Retail Property Insights

Cost-of-living woes continue as November footfall dips

2nd December 2022

Data from BRC-Sensormatic IQ revealed that UK footfall declined in November by 13.3% compared to pre-pandemic levels. This fall was 1.5 percentage levels below October and worse than the three-month average decline of 11.5%. High Street footfall fell by 13.6% compared to pre-COVID levels, while retail parks and shopping centres saw a fall of 4.2% and 23.2% respectively. Northern Ireland saw the shallowest footfall decline of all regions, at 7%, while Wales was the most affected, seeing a dip of 16.2% compared to pre-pandemic levels. Interestingly, Belfast was the only UK city to see an uptick in footfall compared to 2019 levels, with an increase of 5.7%. This is a huge jump from the second best performer, Manchester, who saw a decrease of 7.6%. Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “Footfall took another stumble as the cost of living crisis put off some consumers from visiting the shops in November. Others opted to stay home due to the scattering of rail strikes, or chose the World Cup over shopping visits. Many big cities were particularly hard hit.” “Rising inflation and low consumer confidence continue to dampen spending expectations in the run up to Christmas”, she […]

The new recipe for shopping centre success

30th November 2022

The shopping centre sector has long seen levels of vacancy above those of high streets and retail parks. With their elevated level of exposure to major chain brands affected by CVAs and administrations, shopping centre vacancy peaked over the pandemic period. According to our recent analyses, shopping centre vacancy rates have begun a slow yet significant recovery following their all-time high in H1 2020. Our latest report reveals that, in the year to H1 2022, percentage net change in shopping centre units fell from -3.3% to -0.3%. Although vacancies remain, openings are picking up in line with growing market sentiment as investment and development plans continue to materialise. We compared 11 new schemes* across Britain to understand how they are responding to pandemic-influenced trends in consumer behaviour as part of the sector’s revival. Above-average leisure provision Over 50% of the 11 new schemes have an above-average percentage of leisure units compared to the GB shopping centre average of 23%. The drive for a higher proportion of leisure tenants speaks to the more experiential focus of today’s shopping destinations. F&B tenants, along with other leisure occupiers such as mini-golf and bowling brands, are prized for their ability to increase dwell time...

Packaging expert reveals top tips for sustainability in business

24th November 2022

Sustainability is fast becoming one of the most important aspects of running a business. Many companies are increasingly focusing on meeting ESG (environmental, social, and governance) targets and for retail businesses, ensuring your products are sustainably sourced can be a great drawing point for eco-conscious customers. Roger Wright is waste strategy and packaging manager at Biffa, a waste management company, and has given seven steps for businesses to consider when choosing products to purchase: Packaging’s origin storyIs the packaging necessary in the first place? Don’t be afraid to challenge your supplier and refuse to accept extra packaging if it’s unnecessary. Any extra packaging should be sustainably sourced. The product or serviceMake sure to check the credentials of the product being packaged. You don’t want to get caught out for exaggerating any eco-friendly claims. The supply chainWho has physically made your packaging? Are they fairly treated? How far has the packaging travelled? Is the finished product under or over packaged for the channel it’s being sold in? Retail therapyHow does the packaging feel? Does it make you happy? Would a customer feel incentivised to keep it, rather than throw it away? Try to understand customer psychology when picking your product. FunctionalityHow […]

UK’s priciest street for shopping costs retailers more than double second place

23rd November 2022

New Bond Street in London remains the most expensive street for retailers in the UK, with £607 per sq ft rents more than double that of Sloane Street, the country’s next most expensive. Research from Cushman & Wakefield (C&W) showed London retail’s rental rates were still operating below pre-pandemic levels. New Bond Street’s levels were 11% below pre-Covid levels, while Covent Garden saw a drop of 30%. The research said that the 144 stores on New Bond Street showed vast differences in performance, and suggested that rental levels were based mostly on neighbouring businesses, rather than the size or quality of the property. The middle, “up and coming” section of the area, starting at Conduit Street and ending at Maddox Street, is expected to see a growth in rent prices of 20-30% over the next year. Meanwhile, the jewellery quarter demanded the highest rents, at an average of £2,150 per sq ft. The area by Oxford Street was found to be the cheapest and contained the majority of vacant stores, although the research suggests this number is declining. Gucci’s impending move to New Bond Street is expected to lead an influx of luxury retailers to the area, according to C&W’s […]

