STRATEGIC RETAIL TRANSFORMATION VENUESCORE UK Shopping Venue Rankings JAVELIN GROUP EXECUTIVE SUMMARY

Transcription

1 STRATEGIC RETAIL TRANSFORMATION VENUESCORE UK Shopping Venue Rankings JAVELIN GROUP EXECUTIVE SUMMARY

2 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 02 CONTENTS Contents 1 Introduction 03 2 Methodology 05 3 Findings 09 Location Grades 09 Top Shopping Venues 10 Major Movers 11 Top 20 Shopping Centres 12 Top Retail Parks 13 Top Factory Outlet Centres 14 Dominant City Centres 15 Malls vs. High Streets 16 London Focus 17 Market Position 18 Fashion Position 20 Age Position 21 Regional Analysis 22 Illustrative VENUESCORE Tables 24 VENUESCORE : Order Form 26 About Javelin Group 27

3 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 03 CHAPTER ONE INTRODUCTION 1 Introduction VENUESCORE provides retailers, brands, developers and owners with an up-to-date straightforward tool for understanding some of the key differences between shopping venues across the UK such as scale of offer, market positioning, fashionability and age positioning. VENUESCORE is one of a series of proprietary location insight datasets created by Javelin Group to help clients (leading retailers, brands, local authorities, private equity, shopping centre owners and investors) to understand the full potential of their retail property assets and to shape them in response to the structural changes that are delivering a seismic shift to the UK s retail landscape. VENUESCORE is Javelin Group s annual ranking of the UK s top 3,000+ retail venues (including town centres, stand-alone malls, retail warehouse parks, travel hubs and factory outlet centres).

4 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 04 CHAPTER ONE INTRODUCTION For retailers and brands trading nationally, and across a range of different location types, the development of an effective shape of chain strategy requires the segmentation of the store estate so that the performance of outlets trading in venues of similar retail status can be better understood, and potential new store opportunities can be benchmarked in this context. For shopping centre developers and investors, an understanding of the retail hierarchy in an area, overlaid with consumer spending dynamics, helps to highlight opportunities for new development and/or tenant requirements for existing schemes. For private equity investors, a clear vision of the UK retail landscape can help evaluate the deliverability of roll-out plans and store performance assumptions presented as part of investment theses. For local authorities, a clear understanding of the hierarchy of retail venues within the area can help to determine trends in multiple occupancy, establish strategic priorities for future investment and provide the core input for area benchmarking studies and capacity assessments.

5 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 05 CHAPTER TWO METHODOLOGY 2 Methodology The retail offer of each shopping venue in the UK is evaluated using a straightforward and transparent scoring system, reflecting their relative consumer appeal. Retailer Scoring VENUESCORE evaluates each venue in terms of its provision of multiple retailers including anchor stores, fashion operators, and non-fashion multiples. The sectors include Foodservice, which in recent years has become increasingly integrated in helping to define and differentiate successful retail offers, as well as all comparison and convenience-based product sectors. VENUESCORE is a dataset comprising 1,916 individual multiple retailer fascias trading nationwide in April 2014 from over 110,000 stores (using raw data supplied by Retail Locations). The score attached to each operator is weighted to reflect its overall impact on shopping patterns. For example, anchor stores such as John Lewis and Marks & Spencer receive a higher score than unit stores. The resulting aggregate score for each venue is called its VENUESCORE. (Please see table on page 06.) Venue Definitions Venue definitions have been fully updated in VENUESCORE , reflecting the evolving status and extent of the UK s commercial centres. The area defined for each retail venue uses a common-sense approach which describes the retail offer as a single venue where there is a concentration of stores that shoppers would consider as part of the same walkable shopping offer. Example 1: In central Glasgow, Argyle Street and Sauciehall Street are both allocated to one venue (Glasgow, Centre) despite being some distance apart. This is because (a) a proportion of shoppers visit both extremes of the retail offer as part of one shopping trip and (b) the retail offer is relatively unbroken from one end of Sauciehall Street right through to the far end of Trongate.

