Retail Property Insights

Watch the Innovation Studio: Should you buck the trend?

Landlords and tenants must work together and share data to succeed, said members of the panel at Completely Retail Marketplace’s Innovation Studio session, ‘Should You Buck The Trend?’. The relationship between tenant and landlord has been historically “adversarial” with each party looking after their own data, said Matt Slade, retail director at Quintain. He explained: “The pandemic’s forced everyone to approach this as very much a partnership. So with all of your brand partners you need to come together and share your homework.” Slade’s thoughts were echoed by fellow panel member John Hoyle: “It should be open source effectively. Everyone’s trying to serve the same, ultimate, customer”, said the Sook CEO and founder. Hoyle added: “The adversarial nature of landlord/tenant, if we can change that, we’ll be much more profitable, fairer, and we’ll learn a lot more.” They were joined by Jason San Diego, CEO and founder of Pathzz, to discuss trends in the marketplace and how data can be used to bring more consumers to retail and leisure destinations. On the importance of data, he said that from the perspective of both landlords and retailers, it’s about “identifying the needs of the communities, and best serving them.” He believed […]

Occupiers look to location economics

With lease lengths having progressively shortened and rents significantly rebased, property has become less of a financial factor for retailers and F&B operators who are looking to expand or reorientate their networks. While the level of business rates remains a material consideration and staff costs have risen since the pandemic and Brexit, occupiers are increasingly looking to data regarding the economic setting of potential new stores and how their offer may fit target locations. The retail industry and the property sector which supports it are no strangers to population demographics but a growing band of businesses are now looking to the wider economic picture across the UK to guide their strategy. There is a direct correlation between economic vitality and the drivers of a local economy with its ability to sustain certain types of retailing. And, of course, especially at times like these, retailers who are ‘value propositions’ will invariably not be looking for economies that are on the upgrade as they are targeting people who are carrying out a downward shift in their spending habits. To get a more complete picture of what is happening across a local economy, you need to consider more than the ‘ABC1’ etc demographic...

Watch the Innovation Studio: A taste of the future

Employing staff is the biggest challenge for the food and beverage (F&B) industry, said the panel at Completely Retail Marketplace’s Innovation Studio session, ‘A Taste of the Future’. “I think staffing remains a really big problem, and we’ve certainly seen operators pull back from growth, because they physically can’t get any staff”, said Thomas Rose, co-founder of P-Three. He was joined by Ruvan Sangra, head of restaurant and leisure at Lunson Mitchenall, to discuss the issues the F&B industry is facing and how businesses are adapting. “We’re seeing some operators actually close sites on certain days, whether that be a Monday or Tuesday, purely because they can’t get the right teams in place,” added Sangra. When asked about demand, Rose said that it was “surprisingly robust”, despite challenges such as the cost-of-living crisis on consumer confidence. Sangra was also optimistic: “Q1 2023 has probably been better than what was anticipated, which is great”. Yet it could be “survival of the fittest” in a saturated market, the panel suggested. “Brands don’t have cap ex (capital expenditure) to invest, but if you can’t invest, you won’t succeed”, said Rose. When asked how businesses can navigate that challenge, Rose suggested that social media […]

Tech gives retail sector the ‘kiss of life’

27th April 2023

Retail is the third biggest recruiter for tech talent, behind big tech and banking according to a new report from recruiter Robert Walters. Demand for tech jobs in the retail space increased by 16% in Q1 of this year, and the number of vacancies in the past 12 months topped pre-pandemic levels by 59%. The development of technology in all its forms, from apps to VR, has given the UK’s retail industry ‘the kiss of life’ with tech roles now representing a quarter of all new retail vacancies. The findings have also revealed that the retail sector has been slow to innovate behind other industries, with that gap now quickly closing. Mat Knutton, Associate Director of Robert Walters, said: “The arrival of tech has been the retail industry’s saving grace. From fintech driving online sales, automation software solving skills shortages and saving on delivery times, to augmented reality allowing customers to virtually try-on products – reducing the number of customer returns. “All of these transformations are futureproofing retail and giving the UK’s largest single employer a chance to stay in the game. Employment won’t necessarily decrease, the roles will ultimately change, with tech and digital being at the core.” Virtual […]

