Ireland, said: has begun the search for a new “We have submitted plans for 107 apartments creating a CEO having agreed a succession BRANDS FLOCK TO plan with Ed Cooke, who will down from the organisation after 11 years. Cooke will remain at the helm until the spring, or until a AFFINITY OUTLETS new CEO is appointed, to ensure an orderly handover. Revo president Mark Robinson said: “I would like to thank Ed for what amounts to over a decade’s service to our Global Mutual has confirmed a slew of new lettings across store, greeting cards retailer Hallmark is upsizing to 1,700 sq industry. Over the last four years its four Affinity outlet centres in Staffordshire, Devon, ft, and clothing retailer Weird Fish is taking 1,197 sq ft. as CEO, Ed has been instrumental Fleetwood and Sterling Mills, leasing a combined 21,526 Two new letting are confirmed at Affinity Sterling Mills in leading a profound change in sq ft of retail space. in Scotland, with the Fragrance Shop taking 909 sq ft and the purpose and role of Revo.” Affinity Staffordshire has reached 100 per cent occupancy Regatta/Craghoppers 3,700 sq ft. And at Affinity Devon, following the confirmation of three lettings to clothing and Clarks is leasing 3,500 sq ft, while the Fragrance Shop is THREE JOIN NEWBURY fashion brands, including to classic British brand Jaeger taking 500 sq ft. BMO Commercial Property Trust which is taking 1,456-sq ft; Edinburgh Woollen Mill which Director of retail Steven Gray said: “Since taking has signed three new lettings to is taking a new 3,002-sq ft store, and premium fashion brand ownership and management of Affinity, our strategy has Lidl, Hobbycraft and Deichmann Jayley which has signed for a 1,462-sq ft store. been to refocus and raise the bar of the retail proposition at Newbury retail park in Berkshire. At Affinity Lancashire, clothing and outdoor brand across all of the centres, including blending value and These latest lettings follow the recent Regatta/Craghoppers is creating a new 4,100-sq ft flagship outlet propositions.” opening of Mountain Warehouse and Starbucks stores. Hobbycraft has opened a new 7,800-sq ft store in the former Poundworld unit on a 10-year lease. BCPT has also pre-let two-thirds of the former Homebase unit to Lidl, on a 25-year lease. In addition, Deichmann has signed to take 6,000 sq ft of space, comprising half of the former Alexander Booth Mothercare unit, on a 10 year lease. 8 | OCTOBER 2019 www.retaildestination.co.uk
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ANALYSIS REPURPOSING ON THE RISE R esearch from Savills reveals that up to three quarters Savills data shows that the first priority for retail landlords Savills research of landlords are undertaking or considering is to look at enhancing and repositioning the retail and leisure reveals three quarters redevelopment of retail assets, yet 90% will first offer to create a modernised, differentiated and exciting tenant look to reposition their schemes with a revitalised and use mix. In many schemes this actually results in an of retail landlords retail and leisure offer before considering alternative uses. increase in retail floorspace. However, if that option has been are considering In a survey of over 30 companies which in turn control over exhausted, or if the amount of retail space needs to be reduced, 1,000 schemes, data from Savills in its new Re:Imagining Retail residential is the second most likely option (85%) closely repurposing projects report shows that 18% of landlords have already completed a followed by health and community (80%). Last mile logistics repurposing project with a further 75% considering undertaking are being considered as an alternative use by 30% of landlords, such a project in the foreseeable future. The research comes predominantly by owners of retail parks and shopping centres, as landlords are increasingly considering the opportunities to to tie into the growth in ecommerce and Click & Collect. reposition or repurpose their retail assets as the industry faces a Savills research goes on to show that there is a difference in series of well-documented challenges. what landlords believe is needed in terms of repurposing and what is most likely to happen in the short term. According to those surveyed, repositioning is most urgently required WHERE ARE THE CHANGES NEEDED OR LIKELY TO HAPPEN? in shopping centres but is most likely, in the immediate future, to take place within department stores. This is in line 40% with the changes being seen within the department store 35% sector. Conversely, retail parks are not generally considered 30% to urgently need repurposing and yet are anticipated to see a 25% considerable amount of development. High streets, however, are perceived to require a significant reduction in retail space 20% Shoppi but expectations are that this is much less likely to happen due 15% Most Likely to fragmented ownership and lack of funding options. 10% Mark Garmon-Jones, head of shopping centre, retail 5% investment and repurposing at Savills, said: “Structural changes within the retail industry means it’s time for landlords to 0% Retail Park Shopping Centre High Street Department Store Supermarket Leisure Scheme futureproof their schemes against uncertainty, so it’s positive Most Needed Most Likely to see so many of Savills clients that we are working with are already undertaking or considering a redevelopment of their WHAT ALTERNATIVE USES ARE YOU CURRENTLY CONSIDERING, OR scheme. Repurposing doesn’t have to solely be about reducing DO YOU THINK COULD BE VIABLE IN YOUR RETAIL ASSETS? the retail footprint, instead it is about the re-creation of schemes to provide a modern and revitalised offering that will Increased F&B/Leisure stand the test of time.” Tom Whittington, retail and leisure research director, Residential added: “There has been a lot of talk of late about there being Health/Community too much retail space in the UK, but opportunities are certainly still there if the right tenant mix, with innovative Workspace and differentiated retail occupiers, is considered. The best Student Living examples of repurposing are often those that bring in a suite of alternative uses, which complement one another, and of this Retirement Living retail can still continue to play a huge role. Logistics 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 10 | OCTOBER 2019 www.retaildestination.co.uk
