Author: Marketing, 23 March 2018

notes

Retail Gazette reported last week that over a quarter of the UK’s largest retailers are loss-making. This follows a pattern of news we are becoming somewhat accustomed to and whose latest casualty is the toy giant Toys R Us. With interest rates expected to be raised in May, do not be surprised if more of both independent and national multiple retailers go under in the challenging retail market as we move into Q2 of 2018. 

None of us like uncertainty – even less so when money and people are part of the equation. As much as the insolvencies and the ensuing redundancies cause sleepless nights among the staff of the folding companies, it is also the landlords and asset managers that are exposed.

Re-letting a unit can be a lengthy process as any asset manager and letting agent would attest. Finding a suitable occupier that fits the scheme’s overall strategy is one thing. Persuading them about the suitability of the location and getting them to pay the rental tone that is aligned with the ERV is quite another. All of that, of course, is before any possible capex investments and rent free periods the landlord needs to make and agree to.

This is where FSP can help landlords and asset managers with unique insights. We help our clients to understand risks and maximise returns with a forward looking view, before things get bad. You will want to understand the level of risk each of your tenants presents. Similarly, you will want to know how much a particular tenant – current or prospective – is realistically able to afford to pay in rent, given the level of other occupational costs.

As well as continually monitoring the corporate financial health of hundreds of UK retailers, FSP monitors fluctuations in sales through its STAR system at dozens of retail schemes up and down the country. Armed with all this raw data and the deep understanding of consumer shopping habits by demographic profiles and affluence levels, FSP is able to provide a detailed and accurate financial performance analysis for virtually any retailer or F&B operator in any location in the UK.

Whilst we don’t have a crystal ball to tell us what the ever evolving retail market will look like in 20 years’ time, what we can say for certain is that physical retail is here to stay for the foreseeable future and FSP is here to help its clients to create the most value out of it.   

 

If you would like to know more about STAR and our tenant financial performance analysis services, please contact Harri for more information.

Post a comment

FSP View - Focusing on the customer

With the ongoing CVAs in the retail world causing huge issues for property landlords and investors, FSP looks at how putting the the consumer at the heart of the decision making process could be of benefit.

Continue Reading

FSP View - The rise of independent F&B operators

With the continuing turbulence in the casual dining sector, FSP looks at the opportunity for numerous small and independent operators to establish themselves in the market.

Continue Reading

FSP View: Retailer Viability – will CVAs impact lease renewals?

With Next's 'CVA clause' making the news, FSP looks at what impact this may have on retail property going forward, and how FSP can help landlords understand their assets and maximise potential.

Continue Reading