retail consultancy | fsp | services | retail research
DESCRIPTION
At FSP, research is the rationale behind the decision. From working together to develop a brief that addresses the real issues, to presenting the findings in a way suited to you, FSP aims to provide the type of project that you want, underpinned by a tried and tested focus on research and analysis.TRANSCRIPT
FSP RETAIL BUSINESS CONSULTANTS
FSP - Services
FSP Job Description
FSP RETAIL BUSINESS CONSULTANTS
TO CREATE AND HELP IMPLEMENT RIGOROUSLY RESEARCHED STRATEGIES THAT WILL INCREASE THE VALUE OF CLIENT RETAIL ASSETS
Client Benefits Optimise sales and rent by:
Identifying and exploiting market opportunities
Growing tenant sales
Analysing retailer sustainability
Strengthening retail/F&B/leisure mix
Retail insight across all project and implementation areas
Standardised approach
Informed by wide range of benchmarked data
Operational across shopping centres, retail parks, outlet and leisure schemes, high street units
Applicable across Europe and UK
FSP RETAIL BUSINESS CONSULTANTS
FSP Clients
FSP RETAIL BUSINESS CONSULTANTS 4
Leading institutions, developers, property companies and retailers including:
FSP Services
FSP RETAIL BUSINESS CONSULTANTS
PRE-ACQUISITION & DUE DILIGENCE
OTHER SERVICES
IMPACT STUDIES
MARKET INTELLIGENCE
LEASING SUPPORT
STRATEGY
Maximising Research
FSP RETAIL BUSINESS CONSULTANTS 6
Source: FSP
Trading Gap Analysis
Marketing
Informs overall strategy
Asset Management
Where to spend money most effectively
Leasing Property Management
Merchandise categories most likely to succeed
Presents size of opportunity to prospective
tenant
Identifies underperforming
retailers
Pre Acquisition
FSP RETAIL BUSINESS CONSULTANTS 7
Report Overview Benefits Price
Town Profile Identifies size and characteristics of catchment. Benchmark against comparable towns
Low cost overview of location
£800
Catchment & Demographic Overview
Catchment map & penetration Resident & Shopper numbers and profile Detailed Resident demographic characteristics including ACORN SWOT Analysis of centre
Base data for asset assessment including consultant visit
£5,950
Detailed opportunity research
As above plus: Trading Gap analysis Retailer Sustainability analysis Overview of current & proposed competition Suggested Tenant Mix strategy
Strong foundation for defining future strategy and leasing. Retailer performance data can inform leasing, potential for rental uplift and rent event strategy
£11,950
Vulnerable Viable Thriving
Cor
pora
te R
isk
Unit Risk
Very Worrying
Head Above Water
Healthy
M&S
21%
15%
3%
19%
17%
6%
8%
6%
5%
Starbucks
PandoraGames Workshop
Monsoon
Office
Boots
Clarks
Ernest Jones
River IslandWaterstones
New Look
Holland & Barrett
Herbert Brown
Nando's
Subway
CineworldApricot
Superdry
Charles FishH. Samuel
Ann Summers
Cargo
The Fragrance Shop Zara
Claire's
House of Fraser
F.HindsJones Bootmaker
Blue Inc.Linens Direct Clintons Beaverbrooks
H&M L'OccitaneYO! Sushi Thorntons
Mothercare
Gap
Lush
BhsHMV
Muse
Build A Bear Workshop
Two SeasonsBijou Brigitte
Next
Zizzi
Retailer Sustainability
FSP RETAIL BUSINESS CONSULTANTS 8
FSP uses a bespoke methodology to determine the sustainability of each retailer within a centre in terms of both corporate and individual unit risk.
Corporate Risk
Refers to the level of risk associated with the business overall
Unit Risk
This refers to the health of a particular retail unit.
Source: FSP
Retailer Sustainability - Centre Plan
FSP RETAIL BUSINESS CONSULTANTS 9
Source: FSP/GOAD
An example of a sustainable rent plan is shown, classified by unit risk – Vulnerable, Viable or Thriving.
FSP’s Leasing Support Service: Provides an independent view of the market opportunity
Provides a more professional approach to the occupier Improves the effectiveness of leasing (saves wasted time and effort and gets results) Recommended by leading retail agents (e.g. JLL, Cushman & Wakefield, DTZ, CBRE)
Identifies and focuses upon key location strengths for the specific occupier Extends the range of relevant information passed to the occupier Communicates the realistic opportunity in a manner the occupier can understand Outputs Include;
Generic Summary Documents & Presentations Occupier Specific (Bespoke) Summary Documents & Presentations Occupier Sales and Rent Estimates Profit & Loss Accounts
FSP RETAIL BUSINESS CONSULTANTS 10
Leasing Support
FSP RETAIL BUSINESS CONSULTANTS
Output Examples
Trading Gap By ACORN Group – Market Share Gap
FSP RETAIL BUSINESS CONSULTANTS 12
-
1
2
3
4
5
6
Mar
ket S
hare
Gap
(£m
)
Primary Secondary Tertiary
Source: FSP/CACI
Under-Performing Zones
FSP RETAIL BUSINESS CONSULTANTS 13
Absent Retailers - General The recruitment of a selection of the below absent retailers would assist in improving Carlisle’s retail mix and achieve a higher market share.
