Jones Lang LaSalle launches Retail Spotlight
Published: 21 September, 2011
Jones Lang LaSalle has launched Retail Spotlight, their first biannual overview on the performance of the UK retail and leisure sectors, at the BCSC conference in Manchester.
Guy Grainger, head of UK Retail at Jones Lang LaSalle said: “The UK retail market is at a cross road, particularly our high streets, which are the lifeblood of our communities. The industry needs to address the complex problem of obsolescent space and adopt new business models that meet the demands of the modern shopper. A realistic and combined approach between local authorities and effective town centre management is needed.”
The key findings of the overview showed that costs are growing at a greater rate than consumer spending and that the right space for retailers will be characterised by optimum sizing and configuration, in locations that have critical mass, destination appeal and stronger than average fundamentals such as high footfall and resilient consumer spending.
In line with this, the report recommends that Central London should be viewed as a completely separate market to the UK, where demand for space is high, fuelled by international retailers from Europe and the US but also UK brands investing more in prime flagship store locations.
In terms of vacancy rates, some regional towns could reach voids of as high as 40 per cent, underlining the need for the retail market to continue producing modern floor spaces, either through recycling existing stock or new development.
The report outlines that proactive asset management is the key to making existing floor space work hard and needs to follow eight key principles: optimising tenant mix, monitoring changing space requirements, managing occupier churn, maximising space use, extension and expansion, investment in infrastructure, addressing non-retail uses and scheme marketing.
“2011 has been a turbulent year and there is speculation that it might end with Christmas sales starting earlier than ever,” said Grainger. “Most consumers have felt the squeeze and altered their shopping habits and this pressure will continue into Autumn. For retailers, landlords and developers to make strategic decisions it is more important than ever to be in touch with market events at ground level.”
