A1 autumn2012[1]

Fashion insight
Changes in the way
consumers shop
Super league
Competition hots up in
store for the big grocers
There’s no
place like home
Why the UK is attracting
international brands
Recipe for
successPho’s Stephen Wall brings authentic cuisine to the UK
autumn 2012

Many of the changes in customer behaviour witnessed in the past
decade have been accelerated by the hectic pace of life.And
this means that leisure time is particularly cherished by ever more
discerning consumers.
This could be perceived as a threat to retail,but there is also a clear
opportunity for those who can ally themselves to the right leisure
brands that generate footfall.Our interview with Stephen Wall,the
co-founder of innovative restaurant concept Pho (page 6),shows
why we are so keen to engage with those who are driving the
growth in spend in this sector.
The care and attention that is being put into our new developments,
both in terms of the consumer insight we generate and retail mix we
create as a result,is focused on creating
a destination brand.For instance,it is the
Trinity Leeds brand that will connect with
the people that will be its customers.
Centre operators have a responsibility
to optimise the retail mix and create
an attractive ambience.The next stage
in the evolution of the relationship between
retailers and landlords has to be increased
flexibility to allow the landlord to manage
the retail mix for the benefit of all in
a scheme.
A good piece of news is that the 2012
Olympics has reinforced London’s position
as one of the world’s greatest cities.It’s
helped to attract brands to the capital,
and once here they are then looking at UK
expansion (page 24).
Retailers have a choice about where they open new stores,and
whether they open new stores at all.If you imagine a world where
there are no shops and everything is sold online,you would only
choose to put shops in places where people congregate,where
they socialise,go to dine or to the cinema or theatre.We all need
to be mindful of this as we think about how the future of the sector
is shaping up.
All can benefit from
the right mix
Foreword
Richard Akers, executive director,
Land Securities
autumn 20122
22
14
16
There is a clear
opportunity for
those who can ally
themselves to the right
leisure brands that
generate footfall

24
d e s k t o pd e s k t o p
6 Pho co-founder Stephen Wall on his authentic Vietnamese food offer
autumn 2012 3
Contents
4 News All the latest deals, initiatives
and retail developments from
Land Securities’ shopping schemes
6 Interview Co-founder Stephen
Wall on the unique appeal of
his Vietnamese-inspired Pho
10 Fashion Insight into the
dynamics of the clothing and
footwear sector
14 Partnership Wi-fi is becoming
a necessity for consumers when
shopping in centres and stores
16 Dining The revolution of street food
is bringing new dining opportunities
to the UK’s retail destinations
18 Product Why own-label and
private-label goods give store
groups the competitive edge
20 Multichannel How Google’s
Product Search can help support
consumers’ shopping experience
22 Partnership Retailer engagement
strategy ensures new centres fulfil
their potential
24 International Why the UK is the
top location for retailers looking
to expand overseas
26 Grocers Supermarkets are
improving their in-store design
28 Development Land Securities
shows how with the right offer
edge-of-town and out-of-town
locations will prosper
30 Leisure The development of The
Cornerhouse in Nottingham makes
it a compelling leisure destination
32 Retail view A1 asks a panel of six
industry figures how they feel about
the prospects for the year ahead
34 Portfolio An overview of Land
Securities’ shopping centres, outlets,
retail parks and leisure centres
30

News
PartnershiP
retail
Fashion insight
Changes in the way
consumers shop
Super league
Competition hots up in
store for the big grocers
There’s no
place like home
Why the UK is attracting
international brands
Recipe for
successPho’s Stephen Wall brings authentic cuisine to the UK
autumn 2012
001_A1_September 2012v3.indd 1 29/08/2012 10:19
Produced by
autumn 20124
Primark is to open a 60,000 sq ft store at The Bridges
in Sunderland by Christmas 2012, after Land Securities
secured full planning permission for a £15m expansion of
the scheme and handed over to Primark on July 31.
The plans received widespread approval, following
a public exhibition, with 84% of respondents providing
feedback to the consultation saying the expansion
would improve the local area, and 78% saying it would
attract more shoppers to Sunderland. Primark joins
Superdry, Caffè Nero, Lush and upsized stores
for Topshop/Topman, JD Sports and Internationale.
Portfolio director Gerald Jennings said: “Our ambition
is to continue to strengthen The Bridges’ reputation as
one of the best shopping and fashion destinations in the
Northeast for the 21 million customers who visit each year.”
The deal is the latest in a series that Primark has struck
with Land Securities to open major new stores, including
at The Centre in Livingston in 2011, its new 85,000 sq ft
store on Oxford Street and the 106,500 sq ft store that is
to open at Trinity Leeds next year.
Department store retailer John Lewis has confirmed
that the first of its flexible format department stores will
open in October in Exeter.
The new format at Land Securities and The Crown
Estate’s Sidwell Street site has been created to allow
the retailer to open stores of a size in between its current
department stores and its smaller At Home format.
The Exeter store will offer the full assortment
including fashion, beauty, electronics and nursery.
The store will create 300 jobs in the city with 65,000
sq ft of selling space across five floors.
Land Securities development director Nick Davis
said the new store will “significantly strengthen the city’s
retail offer, improve people’s shopping experience and
add vibrancy to the high street. Our strong partnership
with John Lewis and Exeter City Council will benefit
residents and visitors to the city and will lead to further
inward investment into the city centre.”
Primark expansion progresses in Sunderland
October opening for John Lewis Exeter store
the new John lewis store in exeter will create 300 jobs
Special Projects Editor
Joanna Perry
Writers
David Brooks, Glynn Davis,
Mark Faithfull, nicola harrison,
George MacDonald, John ryan
Supplements Production Editor
tracey Gardner
Design
forty6 design ltd
www.forty6design.com
Publisher
tracey Davies
For Land Securities
Claire Reynolds
claire.reynolds@landsecurities.com
t +44 (0)20 7747 2390
Victoria Terry
victoria.terry@landsecurities.com
t +44 (0)20 7024 5046
© retail Week
all material is strictly copyright and
all rights were reserved. reproduction
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permission of retail Week is strictly
forbidden. the greatest care has
been taken to ensure the accuracy
of information in this magazine at the
time of going to press, but we accept
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the views expressed in the magazine
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Week or land securities.
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ashford, Kent

Other news
second green guide launched
Retailers and store designers have
a new guide to help them achieve
energy savings in their shop fit-outs in
the shape of Land Securities’ Low
Carbon Fit Out Guide. The document
was launched in June 2012 and
updates the well-received first version
that was published in 2010. Changes
include a more user-friendly format
and advice on the recent and future
changes to relevant legislation.
Business fund supports Glasgow
Land Securities is one of the
supporters of the ARISE Glasgow
community project fund that
supports local initiatives by the
businesses of the Buchanan Quarter.
The fund offers up to £1,000 per
application and can be applied for
by education, employment,
environment and sporting projects.
The funding will be allocated by an
independent selection committee
made up of local business,
academic and political leaders.
Victoria plans take shape
Plans to redevelop Kingsgate House
in the heart of Victoria with office,
residential and retail space are now
under way. The proposed 341,000
sq ft development will create two
buildings – Kings Gate and 70
Victoria Street – as well as public
space. The redevelopment of this
strategic asset marks the latest step
in the company’s ambitious plans to
create a Victoria for the future. Other
milestones include the refurbishment
of 123 Victoria Street, an icon of 1960s
design and part of the fabric of
Victoria, due for completion in late
summer 2012.
The winner of the first Trinity Leeds Short Film
Award is to be screened in an Everyman Cinema in
London following the prize announcement.
Everyman Cinema – which will open its first cinema
outside London in Trinity Leeds in March 2013 – has
supported the 2.8 Days Later film challenge, which
was delivered by Land Securities and film production
company Left Eye Blind.
The challenge involved 150 filmmakers from across
Leeds creating 27 three-minute short films, which
were publicly screened before a prize-giving at
The Carriageworks in Leeds earlier this year.
The winner of the top prize, ‘Immersed’, was picked
by a judging panel that included Sheffield-based
Barry Ryan of studio Warp Films, Leeds-based film
producer Howard Dawson and Everyman Group
chief executive Andrew Myers. Filmmakers who
took part said the experience had given them new
skills, as well as highlighting how much work goes
into different aspects of the process.
Trinity Leeds chose to support the initiative –
which involved the young filmmakers spending just
under three days writing, shooting and finishing their
shorts in November 2011 – because of the important
role that cinema will play at the centre and the city’s
filmmaking heritage.
2.8 Days Later film winner announced
MarKetinG
DeVeloPMent
autumn 2012 5
US fashion chain Urban Outfitters is to create
one of its largest stores in the UK at the new
Trinity Leeds development.
The 12,000 sq ft flagship store is laid out over
three floors in an iconic building, and will have its
next-generation fit-out design.
Six months before the scheme’s launch date
in March 2013, Trinity Leeds is making strong
leasing progress, with 80% pre-let or in
solicitors’ hands.
Urban Outfitters joins a growing list of fashion
retailers – including Hollister, Superdry, Topshop/
Topman, River Island, H&M and Mango –
which will be opening in the centre in March 2013.
Other retailers to take space in recent months
include Footlocker, Fossil, Vodafone, Watch
Station and Internacionale.
They will join the many high street stalwarts
already committed to the scheme, which include
Marks & Spencer, Next and Primark.
Urban outfitters will introduce a next-generation fit-out for its flagship store opening at trinity leeds next year
Urban Outfitters signs up at Trinity Leeds