6 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 06 CHAPTER TWO METHODOLOGY Example 2: In central Cambridge, the area around the Grafton Centre shopping mall is defined as a distinct retail venue separate from Cambridge, Centre (which comprises Grand Arcade, Lion Yard, Petty Cury etc.) Although offers are located in the centre of Cambridge, the retail offer is not continuous from one area to the other and shoppers will generally shop in one area or the other as part of one shopping trip. If they shop in both they generally travel from one to the other either by car or public transport. Example 3: In Warrington, the town centre offer (including the Golden Square shopping centre) and the Cockhedge Retail Park is allocated to the same retail venue (Warrington, Centre) although it is then also possible to assess Cockhedge Retail Park as a distinct zone within the Warrington, Centre venue. Exceptions: In London, the retail offer of the West End (e.g. Oxford Street, Regent Street, Covent Garden, Bond Street, Carnaby Street etc.) is broken down into constituent offers for the purposes of venue ranking although London, West End, London, Midtown and London, City can also be assessed as aggregates of their constituent retail venues. Venues are defined using a commonsense approach, which describes the retail offer as a single venue where there is a concentration of stores that shoppers would consider as part of the same walkable shopping offer. Classification Illustrative Example Retailers VENUESCORE Premier Department Store Harrods, Selfridges (London) 50 Major Department Stores Harvey Nichols, John Lewis 30 Premier Variety Stores Marks & Spencer 15 Hypermarkets Tesco Extra, Asda Supercentre 10 Department Stores House of Fraser, Debenhams 10 Supermarkets Asda, Morrisons, Sainsbury s, Waitrose 8 Variety Stores Bhs, Dunnes 5 Small Department Stores Desire 4 Destination Speciality B&Q, Decathlon 3 Clothing Destination TK Maxx, Abercrombie & Fitch 3 Multiple Clothing Retailers H&M, River Island, New Look 2 Other Goods Destination Halfords, Hobbycraft, Staples 2 Other Multiple Retailers 99p Stores, Carphone Warehouse, Clarks 1

7 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 07 CHAPTER TWO METHODOLOGY Venue Scoring The VENUESCORE for each location is created by combining the retailer scoring matrix (described above) with the venue s area definition, and therefore reflects the presence and importance of the multiple retailers trading in each venue. The resulting VENUESCORE rankings generally correlate closely with the actual market sizes of these shopping venues (in terms of consumer spending), however, there are some notable exceptions. For example, the mega-malls such as Trafford Centre, Bluewater and Meadowhall tend to generate spending levels that are well in excess of their relative VENUESCORE. The same is true of several London venues, including Oxford Street and the two Westfield schemes, which are the most notable outliers to this rule. London city centre venues are defined as distinct aggregate venues, for example, London, West End comprises Oxford Street, Regent Street, Covent Garden etc., London, Midtown comprises Holborn, Clerkenwell, Finsbury etc. and London, City comprise Bank, Moorgate, Liverpool Street etc. in order to reflect more accurately their true status as powerful city centre offers in their own right. (We also provide detailed analysis of London which breaks these key areas back out into their constituent parts.)

8 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 08 CHAPTER TWO METHODOLOGY Venue Attributes In addition to its VENUESCORE, each venue is assessed in terms of a range of other attributes, including: Market positioning (Is the offer aspirational or down-market?) Age focus (Is the offer targeting younger or older consumers?) Fashion focus (How dominant is the venue s clothing offer?) Fashionability of its offer (Is the clothing offer traditional or progressive?) Foodservice bias (How strong is the food and beverage offer?) Comparison vs. convenience bias Anchor strength (How much of the overall score for each venue is delivered by major anchors (department stores, variety stores, supermarkets etc.)) Shopping centre vs. high street dominance (Is there a powerful mall offer?) These characteristics are described below in the Findings section. In the data tables that support VENUESCORE , venues are ranked as follows: National ranking Alphabetical ranking (by town) Rankings by region Rankings by Local Authority MALLSCORE Separate rankings for purpose-built shopping centres, retail parks, outlet centres and transport hubs in the UK In 2013, Javelin Group published its new VENUESCORE ranking using an evolved methodology due to a change in the data supplier (to Retail Locations). This led to a change in the geographic definition of certain retail venues and some changes in the underlying scoring system. This year, Javelin Group has refined the methodology further and added an additional 2,500+ venues to VENUESCORE (down to Minor Local level). Furthermore, an additional 695 multiple retailers have been included. This partly reflects the growing importance of Foodservice multiples (e.g. Harris + Hoole, Vital Ingredient, Pieminster) and the inclusion of pubs/restaurants (i.e. Wetherspoons, All Bar One).