ANALYSIS CAVENDISH SQUARE REIMAGINED Reef Group founder Stewart Deering said: In one of the most ambitious repurposing Ȋ&DYHQGLVK6TXDUHLVDZRUOGȴUVWVXEWHUUDQHDQ projects so far London’s iconic Cavendish mixed-use destination in the centre of Europe’s Square in the heart of the West End is set to be premier shopping district including Oxford and transformed into a 200,000-sq ft subterranean Regent Street. It is an opportunity to deliver mixed-use destination. unique space for occupiers from a variety of sectors, capitalising on the opening of the Reef Group, landlord of the multi-storey Elizabeth Line in 2021. The development will be underground park beneath the square, has a blueprint for repurposing space in capacity- engaged Savills to advise on an ambitious constrained urban environments demonstrating place-shaping project to redevelop the square, what smart-design can achieve.” capitalising on its location adjacent to Europe’s busiest shopping street, the Harley Street medical Savills director Sam Foyle added: “Cavendish district and the BBC’s HQ. Initial interest has ranged Square is a historic Central London location which IURPWHFKQRORJ\IRFXVHGUHWDLOHUVJOREDORɝFH is about to be transformed into a unique global occupiers, experiential leisure brands and medical destination. We have been approached by a diverse providers attracted by the Harley Street proximity. selection of occupiers looking to take the space in LWVHQWLUHW\DVZHOODVLQGLYLGXDOȵRRUV7KUHHQHZ FXVWRPHUHQWUDQFHVSURYLGHXVZLWKWKHȵH[LELOLW\ to accommodate a diverse mix of tenants that can Below. Cavendish Square, London interlinked or separated as required.” www.retaildestination.co.uk OCTOBER 2019 | 11
ANALYSIS FUNDING EXTENDED FOR HIGH STREET REGENERATION T he Ministry of Housing, Communities & Local Government has extended the £1bn Future High Streets Fund to cover an additional 50 towns across England, bringing to 100 the shortlisted locations that will receive funding to to reinvent their high streets. Towns – from Dudley to Dover and Scarborough to Stockport – will be encouraged to bring forward projects that improve transport and access into town centres, convert empty retail units into new homes and workplaces, and invest in vital infrastructure. Boris Johnson said: “Our high streets are right at the heart of our communities, and I will do everything I can to make sure they remain vibrant places where people want to go, meet and spend their money. “But with our town centres facing challenges, we’re today expanding the High Streets Fund to support over 100 high streets to regenerate – backed by £1 billion of vital investment. This scheme is going to reenergise and transform even more of our high streets – helping them to attract new businesses, boost local growth, and create new infrastructure and jobs”. However the move was dismissed as “naked electioneering” by opposition spokesmen who ponted out that many of the transform their high streets and town centres as consumer towns on the list are Tory marginals while other towns that habits change, by investing in housing, workplaces, exhibit far greater levels of deprivation were missed off the list. infrastructure and culture. Shadow communities secretary Andrew Gwynne MP said: “Interest in the Fund has been huge, and with so many "This is pork barrelling to a naked degree. strong applications, I am extending the number of towns "In an attempt to deflect from the disaster of a week Boris moving forward to the next phase and getting a chance to Johnson has had, he's resorted to re-announcing a policy that develop their proposals. The government is going to level-up he first announced back in July. Sadly, this is still a drop in our regional economies and as Communities Secretary I am the ocean compared to the billions the Conservatives have cut proud to be driving this agenda forward”. from local communities." Successful candidates will progress to the second phase of However Communities Secretary Robert Jenrick MP the Future High Streets Fund and receive up to £150,000 to justified the extension of the policy: “High streets have a support the development of detailed project proposals that can crucial role to play as we work to grow the economy of all be submitted for capital funding. parts of the country. Our £1bn Future High Streets Fund The extension was cautiously welcomed by John Webber, is key to delivering this, empowering local leaders to help head of business rates at Colliers, but he pointed out: “It just 12 | OCTOBER 2019 www.retaildestination.co.uk
