VENUESCORE UK Shopping Venue Rankings JAVELIN GROUP EXECUTIVE SUMMARY

Transcription

1 VENUESCORE UK Shopping Venue Rankings JAVELIN GROUP EXECUTIVE SUMMARY

2 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 02 CONTENTS Contents 1 Introduction 03 2 Methodology 05 3 Findings 10 Location Grades 10 Top Shopping Venues 11 Major Movers 12 Top Shopping Centres 14 Top Retail Parks 15 Top Factory Outlet Centres 16 Dominant City Centres 17 Malls vs. High Streets 18 London Focus 19 Market Position 21 Fashion Position 23 Age Position 24 Tourist Venues 25 Internationalisation 26 Regional Analysis 28 Order VENUESCORE About Javelin Group 32

3 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 03 CHAPTER ONE INTRODUCTION INTRODUCTION 1 VENUESCORE provides retailers, developers, owners and brands with an up-todate, 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 (including retailers, brands, local authorities, private equity, shopping centre owners and investors) to understand the full potential of their retail property assets and to shape these 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 ~ 3,500 retail venues (including town centres, stand-alone malls, retail warehouse parks and factory outlet centres).

4 JAVELIN GROUP EXECUTIVE SUMMARY 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 VENUESCORE PAGE 05 CHAPTER TWO METHODOLOGY METHODOLOGY 2 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 their provision of multiple retailers - including anchor stores, fashion operators, and non-fashion multiples. The sectors covered 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 3,337 individual multiple retailer fascias trading nationwide in April 2015 from over 128,140 stores (using raw data supplied by Retail Locations).

6 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 06 CHAPTER TWO METHODOLOGY The score attached to each operator is weighted to reflect their overall impact on shopping patterns. For example, anchor stores such as John Lewis, Marks & Spencer and Selfridges receive a higher score than unit stores. The resulting aggregate score for each venue is called its VENUESCORE. 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 Store Chains Debenhams, House of Fraser 10 Supermarkets Sainsbury s, Morrisons, Asda, Waitrose 8 Variety Stores BHS, Dunnes 4 Local Anchors Marks & Spencer 4 Destination Speciality B&Q, Next, Toys R Us 3 Clothing Destination TK Maxx, Abercrombie & Fitch 3 Multiple Clothing Retailers H&M, Topshop, New Look, River Island 2 Leisure Goods Destination Halfords, Hobbycraft, Sports Direct 2 Other Multiple Retailers 99p Stores, Clarks, JD Sports 1

7 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 07 CHAPTER TWO METHODOLOGY 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 one venue where there is a concentration of stores that shoppers would consider as part of the same walkable shopping offer. To illustrate: Example 1: 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.): this is because, although both offers are located in the centre of Cambridge, the retail offer is not continuous from one area to the other and (b) shoppers will generally shop in one area or the other as part of one shopping trip, but where they shop both they might generally travel from one to the other either by car or public transport. 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. Example 2: 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 would 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. 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 RP 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.

8 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 08 CHAPTER TWO METHODOLOGY Venue Scoring The VENUESCORE for each location is created by combining the retailer scoring matrix (described on page 6) 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, with Oxford Street and the two Westfield schemes as the most notable outliers to this rule. London city centre venues are defined as distinct aggregate venues to better reflect their true status as powerful city centre offers in their own right. For example, London, West End (e.g. combining Oxford Street, Regent Street, Covent Garden etc.), London, Midtown (e.g. combining Holborn, Clerkenwell, Finsbury etc.) and London, City (e.g. combining Bank, Moorgate, Liverpool Street etc.) (We also provide detailed analysis of London which breaks these key areas back out into their constituent parts).