9 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 09 CHAPTER THREE FINDINGS 3 Findings The following pages summarise key findings from the data analysis from VENUESCORE Location Grades VENUESCORE establishes eight principal grades of town centre/mall retail venue in the UK for town centres and malls, ranging from the 22 Major City locations such as Glasgow city centre through to 3,000+ Local shopping venues such as East Dulwich and Wick. In addition there are a further 17,000+ venues across the country defined as Minor Local that are not shown in the table below. VENUESCORE establishes eight principal grades of retail venue in the UK, ranging from Major City to Local status retail offers. The leading 186 venues (i.e. Major City, Major Regional and Regional grades) represent one-third of the nation s total combined VENUESCORE. This increases to over half when the Sub-Regional and Major District grades are included. These larger venues capture an even greater share of consumer spending than is indicated purely based on VENUESCORE. Location Grade Illustrative Example Venues VENUESCORE Range # of Locations Cumulative # Major City Glasgow to Sheffield Major Regional Croydon to Worcester Regional Coventry to Crewe Sub-Regional South Shields to Bognor Regis Major District Dorking to Upminster District Congleton to Willenhall ,060 Minor District Blackheath to Cowes ,530 Local East Dulwich to Wick ,547 3,077 NB. All venues scoring less than 10 are classified by Javelin Group as Minor Local

10 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 10 CHAPTER THREE FINDINGS Top Shopping Venues London, West End clearly stands some distance above any other city centre in terms of the scale of its retail offer (with a VENUESCORE that is nearly double that of its next nearest rival). However, London, West End can also be considered as a number of separate (albeit interlinked) retail venues (e.g. Oxford Street, Regent Street, Covent Garden), with VENUESCORE providing the opportunity to assess the capital from both perspectives. (Other characteristics of London s retail offer are described on page 17.) London s West End is the UK s leading shopping destination with a VENUESCORE of 1,614 more than double the scale of the UK s next largest retail hub (Glasgow, Centre). The principal mover at the top of the rankings is Leeds. Following the opening of Trinity Leeds in 2013, it has moved into 3rd place behind Glasgow and Manchester. Brighton has also moved up the rankings to 6th (from 8th) following enhancements to an improving retail offer at Churchill Square Shopping Centre (e.g. Top Shop, River Island and Fossil have signed new deals at the scheme). Rank Venue VENUESCORE Rank Venue VENUESCORE London, West End 1,614 London, City Glasgow Newcastle Upon Tyne Manchester Aberdeen Leeds Reading Birmingham Norwich Liverpool Bristol Brighton Belfast Nottingham Leicester Cardiff Kingston Upon Thames Oxford St Bath Edinburgh York 361

11 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 11 CHAPTER THREE FINDINGS Major Movers In the UK s top 200 retail venues, Hereford, West Bromwich and Newbury have benefited from the opening of new shopping centres/shopping districts (Old Market Shopping Centre, New Square Shopping Centre, and Parkway Shopping respectively). Other locations such as Crawley and Newport (Gwent) have fallen due to ongoing development in the central area causing some short-term disruption. For example, Newport (Gwent) has experienced a VENUESCORE decline in order to facilitate the new Friars Walk development which is expected to propel it quickly back up the rankings when it opens in Autumn Decline in Stafford and Chesterfield primarily reflects the closure of Midlands Co-op department stores. Highest Climbers Place Change Biggest Fallers Place Change Top 100 Venues 1 Hereford +38 Crawley -7 2 Gloucester +26 Bolton -6 3 Newbury +14 Wrexham -5 4 Richmond Upon Thames +11 Hull -4 5 Worcester +8 Northampton -4 6 Stockport +8 Stirling -4 7 Preston +6 London - Kings Rd -3 8 Windsor +6 Swansea -3 9 Docklands +5 Hanley Cheltenham +4 Warrington -3 Venues Ranked West Bromwich +118 Stafford Gunwharf Quays F O +18 Chesterfield Newark +17 Poole Carmarthen +14 Lewisham Ealing +13 Wimbledon Chiswick +13 Slough Putney +11 Kensington Aylesbury +11 Ashford (Kent) Harlow +10 Newport (Gwent) South Shields +10 Chatham -10

12 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 12 CHAPTER THREE FINDINGS Top 20 Shopping Centres MALLSCORE represents the VENUESCORE of purposebuilt shopping centres (be they malls, retail parks or factory outlet centres). Isolating the scores of these centres allows them to be ranked on a consistent basis, whether or not they are part of a wider retail offer (such as Bullring within Birmingham, Centre). The top of the mall rankings shown here is dominated by standalone regional mega-malls. Westfield London is now the number one ranked shopping centre in the UK and is the premier scheme in terms of its aspirational market positioning as evidenced by its Glam-Glum* Index of 141 although all the leading malls shown here have an aspirational orientation. Glam-Glum Index Rank Scheme Town MALLSCORE (Avg=100) 1 Westfield London London Bluewater Greenhithe Westfield Stratford City London intu Trafford Centre Manchester Meadowhall Sheffield intu Metrocentre Gateshead intu Lakeside Grays intu Merryhill Brierley Hill Arndale Centre Manchester St. Davids Centre Cardiff Liverpool ONE Liverpool intu Derby Derby Bullring Birmingham The Centre: Mk Milton Keynes Canary Wharf London intu Eldon Square Newcastle Upon Tyne Brent Cross London Festival Place Basingstoke Highcross Leicester The Mall At Cribbs Causeway Bristol *The Glam-Glum Index reflects the relative market position orientation of a venue where 100 defines the average UK retail venue. Scores above 100 reflect an aspirational bias; scores below 100 reflect an orientation towards the discount/value end of the market.