ANALYSIS THE NEW SHORTIST • Bacup Town Centre • Barnsley Town Centre • Barnstaple • Barrow Town Centre • Bideford • Blackfriars – Northern City Centre • Blackpool Town Centre • Blyth Town Centre • Bolton Town Centre • Brierley Hill High Town Centre • Carlisle City Centre • Cinderford Town Centre • Clacton Town Centre • Commercial Road • Doncaster Waterdale • Dover Town Centre and Waterfront • Elland Town Centre • Fratton • Grantham • Grays Town Centre • Grimsby Town Centre • Harlow Town Centre • Heart of the City Quarter • High Wycombe • Holbeach • Kingswood • Kirkham Town Centre • Leamington Town Centre • Loftus • Maryport Town Centre • Middlesbrough Centre • Newcastle-Under-Lyme Town Centre • Newton Abbot • Northallerton • Nuneaton Town Centre • Paignton • Plymouth City Centre • Putney Town Centre • Ramsgate simply won’t go far enough and certainly won’t help retailers • Rochdale Town Centre struggling with their current rate bills.” • Runcorn Old Town Webber pointed out that £1bn between 100 towns is £10m • Salisbury City Centre each town which each local authority will decide how to spend. • Scarborough Town Centre However, there is no coherent strategy on how it should be • Scunthorpe spent, how businesses can bid/claim for support nor anything • St Neots about using the money to tackle the business rates crisis. • Sutton Discussions and then implementation about any serious town • Tamworth Town Centre centre redevelopment could take months, indeed years and • Trowbridge meanwhile high street retailers are still paying too high rate bills • Wealdstone on their properties because of both downwards transition and a • Woolwich Town Centre too high multiplier - and stores will still be closing as a result. “It would be much better to get to the heart of the problem immediately” says Webber “And to use the money to remove Above. Chesterfield, Derbyshire downwards transition and reduce the multiplier now.” www.retaildestination.co.uk OCTOBER 2019 | 13
ANALYSIS CHASING THE PURPLE POUND N ew research shows UK businesses – including Disabled young people (aged 16-24) fare the worst – more Retail businesses retailers – are losing millions of pounds of than three-quarters of them say they have found it difficult to losing millions by revenue every year by turning their backs on buy goods online or in person due to their disability on more disabled consumers. than one occasion. shunning disabled More than 13 million people in the UK – a fifth of the Some four in five disabled customers say businesses could consumers, new population – are disabled, and a new poll of people who do more to be accessible – and more than half (56%) agreed consider themselves to be disabled, commissioned by Purple, that improving staff understanding about different disabilities research reveals the disability organisation behind Purple Tuesday, has revealed would encourage them to spend their disposable income, that respondents spend on average £163 on retail every month. estimated to be £249bn a year. Separate research has shown Nearly a third (29%) of disabled people spend money with that 75% of disabled people have had to leave a store or retail businesses every week. website, unable to go through with their purchase because of But more than half of respondents are struggling to their disability. make purchases of a product/service due to their disability. Respondents state that retail is the most accessible business 14 | OCTOBER 2019 www.retaildestination.co.uk
ANALYSIS “It should simply not be the case that one in two disabled people struggle to make purchases online or in person. Small changes can make a big difference to the customer experience; we want to help organisations have the confidence to improve their services for disabled people.” Disabled consumers told pollsters that inaccessible and unusable locations, poor customer service and a lack of understanding about disabilities were the main reasons they struggled to spend their money. Over one in five said that hiring more disabled people would make them more likely to make a purchase and some stated that “wider aisles” or “lighter doors” would have the same effect. The findings support previous research, which shows that less than 10% of organisations have a dedicated strategy for targeting disabled customers. The potential of the purple pound is clear - disabled people say they spend on average £163 on retail per month, £98 on travel, £69 on insurance, £78 on hospitality (such as at restaurants or on leisure activities) and £19 on gym or health activities. Carole Hughes, from Liverpool, was born with spina bifida and has been using a wheelchair since 2015. She shops regularly at large supermarkets and department stores around the city. She said: “I often have problems getting around stores and supermarkets, either because the aisles are too narrow or there are items blocking the way. It can be a challenge to find staff who are willing to help - sometimes I’m made to feel like a nuisance when I ask for basic assistance. “There needs to be more consistency with staff training. Other things like making more doors open automatically and locating accessible parking spaces close to store entrances also make a huge difference to wheelchair users. “I’d urge all organisations to sign up to Purple Tuesday and make sure they are providing a better shopping experience to their disabled customers.” Organisations that register for Purple Tuesday will benefit from free resources from Purple on topics such as website accessibility and customer service training. In exchange, Purple to purchase from, followed by banking and hospitality/leisure/ asks that business make a minimum of one commitment to Above. Mike Adams at restaurants. The research comes as businesses and organisations improve the customer