Interview
autumn 20126
CafePho co-founder Stephen Wall is one of a new breed of restaurant owners mixing authentic street
food with a premium casual dining experience. By Joanna Perry
“I
t’s the calm before the storm,” jokes Pho
co-founder Stephen Wall, as we take in the
surroundings of his Spitalfields restaurant
at 10am on a Friday morning, with staff
busying themselves in preparation for the
lunchtime rush.
Tables are already laid, the stocks for the restaurant chain’s
signaturenoodlesoupsareonthestove,andawaitressisbusy
preparing fruit for the fresh juices served. The buzz in the
restaurant matches the Hanoi-like atmosphere of the rain
storm brewing outside.
The Vietnamese-inspired restaurant has been open only a
couple of months, and is the latest in the expanding chain that
was founded in 2005 at a site in nearby Clerkenwell. Set up by
Wall and his wife and business partner Jules, the business
now operates seven restaurants in total – six in London and
one in Brighton – and growth plans are under way, with
venture capital funding secured from ISIS Equity Partners
to take the business to its next stage of development.
The story of how the idea for the business came to the
couple is now well-known. While on a career break from jobs
in marketing, and backpacking through Asia in 2005, they
were struck by the food on offer; and couldn’t believe that no
one was specialising in Vietnamese food in the UK.
Following in the footsteps of other established restaurants
such as Wagamama, which specialises in Japanese ramen
noodle dishes, the chain has brought pho – a type of noodle
soup – to the masses in London and now beyond.
Customers count
Going through the clippings from other interviews it looks
like Wall has had quite a bit of press in the past, but things
had gone a little quiet in the year until the ISIS announce-
ment in early August.
Partly this quiet period was down to a focus on
securing new investment funding. But Wall also explains
that in the early days of the business it very much sought
press coverage. His wife and he were keen to get the brand
message across on their own terms, instead of, as he puts
it “having to rely on critics coming to our new restaurants
when they open”.
Rather than uncovering a particular dislike of restaurant
critics, what this shows (and he goes on to demonstrate
time and again throughout the interview) is that Wall is
obsessed with his customers. And irrespective of what
the critics think, if his customers keep coming back then
he is happy.
Wall doesn’t just want full restaurants, but restaurants
that are full of repeat customers. “We massively care whether
it is the same people coming back. Our St John Street
restaurant in Clerkenwell is seven years old, and that has
been built on repeat custom.”
In fact the first restaurant bought the couple two regular
customers who later became investors in the business –
gastro-pub entrepreneurs Tom and Ed Martin – who
bought a 50% stake in the business in April 2007.
Though neither Wall or his wife came from a restaurant
trade background, they have taken their understanding
of marketing and branding, combined with a desire to
delight their customers, and matched it with a dogged
determination to learn the hard way.
So in the business’ “first phase” as Wall calls it, when
they had their initial restaurant up and running, the
couple worked “every single shift for 18 months to two
years”. In fact Wall can remember that one of the odd
nights he didn’t work was on his 37th birthday, when
after signing a deal for funding with Tom and Ed Martin
he went into the restaurant to celebrate and was served
culture
Pho: What you
need to knoW
the chain is named after the
national dish of Vietnam, a
noodle soup. Pronounced ‘fuh’,
pho is described as the ultimate
street food, and in its country
of origin is eaten for breakfast,
lunch and dinner.
It’s served with a side plate of
herbs and chillies to allow diners
to season as they wish. Marketed
as being tasty, nutritious and
healthy – it’s low in fat and full of
fresh ingredients – it has a subtle
and distinctive taste that comes
from the hours taken to prepare
the stocks used.

Interview
autumn 20128
noodles by his wife, who was more than seven months
pregnant at the time.
Asian inspiration
There is a renowned area of London close to several of
Wall’s restaurants where a number of Vietnamese restau-
rants have been established for years: Dalston’s Kingsland
Road.ButWallisclearthathisrestaurantsoffersomething
different, and with a relentless focus on the menu and
ingredient quality he says his chefs are able to provide food
that is beyond the standard available there.
“About 40% of our total menu is pho, so we can invest
moremoneyiningredients.Thefoodwedeliverisprobably
even more authentic than you can get on the Kingsland
Road,” he says, pointing out one of his most experienced
chefs in the kitchen, who has come to oversee the new
restaurant and is Vietnamese. “Traditional Vietnamese
restaurants often serve Chinese food too, and you can’t
ensure the quality of what you’re serving when there are
more than 200 items on a menu,” he adds.
In fact, rather than assessing himself against the
Kingsland Road, he benchmarks the menu against
the best of what’s being served on the streets of
Hanoi: “The food we serve is absolutely authentic. The
only compromise we’ve made is that the quality of the meat
we serve is better than you get in Vietnam. We use chicken
breasts, for instance, whereas they will slice up whole
chickens and it’s pot luck what ends up in your bowl.
“Everything in the restaurant apart from the three bottles
of sauces you see on the tables is made in the restaurant,” he
continues. “I imported some rice wine about six months
ago. We are the first restaurant in Europe to bring this in.”
The menu is evolving slowly, for instance, with a
refreshed salad range that Wall jokes “even men will eat”,
but he says further change in the near term will likely be no
more than introducing another handful of starters over the
next year or so.
His wife and he still go back to Vietnam every 18 months
to two years, both to get inspiration from eating on the
streets for how they can improve their menu, as well as for
the decor in their restaurants.
This means each site has a unique look and feel, based
on the latest things they have seen, making the most of the
unique buildings and sites they have chosen. The individu-
ality of each site is something they are keen to continue as
the business grows.
The new investment funding they have secured will
not reduce their input into every aspect of the business.
“Though the business will still be run by Jules and
myself – we will be able to take things to the next stage,”
explains Wall.
Brand building
With a strong desire to retain the customer experience in
their future restaurants the couple are being extremely
careful with their expansion plans. “We can really focus on
the customer experience as we grow. We don’t want to
become a slave to the P&L [profit and loss], as we are
reputation building. We are still very young at seven sites,
and if anything I want to invest more money into improving
the product, not less,” he says.
Wall continues: “The P&L is very important, but it is
really about the customer. Are our restaurants full and
what do the customers think? If we get that right, and with
good management of KPIs, then that leads to a good
bottom line.”
This strategy has appeared to pay off so far. In 2010 the
business turned over more than £6m, with a gross profit
margin of 76%. So, future growth must not jeopardise the
success achieved so far.
Pho’s hIstory
June 2005 the first Pho opens
on st John street in London’s
Clerkenwell.
April 2007 ed and tom Martin
take a 50% stake in the business.
Spring 2008 second site opens
in Great titchfield street in
central London.
October 2008 shepherd’s Bush
restaurant opens.
May 2010 the chain’s largest site
to date opens in Brighton.
September 2010 the fifth site
in the chain opens in a listed
building in soho.
September 2011 Pho opens
near the olympic site in
London’s stratford.
July 2012 the seventh site
opens opposite spitalfields
Market in London.
July 2012 the business secures
venture capital funding from IsIs
for its next stage of expansion.

autumn 2012 9
“We could open 15 to 20 additional sites in the next few
years, but we will be very particular in terms of site choice.
We are looking for further high street sites and would love
to open in Covent Garden among other central London
locations,” says Wall. Site choice is down to exact location,
including the actual building, and his business is too small
to be able to afford to get a single decision wrong.
“If you choose the wrong site in the restaurant trade
then you know about it, it sets you back a year in the
business,” he adds.
One restaurant has opened at Westfield Stratford City,
and the business is in talks to open at Land Securities’
Trinity Leeds development, which would be its first major
foray outside London after the
opening of the Brighton restaurant.
“A lot of people want us [in their
schemes] but we will only go into
what I describe as five-star schemes,
such as Trinity Leeds.
“We could have opened in provin-
cial schemes and we would have
made a lot of money for a couple of
years, and then the brand would have
fallen off the cliff,” he reasons.
Pho’s target demographic of
25-to-35-year-old professionals who
live and work in urban surroundings
fits well with the catchment for Trinity
Leeds. Wall says he is also attracted to
the scheme because it is a completely
new concept outside of London, with cutting-edge design,
a focus on the best in dining and a number of other high-
quality operators. “That’s what we want to be part of, as it
will draw the crowds.”
While still relatively small, he says scheme owners such
as Land Securities are attracted because he can offer
something new, while already having a clear operating
model: “For Land Securities we are an emerging brand,
and outside London few people know us; but we do have
seven years’ experience.”
Those seven years in the business has taught the Walls
to be focused on customer service, great product and great
people. As a growing business they can no longer do every-
thing themselves and are at the point where they need staff
who can act as custodians of the brand they have so
carefully nurtured.
“We are trying to instil the DNA of our business into our
staff. Ewan [one of his senior managers] thinks exactly like
we do. I don’t ever want robotic staff who just go through
the motions.”
This means the couple draft in what Wall calls
“the A-team” to spend a good month or so in a new
restaurant when it opens, to make sure it gets off on the
right footing.
In particular, getting a new opening right means
impressing customers who are first to try out a new site, as
they are important in spreading the word, and tend to be
loyal too. “It’s the early adopters who are so crucial. They
are on Twitter and Facebook, and are tech-savvy in recom-
mending you. They tend to have more disposable income
than the average customer too.”
The final question I ask is about his future aspirations.
On this he is clear: “It comes back to the brand. Even
if we have five times more sites it is still having the
same brand values intact. Too many restaurants change
when they grow, and start to cut corners on staff and the
quality of the food. We’ve got to learn from the lessons
seen elsewhere.”
He concludes: “Whether we have one or 101 restaurants
– each should be as good quality as the first.” ●
“A lot of people want us [in their
schemes] but we will only go into
what I describe as five-star schemes,
such as Trinity Leeds.
cial schemes and we would have
made a lot of money for a couple of
years, and then the brand would have
fallen off the cliff,” he reasons.
25-to-35-year-old professionals who
live and work in urban surroundings
fits well with the catchment for Trinity
Leeds. Wall says he is also attracted to
the scheme because it is a completely
new concept outside of London, with cutting-edge design,

