Hard Times
Published: 07 February, 2009
Shopping Centre magazine has long championed the role of the shopping centre manager. But now that role is coming under greater pressure than at any time in living memory.
The collapse of Woolworths and the rush by Baugur for protection from its creditors will be final proof to anyone still in doubt that retailers were not crying wolf when they asked property owners to help with their cashflow.
I myself was sceptical to begin with. But I now feel a shift to monthly rent payments looks inevitable.
However retailers look at their total property costs, not just rent, and service charges are coming under close scrutiny. If places like Meadowhall are leading retailers to expect a 20 per cent cut in the budget they are going to expect that elsewhere as well.
That has serious implications for manning levels and service standards in centres across the country. And smaller centres might find it harder to achieve savings on such a scale because they are unable to exploit economies of scale that can be found in the megamalls.
Managers are going to have to maintain spend in areas that affect shopper safety, because they have a moral and legal obligation to the public. But elsewhere something is going to have to give.
In one of our Christmas features we highlight centres that have been adopting a ‘do-it-yourself’ approach to Christmas decorations and events. A few more might be going down that road next year.
What else could be done on a cut-price basis? Next month’s Shopping Centre Management conference in Liverpool includes a presentation by Hempstead Valley’s Su Button, who has long been running marketing campaigns on a shoestring.
But the big savings will be found in the labour-intensive areas of security and cleaning, which could mean job losses.
So suppliers to the industry had better start sharpening their pencils, because the next time they bid for work they’ll find the old pricing model has gone out of the window.
Graham Parker, editor