9 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 09 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?) International orientation (How biased towards non-uk brands is the retail 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 This year, Javelin Group has further refined our VENUESCORE methodology and added an additional 2,300+ venues to the rankings (down to Minor Local level). Refinements include changes to the geographic definition of certain retail venues and some changes to the underlying scoring system. Furthermore, we have included an additional 128 multiple retailers. This partly reflects the growing importance of Foodservice multiples (e.g. Wildwood Kitchen, Giggling Squid and Square Pie).

10 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 10 CHAPTER THREE FINDINGS FINDINGS 3 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, ranging from the 20 Major City locations such as Glasgow city centre through to 1,800+ Local shopping venues such as Battle and Wick. In addition there are a further 19,000+ 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 188 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 Southampton Major Regional Croydon to Darlington Regional Ipswich to Crewe Sub-Regional Barnstaple to Stourbridge Major District Chippenham to Waltham Cross District Billericay to Wedn esbury ,120 Minor District Ambleside to West Byfleet ,617 Local Alexandria to Tring ,855 3,472 NB. All venues scoring less than 10 are classified by Javelin Group as Minor Local

11 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 11 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 later.) London s West End is the UK s leading shopping destination with a VENUESCORE of 1,614 exactly double the scale of the UK s next largest retail hub (Glasgow, Centre). The principal mover at the top of the rankings is Birmingham. Following the opening of Grand Central, it has moved into 3rd place behind Glasgow and Manchester. Grand Central has greatly improved Birmingham s retail offer, adding retailers such as John Lewis, Cath Kidston, Ed s Easy Diner and Jo Malone. The scheduled opening of Victoria Gate, anchored by John Jewis, in late 2016 will move Leeds back up to third place. Rank Venue VENUESCORE Rank Venue VENUESCORE London, West End 1,614 London, City Glasgow Newcastle upon Tyne Manchester Bristol Birmingham Norwich Leeds Reading Liverpool Belfast Nottingham Leicester Brighton Kingston upon Thames Edinburgh Bath Cardiff Southampton Aberdeen Croydon 349

12 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 12 CHAPTER THREE FINDINGS Major Movers In the UK s top 200 retail venues, Bradford and Newport have greatly benefitted from the opening of a new shopping centre (Westfield Broadway and Friars Walk respectively). Both schemes have seen the addition of multiple new retailers such as Debenhams, Next and Jack & Jones. Beverley ranks outside of the UK s top 200 retail venues but has climbed up the Javelin Group venue ranking with the addition of Flemingate Shopping Centre within the town centre. Highest Climbers Place Change (+/-#) Biggest Fallers Place Change (+/-#) Top 100 Venues 1 Bradford +72 Wolverhampton Cheshire Oaks FO/Coliseum RP +20 Swansea Docklands +17 Luton Taunton +15 Wakefield -9 5 Hereford +13 Sunderland -8 6 Crawley +12 Salisbury -8 7 Blackpool +10 Metrocentre -6 8 Newbury +8 Huddersfield -6 9 High Wycombe +7 Harrow Warrington +7 Colchester -5 Venues Ranked Newport +59 Harlow Westwood RP & SC +25 Chiswick Silverburn SC +23 Stockport Camberley +17 South Shields Cwmbran +17 West Bromwich Epsom +16 Fareham Wandsworth +12 Bolton Banbury +11 Nuneaton Telford +11 Wimbledon Kettering +11 Ballymena -9

13 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 13 CHAPTER THREE FINDINGS Cheshire Oaks Factory Outlet (combined with Coliseum Retail Park) has risen considerably due to the addition of several new retailers into both the retail park and factory outlet, including a new Debenhams store which opened in Coliseum Retail Park at the end of Westwood Retail Park (also incorporating Westwood Cross Shopping Centre) has seen a significant rise in its retail ranking due to the opening of a flagship Primark store within the shopping centre alongside other new retailers. In the top 200 UK retail venues, Harlow is the biggest faller as Marks & Spencer closed their store in January In Wolverhampton, Sainsbury s closed their city centre store and relocated outside of Javelin Group s Wolverhampton, Centre venue.