experience for disabled people. Piccadilly Circus, London prepare for Purple Tuesday on November 12. The day These commitments might be major transformations Left. Helen Drury, corporate celebrates UK companies that are improving the customer or simple, smaller steps that can improve the experience of responsibility manager, experience for disabled shoppers. Major names taking part disabled customers. Examples include conducting an audit of an intu; Mike Adams OBE, include Sainsbury’s and Intu. organisation’s website to ensure it’s accessible or staff training to chief executive, Purple; Purple chief executive Mike Adams said: “While many UK help them communicate effectively with disabled consumers. Jim Harris, centre manager, businesses and organisations are stepping up to the mark and Last year, which was the first ever Purple Tuesday, more than St Stephen's Hull; Robin making the changes needed to improve disabled customers’ 750 organisations took part, pledging 1,500 commitments to Howland, partner, Workman and experiences, far too many are not. This is a huge mistake, not improve disabled people’s customer experiences. They included Rick Williams, CEO, Freeney least because by turning their backs on disabled shoppers, they some of the biggest brands on the high street, including Argos, Williams at last years SCMC. are losing out on millions of pounds of revenue every year. Asda, Barclays and Sainsburys. www.retaildestination.co.uk OCTOBER 2019 | 15
ANALYSIS THE STORE IS THE Research shows physical stores still play a key role in purchasing decisions STAR 16 | OCTOBER 2019 www.retaildestination.co.uk
ANALYSIS C ACI, the consumer and location intelligence specialist, launched a white paper on the future of retail at the Revo Conference and Exhibition in Liverpool. The most significant finding of the white paper is the unequivocal evidence that stores have a key role to play in driving significant incremental sales: for every £1 spent online outside a store’s catchment, £2.06 is spent online inside a store’s catchment. This is in addition to spend in the store itself. The white paper was presented at the conference by Alex McCulloch, director of CACI Property Consulting Group. Based on extensive research by CACI, it considers the value of stores, drivers of change, and how the industry should respond. According to CACI’s research, the way consumers shop is driven by three factors: With over 50% of the UK’s population under 38, Millennials are becoming families with less time and money to spend, but for whom technology is a natural part of their lives and behaviours. This is leading to a drop in footfall at retail and leisure destinations. Despite this, those that do shop in-store, particularly the young and the old, are engaged and happier with the experience. Average net promoter scores, a measure of shopper satisfaction and enjoyment, have increased 30% across the industry over the last five years. Similarly, spend on catering as part of a shopping trip has also grown every year for the last five years. Institutions, such as the government, many landlords and retailers, are failing to understand the reality of how consumers are using stores. According to CACI’s research, the power now sits very firmly with consumers and institutions are playing catch-up. Commenting on the findings, McCulloch said: “Our white paper provides firm evidence that landlords and retailers, together with the government and financial institutions, need to better understand the many roles stores play. While their purpose varies by demographic and category, physical stores add significant value in the overall picture of consumer spend. “The industry needs to listen to consumers, to trial new concepts, and to learn from what they discover. Consumers are in charge and the industry must inspire, engage and innovate much more widely, and effectively, than it currently is. While bricks and mortar retail faces challenges, it is far from dead. Physical stores have a vital role to play in the future, but we all need to treat them differently, as well as the overall destination experience of which they are part.” Revo CEO Ed Cooke added: “CACI’s research provides further evidence to Revo’s long argued view that stores are key to the success of retail businesses. However, the industry must consider their form and function differently. It is incumbent on all of us in retail property to work together, to put consumers first and, where appropriate, to challenge legislators to better reflect in policy the reality of how consumers spend their time and money. We call on this government and the next to consider these findings in their plans for the future of the UK’s high streets.” The white paper is the latest in a series of industry insights published by CACI as it works with landlords, retailers and leisure operators to help them better understand changing consumer behaviour. It follows the publication earlier this month of insight that up to one in ten trips to retail destinations are driven by F&B and leisure, but that 50% of such trips lead to incremental retail spend. www.retaildestination.co.uk OCTOBER 2019 | 17
IRELAND IRELAND SHRUGS OFF THE BREXIT BLUES 18 | OCTOBER 2019 www.retaildestination.co.uk
