FSP uses its extensive retailer dataset and benchmark research to estimate retailer turnover and sustainable rent.
FSP monitors the financial accounts of over 1,500 occupiers. Only 34% of retailers are in a “Healthy” condition.
FSP combines a lifetime of retailing experience with evidence of consumer, retailer and town centre opportunities.
www.fspretail.co.uk
FSP builds unique customer insight Turnover Estimates A database of over 14,000 retailers and benchmark research inform FSP retailer turnover estimates. FSP consultants each have extensive experience of retail operations, giving FSP unique insight to estimating individual shop sales. A robust turnover estimate can be used to support leasing negotiations, establish likely rental income from turnover related leases and benchmark store performance.
Market Opportunities Detailed shop audits by merchandise category establish the retail supply in a location. When combined with shopper spend data, both market shares (benchmarked to assess relative performance) and realistic market gaps can be estimated. FSP’s unique consumer segmentation system (FISH) allocates the market to consumer types to further refine the gaps in retail provision
Sustainable Rents Thorough analysis of retailer performance and company accounts inform FSP estimates of sustainable rents for individual retail shops. Units with unsustainable rent are identified and the reasons for the shortfall assessed and quantified. Early identification of problem retailers enables Asset Managers to manage risk proactively and reduce loss of rental income.
Retailer Fit Successful retail locations are those that offer a retail mix to match shopper needs and aspirations. Once the market gap has been identified and quantified by FISH segmentation FSP will produce a tenant mix strategy and list of appropriate target retailers that ‘fit’ the location. The BIS information is used to ensure ‘Healthy’ retailers are targeted.
Business Viability The Government BIS Wealth Creation Efficiency Index evaluates business viability. This measure has proved a robust tool for predicting retailer failure (90% of retailers that went into administration in the last year were deemed Very Worrying by this measure). Using company data alongside the sustainable rent analysis for individual units, FSP can produce a Financial Risk Matrix to identify at a glance the key issues within a shopping centre/retail park.
Market Appraisals FSP market appraisals are individually tailored to present the profit opportunity of a specific location/unit to a retailer. They include bespoke demographic and spending information and a Profit & Loss account. The document is a compelling, independent assessment that provides the retailer with much of the data needed for the investment appraisal for their own board reporting.
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FSP information and face-to-face presentations have been instrumental in getting retailers to consider schemes which they would not otherwise have done and this has been successfully converted into lettings.
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Roger Fulford Munroe K Asset Management Ltd