13 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 13 CHAPTER THREE FINDINGS Top Retail Parks Glasgow Fort and Fort Kinnaird in Edinburgh emerge as the UK s leading retail park destinations. However, Purley Way North (Croydon) ranks as the UK s top retail park destination if the cluster of individual retail parks on offer are combined. Rank Scheme Town MALLSCORE 1 Glasgow Fort Glasgow Fort Kinnaird Edinburgh 97 3 Teesside Thornaby 95 4 Middlebrook Horwich 93 5 Parkgate / Retail World Rotherham 92 6 Parc Trostre Llanelli 91 7 Castlepoint Bournemouth 87 8 Straiton Loanhead 80 9 New Mersey Liverpool Fosse Park Leicester 74

14 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 14 CHAPTER THREE FINDINGS Top Factory Outlet Centres Cheshire Oaks remains well ahead of any other factory outlet by scale. Bicester Village (ranking 5th) continues to offer the most differentiated aspirational brand mix by some margin with a Glam-Glum Index of 173 a positioning on a par with London s Knightsbridge! The recently-opened London Designer Outlet (Wembley) is expected to feature in this ranking once the development has been fully let. Bicester Village continues to offer the most differentiated aspirational brand mix by some margin with a positioning on a par with London s Knightsbridge! Rank Scheme MALLSCORE Glam-Glum Index (Avg=100) 1 Cheshire Oaks Designer Outlet Gunwharf Quays York Designer Outlet Bridgend Designer Outlet Bicester Village Swindon Designer Outlet Freeport Braintree Ashford Designer Outlet Livingston Designer Outlet Clarks Village

15 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 15 CHAPTER THREE FINDINGS Dominant City Centres The extent to which the city centre offer of the UK s largest major cities dominates the conurbations wider retail market is assessed below, as well as the extent to which each conurbation appears to be relatively over- or under-shopped. The picture painted is varied, ranging from London and Birmingham at one extreme where the city centre offer represents a relatively small part of the wider conurbations total offer (under 12%); to the dominant city centre offers of York, Cardiff and Leeds (35%+). At the conurbation level, Southampton, Bristol and Edinburgh have the lowest overall provision of multiple retail relative to their affluence-weighted populations (i.e. thereby appearing relatively under-shopped) when compared against this set of major conurbations, whilst Glasgow and Tyneside are at the opposite extreme. Rank Conurbation Conurbation Population Affluence Index Conurbation VENUESCORE Weighted Population per VENUESCORE Point Under-/Over- Shopped Index City Centre VENUESCORE City Centre as % of Conurbation 1 Greater London - L 7, , , % 2 Greater Birmingham - WM 2, , % 3 Greater Manchester - NW 1, , % 4 Greater Glasgow - S 1, , % 5 Tyneside - NE , % 6 Bristol - SW 1, , % 7 Edinburgh - S , % 8 Liverpool - NW 1, , % 9 Greater Nottingham - EM , % 10 Leeds - Y 1, , % 11 Belfast - NI , % 12 Sheffield - Y , % 13 Cardiff - W , % 14 Southampton - SE , % 15 Leicester - EM , % 16 Portsmouth - SE % 17 Kingston upon Hull - Y % 18 York - Y % 19 Bournemouth - SW % 20 Stoke-on-Trent - WM % The Index shown here is inversed whereby a high score indicates a potential over-provision of retail.

16 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 16 CHAPTER THREE FINDINGS Malls vs. High Streets The role played by shopping centres in the UK s leading venues now ranges from only 8% of the offer in Central London up to 61% in Birmingham. Whilst the uneven nature of shopping centre distribution across these leading retail venues partially reflects the specific configuration and opportunities available for development, it nevertheless suggests that additional mall development might be possible in areas such as York and Bath. Rank Venue VENUESCORE MALLSCORE (*) Mall Dominance 1 Central London (**) 2, % The importance of shopping centres in the UK s leading retail venues is reflected by the proportion of the total offer accounted for by malls within the UK s Top 20 venues. 2 Glasgow % 3 Manchester % 4 Leeds % 5 Birmingham % 6 Liverpool % 7 Brighton % 8 Nottingham % 9 Cardiff % 10 Edinburgh % 11 Newcastle Upon Tyne % 12 Aberdeen % 13 Reading % 14 Norwich % 15 Bristol % 16 Belfast % 17 Leicester % 18 Kingston Upon Thames % 19 Bath % 20 York % (**) Total MALLSCORE of Shopping Centres only (*) London here defined as London, City, London, Mid-town and London, West End