Sizing up the
Report
autumn 201210
F
ashion shopping will, of course, never go
out of style, but the dynamics of the way
consumers shop are changing in the UK.
While some fashion players continue
to thrive, particularly off the back of
strong multichannel propositions, and
international brands remain very interested in the UK
market, there is a change in the mix of what is being
purchased, and a new mindset that considers value rather
than just price.
For example, though many are purchasing less in volume
terms, this is being partly offset by consumers who are
prepared to spend a little more on the pieces of clothing
they do buy. Plenty of opportunity remains, but retailers
must adapt to the ‘new normal’ of lower volumes and a
polarised market where differentiation is crucial or they
face being left on the shelf.
In order to gain further insight into the challenges and
changes confronting its clients, Land Securities commis-
sion quarterly research, working with retail consultancy
Conlumino to provide up-to-date insight into key sectors.
The latest white paper focuses on the fashion industry and
includes bespoke research on the market from Conlumino,
insights from agent Jones Lang LaSalle, as well as trends
identified in Land Securities’ own sales and footfall data.
The internal research programme reveals a market
increasingly polarising between value and premium, and
distinct differences in spending patterns across fashion
categories. This is made more complex and exciting
by the growth of multichannel shopping. The changes
occurring will shape the future of shopping locations
as well as retailers.
Big changes are under way in clothing
retail as the UK’s consumption pattern
changes amid recession and pressure on
household income. By George MacDonald
segments where
Consumers intend
to make finanCial
CutbaCks
vOLUME CHANGES
Since the downturn really took hold at the turn of the
decade, clothing volumes began to drop back after
climbingformanyyearshelpedbydeflationandlowprices.
There is little sign of change in the downbeat trend.
Consumers remain concerned about their personal finan-
cial situation and, when polled in May, almost 40% of
them feared their circumstances will get worse.
Unsurprisingly, that means many people intend
to cut back on spending – almost 64% – and, as
a discretionary purchase, fashion is top of the agenda
for cutbacks.
Land Securities head of business-to-business
marketing, Retail, Sean Curtis observes: “It is very
clear from the research that clothing sales is an area
which all segments of consumers are considering
cutting back on – even childrenswear. Following the
reduced spending on big-ticket items at the beginning
of the recession, consumers attention has now shifted to
the lower cost but, previously, high volume purchases of
clothing as an area in which to make savings.”
Almost 38% of consumers who intend to make finan-
cial cutbacks said they planned to reduce the amount
they spend on clothing – far higher than beauty at 29%,
forinstance,orelectricalsatjustlessthan33%,although
footwear was also lower at 29.5%.
Conlumino managing director Neil Saunders says
the volume shift means some retailers will need to
change their mindset to remain successful: “The old
approach, ‘stick it out and it will sell’, doesn’t work. In the
early 2000s people were just buying a lot of stuff. It was
harder to fail. The lesson now is you have to be more
focused – people may buy one top instead of five.”
fashion
38%
footwear
29.5%
beauty
29%
eleCtriCals
33%
Sizing up the
Since the downturn really took hold at the turn of the
decade, clothing volumes began to drop back after
climbingformanyyearshelpedbydeflationandlowprices.
There is little sign of change in the downbeat trend.
Consumers remain concerned about their personal finan-
cial situation and, when polled in May, almost 40% of
them feared their circumstances will get worse.
Unsurprisingly, that means many people intend
to cut back on spending – almost 64% – and, as
a discretionary purchase, fashion is top of the agenda
Land Securities head of business-to-business
marketing, Retail, Sean Curtis observes: “It is very
clear from the research that clothing sales is an area
which all segments of consumers are considering
cutting back on – even childrenswear. Following the
reduced spending on big-ticket items at the beginning
of the recession, consumers attention has now shifted to
the lower cost but, previously, high volume purchases of
clothing as an area in which to make savings.”
Almost 38% of consumers who intend to make finan-
cial cutbacks said they planned to reduce the amount
they spend on clothing – far higher than beauty at 29%,
forinstance,orelectricalsatjustlessthan33%,although
footwear was also lower at 29.5%.
Conlumino managing director Neil Saunders says
the volume shift means some retailers will need to
change their mindset to remain successful: “The old
approach, ‘stick it out and it will sell’, doesn’t work. In the
early 2000s people were just buying a lot of stuff. It was
harder to fail. The lesson now is you have to be more
focused – people may buy one top instead of five.”

market
autumn 2012 11
Muted volumes mean changes to consumers’ spending
habits too, which is pulling fashion retail in two direc-
tions – value and premium. The white paper reveals that
the shape of the sector is more polarised than ever before.
Value retailers control 22.4% of the clothing market
while ‘high street premium players’ account for 7.3%.
The two can happily co-exist: shoppers’ determination
to spend less keeps the value groups’ tills ringing.
However, when fewer items are being purchased it
means that when consumers do decide to buy a new item
they will frequently go for quality.
Despite the rise of bargain-hunting, low prices on their
own are not enough, says Saunders. Consumers make
more subtle judgements about what represents value.
That dynamic explains why Primark, which success-
fully combines value and fashionability, has continued to
grow successfully but other low-price retailers have
struggled or, in some cases, collapsed.
And the volume shift in the market is likely to limit the
potential of some low-price specialists in the present
climate, Saunders believes.
He says: “At the value end there’s only room for
a few players and one is Primark. The volume is not
there to support all these value players.
“It was fine when there was growth in the market
but there are high barriers to entry now. You need
colossal volume – you can’t dabble.”
While low prices were mentioned by 61.7%
of consumers asked about what drives their
choice of stores, high quality was the second
biggest factor and cited by 47.4%. That illustrates
why, even in austere economic times, retailers
that can justify a premium on their apparel are still
doing well.
Saunders explains: “There’s an attitude of ‘buying
right’. People want something that lasts.
“A lot more people are reusing things. Rather
than buying a lot of stuff every season they’re
buying one item that complements [something they
already have].
“That doesn’t mean the fast fashion fix has gone but,
especially at the older end of the market, they’re taking
care about buying and willing to invest in great quality.”
Shoppers’ behaviour threatens to make life even more
diﬃcult for middle-market retailers. The white paper
warns: “One of the key problems is that they can often
appear to be neither fish nor fowl, with neither particu-
larly high prices nor great quality or inspirational ranges.”
There are many ways that retailers can add value to
their fashion offer. From designer collaborations, as have
been deployed by retailers including H&M and
Topshop, to including extra detail on a product to justify
trading up to the consumer.
The store experience is a contributing factor too. As
well as helping to create an engaging offer, multichannel
in-store experiences – such as those being developed by
chains such as Aurora Fashions and Republic – also help
close sales.
What shoppers do not want, warns Saunders, is
“ubiquity” – again something that some middle-market
retailers may be susceptible to: “There might be rails full
of a jacket for £100 and that diminishes the sense of
exclusivity. It would be better to have fewer out and keep
more in the back room.”
pOLARISATION
what drives store ChoiCe
(All numbers are percentages of consumers mentioning)
LOw pRICES
SpECIAL
OffERS
SERvICE
INSpIRING
pROdUCTS
HIGH qUALITy
AvAILAbILITy
ONLINE OffER
UNIqUE
pROdUCTS
wIdE RANGE
CONvENIENCE
pARkING NEAR
IN-STORE
SERvICES
0%
10%
20%
30%
40%
50%
60%
70%
61.7%
47.4%
45.6%
45.5%
40.9%
36.5%
25.6%
24.4%
16%
16%
12.8%
3.3%
market
Muted volumes mean changes to consumers’ spending
habits too, which is pulling fashion retail in two direc-
tions – value and premium. The white paper reveals that
the shape of the sector is more polarised than ever before.
Value retailers control 22.4% of the clothing market
while ‘high street premium players’ account for 7.3%.
The two can happily co-exist: shoppers’ determination
to spend less keeps the value groups’ tills ringing.
However, when fewer items are being purchased it
means that when consumers do decide to buy a new item
they will frequently go for quality.
Despite the rise of bargain-hunting, low prices on their
own are not enough, says Saunders. Consumers make
more subtle judgements about what represents value.
That dynamic explains why Primark, which success-
fully combines value and fashionability, has continued to
grow successfully but other low-price retailers have
struggled or, in some cases, collapsed.
And the volume shift in the market is likely to limit the
potential of some low-price specialists in the present
climate, Saunders believes.
He says: “At the value end there’s only room for
a few players and one is Primark. The volume is not
there to support all these value players.
“It was fine when there was growth in the market
but there are high barriers to entry now. You need
colossal volume – you can’t dabble.”
of consumers asked about what drives their
choice of stores, high quality was the second
biggest factor and cited by 47.4%. That illustrates
why, even in austere economic times, retailers
that can justify a premium on their apparel are still
doing well.
Saunders explains: “There’s an attitude of ‘buying
right’. People want something that lasts.
than buying a lot of stuff every season they’re
buying one item that complements [something they
already have].
“That doesn’t mean the fast fashion fix has gone but,
especially at the older end of the market, they’re taking
care about buying and willing to invest in great quality.”
pOLARISATION