Rapid grocery delivery firms struggle as cost-of-living crisis escalates

21st November 2022

Rapid delivery start-ups received heavy investment in 2021, but 12 months on it appears their days are numbered, with consumer use declining, according to NTT DATA. NTT DATA surveyed 2,000 grocery shoppers in the UK, focusing on inner city areas where rapid delivery is available. The study found that just under a third of residents use rapid delivery services. Of this proportion, more than half (59%) are now decreasing their use as cost becomes more important than convenience. 92% of consumers state cost is one of the biggest decisions for where and when to purchase their groceries, followed by quality at 77%. Delivery firms have invested in larger marketing campaigns and discounted delivery to keep customers coming – however the outlook still looks bleak as the cost-of-living crisis continues. Geoff Lloyd, Director of Retail at NTT DATA UK&I, comments: “As a result of food inflation and the current cost-of-living crisis, consumers are becoming more cost conscious with their purchases and are prioritising this over convenience.” “As a result, fewer consumers are now willing to accept the higher cost that comes with the Q-commerce model, whether it is through higher pricing of products, or additional costs they need to pay for […]
Big Ben, London

A guide to renting a shop in Central London

21st November 2022

Considering renting a shop in Central London? Here is what you need to know. Defined as the innermost region of the capital, Central London covers the boroughs of Camden, Hammersmith and Fulham, Kensington and Chelsea, Lambeth, Southwark, Tower Hamlets and Westminster. The retail industry today currently accounts for about 40% of all money spent in London and 9% of all employment in the metropolitan area. Moreover, in recent years the city has become much more accessible for small businesses and start-ups. Check out shops to rent in London on Completely Retail Attractions As well as being the central base for government offices, embassies, and the business and financial district, Central London has much to offer tourists, who visit in their millions every year. In Central London, you can find the city’s most iconic sights, such as Big Ben, the London Eye, Buckingham Palace and Westminster Abbey, as well as an array of museums and galleries including the British Museum, Tate Modern and the Natural History Museum. Central London is even home to some beautiful and busy green spaces. Hyde Park, Kensington Gardens, and St. James’ park are among London’s Royal Parks. Demographics Central London’s population is 1.6 million, which is over...

Brits prefer to save than spend this Black Friday

21st November 2022

Consumer research platform Attest has today revealed that over half (58%) of Britons will cut back on spending habits this Black Friday, as the cost-of-living crisis puts a squeeze on consumer budgets. The reasons behind this include saving money in case they need it due to economic uncertainty, prioritising money to cover day-to-day expenses, paying for home energy bills, and other worries including mortgage payments and concerns about job security. However, most (74%) consumers said they intend to spend at least something this Black Friday. The research revealed that most were uncertain on how much money they would spend. Last year, Attest found that Brits spent an average of £100-200 (at 30%) on Black Friday, yet this year people were most likely to say that they were unsure how much they’ll spend (24%), followed by £51-£100 (at 20%). The uncertainty also extends to what people will buy, with 34% saying they were unsure of what they would buy. High Street sales may also take a hit, as the majority (63%) of participants will solely make purchases online, with Amazon the most popular retailer of choice. Meanwhile, 77% of Brits will change their spending habits this festive season, by giving fewer […]

Retail sales see boost but remain below pre-pandemic levels

18th November 2022

Shop sales increased in October, but still fell short of pre-pandemic levels, according to official figures. Data released by the Office For National Statistics (ONS) showed an increase in retail sales of 0.6% in October, following a fall of 1.5% in September. These increases were seen in all of the main sectors except for food stores, where sales volumes fell 1.0%, 4.1% lower than their pre-coronavirus levels in February 2020. However, sales volumes fell by 2.4% in the three months up to October, in line with a downward trend seen since summer 2021. Non-store (predominantly online) retailers have continued to show increased performance since the pandemic. They saw a rise in sales of 1.8% in October following a fall of 2.5% in September, with sales volumes 21.2% above February 2020 levels. The proportion of retail sales taking place online was 26.1%, broadly in line with levels seen since May. September’s sales were affected by the bank holiday for Her Majesty Queen Elizabeth II’s funeral, which saw some businesses closing or operating differently. Various factors have affected consumers’ spending power: Higher energy prices, rising levels of inflation and huge amounts of unemployment have all contributed to an ongoing cost-of-living crisis which […]