17 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 17 CHAPTER THREE FINDINGS London Focus Central London s retail offer has a clear focus on upscale retail. This is exemplified by the Glam-Glum Index scores that are well above 100 for the vast majority of central London venues (defined as venues that make up London, West End, London, City and London, Midtown). In Inner London (defined here using London postal districts), the Westfield shopping centres lead the way, followed by Knightsbridge, Kings Road, Docklands and Brent Cross. London s West End, City and Midtown offers rank 1st, 2nd and 27th respectively in the national VENUESCORE rankings. In Outer London, Kingston, Croydon, Bromley and Romford stand out as the capital s major suburban destinations. Rank Venue VENUESCORE National Rank Glam-Glum Index (Avg=100) Fashion Position (Avg=100) Tourist Bias (Avg=100) London, West End 1, London, City London, Mid-Town n/a 55 Central London, Top 10 Venues 1 Oxford St Covent Garden Regent St Cheapside Liverpool St Soho n/a 93 7 Bond St Ludgate Hill n/a 78 9 Fenchurch St Carnaby St Inner London, Top 10 Venues 1 Westfield London Westfield Stratford City Knightsbridge Kings Rd Docklands Brent Cross Wimbledon Wood Green Ealing Clapham Junction Outer London, Top 10 Venues 1 Kingston Upon Thames Croydon Bromley Romford Sutton Harrow Uxbridge Richmond Upon Thames Ilford Bexleyheath

18 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 18 CHAPTER THREE FINDINGS Market Position As the largest and most differentiated non-food spending sector, the fashion offer is often key for consumers when choosing a particular shopping venue. It is important for retailers to understand how venues differ in terms of market positioning (e.g. quality/price) in order to find the optimum locations for their format. The Market Position index provides a useful guide for distinguishing between shopping venues based upon their relative positioning along a spectrum running from Discount to Luxury. The fashion offer (together with some easily classifiable operators from other categories) is used to profile each venue. The Market Position index provides a useful guide for distinguishing between shopping venues based upon their relative positioning from Discount to Luxury. To produce this index we classify retail formats across a spectrum of upscale to discount (as illustrated below). Each venue has an estimated average market position score based on the retailers present, with the Market Position index for each venue calculated by comparing the venue s market position score against the average for all venues (down to Major District grade). Glam Upscale Appeal Glum Discount Focus

19 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 19 CHAPTER THREE FINDINGS Major District status venues and above with the strongest bias towards either the upper or lower end of the market position spectrum are shown below. Upscale venues are dominated by Central London providing 6 of the 10 most upscale offers. Three of the UK s top 10 Glam locations are occupied by terminals at Heathrow Airport (T4, T5 and T3 respectively) with the new T2 likely to join this list in the next rankings report. At the other end of the spectrum, Wythenshawe, Salford and Peterlee are defined as the UK s most down market retail venues. Glum (Most Downmarket) Rank Glam (Most Upmarket) Wythenshawe 1 Bond St Salford 2 Knightsbridge Peterlee 3 Bicester Village Grays 4 Heathrow Airport T4 Ellesmere Port 5 Heathrow Airport T5 Huyton 6 Marylebone Bletchley 7 Heathrow Airport T3 Erdington 8 Piccadilly Hyde 9 Regent St Lower Edmonton 10 Portobello Rd Motherwell 11 Kings Rd Northfield 12 Heathrow Airport T1 Blyth 13 Hampstead Longton 14 York Designer Outlet East Ham 15 Westfield London West Ealing 16 Gloucester Quays Wishaw 17 Swindon Designer Outlet Gillingham (Kent) 18 Carnaby St Hillsborough 19 Covent Garden Castleford 20 Docklands

20 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 20 CHAPTER THREE FINDINGS Fashion Position In assessing the relative fashionability of shopping venues, a similar approach is used as that described in the previous section, assessing fashion retailers across a spectrum running from progressive through to traditional. London venues dominate as the most progressive venues. Traditional Rank Progressive Upminster 1 Spitalfields Louth 2 Knightsbridge Llandudno 3 Portobello Rd Market Harborough 4 Russell Square Spitalfields, Knightsbridge and Portobello Road rank as the UK s most progressive venues, whilst Upminster, Louth and Llandudno are typical of the country s most traditional retail offers. Henley On Thames 5 Bond St Monmouth 6 Carnaby St Chancery Lane 7 Kings Rd St Neots 8 Covent Garden Lichfield 9 Fulham Broadway Sudbury 10 Westfield London S C Progressive Traditional

