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20
DATA
the hunt for SaleS Stronger than expected
retail Space
UK retail sales values rose and beauty picked up, helped best total sales growth for a
Demand for retail space 4.2 per cent on a like-for-like along by Christmas gifting. December since 2005 and
has jumped by 57 per cent over basis from December 2008, Non-food non-store sales goes well beyond just making
the course of 2009, according when sales had dropped 3.3 per (internet, mail-order and phone up for the sales fall the sector
to research carried out by NB cent due to turmoil in financial sales) in December were suffered a year ago.
Real Estate. markets hitting consumer 26.5 per cent higher than a “Snow kept people away
Data obtained by the confidence. In total, sales rose 6 year ago, compared with 16.9 from the shops for a time but
agency shows that demand for per cent against a 1.4 per cent per cent in November. Some they made up for that in the
retail space has jumped by 57% decline last December. online retailers benefitted from days just before Christmas
over the course of 2009. There Food sales growth was at the December snow, which and as sales events began
were on average 505 searches its strongest since June, partly prevented many people from immediately afterwards.
for retail space per month in reflecting higher food price getting out to the shops. But, with customers now
the UK in the third quarter, inflation. The cold weather Stephen Robertson, director reacquainting themselves
compared to 321 at the start of gave a good boost to clothing general of the British Retail with concerns about jobs and
the year. and footwear, and homewares Consortium, said: “These are tax rises there is a risk that a
According to NB Real sales showed further gains but stronger figures than we dared healthy December may be only
Estate, the improvement in against larger declines a year hope for. After a surprisingly a temporary respite on the
consumer spending over ago. Furniture slowed but health muted November, this is the painful road to recovery.”
the key Christmas shopping
period will raise competition
RETAIL SALES VALUE: Percentage change year-on-year
among retailers for space. This 2007 2008 2009
Month
will accelerate the process, Like for like Total Like for like Total Like for like Total
which is already under way, of

January 3.1 5.2 2.6 4.9 1.1 3.2
landlords withdrawing ‘once in
February 3.3 5.6 1.5 3.9 -1.8 0.1
a lifetime’ financial incentives
March 3.9 6.2 -1.6 1.1 -1.2 0.6
being offered to small,
April 2.4 4.7 -1.5 1.0 4.6 6.3
independent shops to take
May 1.8 4.0 1.9 4.6 -0.8 0.8
space in shopping centres.
June 3.0 5.1 -0.4 2.1 1.4 3.2
Richard Williams, executive
July 1.2 3.1 -0.9 1.7 1.8 3.6
director of client services at NB
August 1.8 3.7 -1.0 1.4 -0.1 2.2
Real Estate, comments: ““There
September 3.0 4.9 -1.5 1.0 1.6 3.7
has never been a tougher time
October 1.0 3.0 -2.2 -0.1 3.8 5.9
for small retailers looking to
November 1.2 3.1 -2.6 -0.4 1.8 4.1
expand. With banks unwilling
December 0.3 2.3 -3.3 -1.4 4.2 6
to lend, and with energy costs
January – July average 2.7 4.9 0.2 2.7 0.7 2.5
and the minimum wage rising,
January – December average 2.2 4.3 -0.8 1.6
1.4 3.3
landlords are being innovative
in finding ways to get less
Source: BRC-KPMG RSM (food & drink data from IGD)
established retailers into their
shopping centres.
“This is partly being driven
by empty rates, which are
Shopping centre inveStment doubleS in 2009
a significant additional cost A late rush of deals in the final quarter of 2009 means that turnover in the shopping centre
that landlords did not have investment market finished the year 42 per cent up on 2008. According to Cushman & Wakefield,
to shoulder during previous £2.065bn of UK shopping centres changed hands during the year.
recessions. The final quarter of 2009 saw £810m of deals including the £297m sale of Silverburn to
It’s unprecedented for Hammerson and Canada Pension Plan, La Salle Investment Management’s £100m purchase of The
shopping centre landlords Mall Bexleyheath, the Crown Estate’s £100m purchase of a 50 per cent share in Princesshay in
to offer these kinds of Exeter and HP Properties’ £69m purchase of Clydebank in Glasgow.
financial incentives to small Cushman & Wakefield calculates another £400m of shopping centre deals are currently under
independent shops. With offer, including two more disposals by The Mall Fund which has placed its Aberdeen property under
the market now turning the offer to Rockspring and its Preston property under offer to Orchard Street Investment Management.
corner these deals are being David Erwin, CEO of UK capital markets at Cushman & Wakefield said: “With hindsight it could
taken off the negotiating table. appear that 2009 was a missed opportunity for many investors. The yield discounts offered at the
Small retailers contemplating start of the year probably over-compensated for the weakness in the occupational market.
expansion should consider “With investment demand exceeding supply in the second half of the year we have seen yields
agreeing terms with landlords start to correct. The question is, will yields continue to harden throughout 2010 and will those who
now, or face potentially higher fail to act also look back on 2010 as a missed opportunity come January 2011?”
costs in the near future.”
SHOPPING CENTRE January 2010 www.shopping-centre.co.uk
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