Director of shopping centre owner NewRiver Retail sets out the story so far for the £450m portfolio and its approach to town centre mall managament

1. Future of Town Centres
Nick Sewell, Director, NewRiver Retail
Paul Wright, Director, NewRiver Retail
Place North West Retail Conference, City Tower, Piccadilly, Manchester
Wednesday 27 November

2. Overview
•
•
•
An Introduction to NewRiver Retail
Death of the High Street?
The Counter Narrative


•
•
•
Re-Defining the High Street
Community, Partnership, Innovate, Invest
Case Studies



•
Consumer
Discretionary vs. Non-discretionary Spend
Leamington Spa
Locks Heath
Wallsend
Conclusion
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3. NewRiver in Numbers
UK’s 4th Largest Shopping Centre Owner/Manager
Average purchase
yield c. 9%
£450 million
assets under
management
24
UK-wide
shopping
centres
New
Look, Primark,
Cooperative, Supe
rdrug
Tesco
950
occupiers
105+ million
shoppers pa
96% average
occupancy
rate
3.8
million sq. ft.
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4. Death of the High Street?
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5. Some High Streets are Underperforming

There are too many shops and obsolete stock

Chronic under-investment

Decentralisation of towns - out-of-town retail and business parks

Competition

Property taxation

Inadequate parking

Some locations will not recover

High Street decline is symptomatic of poor performing Town
Centres

A Thriving town matters hugely; they are our economic and social
hearts
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6. The Counter Narrative
•
Retail spend remains resilient
•
Positive annual growth between 2007 to 2012
•
Recovery mode
•
Population growth
•
Retail spend remained resilient
•
Winners & Losers
•
Food & grocery expenditure is capturing circa
45% of total sales .
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7. Retail Market
Source: Verdict
7
Primark, Aldi, Poundland – stellar
results
Not bricks vs. clicks – multi-channel
•
Neighborhood
16%
The cost of
unsustainable.
•
Out of Town
Food
23%
Non-store retail remains a small
channel
•
Town Centre
42%
Town centres capture 58% spend
•
Catalogue &
Bricks & Mortar
TV Shopping
Online Pure play
4%
4%
2%
Out of Town
Non-Food
9%
•
•
Retail Spend by Retailing Destination
Out of town food remains a significant
threat
free
delivery
is

8. Retail Market: Offline Spend Growth
33.5
23.8
16.9
17.3
15.1
14.9
13.3
11.9
Spending growth online
9.3
7.7
7.5
Spending growth offline
2.4
2007
0.9
2008
-1.5
2009
0.4
-0.4
-0.4
0.5
1.2
1.7
2.0
2.1
2010
2011
2012
2013
2014
2015
2016
2017
Retail growth exc online sales
Online sales growth
Source: Verdict
Change in sector expenditure £m 2007-11
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9. The Consumer – Not just king but centre of the Universe
Defining consumer behaviour:

Polarisation of retail

Discretionary vs. non-discretionary

More informed.

More competition

Value, convenience, lifestyle
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10. Re-Defining the High Street – Its not just about retail
Complex Range of Issues
• Convenience
• Clean, attractive, safe
• A broad range of services – community, housing, health
• The growing importance of Localism
• Markets / pop-up shops
• Lifestyle
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11. Community, Partnership, Innovate, Invest
• Collaboration on town strategy
• Economic partnership
• Investing in your town centre
• Relieve the burden of property taxation
• Embrace technology
• The heart of the community
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12. Conclusion
UK Retailing Remains Resilient
• Retail is alive and kicking
• The consumer is more than just King
• Joined up thinking between key stakeholders
• Hands on asset management
• Investment is key
• Strong town centres = strong retail destinations
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13. Discover more about NewRiver & the true value of retail
Nick Sewell
Paul Wright
Executive Director
nsewell@nrr.co.uk
Director
pwright@nrr.co.uk
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