14 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 14 CHAPTER THREE FINDINGS Top 20 Shopping Centres MALLSCORE represents the VENUESCORE of purposebuilt shopping centres (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 remains 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 (* - see note) of 142 although all the leading malls shown here have an aspirational orientation. Rank Scheme Town MALLSCORE Glam-glum index (avg=100) 1 Westfield London London Bluewater Greenhithe Westfield Stratford City London intu Trafford Centre Manchester Meadowhall Sheffield intu Lakeside Grays intu Metrocentre Gateshead intu Merry Hill Brierley Hill St David s Centre Cardiff Arndale Centre Manchester Bullring Birmingham Liverpool One Liverpool intu Derby Derby Canary Wharf London The Centre: MK Milton Keynes Brent Cross London intu Eldon Square Newcastle upon Tyne Festival Place Basingstoke Highcross Leicester Whitefriars Canterbury *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.

15 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 15 CHAPTER THREE FINDINGS Top Retail Parks Glasgow Fort remains the UK s leading retail park destination. However, Purley Way (Croydon) ranks as the UK s top retail park destination if the cluster of individual retail parks on offer are combined. Glasgow The Fort Rank Scheme Town MALLSCORE 1 The Fort Glasgow Teesside Thornaby 98 3 Fort Kinnard Edinburgh 94 4 Middlebrook Horwich 94 5 Parc Trostre Llanelli 91 6 Parkgate Rotherham 87 7 Castlepoint Bournemouth 87 8 Whiteley Fareham 76 9 Straiton Loanhead Ventura Tamworth 75

16 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 16 CHAPTER THREE FINDINGS Top Factory Outlet Centres Cheshire Oaks remains 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! 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 Ashford Designer Outlet Freeport Village Braintree Livingston Designer Outlet Junction

17 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 17 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 Cardiff, Leeds, Reading and Norwich (37%+). At the conurbation level, Reading, Leicester and Southampton 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 Tyneside and Norwich are at the opposite extreme. Rank Conurbation Conurbation population (000) Affluence index (avg=100) Conurbation VENUESCORE Weighted population per VENUESCORE point Under- / over-shopped index (avg=100) 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 Leicester - EM , % 15 Southampton - SE , % 16 Kingston upon Hull - Y , % 17 Portsmouth - SE % 18 Reading - SE % 19 Milton Keynes - SE % 20 Norwich - E % The Index shown here is inversed whereby a high score indicates a potential over-provision of retail.

18 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 18 CHAPTER THREE FINDINGS Malls vs. High Streets The role played by shopping centres in the UK s leading venues now ranges from only 11% of the offer in Central London up to 81% in Bristol. 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 Brighton 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 Birmingham % 5 Leeds % 6 Liverpool % 7 Nottingham % 8 Brighton % 9 Edinburgh % 10 Cardiff % 11 Aberdeen % 12 Newcastle upon Tyne % 13 Bristol % 14 Norwich % 15 Reading % 16 Belfast % 17 Leicester % 18 Kingston upon Thames % 19 Bath % 20 Southampton % (*) Total MALLSCORE of Shopping Centres only (**) London here defined as London, City, London, Mid-town and London, West End

19 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 19 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 based on borough boundaries), the Westfield shopping centres lead the way, followed by Docklands, Kings Rd, Hammersmith and Camden Town. In Outer London, Kingston, Croydon, Bromley and Romford stand out as the capital s major suburban destinations. Assessed as aggregates of their constituent parts, London s West End, City and Midtown offers would rank 1st, 2nd and 21st respectively in the national VENUESCORE rankings.

