Passion for fashion
Published: 17 July, 2008
Since Land Securities bought the galleria in Hatfield in October 2005, the factory outlet centre - located above the M1 motorway in Hertfordshire - has been transformed into a real success story with a marked increase in visitor numbers, dwell time and non-food spend.
Having put in place a five-year plan, Land Securities has used its experience at Gunwharf Quays to turn the galleria into an outlet centre that appeals to its primarily young and female target audience.
A new brand was developed to appeal to this market, and while the name of the centre was kept the same, a 'Star Quality' tag line has become the basis for all brand and marketing material for the 320,000-sq ft centre, which was re-launched at Easter 2007. Along with the new branding, the centre was upgraded in order to deliver on its 'Star Quality' promise. This included new landscaping, a simple upgrade to the car park, new signage, as well as a raise in standards of all the various operations, including security, cleaning and customer services in the individual retail units.
"We communicated to the tenants, the public and the media about the commitment Land Securities was making to the centre and the fact that it wasn't a quick fix - we would take it on a five-year journey," says centre director Tim Stirling. However, he says he has already seen many marked improvements.
Spend has significantly increased against spring last year, while indicators of shopper satisfaction, which include safety, cleanliness and choice of shops, have improved, with some showing huge improvement.
"Before the re-branding, our research showed that in the early days customer service was bad," says marketing manager Jude Tarr. "So we launched a Striving for Excellence programme to incentivise the retailers to lift their standards and aim for Star Quality."
This year, the awards programme, run in conjunction with Gunwharf Quays and paid for by a landlord contribution, has rewarded five tenants with a trip to New York for their commitment to customer service and sales performance. In addition to a 15 per cent year-on-year uplift on how customers are perceiving customer service, average dwell time is up to 91 minutes - 10 minutes longer than the same week last year - and the average non-food party spend is up 22 per cent year-on-year. "It's a strong indicator that we're starting to get it right in terms of what the customers want," adds Stirling. "We're also seeing an increasing number of younger people shopping here."
Stirling also puts this change partly down to the events programme, which includes live performances, commercial activities and community events, as well as the increasing popularity of outlet shopping during the current economic downturn.
The tenant line-up has also evolved, and keeping the tenants on short-term leases means Land Securities is able to ensure the mix is always in line with consumer demand.
Most recently the galleria, which is the closest outlet centre to London, has signed three new national retailers - Wonderbra, Past Times and Jeff Banks. Since April 2007, the centre has secured 18 new tenants including Nike, DSL selling Diesel, Calvin Klein Underwear, Gant and Le Creuset.
At the moment the centre is at 97.2 per cent occupation. Recent research has also indicated that shoppers would like to see a hairdresser/nail bar open at the scheme, which is fast becoming a destination centre.
Next, the centre will be expanding its catering offer, having just secured planning permission for 7,801 sq ft of additional restaurant and café space in the undercroft area under the Odeon cinema.
The enclosed mall area, which will have four new branded units, is set to open in time for Christmas. The new units will take the number of restaurants/cafés up to 14.
"We're creating space for more restaurants, which is great news considering the numbers coming out of our catering spend and how many people are looking for table service restaurants," says Stirling. "They can enjoy great mall shopping during the day and a night out as well. Sixty per cent of customers stop to eat and drink something in the galleria."
Other opportunities for expansion lie underneath The Bridge (the link between the shops and the cinema where the majority of restaurants are currently situated) and Stirling hopes to use this space to add to the mix further to ensure the galleria is more than just a shopping centre.
"It is a journey," concludes Stirling. "We're pleased with what we've done in phase one and we've had good feedback. We feel we're going in the right direction."
----
=== vital statistics ===
the galleria
Owner: Land Securities
Letting agents: Brian Oakwell & Co, twentyretail and Head Retail
GLA: 320,000 sq ft
Footfall: 100,000 a week with approx 6 million a year
Dwell time: 91 minutes
Anchors: M&S, TK Maxx, Waterstone, HMV, Sports World, Odeon
Prime catchment: 7.3 million shoppers within 60 min drive
