The March quarter day came and went, and it seems to have been less traumatic than many had forecast. The rush of retailers into administration that followed Christmas has not been repeated and initial indications are that the level of retail failures might be slowing.
Obviously, the most vulnerable retail brands have now been swept away, and in a Darwinian process we are now seeing the survival of the fittest. Could it also be that we are seeing a more pragmatic attitude amonglandlords who now realise that they simply cannot afford to have anymore voids?
Certainly the new concord on service charges is a useful reality check for centres that may have become a little to grandiose in their ambitions. A lot of it is just plain common sense. For instance, if it costs retailers more to staff, heat and light their units than they take through the tills on a Wednesday night between 8pm and 9pm then there really is no point in having the centre open at those hours.
And of course marketing campaigns should be targeted on those activities that really produce results in terms of footfall generation and driving sales. The problem, as Lord Leverhulme famously said, is: “I know half my advertising budget is wasted. I just don’t know which half.”
Of course it’s good news if the plan helps a few more retailers stay in business, and a few more store workers stay in their jobs. But we have to face the fact that under the new regime our shopping centres are going to be
a little less vibrant, a little less exciting than they have been in the past.
The challenge for centre managers is going to be to minimise the impact on the customer experience.