Report
autumn 201212
MULTICHANNEL
Omnichannel is the retail buzzword of the moment. As shoppers increas-
ingly use a range of routes to browse and purchase, from store to computer
to mobile device, retailers must engage on consumers’ terms.
The research sets out a challenging scenario in light of online growth.
While the clothing market overall is expected to increase by 15.3% by 2015,
that figure falls to just 5% if online growth and inflation are stripped out.
However, multichannel retail complicates this model as an increasing
number of retailers begin to leverage their store chains to offer click-and-
collect and order online in-store services, and so many more sales cannot
simply be categorised as online or offline.
The right locations and the right mix of retailers will be ever more key to
a trading location’s success. Curtis says: “Online is going to continue
to be a factor and [from a landlord’s perspective] creating centres that
embrace technology to deliver profitable stores is going to be key.”
CATEGORIES
There are issues affecting the constituent categories of fashion. Trading up
has been especially noticeable in womenswear, a category that has been
fairly sluggish during the downturn because of women’s decision to cut
back; and the extent to which they could do that, given the keen buying in
the years before the downturn.
The research identifies an opportunity among women aged 45 and over,
who are under-served at present.
In comparison, menswear volumes have been more stable as more
purchases are needs-based. The premium parts of the menswear market
have also seen strong growth as branding and brands are more important to
male shoppers.
The improvement in the quality of kidswear by supermarkets and value
retailers, matched with a consumer willingness to cut back, has seen a big
shift to value in the kidswear market.
“The focus on price and, to a degree, convenience has created ideal
conditions for the grocers and value players, which have continued to extend
their share of the kids market, often at the expense of the middle market,
which has both lost share and responded by reducing price points,” the
study concludes.
Clothing
inCrease
(inCluding online growth
and inflation)
15.3%
Clothing
inCrease
(exCluding
online growth
and inflation)
5%
the growth of the Clothing market by 2015
TRAdING
Up TRENd
THE ExpERIENCE
IS CRITICAL TO
Add vALUE
key issues in
womenswear
dESIGNER
COLLAbORATIONS
CREATE URGENCy
ANd INTEREST
MIddLE ANd
OLdER AGE
SEGMENT IS AN
OppORTUNITy
MORE INTEREST
IN HIGH STREET
pREMIUM
INTERNET
bENEfITING
fROM STRONG
GROwTH
key issues in
menswear
MIddLE MARkET
MOST SqUEEzEd
fROM CUTTING
bACk
fORMAL fASHION
TRENdS AIdING
GROwTH
where Consumers have shopped
(All numbers are percentages for last six months)
70%
60%
50%
40%
30%
20%
10%
0%
Physical
HIGH STREET
Online
dESkTOp
Physical
SHOppING
MALL
Physical
GROCERS
catalOgue Online
MObILE
60.9%
47.6%
41.5%
34.5%
8.6%
7.2%

autumn 2012 13
vIbRANT SHOppING dESTINATIONS
Curtis believes that just as the fashion market is polarising so are shopping
locations – with consumers showing a strong preference for those that really
support shopping as a social activity and offer good value for the time visitors
‘invest’ in spending there.
Consumers – particularly those with disposable income – tend to be time-
poor, and it is as crucial to attract them to spend time in stores as it is their
money. This requires destinations to have a retail and leisure mix closely
targeted to the needs and wants of their consumers.
And in order to maintain appeal and encourage loyalty to a destination
there is an expectation that this mix will be kept fresh and the centre will
work to optimise the experience, rather than relying purely on the ambience
within individual stores.
Saunders says it is vital now that consumers feel they are being given
“value for time” as well as for money. There are many ways that can be done,
whether it is good in-store cafes, an appealing environment or a leisure offer
that complements traditional retail.
“In some older shopping centres, and some secondary and tertiary
locations, that’s not quite so good,” he observes. “For women, shopping is
still very much a social activity,” he reminds retailers. Cafes, bars and places
to eat are now core components.
He says town centre managers must also be alert to the need to build
a compelling retail offer, and believes that can be done – in fact
retailers frequently do it themselves by grouping together when it is to their
mutual benefit.
“What you see in some market towns is a cluster of premium retailers,
which on their own might be relatively one-dimensional,” says Saunders.
NEw ENTRANTS
Despite the changes currently under way in the UK fashion market, it
continues to be one of the strongest in the world and remains attractive to
foreign entrants.
The spotlight thrown on the UK, and London in particular, by the 2012
Olympic Games has attracted many international brands (see page 24).
That is good news and shows the vibrancy of the UK fashion retail scene,
says Curtis.
However, these premium brands are often picky about where they locate.
Shopping centres and their host towns and cities must stand out on a new
level. “In the current climate, many new entrants are considering European
locations against each other, so we’re not necessarily competing with other
cities in the UK, but places in Europe. We have to work harder to attract
those retailers with information that lets them appraise the cities accord-
ingly,” Curtis says.
International brands entering and expanding in the UK are often
premium, and they demand exciting locations, which can attract a
demographic that reflects their positioning. They are also prepared
to invest heavily in the fit-out of their stores as they position their
brand in the new market.
There is also something of a critical mass effect, where the
opening of stores by international brands attracts others as it clearly
marks out the destination as somewhere that UK consumers can get
something different from the average high street.
Considerations for shopping plaCes
CHOICE Of STORES
bRANd pRESENCE
LEISURE INTEGRATION
vALUE vERSUS pREMIUM
INNOvATION ANd NEwNESS
MARkETING ANd pROMOTION
International brands entering and expanding in the UK are often
US-based forever 21
(above) and Hollister
(left) are two examples
of international retailers
expanding in select
locations in the Uk

Connected reality
autumn 201214
A
s consumer adoption rates for
smartphones and tablets continue to
rise, so does the trend for customers
to use them to supplement their
shopping experience.
Retailers, including John Lewis,
Tesco, O2, Maplin and Mamas & Papas, are reacting to this
change by offering free wi-fi connectivity in their stores. They
believe there is benefit to be had by making it simple for
customers to access the internet while shopping.
Atfirsttheindustrymayhavebeenalittlewaryofconsumers
having instant access to information on their competitors’
products and prices, however, there is now a much clearer
realisation of the benefits of offering fast internet connections
for customers. Mamas & Papas, for instance, has made a
commitment to wi-fi because it wants shoppers to be able to
easily access the customer reviews of products on its website.
Meanwhile, Tesco is rolling out wi-fi across its store estate
– from the current 250 Extra outlets into its superstores. By
the end of the year it will be available in 700 of its stores across
the UK. Mark Cody, senior marketing manager for mobile at
Tesco.com, says: “It enables customers to do things in store
rather than having to go home. The volume of customers
signing up is really encouraging.”
Engaging in one-to-one communication is a key part of
Tesco’s strategy, according to Cody: “You could push an offer
to customers when they are in store and maybe remind them
of a click-and-collect order that is ready for them to collect.”
DanielLucht,researchdirectoratResearchFarm,suggests
the grocer is in a strong position as it is linking wi-fi access to
itsClubcardloyaltyprogramme.Itcanpotentiallyconnectthe
historicalshoppingpatternsofanindividualwiththeircurrent
behaviour in store and personalise the interaction.
Electronics retailer Maplin also plans to promote a tailored
range of products via the branded wi-fi landing page that will
be based on shoppers’ browsing histories.
Land Securities is among the converted and is involved in
pioneering work with The Cloud to install wi-fi in all its UK
www.cabotcircus.com
Just check your WiFi is on, then select
‘WiFi Zone - The Cloud’ from the available network list,
open the browser and follow the on-screen instructions
to register or log on.
WiFi
Free
Get free WiFi throughout Cabot Circus
and browse the net and our stores.
15993 CV CC A1 Posters - WiFi poster.indd 1 03/01/2012 15:48
www.cabotcircus.com
WiFi
Free
Wi-fi connectivity in
centres and stores is
quickly moving from a
nice-to-have to a necessity,
learns Glynn Davis

Partnership
autumn 2012 15
our shoppers. We should be seen to be enabling shoppers in
the physical environment and wi-fi is critical to us doing this as
it bridges the gap between online and in store.”
The situation has been accentuated as shopping centres
improve their food and beverage offer. The upside has been to
increase dwell time, which has further driven the desire of
shoppers to check their emails and engage in social media
activities when sat in the centres’ cafes and restaurants.
Free wi-fi is the obvious solution and early evidence at
Cabot Circus shows it is proving beneficial. Rosie Collins,
store manager at The Body Shop, has certainly been enjoying
its advantages: “It is positive news that Cabot Circus was the
first shopping centre in the region to provide free wi-fi for
shoppers. It means our customers can easily surf the web, use
social media, and even carry on working while in the centre –
thereby enhancing their overall experience.”
Russell suggests it is early movers such as Land Securities
and Tesco that will reap the benefits of implementing wi-fi:
“There is an increasing expectation that people will have
access to good data connections and it is, therefore, those
retailers and shopping centres that embrace this bringing
together both offline and online that will benefit.”
Having wi-fi in stores and shopping centres also provides
operational benefits. Russell cites the possibility of using the
connectivity for implementing mobile tills and taking EPoS
data back from the stores to head office for analysing.
This has been part of the strategy at Aurora Fashions,
which is gaining operational benefit ahead of a likely launch of
wi-fi for customer use. Wi-fi has provided Aurora with the
infrastructure to roll out iPads, which are used as an alterna-
tive to fixed tills and as a device from which customers can
undertake staff-assisted orders for out-of-stock goods that
can be delivered to the store or to customers’ homes.
By the end of the year these devices will be in a third of the
group’s stores – this encompasses the Oasis, Coast, and
Warehouse brands. Ish Patel, group omnichannel director at
Aurora Fashions, states: “Store employees have got [internet]
access in the back office but they also now need it in the front
of store because we need teams equipped to give the [best]
levels of service.”
What will also benefit retailers using wi-fi in store will be
the emergence of mobile payments. Lucht suggests that
providing payment solutions via wi-fi connectivity will help
negate the need for costly near field communication payment
implementations and disruptive till re-fitting.
It is clear that wi-fi connectivity can offer real tangible
benefits for consumers, retailers and shopping centre
operators.Kingconcludes:“Weseeaninterestingbehavioural
changeplayingoutinthedigitalspacerightnow.Theinternet
is changing the way we live; it’s reshaping the way we
communicate, how we interact, the services we use and, of
course, how and where we shop. And the game-changer
here is the smartphone.
“Bringing wi-fi to our centres will align in-centre and out-of-
centre experiences, creating an enhanced user experience for
our shoppers, regardless of whether in the centre, in the car, or
at home – that’s the point, to provide a consistent service
offering across all channels.” ●
It’s about creating
a great environment
for people to spend
time and shop
Vince Russell, The Cloud
properties. It was rolled out to Bristol’s Cabot Circus in
January and will be in all Land Securities’ centres by the end of
2012 in what is a first for a UK landlord.
Land Securities digital marketing manager Todd King
explains that this is one of many projects being explored,
which aim to provide an omnichannel platform for retailers in
its schemes: “Our digital strategy is delivering a number of
market leading initatives; from mobile-optimised websites
and Google Product Search to wi-fi roll-out. We’re creating
the platforms on which more innovations can be built.”
There is a growing realisation that mobile connectivity
needs to be embraced and used as a tool to enhance the
customers’ experience in shopping centres. This enables
consumers to search for retailers, look for specific product
details, compare prices, buy goods for home delivery or click-
and-collect, and share shopping experiences with friends via
social platforms.
Sky’s the limit
The Cloud managing director Vince Russell says: “It’s about
creating a great environment for people to spend time and
shop. Today if you are sitting there [in a shopping centre] and
you can’t get decent internet access then you’ll probably
wander off.”
King says: “It’s an absolute given for our digital strategy to
endeavourtoprovideacompletelyseamlessserviceoffering.It
makes sense for us as landlords, the retailers and, of course,
d e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o pd e s k t o p
www.cabotcircus.com
WiFi
Free