21 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 21 CHAPTER THREE FINDINGS Age Position By identifying those multiple retailers with particularly strong young (e.g. Hollister, H&M, Miss Selfridge, Blue Inc., Game) or old (e.g. Edinburgh Woollen Mill, Evans) orientation, it is possible to compare venues based on their overall appeal to different age cohorts. Venues such as Wandsworth, Cwmbran and Dunfermline have a relatively young retail focus on this basis, whilst venues with the strongest bias towards older shoppers include provincial market towns such as Marlborough, Harpenden, Nantwich, Ringwood and Ilkley. The UK s older shopping venues (in terms of relative consumer appeal) include provincial market towns such as Marlborough, Harpenden, Nantwich, Ringwood and Ilkley. Oldest Rank Youngest Marlborough 1 Carnaby St Harpenden 2 Wandsworth Nantwich 3 Cwmbran Ringwood 4 Dunfermline Ilkley 5 Oxford St Marlow 6 Stevenage Cirencester 7 Londonderry Saffron Walden 8 East Kilbride Beverley 9 Edgware Lymington 10 Enfield Tourist Venues Knightsbridge and Piccadilly provide the greatest mix of retailers appealing to the tourist shopper. Rank Venue Tourist Index 1 Knightsbridge Piccadilly Bicester Village Bond St Regent St Carnaby St Gunwharf Quays Covent Garden Spitalfields Ashford Designer Outlet 122

22 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 22 CHAPTER THREE FINDINGS Regional Analysis The table below summarises the overall characteristics of the retail supply available nationally across the UK regions. This re-emphasises, for example, London s upmarket bias (Glam-Glum Index of 111) and strong fashion orientation. The table also includes an assessment of the extent to which multiple retail penetrates different UK regions by comparing resident population (weighted for affluence) against each region s aggregate VENUESCORE. The ratio of Weighted Population per VENUESCORE Point identifies the East of England and the South-East as the UK s most under-supplied regions (relative to their spend-weighted populations), whilst the North-East and Wales appear to be the most multiple-penetrated areas. Region Total VENUESCORE FASHIONSCORE Index Glam-Glum Index Population Affluence Index Weighted Population per VENUESCORE Point Under-/ Over- Shopped Index Total UK 167, , East Midlands 10, , East of England 14, , London 23, , North East 6, , North West 18, , Northern Ireland 4, , Scotland 15, , South East 23, , South West 14, , Wales/Cymru 8, , West Midlands 13, , Yorkshire and The Humber 13, , The Index shown here is inversed whereby a high score indicates a potential over-provision of retail.

23 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 23 CHAPTER THREE FINDINGS The table below shows the proportion of the total retail offer provided by Foodservice at a regional level. There is huge variation between regions, with London s Foodservice provision the highest in the UK, whereas for both Scotland and Northern Ireland, Foodservice is less than 11% of the total, based on multiple operator provision. These differentials indicate the scale of category shift that could occur across the UK regions in the coming years as Foodservice (combined with other leisure) become an increasingly important component of the nation s multiple retail offer. Region Total VENUESCORE Total FOODSCORE FOODSCORE as % of Total FOODSCORE Index Total UK 167,656 25,795 15% 100 East Midlands 10,703 1,580 15% 96 East of England 14,737 1,939 13% 86 London 23,393 5,787 25% 161 North East 6, % 90 North West 18,749 3,002 16% 104 Northern Ireland 4, % 55 Scotland 15,168 1,612 11% 69 South East 23,415 3,460 15% 96 South West 14,709 1,963 13% 87 Wales/Cymru 8,122 1,088 13% 87 West Midlands 13,847 2,111 15% 99 Yorkshire and The Humber 13,059 1,880 14% 94

24 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 24 CHAPTER THREE FINDINGS Illustrative VENUESCORE Tables The following page includes a sample of the VENUESCORE dataset, detailing the top 50 retail venues in the UK. VENUESCORE can be purchased in Excel format, and the full Excel-based dataset contains the following VENUESCORE rankings tables: 1. National ranking National rankings for the UK s leading shopping venues (i.e. Major City to Major District grade) The full VENUESCORE rankings data can be purchased from Javelin Group (Order form on page 26). 2. Alphabetical ranking Full ranking of UK retail venues presented in alphabetical order (i.e. Major City to Local grade) 3. Rankings by region All venues ranked within their region (i.e. London, South East, N. Ireland) 4. Rankings by Local Authority Ranks all venues by Local Authority to assist in local retail hierarchy planning 5. MALLSCORE ranking Ranking UK shopping centres, retail parks, outlet centres and transport hubs The full VENUESCORE rankings data can be purchased from Javelin Group (Order form on page 26).