20 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 20 CHAPTER THREE FINDINGS 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, Midtown Central London, Top 10 Venues 1 Oxford St Covent Garden Knightsbridge Regent St Angel/Islington Kings Cross/St Pancras Belgravia Victoria London Bridge Cheapside Inner London, Top 10 Venues 1 Westfield London S C Westfield Stratford City S C Docklands Kings Rd Hammersmith Camden Town Clapham Junction Kensington Putney Lewisham Outer London, Top 10 Venues 1 Kingston upon Thames Croydon Bromley Romford Sutton Uxbridge Harrow Brent Cross S C Wood Green Richmond upon Thames

21 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 21 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 then 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

22 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 22 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 (T2, T5 and T3 respectively). At the other end of the spectrum, Wythenshawe, Chelmsley Wood and Belle Vale are defined as the UK s most downmarket retail venues. Glum (most downmarket) Rank Glam (most upmarket) Wythenshawe 1 Bond St Chelmsley Wood 2 Knightsbridge Belle Vale 3 Bicester Village FO Salford 4 Marylebone Peterlee 5 Heathrow Airport T5 Grays 6 Heathrow Airport T3 Ellesmere Port 7 Piccadilly Lower Edmonton 8 Regent St Gateshead 9 Heathrow Airport T2 Leith (Edinburgh) 10 Kings Rd Bletchley 11 Hampstead Huyton 12 Portobello Rd Dewsbury 13 Westfield London Erdington 14 York Designer Outlet FO Middleton 15 Swindon Designer Outlet FO Blyth 16 Gunwharf Quays FO Dudley 17 Gatwick Airport North Stoke On Trent 18 Ashford Designer FO Motherwell 19 Gloucester Quays Designer Outlet FO Castleford 20 Carnaby St

23 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 23 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 Llandudno 1 Bond Street Marlborough 2 Portobello Rd Sevenoaks 3 Knightsbridge Lowestoft 4 Kings Rd Bond Street, Portobello Road and Knightsbridge rank as the UK s most progressive venues, whilst Llandudno, Marlborough and Sevenoaks are typical of the country s most traditional retail offers. Dorchester 5 Carnaby St Dumfries 6 Marylebone Scarborough 7 Covent Garden Stratford upon Avon 8 Hampstead Workington 9 Oxford Street Bury St Edmunds 10 Kensington Progressive Traditional

24 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 24 CHAPTER THREE FINDINGS Age Position By identifying those multiple retailers with particularly strong young (e.g. Hollister, H&M, Miss Selfridge, Blue Inc., Game, Superdry) 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 Carnaby Street, Oxford Street and Stevenage 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 and Nantwich. 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 Oxford St Nantwich 3 Stevenage Lymington 4 Bangor (Wales) Ringwood 5 Cwmbran Stamford 6 Wandsworth Ilkley 7 East Kilbride Cirencester 8 Dunfermline Saffron Walden 9 Londonderry Dorchester 10 Enfield

25 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 25 CHAPTER THREE FINDINGS Tourist Venues Knightsbridge and Piccadilly provide the greatest mix of retailers appealing to the tourist shopper. Rank Venue Tourist index (Avg=100) 1 Knightsbridge Piccadilly Bond St Bicester Village F O Carnaby St Regent St Gunwharf Quays F O Hampstead Spitalfields Covent Garden 314

26 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 26 CHAPTER THREE FINDINGS Internationalisation Looking at the issue of non-domestic influences from another perspective, the orientation of UK venues towards incoming foreign brands offers an additional insight into their perceived status within the UK retail hierarchy. Using our GLOBALSCORE Index, Bond St is the most globally oriented venue in the UK, with 46% (4 x the UK average) of its total multiple provision accounted for by international retailer brands (e.g. Ralph Lauren, Victoria s Secret and Folli Follie). At the other extreme, venues such as Ringwood, Haywards Heath, Alton, Skipton and Henley remain largely unaffected by the trend towards internationalisation with retail offers still dominated by domestic retail brands. Of the 20 most globally oriented venues in the UK, eight are located in central London, demonstrating the key role the capital plays for new entrants. Of the remainder, nine are factory outlets with Bicester Village leading the way. Rank Venue VENUESCORE GLOBALSCORE GLOBALSCORE as % of Total GLOBALSCORE Index 1 Bond St % Regent St % Bicester Village FO % York Designer Outlet FO % Westfield London SC % Ashford Designer FO % Swindon Designer Outlet FO % Carnaby St % London Designer Outlet FO % Peel Centre R P/ Portwood Court RP % Gunwharf Quays FO % Knightsbridge % Westfield Stratford City SC % Cheshire Oaks F O/ Coliseum RP % Junction 1 FO % Kensington % Brent Cross SC % Freeport Village FO % Clarks Village FO % Covent Garden % 230