Street
Report
autumn 201216
I
n early 2009 when an old van was converted
into a travelling kitchen and it pitched
up in various London car parks selling
high-quality burgers under the name of
‘Meatwagon’, it lit the touchpaper for the
UK’s street food revolution.
Today there are a growing number of chefs and amateur
cooks – along with some well-recognised restaurant brands
– who have followed in its wake and are using their
trucks to sell an ever-broader range of innovative
and exciting foods for a young and hungry
clientele to eat on the hoof.
This appetite for converting trucks and vans
into kitchens and appearing in different locations
throughouttheweekfollowsthetrendfirstseenin
the US where street food has become a feature
in many cities.
Trinity Leeds, Land Securities’ next big retail
destination, demonstrates the importance of this
growing trend and the resilience of the food and
beverage sector. Oneofthescheme’sbrandpillars
is around food, and the development team have
been keen to explore ideas for food that are more
about creating talkability and a social scene than
just buying products. Looking at the revolution of
street food, and forging a partnership with the
British Street Food Awards has allowed the team
to gain a greater insight into how this vibrant
street scene is affecting the way consumers are
buying and spending time with food.
This insight combined with his own experience
of the high-octane flavours delivered from the
mobile kitchens on the west coast of the US
led Andrew Turf, food and beverage leasing
manager at Land Securities, to seize on the
opportunity to bring some of this excitement into
its shopping centres.
“I’m from Chicago and had previously worked
in Los Angeles where I experienced the street
food culture and vibe. It started there with the
likes of Kobe beef burgers. I wanted to bring it to our
[shopping centre] sites in the UK where we’ve seen
street food grow like crazy in recent years,” he says.
Marrying street food vendors with large shopping
centre sites certainly moves the food experience in
many centres a significant step further on. To help
Turf realise his objective of hosting a street food
festival, Richard Johnson, organiser of the British
Street Food Awards, worked with him to bring 11
street food trucks to the Quakers Friars outdoor
space at Bristol’s Cabot Circus shopping centre from
May 18 to 20, 2012.
Johnson suggests that street food makes exciting
dining affordable and Turf agrees wholeheartedly,
saying it creates a buzz wherever it goes: “It’s not just
different, it is also affordable, interesting, eclectic, and
is more vibrant – attracting 18-to-34-year-olds who
bring more energy with them.”
The potential to bring in different food trucks to
specific centres on a Friday and Saturday to provide
a differing proposition to that available from the
regular in-centre restaurants can enhance the overall
offer. And the more success the street food operators
have then the more exposure the retailers and other
tenants will ultimately enjoy.
The food on offer from the trucks that pitched
up at Quakers Friars in May were a broad mix of
operators, including The Hungry Gecko –
vegetarian Asian street food from MasterChef 2011
finalist Jackie Kearney; Big Apple Hot Dogs –
autumn 2012
cooks – along with some well-recognised restaurant brands
– who have followed in its wake and are using their
trucks to sell an ever-broader range of innovative
and exciting foods for a young and hungry
This appetite for converting trucks and vans
into kitchens and appearing in different locations
throughouttheweekfollowsthetrendfirstseenin
the US where street food has become a feature
Trinity Leeds, Land Securities’ next big retail
destination, demonstrates the importance of this
growing trend and the resilience of the food and
beverage sector. Oneofthescheme’sbrandpillars
is around food, and the development team have
been keen to explore ideas for food that are more
about creating talkability and a social scene than
just buying products. Looking at the revolution of
street food, and forging a partnership with the
British Street Food Awards has allowed the team
to gain a greater insight into how this vibrant
street scene is affecting the way consumers are
buying and spending time with food.
This insight combined with his own experience
of the high-octane flavours delivered from the
mobile kitchens on the west coast of the US
led Andrew Turf, food and beverage leasing
manager at Land Securities, to seize on the
opportunity to bring some of this excitement into
“I’m from Chicago and had previously worked
in Los Angeles where I experienced the street
food culture and vibe. It started there with the
May 18 to 20, 2012.
bring more energy with them.”
tenants will ultimately enjoy.
vegetarian Asian street food from
Street food has taken the UK by storm over the past couple
of years. Glynn Davis discovers how it is bringing new energy
to the UK’s largest retail destinations
style
vegetarian Asian street food from MasterChef 2011MasterChef 2011MasterChef

autumn 2012 17
Hamburger restaurant Byron is another. It has created a
smart, shiny metallic van and is putting in the miles to attend
various music festivals around the country, as well as setting
up shop in numerous locations around London, and was also
among the posse at the Quakers Friars street food festival.
Although the festival was a first for Land Securities, Turf
says it undoubtedly points the way towards the future for
foodwithindestinationshoppingcentres:“Itcanhelpprovide
the soul for a shopping centre. The more different compo-
nents you have with relevance for your consumers the more
soulful the centres can become and it turns them into a desti-
nation. Street food has required a different mentality from
Land Securities, but Quakers Friars shows the willingness to
embrace a modern culture.”
Expansion on the street food theme will put the company
in a good position to sate the growing appetite of people
to try something different, according to Turf: “Street
food brings differentiation as well as a whole level of
creativity that draws attention to the centre. It
enhances Cabot Circus’s reputation as a foodie
heaven, whether it’s here today, gone tomorrow
moments or well-loved restaurants.”
While Land Securities and others continue to
re-jig their exposure to food within their develop-
ments, Johnson says it is inevitable that street
food will also evolve.
There are already some operators who
have moved on from food trucks and into high
street premises including the trail-blazing
Meatwagon. It initially added a pop-up Meateasy
and now operates the hugely successful
Meat Liquor and Meat Market restaurants in
central London.
But street food operators will not all metamor-
phose into bricks and mortar, says Johnson: “Some
will get into bricks and mortar but they are being
replaced by 10 more [new trucks] when they go. There is
no reason why street food will die. It’s not faddy. It’s not
about liquid nitrogen or edible flowers. It is about
eating outside and is a sensible solution to dining in
new and different ways.” ●
It is about eating outside and is
a sensible solution to dining in
new and different ways
Richard Johnson,
British Street Food Awards
smart, shiny metallic van and is putting in the miles to attend
various music festivals around the country, as well as setting
up shop in numerous locations around London, and was also
among the posse at the Quakers Friars street food festival.
Although the festival was a first for Land Securities, Turf
says it undoubtedly points the way towards the future for
foodwithindestinationshoppingcentres:“Itcanhelpprovide
the soul for a shopping centre. The more different compo-
nents you have with relevance for your consumers the more
soulful the centres can become and it turns them into a desti-
nation. Street food has required a different mentality from
Land Securities, but Quakers Friars shows the willingness to
embrace a modern culture.”
Expansion on the street food theme will put the company
in a good position to sate the growing appetite of people
to try something different, according to Turf: “Street
food brings differentiation as well as a whole level of
creativity that draws attention to the centre. It
enhances Cabot Circus’s reputation as a foodie
heaven, whether it’s here today, gone tomorrow
moments or well-loved restaurants.”
While Land Securities and others continue to
re-jig their exposure to food within their develop-
ments, Johnson says it is inevitable that street
food will also evolve.
There are already some operators who
have moved on from food trucks and into high
street premises including the trail-blazing
Meatwagon. It initially added a pop-up Meateasy
and now operates the hugely successful
Meat Liquor and Meat Market restaurants in
central London.
But street food operators will not all metamor-
phose into bricks and mortar, says Johnson: “Some
will get into bricks and mortar but they are being
replaced by 10 more [new trucks] when they go. There is
no reason why street food will die. It’s not faddy. It’s not
about liquid nitrogen or edible flowers. It is about
eating outside and is a sensible solution to dining in
new and different ways.”
which is at the forefront of the revolution that could see hot
dogs go down the route of burgers and become the country’s
next food craze; Daisy Green’s frozen yoghurts; and Jalopy
Pizza – wood-fired pizzas sold from a classic Peugeot J7 van.
They all bring a sense of theatre, for example, What The
Dickens serves British dishes and revived vintage recipes,
such as kedgeree, dressed as gentlemen wearing top hats and
sometimes playing ukuleles. There is great excitement in the
wayCafeMôrdeliversitsseafoodmenu:“Theyarewinnersof
a street food award last year and sell what’s not expected as a
street food – including seashore wraps – from a convertible
beach hut,” says Johnson.
Such imaginative cuisine goes with the territory and your
customers will tell you if they like it or not. Johnson says:
“People can afford to take risks as they have low overheads so
you can see if a Chinese hot dog works. You can simply throw
together various ideas. I’ve recently eaten an Indian burrito,
for instance.”
However, it is not just newcomers who are customising
vans and hitting the roads. Street food is also an opportu-
nity for established specialist food brands to showcase
their products to a broader audience. Hence, the likes
of Wahaca, with its cyan and magenta-coloured
Mexican food truck, are joining the
growing throng and hitting
the road.