A guide to renting a shop in Newcastle

17th April 2023

Looking to rent a shop in Newcastle? Here’s what you need to know. Newcastle upon Tyne, or more commonly known as just Newcastle, sits on the River Tyne’s northern bank and is the most populous city in North East England. The city’s growth can be largely attributed to its port and it was once home to one of the world’s largest shipbuilding and repair centres. However nowadays Newcastle’s economy is a lot more varied, with a strong output in science, finance, retail, education, tourism, and nightlife making it an ideal place to rent a shop. Attractions Newcastle is widely famed for its nightlife. Andrew Roberts’ Rough Guide to Britain placed the city’s nightlife as Britain’s number one attraction. Bigg Market, Collingwood Street (sometimes called the ‘Diamond Strip’), Neville Street, and the Central Station area are all home to large numbers of bars and clubs. The LGBT+ friendly ‘pink triangle’ is concentrated on Times Square. Mention Newcastle to someone and a lot of people’s first thought might be the club’s iconic football club. Newcastle United play at the huge 52,000-capacity St. James Park, which also doubles as the city’s largest music venue. The city is also home to more traditionally ‘highbrow’ forms of […]

Economy falls flat in February but retail trade sees biggest growth in months

13th April 2023

The UK economy saw no growth in February as strikes from public sector workers offset a rise in gross domestic product (GDP) in the construction sector. However, output in consumer-facing services saw an increase of 0.4%, with retail trade (excluding motor vehicles and motorcycles) growing by 1.2%, the largest increase since October 2022. Food and beverage services also saw growth of 0.4%. Broadly, GDP saw growth of 0.1% in the three months to February 2023 compared to the three months to November 2022. Services grew by 0.1% in the three months to February 2023, while production fell by 0.1% and construction grew by 0.9%. Compared to the same month last year, February 2023 saw an increase in GDP of 0.5%. The Chancellor has said that the results show that the UK will avoid a recession. However the opposition have criticised the Government, with Labour saying that the UK was “lagging behind on the global stage”.

Neil Hockin: What UK retail could look like in Summer 2023

With inflation easing, business rates rebased and retailers looking ahead with restored confidence in UK plc, Neil Hockin of Lunson Mitchenall asks what UK retail could look like come Summer 2023. Recent economic forecasts paint a more optimistic picture for Q3 and Q4 than they did only a few months ago. Forward looking interest rate curves suggest they have virtually peaked and are projected to fall by Q4. For consumers fatigued from months of caution and cutting back, this news should come as a relief; there is now good reason to expect the paring back of spending will wane. This all compounds to mean there’s reason to be optimistic about retail again. That said, following a string of closures and with several underperforming retailers, what will high streets look like come summer and beyond? To gauge what the makeup of our high streets might be, we can look to those that have weathered the storm of recent years. Next is the bell weather of the retail market and, with profits up by 5.7% to £870m, they are a massive UK success story. Next entered the online retail world with a head start; back in the ‘pre-internet’ days, the Next Directory, […]

Research reveals Brits opting for lower cost F&B options

28th March 2023

Lower priced hospitality venues are seeing strong signs of growth as British consumers’ budgets are squeezed, new data has found. Research from CACI’s Brand Dimensions data platform found that the majority of lower spend food and beverage (F&B) businesses saw growth during 2022, as higher inflation and the cost-of-living crisis puts consumers under pressure. The data platform found that from November 2021 to November 2022, 83% of F&B brands with an average transaction value (ATV) of under £15 saw strong market growth. This included operators Pret a Manger, Greggs, Tortilla, Chopstix, and itsu. Meanwhile for operators with an ATV of £30 or more, only 29% saw an increase in market growth. Other brands with clear campaigns have also done well, with restaurant groups such as McDonalds, Franco Manca, and KFC all creating loyalty programmes which have seen their market share increase by upping both visit frequency and customer spending. CACI’s data also found that pubs and bars saw a growth in market share of 38% in the final quarter of 2022, compared to 2021. However, average spend is down 16%, suggesting customers are moving away from buying their friends rounds of drinks as they look to take control of their […]