25 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 25 CHAPTER THREE FINDINGS VENUESCORE RANKED BY VENUESCORE TOP 50 VENUES VENUE DETAILS VENUE Local Authority Location Type Location Grade Region 2014 VENUESCORE 2014 Rank Fashion Orientation Index (Avg=100) Foodservice Orientation Index (Avg=100) Tourist Orientation Index (Avg=100) Market Position Index (Avg=100) Market Position Classification Fashion Position Index (Avg=100) Fashion Position Classification Age Position Index (Avg=100) Age Position Classification London, West End Westminster Centre Major City London 1, Upscale 124 Progressive 101 Old London, City Westminster Centre Major City London Upper Middle 106 Fashion Moderate 102 Old London, Midtown Westminster Centre Major Regional London 336 n/a Upper Middle 103 Fashion Moderate 103 Old Glasgow, Centre Glasgow City Centre Major City Scotland Upper Middle 108 Fashion Moderate 100 Old Manchester, Centre Manchester Centre Major City North West Upper Middle 115 Fashion Forward 100 Mid Leeds, Centre Leeds Centre Major City Yorkshire and The Humber Upper Middle 114 Fashion Forward 99 Mid Birmingham, Centre Birmingham Centre Major City West Midlands Upper Middle 114 Fashion Forward 98 Mid Liverpool, Centre Liverpool Centre Major City North West Upper Middle 115 Fashion Forward 98 Mid Brighton, Centre Brighton and Hove Centre Major City South East Upper Middle 114 Fashion Forward 100 Mid Nottingham, Centre Nottingham Centre Major City East Midlands Upper Middle 109 Fashion Moderate 100 Mid Cardiff, Centre Cardiff Centre Major City Wales/Cymru Upper Middle 108 Fashion Moderate 100 Mid London, West End - Oxford St Westminster Centre Major City London Upper Middle 117 Fashion Forward 95 Mid Edinburgh, Centre Edinburgh, City of Centre Major City Scotland Upper Middle 106 Fashion Moderate 101 Old Newcastle Upon Tyne, Centre Newcastle upon Tyne Centre Major City North East Middle 108 Fashion Moderate 99 Mid Aberdeen, Centre Aberdeen City Centre Major City Scotland Middle 107 Fashion Moderate 100 Mid Reading, Centre Reading Centre Major City South East Middle 105 Fashion Moderate 101 Old Norwich, Centre Norwich Centre Major City East of England Middle 101 Fashion Moderate 100 Mid Bristol, Centre Bristol, City of Centre Major City South West Upper Middle 112 Fashion Forward 98 Mid Belfast, Centre Ballymena Centre Major City Northern Ireland Middle 112 Fashion Forward 98 Mid Leicester, Centre Leicester Centre Major City East Midlands Middle 110 Fashion Moderate 98 Mid Kingston Upon Thames, Centre Kingston upon Thames Centre Major City London Upper Middle 111 Fashion Forward 100 Old Bath, Centre Bath and North East Somerset Centre Major City South West Upper Middle 106 Fashion Moderate 102 Old York, Centre York Centre Major City Yorkshire and The Humber Upper Middle 103 Fashion Moderate 102 Old Southampton, Centre Southampton Centre Major City South East Middle 106 Fashion Moderate 98 Mid Sheffield, Centre Sheffield Centre Major City Yorkshire and The Humber Middle 108 Fashion Moderate 100 Mid Croydon, Centre Croydon Centre Major Regional London Middle 106 Fashion Moderate 100 Mid Exeter, Centre Exeter Centre Major Regional South West Upper Middle 107 Fashion Moderate 100 Old London, Westfield London S C Hammersmith and Fulham Mall Major Regional London Upscale 120 Fashion Forward 98 Mid Greenhithe, Bluewater S C Dartford Mall Major Regional South East Upper Middle 113 Fashion Forward 97 Mid Derby, Centre Derby Centre Major Regional East Midlands Middle 105 Fashion Moderate 99 Mid Cambridge, Centre Cambridge Centre Major Regional East of England Upper Middle 110 Fashion Moderate 102 Old Manchester, The Trafford Centre S C Trafford Mall Major Regional North West Upper Middle 115 Fashion Forward 95 Mid London, West End - Covent Garden Westminster Centre Major Regional London Upscale 122 Progressive 99 Mid London, Westfield Stratford City S C Newham Mall Major Regional London Upper Middle 118 Fashion Forward 95 Mid Guildford, Centre Guildford Centre Major Regional South East Upper Middle 110 Fashion Moderate 102 Old Cheltenham, Centre Cheltenham Centre Major Regional South West Upper Middle 105 Fashion Moderate 102 Old Milton Keynes, Centre Milton Keynes Centre Major Regional South East Upper Middle 108 Fashion Moderate 98 Mid Livingston, Centre West Lothian Centre Major Regional Scotland Middle 104 Fashion Moderate 99 Mid Hull, Centre Kingston upon Hull, City of Centre Major Regional Yorkshire and The Humber Middle 108 Fashion Moderate 97 Mid Chester, Centre Cheshire West and Chester Centre Major Regional North West Upper Middle 104 Fashion Moderate 104 Old Sheffield, Meadowhall S C Sheffield Mall Major Regional Yorkshire and The Humber Upper Middle 111 Fashion Forward 98 Mid London, Knightsbridge Kensington and Chelsea Centre Major Regional London Upscale 129 Progressive 101 Old Bromley, Centre Bromley Centre Major Regional London Upper Middle 106 Fashion Moderate 101 Old Plymouth, Centre Plymouth Centre Major Regional South West Middle 105 Fashion Moderate 99 Mid Oxford, Centre Oxford Centre Major Regional South East Upper Middle 106 Fashion Moderate 101 Old Solihull, Centre Solihull Centre Major Regional West Midlands Upper Middle 101 Fashion Moderate 102 Old Lincoln, Centre Lincoln Centre Major Regional East Midlands Middle 99 Updated Classic 100 Old Doncaster, Centre Doncaster Centre Major Regional Yorkshire and The Humber Middle 103 Fashion Moderate 98 Mid Gateshead, Metrocentre S C Gateshead Mall Major Regional North East Middle 107 Fashion Moderate 96 Mid Romford, Centre Havering Centre Major Regional London Middle 103 Fashion Moderate 97 Mid Peterborough, Centre Peterborough Centre Major Regional East of England Middle 106 Fashion Moderate 98 Mid Watford, Centre Watford Centre Major Regional East of England Middle 103 Fashion Moderate 97 Mid Dundee, Centre Dundee City Centre Major Regional Scotland Middle 106 Fashion Moderate 98 Mid