IRELAND A Development s our closest neighbour, Ireland stands to bear growth of Ireland has been strong, but the demand for housing some of the biggest impacts of the forthcoming is not being met, and so we have a lot of investor confidence in activity is political changes and so it would be reasonable bringing so much new residential to the Irish market in such a continuing both to assume the country would be as paralysed well-placed, desirable location. by uncertainty as Britain is. But over the past few months, “The scheme is being built to reflect not only how retail sides of the details of new developments have been revealed which are set actually is today, but also to shape the future of retail with a focus border despite to change the retail landscape in both the North and South, on the next generation. It’s been amazing to have the ability to most notably the Cherrywood development, the Blackrock design something at scale with the right balance of residential, uncertainty redevelopment, and the Tribeca Belfast project. retail, leisure and work in place where the demand is there and a about the impact lot of the infrastructure and planning is already in place. CHERRYWOOD “It’s going to have a simple layout. There will be a big new of Brexit on US-based developer and asset manager Hines is in the process car park, there are already light rail and train stations that give investor and of undertaking the largest urban redevelopment project access to people coming in from further afield. It’s going to currently underway in Ireland, Cherrywood, which will span a be a more convenient, and ultimately different place. We’re occupier demand total of 800 acres and is due for completion in 2022. really playing with the future of retail, with a greater emphasis Cherrywood is located in the city of Dublin’s most affluent on experience and on community, offering community use district and is a major mixed-use development with a strong tenants such as medical or fitness.” retail component. It is set to reinvent and revitalise the modern The scheme is going to bring in new F&B concepts, idea of retail, with a focus on turning shopping spaces into a including a food hall which will be new to Dublin, a rooftop more immersive and engaging retail and leisure destination. bar with unparalleled views of the sea, of Dublin, and of the The large-scale scheme will provide 6,000 new homes for surrounding hills, and a sizeable restaurant and bar precinct 25,000-plus new residents, and 180,000 sq m of workspace, with new-to-market concepts to create a compelling F&B for 18,000 workers upon completion. The first residential units offer. There will also be a new-to-market cinema operator. are due to be completed in Q1 2020. “In essence,” Rossel says, “it’s a reboot or a revolution of The town centre will total 350,000 sq m including 67,000 sq retail in terms of scale retail. Dundrum in Dublin is going to m of retail, F&B and leisure space. Construction on the town be near 20 years old when Cherrywood is completed, and a centre started in 2018 and completion is due in Q4 2022. lot has changed in retail in the last 20 years, so a lot of eyes are “A lot of factors have going into making this possible,” says going to be on us and what scale retail can deliver. It’s going to Derek Rossel, development director at Hines. “The population be a poster child for the future of retail destinations.” www.retaildestination.co.uk OCTOBER 2019 | 19
IRELAND BLACKROCK CENTRAL ELLANDI VIEW Works which began on Blackrock Village Centre at the end of Richard Hutchinson, associate director of asset January this year are due to reach completion in May 2020, management at Ellandi, says that continued bringing 1,501 sq m of retail space to the Dublin leasing market. occupier demand in Northern Ireland has seen The renovation of the centre incudes a complete upgrade of vacancy rates for the province as a whole (prime, the common areas, realignment of the malls and circulation secondary and out of town) improving from and the installation of a contemporary, predominantly glazed 16.6% in 2017 to 15.1% in 2018. This uptake has covering, which will retain natural ventilation. A new façade been partially helped by the 2015 rates reval- and entrance off Frascati Road will transform the exterior of uation with prime shopping centres seeing on the centre and car parking facilities will also be upgraded, with average a 29% reduction in their rates costs. the introduction of a new vehicle exit onto Rock Hill. Savills Ireland which, along with BNP Paribas Real Estate, “Looking at what has happened in our centres – is acting as joint agent on the centre, expects demand for the %ORRPȴHOGVKRSSLQJFHQWUHKDGDWHUULȴF\HDULQ limited number of vacant units to be strong given the location 2018 which saw us complete on c14 new lettings and catchment. and renewals including the development of a Speaking of the re-launch, Colin Kavanagh of Savills says: new drive-thru pod pre-let to Starbucks and the “Blackrock’s pedigree as a suburban commercial hub is well- building of a 25,000 sq ft unit pre-let to B&M,” established. Home to myriad large retail and financial houses, Hutchinson says. the village is an in-demand destination for many employers looking to open a base or grow an existing office in the area. “Despite CVA pressures Northern Ireland retail We expect demand for retail space in Blackrock Village Centre has also remained robust with the majority of to be strong as a result. We are looking to build on the retailers retaining their stores in NI post CVA. convenience nature of the centre to add brands and uses that An example of this includes Erneside shopping will appeal to the specific catchment.” FHQWUHLQ(QQLVNLOOHQZKLFKKDVEHHQDHFWHG by three CVAs but where the tenants wanted to TRIBECA BELFAST remain in occupation. The first phase of a £500m regeneration project in the heart of Belfast is underway. Developer