Report
autumn 201218
I
n a challenging market where many are
competing ferociously on price, store groups
are increasingly looking to their product offer
to give them a point of difference.
Own-label and private-label ranges enable
them to offer exclusive products as well as
being more profitable than selling branded goods.
In fact, as well as making economic sense due to more
attractive margins, the strategy allows retailers to target a
different shopper base, says Kantar Retail director of retail
insights Bryan Roberts. But which ranges are working well?
Roberts cites Asda as an example of a retailer that has
“shiftedtheneedleonquality”throughownbrandtowidenits
customer base. The grocer has partnered with Leiths
Cookery School to produce a range of quality food products,
for instance.
Conversely, upmarket grocer Waitrose’s launch of its value
line has proved a hit with cash-strapped shoppers still seeking
affordable quality.
Another trailblazer in the field is DIY giant Kingfisher.
In a sector that tends to lack product innovation from
the big brands, the B&Q owner opted to take the initiative
by developing its own range of products. The retailer
was so keen on pushing unique and useful DIY solutions
that it set up a dedicated innovation centre last year. Located
at its French headquarters in Lille, the retailer works
with suppliers, universities and other specialists to develop
a pipeline of exclusive products to drive newness and
margin in stores.
Kingfisher own-brand products, many of which are sold
across the group, include a ready-to-install tile without the
need for glue as well as a shower that can be installed in two
hours. Another innovation, a toilet with a sink in the top,
re-uses the water used to wash hands to flush the toilet.
One retailer at the forefront of innovation with exclusive
private-label products is Debenhams through its Designers
at Debenhams ranges. Collaborating with designers such as
name?UK retailers are positioning themselves at the heart of product innovation
with their own-label and private-label ranges, finds Nicola Harrison
What’s in a
Henry Holland, it continues to prove a hit with shoppers.
Debenhams chief executive Michael Sharp said at the
retailer’s interim results this year that two-thirds of its
customers cite Designers at Debenhams as the reason
they shop at the department store. “We have to
offer more differentiated product by growing
our own brand,” he said.
Debenhams aims to increase revenue
from Designers at Debenhams to £750m in
the next three years, and is considering expanding it
from fashion and homewares into other categories such as
accessories and footwear. It accounted for £524m in its
last financial year.
Now more than ever
Rival John Lewis has also been working hard to offer
exclusive product. In March this year, John Lewis
Partnership chairman Charlie Mayfield identified own brand
as a key strength of the group, which also operates Waitrose,
and said the business had upped the pace of product
innovation. “Developing products you cannot buy anywhere
else has never been more important,” he said.
John Lewis is partnering with designer Alice Temperley to
create her first high street range. Hitting shops in September,
theretailerexpectsqueuesaroundtheblockwhenitlaunches.
Additionally, the department store has just launched
its biggest ever own brand, House by John Lewis. The
furniture and homewares range will initially comprise
600 SKUs and will be showcased within branded shop-in-
shops in stores as well as having a dedicated section on
Johnlewis.com.
Pets at Home has put product innovation at the heart
of its growth strategy. It runs regular Dragons’ Den-type
Innovation Open Days where customers, colleagues and
suppliers can pitch ideas to the business.
The retailer created the position of innovation buyer
last year to search the globe for unusual products to give

autumn 2012 19
it a point of difference in the increasingly crowded
pets market. New products include a thunder shirt,
which is a tightly wrapped jersey that helps reduce
anxiety in dogs.
Boots has had huge success with its own brand, in partic-
ular its No7 beauty products. “Its own brand is one of the key
reasons why shoppers go there,” says Roberts. “It’s well
regarded and engenders loyalty.”
Boots won plaudits when it launched the first ever clini-
callyprovenanti-ageingskinproduct,No7Protect&Perfect.
This year it launched its next instalment, Lift & Luminate
Day & Night Serum.
Boots UK chief operating officer Ken Murphy says No7,
17 and sun protection range Soltan “have strong identities and
equity in their own right”.
He adds: “We believe that the development of trusted
own-label products makes Boots a key destination on the
high street in the UK. Our own-brand products play a major
role in the lives of our consumers. We offer high quality at
affordable prices. Our own brands provide a complementary
breadth to our offering.”
The grocers have also long been at the forefront of
own-brand innovation. Tesco this year made the dramatic
move of rebranding its £1bn Tesco Value opening price point
range, replacing it with Everyday Value – a more contempo-
raryversionintendedtorepresentimprovedqualitycompared
with its predecessor.
Tesco rebranded its own-label
range earlier this year to
Everyday Value (above, right);
John Lewis launched own
brand House by John Lewis
(above, left); Products from
Boots’ No7 range (below)
Tesco has also launched venture brands including the
Chokablok range. The stronger emphasis on own brand
forms a key plank in Tesco chief executive Philip Clarke’s
ambition to return Tesco to form.
Roberts says the merchandising of such ranges is impor-
tant so they stand out on the shelves.
He says Tesco has “pushed very hard with display and
marketing” of its Everyday Value range, for instance.
Roberts adds that on the supermarket shelves, the best
place to position products is between eyeline and chest level.
“We’ve seen retailers beef it up in that hot spot,” he says.
However, he cautions that “overdoing” the merchandising
could alienate those customers who prefer branded products.
Murphy also believes merchandising own brand is
important. As such, Boots has begun “a comprehensive
programme” to upgrade the look and feel of the pharmacy
area across stores and online, according to Murphy. The
revamp aims to make it easier for customers to find
products, while giving them access to information, support,
and services.
Marks & Spencer has worked hard at merchandising its
beauty offer in its new M&S Your Beauty: The Best of
Nature & Science department in its High Street Kensington
store. The 1,150 sq ft space aims to be more premium and high
tech, giving department stores such as John Lewis
a run for their money.
The retailer has used cutting edge techniques, including
using declassified US military technology, in the department
to showcase branded products alongside M&S’s own brand.
A virtual makeover counter lets shoppers digitally select
different shades of cosmetics to determine the most suitable
colours for their skin tone. It also features on the retailer’s
website, allowing customers to upload their images to virtu-
ally try out different shades.
Own brand has become a key battleground in the fight for
share and margin, and retailers that do not innovate run the
risk of getting left behind. l

Report
autumn 201220
W
hile online sales continue
to show strong growth,
the majority of retail sales
still involve a customer
going into store. Research
online, purchase offline
(ROPO) is a consumer behaviour trend that’s driving a
significant proportion of retail sales – four out of 10
European consumers prefer to ROPO, according
to a Google study.
Having already invested in initiatives to support multi-
channel shopping – such as free wi-fi in its centres and the
mobile optimisation of its websites – Land Securities has
started testing Google Product Search functionality on the
website of Leeds’ White Rose shopping centre. It’s part of
the company’s strategy to ensure it continues to support its
retailers in an environment where online is an increasingly
important strategy.
Google Product Search provides a function to search for
retailers’ goods on the centre’s website, as it pulls together
all the relevant products for participating stores that
operate in that centre. Using Google’s comprehensive
search capability to locate products, the service displays
the results on the White Rose site. These results can then
be filtered by relevancy, latest products and price.
The search function covers goods from Warehouse,
Oasis, Debenhams, Topshop, Schuh, Disney Store
and, the most recent addition, Miss Selfridge. More
retailers will be added as the service continues to gain
traction in the marketplace.
Consumers have the opportunity to continue browsing,
comparing products, or transact online on the retailer’s
website to click-and-collect or complete the purchase – it’s
up to the consumer. Sean Curtis, head of business-to-
business marketing, Retail at Land Securities, explains:
“The marketing landscape has changed, the consumer
wants access to information anywhere they go, anytime
they want, and to be able to transact however they wish –
digital enables this.”
In this way Land Securities is keeping consumers happy,
but also supporting retailers too, acting as a conduit
driving traffic directly to the websites of participating
retailers. If the trial is successful, the product search service
will be rolled out to the websites of each centre in Land
Securities’ portfolio.
It may seem slightly counterintuitive for a shopping
centre to be encouraging consumers to look at products
online, but the ROPO trend shows that the web supports
offline transactions as well as being an alternative channel
to market.
Curtis says: “The key is using online to push customers
back into our centres, as part of a true multichannel focus
and becoming part of a revolving loop – engage online,
push in-centre, create value, push back offline.” ●
Searchand selection
IN NUMBERS
9 out of 10
purchases take place offline
4 out of 10
consumers prefer to research
online, purchase offline (ROPO)
Source: Forrester and Consumer
Commerce Barometer (TNS /
Google / IAB)
£28.2bn
Estimate of annual value of ROPO
to the UK retail, technology,
consumer packaged goods,
entertainment and finance sectors
Source: Boston Consulting Group
54%
of consumers do not buy online
because they want to see the
product before they purchase
Source: Google study
16%
of consumers don’t buy online
because they want to take away
purchases immediately
Source: Google study
Search
1
Land Securities has begun trialling Google’s Product Search to explore how it
can support multichannel shopping journeys, hears David Brooks

autumn 2012 21
2
3 4
5
HOW IT WORKS
1 Simply enter keywords such as ‘black dress’ or ‘red shoes’
into the product search box on the home page of the
centre’s website.
2 The search engine returns relevant products available from
retailers at the White Rose centre, which provide their
product information to Google.
3 The results – which show images and prices – can be ﬁltered
by retailer, release date, relevancy and price.
4 The listing for each item includes more information on the store
at White Rose, and links directly to the retailer’s website.
5 Consumers can choose whether to purchase the product online,
click-and-collect or go to the store in the centre to look for it.