Watch: The landscape of out-of-town retail

17th November 2022

Despite the retail industry being hit with a variety of challenges, the out-of-town sector has remained largely resilient, with vacancy rates 40% lower (at the height of the pandemic) than town centre shopping mall counterparts, according to the latest LDC report. We sat down with Georgie Brooks, Matt McCue, Matthew Reed and Miles Marten at Completely Retail Marketplace 2022 to discuss how the out-of-town sector achieved this, and what plans are being made to build on this strength. Georgie Brooks, director at Curson Sowerby Partners said that budget and discount retailers are largely protected in harder times: “They performed well during covid (although) they do have their own economic concerns; wage rises, rate rises, higher energy costs but they protected themselves with cap reviews, and they ought to benefit from the trickle down with consumers switching from mid-market brands to discount brands.” Although the sector has fared well, landlords aren’t complacent, and are still watching out for changes in consumption. Matt McCue, director at Savills highlighted that big ticket items such as furniture and kitchen stores may be more vulnerable. “We’re very well placed, we’ve seen lot of administrations over the last three or four years and that space has been filled […]

Majority of supermarkets offer zero EV chargers

16th November 2022

Research from Drax has found that the majority of supermarket stores still don’t offer any electric vehicle chargers, and those that do have an average of just two. While many supermarkets have begun investing in EV chargers, there’s a question over whether the sector is responding fast enough to the demands of a growing customer base. Charging at locations such as supermarkets has become an important part of the transition towards seeing more electric vehicles on the road, but the availability of EV charging points is relatively scarce. While petrol and diesel vehicles can fill their tanks in a matter of seconds, charging an electric vehicle to a sufficient level can take around 30 minutes. An average trip to the supermarket takes about 45 minutes. Offering EV ports in supermarket car parks can allow customers to charge their vehicles while they shop. According to ZapMap data, there are approximately 1,335 free to use EV chargers at supermarkets nationwide. However recent news that Tesco will charge a fee to use their chargers will change this. The Government has now mandated that non-residential buildings must have one charging point per every ten parking spaces. In addition, cable routes must be made for...

Autumn Statement: Retailers call for tax-free shopping for tourists

16th November 2022

The Association for International Retail (AIR) has released a report ahead of the Autumn Statement on Thursday calling for the reintroduction of tax-free shopping (TFS) for international shoppers. The research, carried out by Oxford Economics, claims that the reintroduction of TFS would sustain 78,000 jobs and £4.1bn in GDP by 2026. Tax-free shopping was scrapped after Brexit but was considered in the Government’s autumn growth plan. Plans to reintroduce the scheme were reversed in October. The Treasury estimated the scheme would cost the Exchequer £1.3bn in 2024/25, increasing to £2bn in 2025/26. However, the report claims that the modelling used in this estimation was inaccurate. It added that it failed to account for the effects of incentives to visit and shop in the UK. The research suggests that international customers would be more incentivised to shop in the UK due to lower prices. This would in turn stimulate the economy and result in £1.1bn in tax revenue for the Exchequer. The report from AIR, which represents British businesses with international customers, claims that the direct fiscal cost of reintroducing TFS would be over 70% less than the Treasury’s estimate, as well as lead to an increase in foreign visitor spending […]

How retailers can make the most of festive music

16th November 2022

It won’t be long before retailers begin the annual tradition of playing festive music (some perhaps a little too early) in their stores. Many people love it, but for some, hearing the same music over and over again can become a bit of a nightmare. That’s why it’s important to know when to play festive music without overdoing it. According to research from music licensing company PPL PRS, retailers should remember these tips: When to start playing Christmas music Most large retailers release their Christmas adverts around the November 5, and google searches featuring “Christmas music” begin to make an appearance in mid-November, peaking on December 13. Many people find Christmas music to be a part of the wider festive experience, so gradually increase the amount you play over time. This can help build anticipation for the holiday season while still keeping in tune with staff and customer needs. Diversify your playlists Being able to bring a variety of different styles of Christmas music is a great way to stop customers and especially staff from feeling fatigued. There’s plenty of different types of festive tunes you can play. Don’t be afraid to mix it up! Having diversity in your music...