Castlebrooke Investments “2019, however, has been more subdued but op- has said work is due to begin on site next year for the largest- erators are still taking units or renewing at mar- ever single redevelopment in Belfast city centre, with the first ket rents, Erneside has only one vacant unit and portion open for business within 24 months thereafter. the Omagh Showgrounds is close to being fully The project, previously known as the Royal Exchange but let with a number of new tenants coming into now rebranded as Tribeca Belfast, will deliver 1.5m sq ft of the scheme while other anchors such as Argos, residential, Grade A office, retail, food and beverage space on a M&S and River Island have committed further to 12-acre site in the north east of the city centre. the scheme by renewing their leases, the latter The first phase, which received planning approval earlier actually extending and taking more space.” this year, includes two Grade A office buildings comprising 20 | OCTOBER 2019 www.retaildestination.co.uk
IRELAND in excess of 180,000 sq ft, one of which has been designed to international headquarter office standards, as well as a separate mixed development comprising 24 luxury apartments and ground floor retail and food and beverage units Castlebrooke Investments director Estelle Hunt says: “Tribeca Belfast will be an iconic development in the heart of the city which will encourage people to enjoy it as an outstanding place to live and work. Belfast is a city in transformation. It has a burgeoning population of educated, ambitious and young adults with a desire to live in the city centre, close to gyms, restaurants and their workplaces. To meet this increasing expectation, Belfast is in need of a changed urban landscape and the regeneration of Tribeca Belfast caters for this requirement.” www.retaildestination.co.uk OCTOBER 2019 | 21
COMMERCIALISATION ACTIVATION STATION 22 | OCTOBER 2019 www.retaildestination.co.uk
COMMERCIALISATION T Organising he film release calendar is relentlessly packed cinematic events by offering some film-related tie-in activity. out with the latest instalments from the biggest This summer, tying in with what is now the highest grossing activity around franchises. From Marvel to Star Wars to the Fast film of all time, Avengers: Endgame, St David’s Cardiff the latest releases and Furious to whatever Disney Pixar is doing launched the second interactive Marvel’s Avengers Station next there is no shortage of blockbusters hitting the big screen, exhibit after its successful London run. and retail destinations are well positioned to capitalise on these The 20,532-sq ft interactive multi-room experience allowed guests at St David’s to step inside the popular film and become part of the Marvel cinematic universe, immersing themselves in exciting activities such as the Thor Observatory, Iron Man engineering bay, and Bruce Banner’s lab first offered at the London exhibition, plus new, exclusive character displays on Black Panther and the Wasp for Cardiff’s exhibition. According to Russell Loveland, senior portfolio director for Landsec, joint owner of St David’s with intu, the exhibition has been a roaring success: “The exhibition has been extremely popular, and as a result the decision was made to extend it by four weeks. Since creating the dedicated page on our website at the end of March, we have had over 25,000 unique page views, with users spending nearly three times as long on the page than the website average, showing just how popular the concept is with visitors. Loveland says that it has proved particularly popular with young families, as the interactive elements are more focussed on the younger audience, but that all fans of Marvel’s comics or cinematic universe, regardless of age, have thoroughly enjoyed it. “The most popular period was over the summer holidays, when admissions more than doubled, and ‘Avengers’ was the sixth-most popular search term on our website,” he says. “That being said, the fact the exhibition has been extended is evidence of how happy we are with the consistent level of interest throughout, and we expect visitor levels to remain high until it closes in early October.” He says that the reaction on social media and in person has been hugely positive, and that the impact on the centre has been huge. The increase in footfall to the part of the centre the exhibition is being held has seen some of the surrounding retailers report double-digit percentage increases in their sales. The initial Facebook announcement reached 286,000 people with 37,000 post clicks, which he believes has encouraged people to visit St David’s who may not have done before. So would the St David’s Partnership would run something of this scale again? Loveland says it is dependent on the popularity of the associated franchise, but it is something they would definitely look into: “We have run some small brand experience promotions at St David’s recently, including a Game of Thrones activation from earlier this year, but have not created a pop-up space to the scale we have done for this Avengers initiative. “We would welcome similar activations within stores, depending on the theme and its suitability to the St David’s customer, and are always on the lookout for new and interesting initiatives.” www.retaildestination.co.uk OCTOBER 2019 | 23
