A major element of managing risk as a retail property owner is understanding incumbent (and target) retailer performance. This applies particularly in respect of the level of rent that tenants can afford to pay in a specific unit, as well as their overall financial stability.  

Over many years FSP has built, and maintains, possibly the most detailed retailer database in the industry. It holds records for over 35,000 UK and international retailers and contains a wide range of published and unpublished information. When major retailers issue their annual accounts FSP analyses their performance and updates its model; this acts as the basis for quick and accurate evaluation of any location across two aspects:

  • Individual unit risk

Every unit has strengths and weaknesses relating to size, configuration, pitch, competition, mix etc. FSP has extensive experience in flexing its retailer model to ensure that each of these factors is weighted to make it as specific as possible for each operator. This avoids the reliance on generic data often applied by other consultants. Depending on the passing (or turnover) rent in force, FSP then uses its model to estimate likely sales, unit profitability and return on investment. This information is invaluable for quick pre-acquisition analysis but also for regular evaluation of performance across shopping centres, retail parks, outlet malls and high street stores.

  • Corporate risk

FSP analyses retailers’ annual accounts and, based on a series of ratios, establishes their comparative financial health. For many retailers FSP now holds a time-series pattern of performance which can indicate trading and profit direction. Operators are classified into broad groups (eg Healthy, Head Above Water, Very Worrying); the vast majority of retailers forced to stop trading fall into the latter category

FSP uses a matrix of information combining unit and corporate performance to show the proportion of passing rent at risk. As retailing is inherently dynamic, regular evaluation of the risk matrix helps property owners and investors keep ahead of the game.

What is your property risk profile? Contact FSP to find out more

 

  • 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

  • We needed a clear understanding of Blanchardstown’s catchment opportunities as well as an overview of shopper behaviour and insight into the effect of future retail developments. Accuracy, speed and depth of detail were paramount and we are pleased to say that the FSP team delivered exactly what we wanted.

    Dominic Deeny|Managing Director, Multi Ireland

  • We needed a clear understanding of St. Enoch’s retail performance as well as an overview of both the macro and micro issues influencing shopper behaviours in Glasgow. Accuracy, speed and depth of detail were paramount and we knew FSP was the team to deliver this. FSP’s detailed research helped us to fully assess the opportunity from an investment perspective

    Alia ElGazzar|Principal at The Blackstone Group, The Blackstone Group

  • We have worked closely with FSP to understand the scale and nature of the opportunity to make better use of available space at Leeds Beckett University. FSP carried out a programme of research and consultancy which involved talking in detail with staff, students and members of the public, via a series of focus groups and surveys, following which they quantified the opportunity and presented recommendations for food and beverage as well as other retail uses. The University is now in the process of implementing these recommendations and will be continuing to work with FSP through this next stage of development. We have found their attention to detail, analytical skills and creative solutions exactly what we needed to help take this project forward.

    Kate Davis|Head of Business Development, Leeds Beckett University

  • We wanted to confirm the growth opportunity that we believed to exist at DOS. FSP is highly regarded in the sector and understands outlet centres from the ground up – just the independent view we needed. FSP’s research confirmed the scale of untapped potential at DOS and gave us confidence in completing the acquisition. Having purchased DOS, we are now actively engaged in delivering the full potential of this exciting investment.

    Michel Nangia|Resolution Property