26 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 26 VENUESCORE : ORDER FORM VENUESCORE : Order Form Name: Position: Company: Address: Telephone: I would like to order: Please Tick VENUESCORE 850 +VAT Cheque enclosed with order Please invoice separately* Cheques should be made payable to Javelin Group Ltd. A VAT invoice will be issued. * VENUESCORE will be despatched upon receipt of payment. I would like to find out more about: Javelin Group s RETAILNATION UK shopping patterns for over 1,000 venues Javelin Group s SHOPSCORE UK & Ireland performance benchmarking Alteryx ( Predictive analytics at the speed of thought ) Store Location Strategies from Javelin Group Shopping Centre Strategies from Javelin Group Please return your completed form by fax, post or scanned attachment to: Paddy Gamble Javelin Group 200 Aldersgate Street London EC1A 4HD Tel: +44 (0) Fax: +44 (0) paddy.gamble@javelingroup.com

27 JAVELIN GROUP EXECUTIVE SUMMARY SEPTEMBER 2014 VENUESCORE PAGE 27 ABOUT JAVELIN GROUP About Javelin Group Javelin Group is Europe s leading and largest specialist firm of retail strategy consultants. Javelin Group is Europe s leading specialist in strategic retail transformation with 200+ professionals based in London and Paris, providing advisory services for many of Europe s largest retailers and brands. Led by chairman Sir Geoffrey Mulcahy (former Kingfisher CEO), we are experts in integrated retailing and have a strong blue-chip client list of store retailers, direct retailers, shopping centre owners/developers and private equity firms investing in retail. Our Locations & Analytics team, which has worked with more than 200 retailers and brand clients on store location planning and analytics, combines information on stores, catchments and spending with a detailed knowledge of shopping venues across Europe to advise retail companies on: 1. Roll-out potential of expanding chains 2. Store portfolio review to establish investment/exit priorities 3. Sales forecasting 4. Site-specific evaluations for town centre and out-of-town retailers 5. Catchment analysis (RETAILNATION) 6. Store grading and local merchandising 7. Retail store performance benchmarking (SHOPSCORE) 8. Market analysis software tools (e.g. Alteryx, Tableau ) 9. Consumer data and segmentation Contact us If you would like to discuss your retail locations and analytics requirements, please contact Robin Bevan, Director of Locations & Analytics practice at Javelin Group, at robin.bevan@javelingroup.com or on +44 (0) For more information about Javelin Group, please visit