COMMERCIALISATION LET’S GET CREATIVE R ather than killing the high street, online has welcomed its own Ping Pong Parlour, inviting families to Creative thinking breathed new life into bricks and mortar retail participate in the fun. Centre manager Dan Foley champions is needed to as the so-called threat from internet shopping the less-conventional tenant: “We are delighted to be opening has resulted in a surge of creativity to entice a Ping Pong Parlour within the centre, which we felt would reverse the decline and engage shoppers, turning shopping centres into retail engage the community and provide a fun place where everyone in footfall says destinations. Online may have the goods, but physical retail could have fun in a safe way.” has the experience and some malls are reporting resilient Earlier this year in Romford, The Brewery teamed up with OnBrand footfall, and that is largely down to the increasingly creative charity, All Things Made Public, to create a range of wildlife approach being adopted by shopping centres. illustrations. Working with a graffiti artist, the art trail murals, “People still like to touch and see goods before they buy, made up of animals found in the local area, will now be given and that is why footfall numbers are still high,” says Andrea a further creative twist with an augmented reality app aiming Petrou, social media and content manager at OnBrand. to bring these animals to life. “However, centres are now looking at other ways to draw their Alexandra Ziff, the account manager at OnBrand who customers in, and that’s through creativity.” facilitates The Brewery’s marketing, said: “We work with She gives the Disney Café in Birmingham from Primark, The Brewery to support their creative initiatives and events. and Ping Pong Parlours as examples of less-traditional tenants. In the year that they have been our client, we have come up The latter concept has already opened in over 30 shopping with some great events to increase footfall and bring in a centres nationwide and form part of Table Tennis England’s community feel. vision to inspire people to get active and lead happier, healthier “We work with many schemes who are constantly evolving lifestyles by introducing table tennis into unexpected, non- their events and store offerings to bring in a creative and traditional places. unique feel. Having elements such as an art trail or teaming up Most recently, the Baytree shopping centre in Brentwood with a local football club as its sponsor, are all ways to really 24 | OCTOBER 2019 www.retaildestination.co.uk
COMMERCIALISATION make the centre a focal area that people want to visit.” And other centres going an extra mile include McArthur Glen Designer Outlet in Ashford. Seeing the need to add some fun and kindness back into their community, the scheme, assisted by OnBrand, created a ‘random acts of kindness day.’ Six ‘brand ambassadors’ were placed in the centre to meet and greet and offer random acts of kindness throughout the day and evening. Each ambassador had a £200 gift card to randomly treat shoppers with by offering to buy gifts for them. The day ended with visitors receiving their child’s first pair of shoes, or their family evening meal, completely free of charge. “Kindness goes a long way for a centre with a great local community,” adds Emma Thompson, head of marketing solutions at OnBrand. “We know from extensive work with schemes that community is important, and as they strive to bring in footfall and create a family destination brand, we know that creativity is a big driving point. “It’s clear that this is the approach for the high street moving forward and we look forward to seeing other great creative events stemming from this need.” www.retaildestination.co.uk OCTOBER 2019 | 25
COMMERCIALISATION 26 | OCTOBER 2019 www.retaildestination.co.uk
COMMERCIALISATION CRAFTING SPACE F or a lot of local independent retailers, the idea of The company has delivered a craft market pop up shop Small-scale setting up shop inside the nearby shopping centre which has shown long term sustainability by accommodating events can draw and suddenly finding themselves alongside and up a wide variety of talented local traders, selling a range of against some of the world’s leading retail brands can handmade products from art to bath bombs. The company in local retailers seem a little daunting. But as concerns around the political and has a created a strong community appeal, showcasing local sustainability impacts of goods being imported from all over independent traders and in doing so encouraging the general the world grows in the mind of the average consumer, many public to shop local, buy local. are increasingly looking for products that are sourced on a As it has become more established, the store has enhanced more local level, and so encouraging the small local brands to its kerb appeal with branded window vinyls to draw potential take space in the mall can be mutually beneficial. customers through the doors. The store also has an established Specialist in managing promotional space, online presence, particularly on Facebook, where it is able to commercialisation company Forum CentreSpace, has long promote the individual crafters, the products, and the unit been coordinating craft and gift pop up shops and encouraging itself. The store is also active in engaging with customers by small, local independent retailers to consider mall activity. holding themed events to raise awareness of local charities such “This includes craft markets such as De Borja Markets in as the Bobby Robson Foundation. the Abbeycentre, Newtonabbey which has become so popular “We are delighted at how successful this partnership has that they have committed to occupy the large events area for been,” says Al-Jumaili. “It’s fantastic to see how an