27 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 27 CHAPTER THREE FINDINGS Of the top UK venues, those with the greatest shift towards international orientation include Meadowhall SC, Bath and Basingstoke reflecting the influx of retailers such as Hollister, Banana Republic, Smiggle, Apple, TK Maxx and Forever GLOBALSCORE 2010 GLOBALSCORE Venue Score % of Total Score % of Total Proportion Growth (percentage points) Meadowhall SC % % +4.2 Example International Retailer Additions Apple, Zara, TK Maxx, Toys R Us Bath % % +2.5 Hollister, Smiggle, Ban. Rep. Basingstoke % % +2.2 Lakeside SC % % +1.1 Metrocentre SC % % +0.9 Doncaster % % +0.8 Norwich % % +0.7 Brent Cross SC % % +0.6 Gap, TK Maxx, Zara, Apple Apple, Forever 21, Zara, H&M Zara, Apple, TK Maxx Clas Ohlson, H&M, New Look Hollister, Apple, Clas Ohlson, TK Maxx Apple, Hollister, Gap, H&M The Trafford Centre SC/ Barton Square % % +0.4 Forever 21, Apple, Zara, H&M Bromley % % +0.3 Toys R Us, Apple, TK Maxx, Gap

28 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 28 CHAPTER THREE FINDINGS Regional Analysis The table below summarises the overall characteristics of the retail supply available nationally across the UK regions. 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 London, the East Midlands and the East of England as the UK s most under-supplied regions (relative to their spend-weighted populations), whilst the North-East and North- West appear to be the most multiple-penetrated areas. The North East is a major over-shopped outlier relative to all other UK regions. Region Total VENUESCORE Glam-glum index (avg=100) Population (000) Affluence index (avg=100) Weighted population per VENUESCORE point Under- / over- shopped index (avg=100) Total UK 177, , East Midlands 11, , East of England 15, , London 24, , North East 7, , North West 19, , Northern Ireland 4, , Scotland 16, , South East 24, , South West 15, , Wales/Cymru 8, , West Midlands 14, , Yorkshire and The Humber 13, , The Index shown here is inversed whereby a high score indicates a potential over-provision of retail.

29 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 29 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 12% 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) becomes an increasingly important component of the nation s multiple retail offer. Region Total VENUESCORE Total FOODSCORE FOODSCORE as % of total Total UK 177,139 28,273 16% East Midlands 11,480 1,786 16% East of England 15,546 2,202 14% London 24,179 6,165 25% North East 7, % North West 19,653 3,249 17% Northern Ireland 4, % Scotland 16,351 1,970 12% South East 24,752 3,837 16% South West 15,649 2,149 14% Wales/Cymru 8,622 1,173 14% West Midlands 14,672 2,364 16% Yorkshire and The Humber 13,889 2,004 14%

30 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 30 ORDER VENUESCORE ORDER VENUESCORE The full VENUESCORE report can be licensed annually and is delivered as an Excel spreadsheet and a Tableau dashboard. The full dataset contains the following rankings tables: 1. National ranking National rankings for the UK s leading shopping venues (i.e. Major City to Major District grade) 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 Example tables in Tableau format. See page 31 for an example table in Excel format. Order VENUESCORE To order your copy of the full VENUESCORE dataset for VAT, please nicola.pierce@javelingroup.com and include the following information: name, position, company name to appear on invoice, company VAT number, invoice address and telephone number. Thank you for your order.

