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FSP RETAIL BUSINESS CONSULTANTS Developing a Coordinated Approach to Town Centre Policy Encouraging Renewal & Investment Kenneth S. Gunn

Town Centre Strategy | FSP

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FSP advises clients on developing a co-ordinated approach and good practice to add value to their town centre assets.

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Page 1: Town Centre Strategy | FSP

FSP RETAIL BUSINESS CONSULTANTS

Developing a Coordinated Approach to Town Centre Policy Encouraging Renewal & Investment

Kenneth S. Gunn

Page 2: Town Centre Strategy | FSP

FSP Services

FSP RETAIL BUSINESS CONSULTANTS

Market Intelligence Aviva Investors, Hammerson, Legal & General and M&G Real Estate

Pre Acquisition Assessments Fremlin Walk SC, Maidstone Gracechurch SC, Sutton Coldfield St Enoch SC, Glasgow

Strategy Studies Bournemouth Town Centre Strategy Croydon Regeneration - Focus Groups Royal Arsenal Woolwich

Impact and Capacity Studies Bracknell Regeneration Partnership Victoria Gate SC, Leeds Watermark, Southampton

Leasing Support Coastal House / Talbot Gateway, Blackpool Swan Walk, Horsham Union Square, Aberdeen

2 February 10, 2015

Page 3: Town Centre Strategy | FSP

Most Improved Towns

February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 3

Top 100 Centres - Greatest Improvement

NSLSP Location Ranking 2012 Ranking 2007 Ranking 2002 Change 02/12 Change 07/12

Livingston 81 106 144 63 25

Basingstoke 78 88 134 56 10

Bury 70 97 103 33 27

Uxbridge 72 78 100 28 6

Maidstone 61 69 81 20 8

Romford 26 29 43 17 3

Derby 23 35 39 16 12

Poole 75 79 89 14 4

Solihull 62 70 73 11 8

Chelmsford 49 59 60 11 10

Page 4: Town Centre Strategy | FSP

Understand Catchment and Consumers

February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 4

0% 5% 10% 15% 20% 25% 30% 35%

Wealthy Executives

Affluent Greys

Flourishing Families

Prosperous Professionals

Educated Urbanites

Aspiring Singles

Starting Out

Secure Families

Settled Suburbia

Prudent Pensioners

Asian Communities

Post-Industrial Families

Blue-Collar Roots

Struggling Families

Burdened Singles

High-Rise Hardship

Inner City Adversity

Wea

lthy

Ach

ieve

rsU

rban

Pro

sper

ityC

omfo

rtabl

y O

ffM

oder

ate

Mea

nsH

ard-

Pre

ssed

Expected Shoppers Residents

Source: FSP/ CES / CBRE / CACI

Page 5: Town Centre Strategy | FSP

Understand Evolving Trends

FSP RETAIL BUSINESS CONSULTANTS 5

Source: FSP

February 10, 2015

Page 6: Town Centre Strategy | FSP

Understand Trading Gaps

FSP RETAIL BUSINESS CONSULTANTS 6

FSP’s retail audit estimates Non-Grocery sales in High Wycombe to be £212m. This is 37% market share of shopper expenditure (£593m) The Trading Gap is £73m, of which £45m is available through better serving existing shoppers (21% uplift)

Source: FSP

0 40 80 120 160

F&B

Leisure Goods

Household Goods

Personal Goods

Clothing & Footwear

£m

Town Retail Sales Eden Centre Retail Sales Trading Gap

Town Retail Sales£72m

Eden Centre Retail Sales

£139m

Trading Gap£73m

February 10, 2015

Page 7: Town Centre Strategy | FSP

Understand Occupiers

FSP RETAIL BUSINESS CONSULTANTS 7 February 10, 2015

Page 8: Town Centre Strategy | FSP

Understand Occupier Sustainability

8

FSP’s retailer sustainability assessments highlight retailer and income risk across assets as demonstrated with this fictional location

Source: FSP

FSP RETAIL BUSINESS CONSULTANTS February 10, 2015

Page 9: Town Centre Strategy | FSP

Develop Relevant Solutions

FSP RETAIL BUSINESS CONSULTANTS 9

Nice restaurants

Fashionable, trendy Safe

Culture

Good shops

Happy Our sort of people

Farmers’ market

A place to escape to

Business people

Greenery

Collage Boards from Consumer Focus Groups assist in developing Future Visions for assets

February 10, 2015

Page 10: Town Centre Strategy | FSP

Improve Visitor Satisfaction & Performance

February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 10

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Number of Visits

Length of Stay

Spend per Visit

% Improvement over Detractor Average

Passive Promoter

Source: FSP

Page 11: Town Centre Strategy | FSP

How Do We Encourage Investment & Renewal?

February 10, 2015 FSP RETAIL BUSINESS CONSULTANTS 11

Use Market Intelligence to create a commercial Vision

Which is realistic given the scale and nature of the market opportunity

Which is robust given market trends

Which can be delivered within a sensible time frame

Which is achievable, affordable and profitable for the investor

Which reflects the current and future needs of consumers

Which is bespoke to the town

Which is profitable for the occupier and consistent with current real estate strategy

Which can be delivered by a variety of professionals

And critically, FSP works as a team alongside Investors, Marketing Agencies and Leasing Agents to deliver the Vision

Page 12: Town Centre Strategy | FSP

Co-ordinated Approach to Policy

FSP RETAIL BUSINESS CONSULTANTS

A co-ordinated approach must also involve investors and consumers. Ownership however, is highly fragmented and consumers are very different across the country, so policy must be flexible Consumers, occupiers and investors are dependent upon each other Every town is different and so from a practical sense, a certain amount of policy decisions must be local Weak management means that many town centres are not as efficient in converting potential expenditure into sales as they might be This suggests potential to increase turnover and investment through a co-ordinated approach Profitability is key for commercial investors and occupiers Lastly, it is important for policy to recognise and embrace successful trends, for example;

Consolidation of comparison goods into major centres Globalisation of occupiers The growth of Leisure and F&B participation The growth on convenience stores The need for value for money

12 February 10, 2015

Page 13: Town Centre Strategy | FSP

FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE

T +44(0)1494 474740 F +44(0)1494 474262 [email protected]

www.fspretail.com www.snap-shop.co.uk

Ken Gunn Director T +44(0)1494 474740 M +44(0)7773 779919 F +44(0)1494 474262

[email protected]