p35-48_Move Commercial 20/02/2013 14:12 Page 38
By Suzanne McGuckin
Founded in 1725, chartered surveyors Drivers Jonas was one of the oldest firms of its kind when it was acquired by Deloitte in 2010. Now operating under the name Deloitte Real Estate (DRE), the firm is one of the most respected property consultancies in the world. It is also something of an expert on the Liverpool retail market. In 2012 DRE worked with Liverpool Vision to compile the Liverpool City Centre Strategic Investment Framework, which will guide investment in the city for the next 50 years. Move Commercial met with development advisory Catherine Wignall to find out how high street retailers can become a force to be reckoned with again in Liverpool.
City vision Property consultancy Deloitte Real Estate has a strong connection with Liverpool, including links to a number of the city’s key buildings. Indeed its construction advisory team project-managed the construction of the Capital building and advised the UK Border Agency on its move to the site. DRE also works on a retained consultancy basis with Tate Liverpool. It is its work on the Liverpool retail market however that is most topical. Along with spending last year working in conjunction with Liverpool Vision to compile the Liverpool City Centre Strategic Investment Framework it has also produced the Liverpool Main Retail Area Strategy, a document analysing how the retail environment is changing across Liverpool following the success of Liverpool ONE. This insight into the Liverpool retail market is more valuable than ever given recent events. Indeed, it is no secret that the high street has had it tough. We are only a matter of weeks into 2013 and echoes from 2012 are resounding loud and clear and showing no signs of abating. So what factors have contributed 38 MOVE COMMERCIAL
to these bleak times, and what can retailers do simply to survive? According to Catherine Wignall, development advisory at DRE, diversification of offerings is the key to high street retail success. “The role of the store as part of the wider retail experience is in question and this is largely due to the rise of e-commerce,” Catherine says. “It is unlikely that the traditional store concept will disappear completely, but some chains will need to reduce the scale of their stores and replace them with a stronger online presence.” For many traditional retailers the transition from ‘bricks to clicks’ might appear on the surface to be a daunting prospect; but there are ways to maintain a high street presence while developing and online offering. “Keeping a high street presence is still possible if addressed in a twofold way,” says Catherine. “First of all, the number of stores can be scaled down, with available resources channeled into developing an online offering. At the same time, the remaining high street units need to be given an overhaul. Stores have to become a
destination in their own right in order to be a success, not operating as a silo, rather an integral part of a multi-channel retail experience. “Developments in technology can be used to connect the shop on the high street with its online counterpart. Visitors should be able to scan barcodes in order to add items to their online baskets, check alternative size and colour options on line, cross-reference costs with offers from other retailers and, conversely, pick up their online orders from the shop at their convenience.” So with the diversification strategy in place and the move to incorporate e-commerce in full flow – is this the end to the problems? It appears not. Spiraling rents and business rates are proving to be a major headache for high street retailers. Prime locations, more often than not, demand high overheads. This is why traders should look to negotiate where they can on rent levels and payment dates. “Traders need to have an open and honest dialogue with their landlords,” says Catherine. “If rent is really a struggle, then
downgrading might be the only viable option. This is not necessarily a negative move – lowering overheads can really reduce pressure on a business, and if the new location is chosen wisely, can revitalise the retail offering.” Challenges for high street retailers don’t stop with the squeeze coming from landlords and the competition from online retailers. Out of town retail parks are becoming more and more attractive as a destination for both the consumer and retailer. “The consistently flat economic climate is still causing problems for retailers, with some considering out