Consumer confidence continues to increase

24th March 2023

Consumer confidence rose again in March, following a bounce back in February. GfK’s long-standing Consumer Confidence Index increased by two points in March, following a rise of seven points in February. However, the overall score still sits at a low -36. Consumer opinions of the general economic situation for the last and next 12 months, as well as the major purchase index (how likely consumers are to make expensive purchases), were all up. Consumers’ feelings over their personal economic situation were more pessimistic, while the metric measuring personal financial situations over the previous 12 months was unchanged. The savings index, which is not incorporated into the overall score, increased by two points. Joe Staton, client strategy director at GfK, said: “A small improvement in the overall index score this month masks continuing concerns among consumers about their personal financial situation. This measure best reflects the financial pulse of the nation and it remains weak”. “Just having enough money to live right and pay the bills remains the number one concern for consumers across the UK”, he added.

Highbury & Islington on top of London’s most resilient retail neighbourhoods

23rd March 2023

Highbury & Islington has been ranked as Greater London’s most resilient retail neighbourhood by real estate advisor Savills. Fellow North London neighbourhoods Kilburn and Holloway Road came a close second and third. The study utilised a number of metrics including vacancy rates, footfall, new openings, population growth, and household incomes to determine London’s top 40 markets from Zones 2-6. Highbury & Islington’s high ranking is thanks to its large population (64% higher than the study average), strong footfall figures and transport links, and a boost from the newly-renovated Angel Central shopping centre, Savills said. Josh Arnold, commercial research analyst at Savills, said: “Ongoing flexible working arrangements have led to an increase in localised spending as people spend more time in their local neighbourhoods. This is reflected in sales figures and new openings for a number of retailers, with many reporting an uplift in sales vs pre-pandemic for suburban areas, which in turn has influenced expansion plans.” After Kilburn and Holloway, the remainder of the top 10 is made up of a number of emerging London neighbourhoods, including Dalston, Walthamstow, Finsbury Park, Brixton and Tooting. The emerging neighbourhoods are supported by an emerging population, as well as a vibrant retail and...

Jon Munnery: Is it the prime time for discounters?

23rd March 2023

Nearly a quarter of the UK grocery market is made up of discount retailers, such as German discount chains, Aldi and Lidl. Fast growing, discounters are taking up more real estate as consumer demand increases and shoppers turn to cheaper alternatives. As economic conditions toughen, more customers want their money to go further which is the core offering of discounters. According to global market researchers, Mintel, shoppers were expected to spend £32.4 billion in 2022 with discounters, an annual increase of 6.6%. This is on a steady rise as consumer appetite for cheaper options, such as Aldi and Lidl, increases as they cope with the cost of living crisis, inflation, interest rates, post-Brexit and Covid-19 uncertainty. Aldi took over fourth place in the grocery store ranking from Morrisons for the first time, according to Kantar’s research on grocery market share in Great Britain between 2017 and 2022. This shows that discount grocers are gradually overtaking the original big four that ruled the market over a decade ago; Tesco, Sainsbury’s, Asda and Morrisons. As shopper behaviour shifts, so do the perception of shopping at a discounter. Change in perception It’s no longer unheard of to shop at a discount store as […]

A guide to renting a shop in West London

22nd March 2023

Considering renting a shop in West London? Here’s what you need to know. To the north west of the Thames, the exact confines of West London are sketchy, however, a 2011 publication by the Mayor of London defined West London as the boroughs of Brent, Harrow, Hammersmith and Fulham, Hillingdon, Hounslow, and Richmond upon Thames. Other areas such as Ealing, Brentford, and Kensington and Chelsea are considered West London, although the latter is covered in our Central London guide. Traditionally considered to be home to the city’s rich and famous, West London is a great place to rent a shop. Attractions West London brings in thousands of tourists who come to watch some of the big names in football. Premier League heavyweights Chelsea actually play their football in Fulham, just down the road from the borough’s namesake club. Brentford and Queens Park Rangers are just a couple of other clubs in a part of London that loves football. It’s not just football for sports fans in West London, though. It also hosts the home of English Rugby, Twickenham Stadium. Hampton Court Palace in the borough of Richmond upon Thames is a great option for history lovers, one of King Henry...