Partnership
autumn 201222
Newlyengaged
Y
ears of planning and research
goes in to getting the location
and design of a new shopping
centre just right. And closer to the
launch, the marketing campaign
will ramp up and be tailored
to appropriate messages for the consumer segments
the scheme will serve. After all, it’s beneficial to
consumers, retailers and the scheme’s operator for
a new shopping centre to hit the mark with the local
shopper catchment.
With its new retailer engagement strategy, Land
Securities is sharing its insight with retailers that have
exchanged on new developments, and is providing
early guidance to ensure their store openings and fit outs
maximise their potential.
Trinity Leeds, opening in March 2013, has been the first
opportunity for Land Securities to use this approach. The
scheme’s marketing manager, Claire Reynolds, first
conceived the strategy two years ago.
Land Securities always invests in consumer insight
around its developments, and the retailer engagement
strategy is allowing Reynolds to introduce this to retailers
at the point where it can shape their own plans, and also
understand the rationale behind the details of the scheme.
“It is introducing the scheme, allowing them to
get under the skin of consumers in Leeds and then
understanding how and why we have developed the
proposition,” she says.
Trinity Leeds consumer insight has shaped everything
from the architecture of the scheme, through to the leisure
mix and the marketing activity taking place to warm-up
consumers in the area. Innovative brand marketing for
Trinity Leeds has included social media activity and
content co-creation – such as a film competition, 2.8 Days
Later, created with independent cinema chain Everyman
and independent film company Left Eye Blind – so Land
Securities is able to show the consumer relationships it is
building in the run-up to launch.
Until the development of the Trinity Leeds scheme,
Land Securities mainly worked alongside retailers’
property and store opening and design teams. But
mindful of the valuable insight it generates to finalise the
development plans and execute its own marketing activity,
the company decided to widen the scope of its early
engagement activity.
Two kick-off breakfast briefing presentations took place
for Trinity Leeds’ retailers, both of which attracted more
than 20 retailers keen to hear from Land Securities and to
understand each other’s plans for the scheme.
Heads of marketing, merchandising, store design
executives and even chief executives were in attendance,
as well as store opening and project management
executives. Brands to have benefited include Warehouse,
Office, Mango, H&M, Fraser Hart, Marks & Spencer,
O2 and Everyman Cinema.
These will be followed up with individual meetings and,
in October, a second round of presentations will introduce
Early sharing of customer insight and the vision for a new scheme
with the retailers taking stores there is proving a huge success for
Land Securities
The new
model for
engagemenT
Retailers sign up for a store
in a new Land Securities’
development or centre
1 A year before opening
land Securities identifies and
makes contact with retailers’
brand and marketing teams,
as well as their store design
and store opening teams
2 Nine months before opening
retailers’ brand and marketing
executives are invited to a
kick-off presentation, where
land Securities shares its
consumer insight to help inform
their marketing activity and
designs for their new stores
3 Seven months before opening
retailers are invited to a launch
presentation for the scheme
where more information is shared,
and further networking between
retailers takes place
4 Six months before opening
The recruitment drive for stores in
the centre begins, supported by
land Securities. retailers also start
to be introduced to the centre’s
operational teams
5 The new scheme is launched

autumn 2012 23
the right store for customers in the area, and be closely
involved with the opening too.
Reynolds says the new way of working has already
meant significant changes to a number of retailers’
plans for the scheme: “M&S began in Leeds in the penny
bazaar market. We’ve been working with their team to
deliver the next generation flagship of M&S destinations,
which reflects their heritage and looks to the future,
providing customers with a compelling offer, in this impor-
tant store for them.”
Now that Land Securities has forged strong relation-
ships with a broader range of executives it will be able to
refine the strategy when work begins to engage retailers
who are signed up for two further schemes in its pipeline
– Oxford and Buchanan Quarter in Glasgow.
Reynolds concludes that the approach to developing the
proposition for Trinity Leeds has been best-in-class,
something Land Securities is determined to build on with
retailer engagement in its subsequent schemes. l
the launch creative to retailers, plans for the recruitment
campaign will be shared, and retailers can meet the opera-
tional teams who will run the centre.
Reynolds says as well as getting retailers excited about
the potential of the scheme, there’s also been a chance for
them to network with one another.
Judith Kelly, head of retail delivery for Trinity Leeds, is
seeing a cumulative effect, as once retailers begin to
talk about ideas for new formats and concepts for stores it
helps support the changes other retailers can make to
their own design; which raises the overall profile and
potential of the centre as well as being great news for
the shoppers it will serve.
Feedback from the kick-off events has been positive.
One head of marketing says they have never had such
involvement at this stage of a new opening, and will
use the customer insight to shape the brands stocked in
the store. Another merchandising and marketing manager
comments that the feedback would help his team create
It is introducing
the scheme and
then understanding
how and why we
have developed the
proposition
Claire Reynolds, Land Securities

Retailers are branching out
of London to other major cities
in the UK, such as Forever 21
opening in Glasgow

autumn 2012 25
stores, depending on where the right real estate has become
available,” he says. “I think we’ll see more of that as retailers and
brands prioritise the major European cities for growth.”
North American retailers are the most global with 73%
present in all three regions (Europe, Middle East and Africa;
Asia Pacific; The Americas) and the UK is especially targeted.
The reasons are often strategic. Language and cultural charac-
teristics are less daunting for US retailers than mainland
Europe, the market is transparent and the fiercely competitive
nature of the market makes it a robust testing ground. If a US
retailer can create a successful model in the UK, they have
confidence they can succeed more widely in Europe.
International brands also bring fresh stimulus to a retail
destination and consumer excitement, with awareness of
global brands such as Forever 21 far higher. Taylor says: “It
adds a point of differentiation to the tenant mix and with
the strength of brands such as Apple, Hollister and Urban
Outfitters attracts additional footfall and spend.”
As a result London’s West End – the most international of
all Europe’s major retail locations – expects to see turnover
from shops on and around Oxford Street, Regent Street and
BondStreetsurpass£10bnby2020,upfromabout£7.5bnthis
year, according to the New West End Company.
That has also been evidenced by the excitement that
preceded the opening of the new Forever 21 stores, the
Victoria’s Secret store in London and the much anticipated
J Crew, which is still looking for a London flagship. Despite
their eagerness to enter new markets, retailers have also
become more patient about waiting to find the right location
–hence,forexample,thelongwaitbybothUniqloandForever
21 to open stores after announcing their UK intentions.
With little new development for international retailers
targeting the UK, Trinity Leeds is in a unique position six
months ahead of opening with the scheme more than 80%
pre-let and in solicitors’ hands and welcoming international
brands such as Fossil and Swarovski – both new to Leeds –
plus more global names such as Mango, Hollister and H&M.
John Grimes, Land Securities’ leasing director for Trinity
Leeds, reflects: “There is an ongoing demand for quality space
from UK and international retailers who want to be located
in top cities like Leeds. Trinity Leeds is a stunning project,
which people can now see and experience as the building is
really taking shape. It’s becoming a real pull for international
brands like Fossil and Pandora as it will be a retail beacon
for the North.” l
New Names
to watch
out for
the uK has welcomed a host
of new retailers recently, with
Victoria’s secret the latest to
arrive. whole foods market has
also confirmed expansion of
its portfolio, while hollister will
open at trinity Leeds and
J crew continues to scout for
a London flagship despite a
re-focus towards asia. crate
& Barrel continues to weigh
up options for the uK.
french fashion retailer the
Kooples has opened stores
in the uK, coach opened
a flagship on Bond street
and forever 21 continues to
expand, having established in
London and Birmingham, with
a new store planned for
Glasgow. Designer tom ford
is to open in Knightsbridge,
urban outfitters is to open
a store at trinity Leeds and
chanel has opened its first
standalone beauty store
in covent Garden.
Newspaper, books and
convenience retailer relay
opened at the new wing of
King’s cross earlier this year
and hopes to announce a
second opening in 2012,
while German footwear retailer
Deichmann continues to
expand in the uK. Japanese
running and sportswear brand
asics has opened its largest
store to date at the west end
of oxford street.
InternationalThe UK remains the top lure for
international brands looking to expand
beyond their borders. By Mark Faithfullappeal
Report
T
he many international retailers
testing and expanding their formats
intheUKdemonstratesthevibrancy
and strength of the retail market
here. London, of course, tends to be
the top location for those looking to
get maximum marketing leverage out of a flagship store, but in
thepastfewyearscitiesandbigretailcentresoutsidethecapital
have been added to the road map for a national presence.
As a result the likes of Gilly Hicks at St David’s in Cardiff,
plus Hollister at the upcoming Trinity Leeds are just two
examples of iconic US retailers confident of branching out
beyond London, although the UK capital – which according
to a recent survey by CBRE attracted 55.6% of all internation-
ally active retail brands last year – remains the destination of
choice. The property agent’s survey put London as number
one for global retail appeal.
While London benefited from a mini-boom in 2011 as tourist
spending boosted a relatively robust local economy, the UK
alsoretainedtoppositionasthemostpenetratedglobalcountry
with 56.7% of retailers in the survey present. For instance in
Glasgow, Land Securities’ 155,000 sq ft, £70m investment in
the redevelopment of 185-221 Buchanan Street will include US
fashion powerhouses Forever 21 and Skechers.
“Retailers are seeking to de-risk their expansion activities,
generally choosing markets like the UK that are regarded as
safe havens,” says Peter Gold, head of EMEA cross border
retail at CBRE. “London is generally the first port of call for
global retailers, but once they have established a presence in
the capital, they are willing to extend their reach into other
major UK cities, as well as major regional shopping centres.”
London, Manchester and Birmingham are all in CBRE’s
list of European cities attracting most international retailers.
UK consumers are often already familiar with international
brands; which particularly aids expansion beyond London.
Justin Taylor, chief executive, retail and leisure at Cushman &
Wakefield, adds: “London offers a springboard to expand into
other large markets in the UK such as Cardiff, Birmingham
and Leeds as well as other key European capital cities.”
Right place, right time
Andrew Bathurst, director at agency Harper Dennis Hobbs,
notes that the push to prime locations in prime cities is even
more apparent. “Forever 21 has looked at Europe as a single
market and has been opportunistic about where it locates

