Future of Town CentresNick Sewell, Director, NewRiver RetailPaul Wright, Director, NewRiver Retail
Place North West Retail Conference, City Tower, Piccadilly, ManchesterWednesday 27 November
Overview
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• An Introduction to NewRiver Retail• Death of the High Street?• The Counter Narrative
Consumer Discretionary vs. Non-discretionary Spend
• Re-Defining the High Street• Community, Partnership, Innovate, Invest• Case Studies
Leamington Spa Locks Heath Wallsend
• Conclusion
950 occupiers
NewRiver in Numbers
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£450 million assets under management
3.8 million sq. ft.
105+ million shoppers pa
24 UK-wide shopping centres
96% average occupancy
rate
New Look, Primark,
Co-operative, Superdrug
Tesco
Average purchase yield c. 9%
UK’s 4th Largest Shopping Centre Owner/Manager
Death of the High Street?
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Some High Streets are Underperforming
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There are too many shops and obsolete stock
Chronic under-investment
Decentralisation of towns - out-of-town retail and business parks
Competition
Property taxation
Inadequate parking
Some locations will not recover
High Street decline is symptomatic of poor performing Town
Centres
A Thriving town matters hugely; they are our economic and social
hearts
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The Counter Narrative
• Retail spend remained resilient
• Winners & Losers
• Food & grocery expenditure is capturing circa
45% of total sales .
• Retail spend remains resilient
• Positive annual growth between 2007 to 2012
• Recovery mode
• Population growth
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Retail Market
Town Centre
42%
Neighborhood16%
Out of Town Food23%
Out of Town
Non-Food9%
Bricks & Mortar Online
4%Pure play
2%
Catalogue & TV Shopping
4%
Retail Spend by Retailing Destination • Town centres capture 58% spend
• Non-store retail remains a small channel
• The cost of free delivery is unsustainable.
• Primark, Aldi, Poundland – stellar results
• Not bricks vs. clicks – multi-channel
• Out of town food remains a significant threat
Source: Verdict
Retail Market: Offline Spend Growth
2.40.9
-1.50.4 -0.4 -0.4 0.5 1.2 1.7 2.0 2.1
33.5
23.8
16.9 17.315.1 14.9 13.3 11.9
9.37.7 7.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Retail growth exc online sales Online sales growth
Spending growth online
Spending growth offline
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Change in sector expenditure £m 2007-11
Source: Verdict
The Consumer – Not just king but centre of the Universe
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Defining consumer behaviour: Polarisation of retail
Discretionary vs. non-discretionary
More informed.
More competition
Value, convenience, lifestyle
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Complex Range of Issues
• Convenience
• Clean, attractive, safe
• A broad range of services – community, housing, health
• The growing importance of Localism
• Markets / pop-up shops
• Lifestyle
Re-Defining the High Street – Its not just about retail
Community, Partnership, Innovate, Invest
• Collaboration on town strategy
• Economic partnership
• Investing in your town centre
• Relieve the burden of property taxation
• Embrace technology
• The heart of the community
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Conclusion
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UK Retailing Remains Resilient
• Retail is alive and kicking
• The consumer is more than just King
• Joined up thinking between key stakeholders
• Hands on asset management
• Investment is key
• Strong town centres = strong retail destinations
Discover more about NewRiver & the true value of retail
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Nick SewellExecutive [email protected]
Paul [email protected]
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