And this time round it's not a matter of taking imposing stone-clad edifices that speak of security, authority and unapproachability. HSBC is opening branches in places where no bank has gone before. And they certainly don't look like traditional banks.

Responsibility for this new approach to the branch portfolio lies with head of property, Vivienne Grafton. "We're adopting a multi-channel approach, just like any other retailer," she says. "It's indicative of a new approach as our customers become more demanding."

Reflecting this, HSBC is bringing in expertise from mainstream retail businesses. For instance, a new designer has just been hired from Dixons. And to drive the acquisitions programme, Grafton has recruited Duncan Giles from fashion retailer Monsoon. His immediate task is to do 100 deals this year, and potentially 200 more over the next couple of years. CBRE has been retained as property adviser to help meet this target.

Shopping centre locations are high on Giles' list of priorities, although he recognises that in the past some owners and managers have been unwilling to lease mall units to banks, seeing them as 'dead frontage'. "We've done research which proves that banks can be a footfall driver," Giles explains. "Landlords are beginning to recognise that a bank can be a positive benefit for a shopping centre."

Trading hours have been a bone of contention in the past as well, with banks closing when some other retailers are only just gearing up late-night shopping. The bank insists it is now more flexible and the new 'stores' will meet the needs of today's sophisticated and increasingly demanding consumer, adopting a modern service culture and blurring the division between banking and the more conventional retail offer.

The move away from the 'traditional bank' will be reflected in the service ethos, demonstrated by the recent introduction of extended opening hours at top branches to echo retail, not banking, hours.

Already HSBC has gone into Merry Hill and Meadowhall, and increased the size of its presence at Lakeside. However it's not just the mega-malls that Giles is targeting: a new branch has just opened in Modus' Grand Arcade development in Wigan. And it has recently taken a 6,000-sq ft unit at Standard Life's Water Gardens in Harlow.

But moving into a mall does not mean abandoning the existing high street branches. In Sheffield, for example, HSBC has just refurbished and extended its Fargate branch into a 15,000-sq ft 'destination' branch at the same time as it opened in Meadowhall.

As for location, Giles is not afraid to consider the unconventional. For instance, in Borehamwood, Hertfordshire, HSBC has just taken its first retail park unit on the Hercules Unit Trust's Borehamwood shopping park, agreeing a rent of £40 per sq ft.

HSBC's first out of town retail concept store will operate from a 2,500-sq ft unit created by the break-up of the former Iceland unit.

And Giles is prepared to go even further off-piste. "We're considering trialling drive-thru banking, and we're actively looking for sites," he says.

Another move has been the decision to convert an existing satellite branch in Bournemouth into a premium branch, serving only high net worth individuals within the unit while allowing everyone else to use the ATM machine. "Longer term that strategy will continue, but only in a few locations," says Giles.

Wherever it may be - high street, shopping centre or retail park - Giles is in for a busy couple of years.

Printer friendly version

Email this article to a friend