Report
autumn 201226
Storewars
Tesco – home and away
Relying on overseas revenues, Tesco has been looking to grow its key eastern
European markets. The result is a new standalone format for its F&F clothing
brand. Opening last year in Prague, it has now been refined in a larger form in
Brno, the second city of the Czech Republic. It also opened in Warsaw, Poland
and is poised to roll out a network of F&F standalones in the region. The stores do
not feel like supermarkets – appearing to have more in common with H&M.
In the UK, Tesco’s Hertford store demonstrates what was just a few months ago
perceived to be the retailer’s interior future. At the time, much was made of the
wood cladding on the fixtures and around the perimeter, as well as the amicable
sign stating ‘Hello’ at the store entrance. Now things have moved on and the
Thetford and Bishop’s Stortford stores show the retailer’s latest thinking. Lower
fresh food equipment heights allow better views across the interior and graphics
reflect product provenance. Beauty departments in both locations are part of a
move towards capturing a bigger share of the health and beauty market.
morrisons’ convenienT move
As a latecomer to the convenience market, Morrisons has needed to hit
the ground running. Making this a reality has meant in-depth design work
with consultancy Fitch and the creation of, in effect, three different takes on
the convenience format, in order to be able to customise the offer as required
at local level.
Dubbed M Local, what all three store types have in common is a refreshed
colour palette, greater amounts of natural daylight, exposed brickwork and
wood where it is deemed appropriate (in areas such as the bakery).
Lucy Unger, managing director at Fitch, says M Local has also
been designed to move away from the “canyon-like aisles” that characterise
most c-stores with lower equipment heights in the middle of the shop
that rise towards the perimeter. In practice, this means that shoppers
of the stores in Ilkley, Manchester and Wilmslow, among others, are
able to see through the space and navigate the store more effectively.

autumn 2012 27
C
ompetition has rarely been fiercer
for the hearts, minds and wallets of
supermarket shoppers. The consoli-
dation that has seen retailers such as
Somerfield and Kwik Save disappear
from high streets has only served to
reinforce the UK’s grocery super league.
And although the pace of new space opening has
slowed generally, the major players continue to hone
their estates, updating existing formats and examining
new ways in which shoppers can be attracted through
their doors.
At the heart of this has been a move towards
making store environments more experiential.
There has been a sense that the interiors of many
supermarkets have become little more than processing
plants in which goods enter a store at one end and
With competition hotter
than ever, grocery retailers
are creating ‘warmer’ store
environments and testing
new in-store strategies
as they bid to ensure
they remain in demand.
John Ryan reports
sainsbury’s sTays relevanT
One of the holy grails of supermarket retailing is making stores, of whatever size,
appropriate to their locality. This process is evident in Sainsbury’s stores in Earls-
field in southwest London, Hertford and Pontypridd in South Wales. Each store
takeselementsofthetownitissituatedin.Sainsbury’sheadofstoredesignDamien
Culkin says: “What we’ve probably done [in the three stores] is told a better context
story. In Hertford, for example, we commissioned some illustrations that tell the
story of what went before, as much as being site specific.”
The Hertford store, located in the former McMullens brewery, references
the building’s history and shoppers can visit the heritage centre that links with
it. The Pontypridd store has created graphics and in-store features to demonstrate
the building’s history as a former manufacturer of industrial chains.
In contrast, Earlsfield is a convenience store and has large white tiled areas as
the display backdrop for fresh foods, while wicker baskets, fruit box-style crates
and wooden perimeter cladding, which all create a more homely ambience.
GeorGe opTs for shop-in-shop
Asda clothing brand George has been established since 1990 and in that time
it has tried standalone shops, which were unsuccessful, and in-store
spaces, which have tended to use standard supermarket presentation.
Now things are changing and in Bolton earlier this year, the grocer
revealed a revamped shop-in-shop George that moves the collection,
effectively, out of the supermarket and into the realms of the high street
fashion consumer.
Whether it’s light boxes and video screens, wood vinyl floors or a cash desk
that features modish pendant lighting and a white, stippled back wall, this is a
world away from the normal modus operandi employed by those selling clothing
in supermarkets.
The new look has also been trialled at the retailer’s Fosse Park store in
Leicester and both stores are showing increases against branches with similarly-
sized George departments.
shoppers emerge at the other clutching merchandise-
filled bags.
This would be fine if there were only a couple of
operators in the market, but UK consumers have real
choice. The outcome of recent moves has been the evolu-
tion of what is generally referred to as ‘warmer’ in-store
landscapes, with Tesco performing a volte-face on its
previously hyper-efficient, but almost factory-like interiors.
Hand-in-hand with this trend has gone the continuing
headlong rush into convenience and, in a number of
locations in the UK and abroad, spin-off fascias that
take elements of a supermarket’s offer and turn them
into standalones.
Better interiors, sharper pricing and a renewed concen-
tration on the shopper experience all stand as evidence of
the scramble to retain market share. For consumers, the
outlook seems positive. l

autumn 201228
S
ome opportunities reflect perfectly a moment
in time and edge-of-town and out-of-town
schemes are just such an example.
Aside from its shopping centres, Land
Securities previously focused on developing
town and city centre locations. However, as
the impact of the global downturn was felt there were
increasing viability issues in terms of the costs and potential
income from such schemes. Costs were going up but the
likely income from potential projects was not keeping pace.
Land Securities was one of the first investors in out-of-
town retailing and built up a large portfolio over 20 years,
which demonstrated attractive returns for shareholders. In
the credit crunch, the schemes proved more liquid due
to the average lot size, which was important for the company
balance sheet. It made sense to focus on refreshing the
portfolio with new prime assets.
With increasing polarisation between desirable locations
and those that Land Securities no longer felt would be viable
for development, it looked at the opportunities for projects
off-centre. The decision coincided with the broader range
of anchor retailers, which had begun to look afresh at
edge-of-town and out-of-town locations. More fashion and
homewares retailers developed formats for such sites, rather
than the traditional bulky goods retailers that had previously
dominated these parks.
Land Securities assembled a team to start looking at the
opportunities strategically and to reach out to key retailers in
order to fast-track the filtering process of opportunities, only
concentrating on the strongest retail propositions.
Strong partnership
Land Securities development director Chris Ward says:
“About two years ago we started building a development
pipeline; we identified where we believed the demand would
be in a rapidly changing world and which retailers we could
develop deep relationships with.
“We first created the Harvest Partnership with Sainsbury’s
but we also identified that there were other retailers such as
Next, Marks & Spencer and Debenhams where this sort of
partnership approach would work well for both parties.”
Sainsbury’s and Land Securities placed three assets with
development potential into a joint venture holding, which
has now increased to seven sites across the UK. In
Wandsworth, southwest London, Harvest secured planning
consent to enlarge the existing Sainsbury’s store to the
biggestincentralLondonwitha120-bedhotelandadditional
retail. The scheme is now on site and has been pre-sold to
PRUPIM, acting on behalf of the M&G Secured Property
Income Fund. The Harvest Partnership was retained by the
Living on
Prospects for Land Securities’
out-of-town and edge-of-town
developments have thrived after
bringing a new partnership strategy
into play. By Mark Faithfull
Development
purchaser to manage the future development of the property.
TheenlargedSainsbury’sandthenewretailunitareexpected
to open in March 2013 and the hotel in August 2013.
“At its heart is the idea of pooling the advantages of having
a strong occupier commitment coupled with the property
resource, expertise and balance sheet to deliver,” says Ward.
“We still see the quality of the building and environment as
critical in the long-term durability of a trading destination.”
He adds: “Trying to buy prime stock at the right price
remains difficult and so we have become opportunity-led,
working with those who bring us opportunities to create
compelling retail buildings with strong investment attri-
Selly Oak, Birmingham
Crawley

autumn 2012 29
butes. What is important is that we work with the landowner
if they bring a suitable site to us; our conviction is that we
should all share in the opportunities, as that is the best way to
become the sort of partner that people want to work with.
We agree up-front the rewards for each party, which vary
depending on investment to date and future risk and we stick
by those agreements.”
Ward says the important element of any scheme is its
potential to be dominant in its catchment: “We will either
invest in assets with an end value of £40m to £60m, which
are liquid in nature or alternatively those of £60m plus with
potential to be regionally dominant destinations. The target
opportunities must be in locations where we believe, or the
local authority demonstrates, there is a strong case to achieve
the necessary planning accreditations.
“From a development and a competition for capital
perspective, we have to be flexible and be in a position to
bring forward product that can be kept within our portfolio
balance or sold to fit other property owners’ investment
criteria,” says Ward, citing Crawley as another example.
Land Securities is delivering a 75,000 sq ft superstore for
Morrisons and a 110-bed hotel for Travelodge together with
four restaurants, for a total of 120,000 sq ft. Work is expected
to start in September 2012 and completion 14 months later.
Time for leisure
Land Securities and Sainsbury’s also unveiled plans in
October last year to take forward a big regeneration scheme
in Selly Oak to transform a brownfield site in southwest
Birmingham into a mixed-use development anchored by a
100,000 sq ft Sainsbury’s store. Two 150-room, mid-range
hotels are also planned, both of which would be close to the
UniversityofBirminghamandtheQueenElizabethHospital,
plus400studentroomsand100,000sqftofofficesonthesite.
Ward points to the need to continue innovating and the
introduction of higher levels of leisure is one example of how
the landscape of these schemes is changing dramatically.
This is demonstrated at Thanet where there is not only an
extensiveretailofferincludingDebenhams,M&S,Topshop,
Boots, Next, New Look, TK Maxx and River Island, but
leisure operators including a Vue multiplex cinema, a 20,000
sq ft casino and a Travelodge hotel, plus dining options
including Nando’s and Ask.
“Bringingapartnerwithyouinaschemeprovidesanumber
of advantages,” says Ward. “The first advantage is the up-front
capital and the reduced risk from having a strong covenant
from the partner retailer. In terms of planning consents,
bringing in a strong retailer helps from the perspective of
presenting the employment benefit for the local area and also
it is vital to undertake proper stakeholder consultation. That
doesn’t mean paying lip service to the process but doing it
properly and in good time. It really makes a difference.”
With the continuing pressures on the high street, Ward
foresees a bright future for edge-of-town and out-of-town
locations providing the right offer is brought to the table.
“We’ve only scratched the surface on leisure as an opportu-
nity, increasing dwell time will give these schemes a sense of
place,” he says. “I can only see the sector getting stronger.” l
the edge
Garratt Lane, Wandsworth

A1 autumn2012[1]

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A1 autumn2012[1]