FSP RETAIL BUSINESS CONSULTANTS 14
Source: FSP
Personal Leisure F&BAmerican Apparel Lipsy Bags ETC. Build-a-Bear Workshop* Ask Italian*
ARK Oasis* Beaverbrooks* Entertainer, The* Bella ItaliaBravissimo Office Crabtree & Evelyn* Evans Cycles Burger King*
Coast* Pavers* L'Occitane Paperchase* Cafe Rouge*Duffer Menswear Phase Eight* Savers* Scribbler Carluccio's*
Dune* Primark* Druckers Vienna Patisserie*East* Schuh Household Food EAT
French Connection* Select Cargo* Booths Supermarkets GiraffeGap Shuropody* Castle Galleries Co-operative Food* Handmade Burger Company
Gerry Weber Superdry* Clas Ohlson Hotel Chocolat* Harry Ramsden's*
JoJoMaman Bebe USC Fired Earth* Mr Simms Olde Sweet Shoppe Jimmy's World Grill & Bar
Jones Bootmaker* Wallis* Laura Ashley* Krispy KremeRobert Dyas* La Tasca
Pret a Manger*West Cornwall Pasty*
Zizzi*
Clothing & Footwear
Sample P&L Summary
FSP RETAIL BUSINESS CONSULTANTS
Table 2: P&L Analysis for Jones, Unit 6, Sample Centre
Year 1 Year 2 Year 3 Commentary
Gross Space ft2 1861 1861 1861 Selling Space ft2 1117 1117 1117 Productivity £ft2 535 567 584 Assumes 6% increase Year2, 3% Year 3
£ % £ % £ %
Gross Sales 597595 633451 652454 Net Sales 497996 100.0 527876 100.0 543712 100.0 Assumes VAT at 20% Gross Profit 258958 52.0 274495 52.0 282730 52.0 Estimated Gross margin
Occupancy
Rent 59760 12.0 63345 12.0 65245 12.0 Actual rent Rates 32292 6.5 32776 6.2 33268 6.1 Estimate Service Charge 7500 1.5 7613 1.4 7727 1.4 Estimate Heating/Lighting 4965 1.0 5041 1.0 5118 0.9 Estimate Insurance and repairs 4063 0.8 4124 0.8 4187 0.8 Estimate
Employment 79128 15.9 80333 15.2 81557 15.0 Employment cost includes NI, pension, benefits, recruitment and training Promotion 3165 0.6 3213 0.6 3262 0.5 Administration 2638 0.5 2678 0.5 2719 0.5 Depreciation 25529 5.1 25529 4.8 25529 4.7 7 year average life of shopfittings
Total Branch Costs 219039 44.0 224652 42.6 228611 41.9
Branch Contribution 39919 8.0 49843 9.4 54119 10.0 Gross Profit less total branch costs HO Cost 26376 5.0 26778 5.0 27186 5.0 Branch contribution to Head Office costs
Profit Contribution 13543 2.7 23065 4.4 26933 5.0 Branch profit contribution after Head Office costs
F&F Cost - 50% 89350 89350 89350 F&F costs @ £140ft2 selling plus £30 ft2 non-selling Average stock 74699 79181 81557 Assumes stock turn is 3.2 times per annum Trading Assets 164049 168531 170907 F&F plus average stock
ROTA 8 14 16 Profit contribution as percentage of Trading Assets - FSP model 25%
FSP Retailer Database
FSP RETAIL BUSINESS CONSULTANTS
Testimonials
FSP RETAIL BUSINESS CONSULTANTS
“Manchester City Council have worked with FSP over the last year to understand the City Centre's shopper audience, who they are where they come from, how the profile evolves throughout the year and how we can attract more shoppers to Manchester. The depth of understanding that FSP have provided in terms of Manchester's catchment has helped inform our marketing, regeneration and growth strategies for the City Centre. Their consultative approach really got to the heart of the issues involved in a complex area and helped to facilitate partnership working across different Council departments and external stakeholders. I look forward to continue our working relationship with them in the future” Peter Richards, Insight & Planning Manager- Manchester City Council “FSP is a long standing consultancy partner to L&G, providing clear, concise, insightful research to our Asset teams. Their work helps us understand the interaction of our shoppers and retailers to ensure the optimum investment performance of our assets” Bill Hughes, Managing Director - Legal & General Property “FSP's clear advice on market strategy has had a direct impact on our approach” Mark Gregory, Managing Director - Clas Ohlson UK “FSP has made an effective and valuable contribution to the development of the business and will continue to help us to deliver the full potential of Princes Mall.” Andrew Glasgow, Director – Premier Property Group “We have worked with FSP over a number of years and naturally get their analysis and opinion before making major retail property investment decisions”
Bill Benjamin, Managing Director - AREA Properties Partners (UK) Ltd “I am very pleased to have given the approval to the research as this really does appear to me to be money well spent” Robert Wood, Fund Manager, Continental European Real Estate
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FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE
T +44(0)1494 474740 F +44(0)1494 474262 [email protected]
www.fspretail.com www.snap-shop.co.uk