initial 35 weeks in 2019,” says Caroline Al-Jumaili, account director temporary delivery can transform into mainstay. We achieve at Forum CentreSpace. a relatively low rental income from this type of retailer but, in “And our Newcastle team is working with local retailers the current market, there is significant demand for unique and that have been trading on the high street in North Shields to handmade items.” encourage them to come inside the Beacon centre where they She says that this is especially true if the retailers and their will encourage footfall and increase dwell time for the inline products have a local backstory and if they offer environmentally units,” she adds. “Our London team has recently launched a conscious products: “This area of growth reflects the increased project to source local and artisan traders to occupy a vacant popularity of online stores such as Etsy and Not On The High unit in the Forum centre in Sittingbourne which will be Street. Our most popular retailers have included folded book branded as the Market Hall.” art, a local cheese company, jewellery and personalised gifts.” As the retail world is ever changing, and with online And she says that one of the best ways to find more local talent shopping continuing to put pressure on physical retail, the and increase retailer loyalty is to ask those already installed in need to adapt and evolve and to be creative with empty spaces the centre: “We encourage growth through our ‘Refer A Friend’ is of paramount importance. The Craft Fair Company in St scheme and repeat bookings by offering them considerable Cuthberts Walk in Chester le Street is a strong example of this. support with our friendly account management service.” www.retaildestination.co.uk OCTOBER 2019 | 27
COMMERCIALISATION PREHISTORIC FOOTFALL D inosaurs may have died out around 65 million transported back millions of years to discover dinosaurs, Dinosaur years ago, but the human fascination for the and could interact with the prehistoric creatures positioned installations prehistoric earth-dwellers remains as powerful throughout the destination. The app was downloaded over as ever, as proven by continued research into 20,000 times during the ten-week campaign. proved a the ancient creatures, numerous successful blockbuster films, “The idea stemmed from our awareness of e-sports, roaring success and the popularity of dinosaur-centric commercialisation gaming and virtual reality as trend, and we wanted to create activity at retail destinations across the country, including at a custom-designed experience which would bring an exciting this summer Liverpool One and the Lexicon Bracknell. new dimension to Liverpool One,” says director of asset management Alison Clegg. “The campaign highlights how DINOSAURS UNLEASHED digital technology can be effectively harnessed to enhance and This summer, Liverpool One launched its Dinosaurs transform the bricks-and-mortar experience, and be a tool for Unleashed campaign under its enlivenment programme – a measurement of success as well.” dedicated calendar of events and immersive activations, She explains that aside from engaging and entertaining creating memorable moments to engage and excite shoppers. young visitors and families, a key goal was to increase footfall The prehistoric activity took place during the school holidays and, in turn, boost sales. The campaign was a success as it to ensure maximum activity with local families. triggered a rise in footfall at the centre by 3.3%, over a period Other activations under the enlivenment programme when the UK average dropped by 4.6%. Similarly, sales were include: the ‘Summer of Champions’ grassroots sporting reportedly up 4% at the centre, exceeding the national average activities; a giant slide connecting Liverpool One’s ground and of 0.7% over the campaign’s period. first floors, the picturesque In Bloom seating installation, and “The observed jump in footfall and sales was predominantly the ever-popular ‘Tickle the Ivories’ busking festival. across the café, restaurant and toys sector, showing a clear Using the specially-created ‘Dinosaurs Unleashed’ app correlation with the target audience of families,” Clegg says. created by Red Frog Digital, visitors to the destination were “Retailers that participated in the activation as a ‘dinosaur feeding station’ performed better than those who were not involved, again showing the direct, positive influence of the campaign on our tenants.” Clegg says that given the success of Dinosaurs Unleashed, the centre would continue to adopt new digital experiences and invest in an immersive campaign like this in future, explaining that the competitive nature of the app meant that users were engaged for long period of time, while features of the app also encouraged return visits to keep the dinosaurs fed and healthy, and prompted users to explore the destination and various retailers. “The worlds of virtual and augmented reality present endless opportunities for unique and imaginative experiences, which enhance everything Liverpool One already has to offer,” she adds. RAUROSAURUS In August the Lexicon Bracknell launched a three-week T-Rex encounter, installing the UK’s largest animatronic dinosaur – 18m long and 8m tall – called ‘Raurosaurus’ outside its Marks & Spencer and H&M stores. The centre saw a significant uplift in footfall, with some stores reporting up to 14% more visitors and a 27% increase in sales, and the car park at Princess Square, 28 | OCTOBER 2019 www.retaildestination.co.uk
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