The Client, a German institutional investor, owns a medium scale 1970s shopping centre in Toulouse. The scheme has 40 shops, including Bershka, New Look, Promod and Zara, but lacks a clear proposition and has a high vacancy rate.
FSP delivered recommendations, such that plans for the reconfigured retail space and improved environment are now being refined to support the tenant mix strategy
The Client, a German institutional investor, owns a medium scale 1970s shopping centre in Toulouse. The scheme has 40 shops including Bershka, New Look, Promod and Zara but lacks a clear proposition and has a high vacancy rate.
Given strong competition in Toulouse, a realistic and sustainable retail mix is required to grow sales and rental income as part of plans to reconfigure and provide larger units at the centre. The Client had commissioned previous market research from elsewhere, but this provided limited guidance, giving confused visitor perceptions of the scheme.
FSP was instructed to build upon the existing evidence by prioritising customer potential and sales growth opportunities and devise a realistic retail mix strategy for the centre. The approach incorporated site visit and competitor review, assessment of Trading Gaps, a review of strategic retail mix options and recommended a list of appropriate absent occupiers.
FSP identified significant capacity for Young and Family fashion at the centre and by recognising the strengths of the offer elsewhere in Toulouse city centre, an opportunity to establish a distinctive, attractive and complementary shopping role. To enable the centre to adopt a more youthful proposition, FSP recommended refurbishment to create a pleasant environment (with room to meet, sit, relax, chat and enjoy), better internal and wayfinding signage, investment in digital infrastructure and a marketing re-launch.
Having delivered these recommendations, plans for the reconfigured retail space and improved environment are being refined to support the tenant mix strategy.
Anne-Sophie Maisonrouge of asset managers Terranae commented, “FSP’s research has helped us formulate a clear and achievable proposition for the asset. Our Client now has confidence to invest more funds and we are now committed to delivering the future vision”.
FSP’s FISH classification of fashion retailers helps define the retail mix for a shopping centre. Read more about it here