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With over 100 projects undertaken every year, FSP is one of Europe’s leading advisors on shopping centre performance.

Shopping Centres UK

Our consultancy services underpin all aspects of investment and development activity and our experience ranges from the largest city centre and out of town malls to small suburban neighbourhood centres. Examples include Manchester Arndale (Manchester), Blanchardstown (Dublin), The Bentall Centre (Kingston Upon Thames), Centre:mk (Milton Keynes), Schlosse Strasse Centre (Berlin), Victoria Quarter (Leeds) and Centre Sud (Le Mans).

Our capabilities include sustainable rent estimates, tenant mix strategy, catchment analysis, turnover estimates, retail impact analysis, development feasibility, consumer research and due diligence retailer risk assessments.

FSP’s advice is based upon in-depth knowledge of retailing accompanied by robust analysis and a wide range of bespoke database information which combine to provide an unparalleled resource.   As a result, FSP is the consultant of choice for many of the world’s leading shopping centre owners, developers and investors.  Clients include Legal & General, Aviva Investors, Blackstone, Commerz Real, Grosvenor, Hammerson, M&G, Redefine and Westfield

The spectrum of FSP projects on shopping centres includes:

  • Pre-acquisition

As an investor, you want to know not only how a shopping centre is currently performing, but the scope for future development.  FSP’s pre-acquisition service is a key function which best exploits our abilities to generate accurate and reliable information in the short time periods typically allocated. FSP deploys its consultant knowledge and unique Retailer Database to estimate gross space conversion to net selling area, retailer sales and sustainable rent. When compared to passing rent the latter highlights opportunities and vulnerabilities. Adding analysis of catchment potential and tenant mix evaluation make this subject an FSP specialism.

  • Market Intelligence

As a shopping centre owner, you typically need to understand the scale and nature of market opportunities to guide investment and prioritise management action. A deep knowledge of catchment and demographics combined with FSP’s experience of working across the UK and Europe enables us to analyse available data and use as a basis for in-depth recommendations. Shopper surveys and qualitative methods (focus groups, mini-depth interviews, accompanied shopping) are often used to complement analytical skills and provide a wider dimension of consumer understanding. A key component of developing market intelligence is calculation of the Trading Gap which identifies the realistic scale of potential turnover increases feasible to target.

  • Retail Risk Analysis

As an owner or asset manager you need to know how your retailers are performing.  Making full use of FSP’s Retailer Database, which includes information on 35,000+ retailers, this area of expertise enables a robust analysis of retailer sales and trading costs. The output from this analysis is focused into 2 elements – unit risk and corporate risk. Unit risk is based on comparing retailers’ sustainable rents with passing rents to identify that proportion of rent at risk (resident within ‘vulnerable’ retailers). Corporate Risk highlights the proportion of passing rent at risk with retailers who have a weak trading record overall. Combining both of these elements provides a detailed understanding of areas for management attention (see detailed explanation of Retailer Risk here)

  • Leasing Support

Asset managers, leasing teams and centre management need to understand the profile of their existing tenants to then target potential retailers to join the scheme. Following the completion of a market intelligence project FSP is frequently engaged on a retained basis to work with clients on implementing recommendations. FSP consultants have a strong background in understanding retailing.  This enables us to work with asset managers, leasing teams and centre management to provide relevant and compelling information to help inform discussions with target operators

  • Impact Analysis

Investors in, and developers of, retail property need to understand the future retailing landscape. FSP has worked with UCL’s CASA (Centre for Advanced Spatial Analysis) to build a sophisticated model capable of evaluating the impact of proposed developments. The uses of this can be defensive (measuring the likely effects of competitive action) or offensive (calculating the likely catchment response to different development scenarios). FSP’s model is one of the most sophisticated in the retail industry and has wide applications across shopping centres, retail parks and outlet malls. 

  • Marketing

FSP works with Marketing teams to help build strategies for establishing and targeting specific catchments. Detailed project work pinpoints from where shoppers originate based on quantitative studies and uses this information to highlight how catchments can be developed to identify target customers and generate more retail sales. This in-depth knowledge of people and places is a product of FSP’s extensive retail experience and thorough understanding of how to optimise catchment performance

 

  • In the current very difficult current economic conditions we are finding that traditional retail planning studies drawing on household surveys, estimates of development potential and health checks are insufficient to inform a robust and realistic strategy to sustain and enhance town centre vitality and viability. I have no hesitation in recommending FSP in providing a very knowledgeable commercial perspective in this challenging area of work.

    Tim Brown|Chief Planning Officer, Blackpool Council

  • FSP's retail experience has given us knowledge of the trading potential of new sites, while their clear advice on local market strategy has had a direct impact on our approach.

    Mark Gregory|Managing Director, Clas Ohlson

  • FSP has very helpfully set out the trading risks and opportunities in this investment opportunity.

    Krysto Nicolic|Senior Associate, Ares Property Partners