31 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 31 ORDER VENUESCORE VENUESCORE Ranked by VENUESCORE Top 50 venues Venue details 2015 Javelin Venue Local Authority Postcode Location Type Location grade Region 2015 VENUESCORE 2015 Rank FASHIONSCORE index FOODSCORE index TOURISTSCORE index Market position index Market position classification Fashion position index Fashion position classification Age position index Age position classification London, West End Westminster W 1C 1JX Centre Major City London Upscale 125 Progressive 101 Old London, City Westminster EC4M 9AG Centre Major City London Upper Middle 105Fashion Moderate 102 Old London, Midtown Westminster WC1V 7DN Centre Major City London Upper Middle 104Fashion Moderate 102 Old Glasgow, Centre Glasgow City G 1 2GF Centre Major City Scotland Upper Middle 110Fashion Moderate 100 Mid Manchester, Centre Manchester M 4 3AJ Centre Major City North West Upper Middle 114 Fashion Forward 100 Mid Birmingham, Centre Birmingham B 5 4BF Centre Major City West Midlands Upper Middle 115 Fashion Forward 99 Mid Leeds, Centre Leeds LS 1 5AY Centre Major City Yorkshire and The Humber Upper Middle 112 Fashion Forward 99 Mid Liverpool, Centre Liverpool L 1 8BJ Centre Major City North West Upper Middle 115 Fashion Forward 98 Mid Nottingham, Centre Nottingham NG 1 3QN Centre Major City East Midlands Upper Middle 110Fashion Moderate 100 Mid Brighton, Centre Brighton and Hove BN 1 2TE Centre Major City South East Upper Middle 114 Fashion Forward 99 Mid Edinburgh, Centre Edinburgh, City of EH 1 3SP Centre Major City Scotland Upper Middle 107Fashion Moderate 101 Old Cardiff, Centre Cardiff CF10 2DP Centre Major City Wales/Cymru Upper Middle 108Fashion Moderate 99 Mid London, West End - Oxford St Westminster W 1A 1AB Centre Major City London Upper Middle 118 Fashion Forward 94 Mid Aberdeen, Centre Aberdeen City AB25 1HZ Centre Major City Scotland Middle 105Fashion Moderate 100 Old Newcastle upon Tyne, Centre Newcastle upon Tyne NE 1 7AF Centre Major City North East Middle 108Fashion Moderate 99 Mid Bristol, Centre Bristol, City of BS 1 3BD Centre Major City South West Upper Middle 111 Fashion Forward 98 Mid Norwich, Centre Norwich NR 2 1SH Centre Major City East of England Middle 100 Updated Classic 100 Old Reading, Centre Reading RG 1 2AH Centre Major City South East Upper Middle 107Fashion Moderate 100 Old Belfast, Centre Ballymena BT 1 4QG Centre Major City Northern Ireland Upper Middle 110 Fashion Forward 99 Mid Leicester, Centre Leicester LE 1 4FQ Centre Major City East Midlands Middle 109Fashion Moderate 97 Mid Kingston upon Thames, Centre Kingston upon Thames KT 1 1TX Centre Major City London Upper Middle 111 Fashion Forward 100 Mid Bath, Centre Bath and North East Somerset BA 1 1AP Centre Major City South West Upper Middle 106Fashion Moderate 102 Old Southampton, Centre Southampton SO15 1QD Centre Major City South East Middle 106Fashion Moderate 99 Mid Croydon, Centre Croydon CR 0 1TY Centre Major Regional London Middle 104Fashion Moderate 100 Old Sheffield, Centre Sheffield S 1 2HB Centre Major Regional Yorkshire and The Humber Middle 108Fashion Moderate 100 Mid London, Westfield London S C Hammersmith and Fulham W 12 7GD Mall Major Regional London Upscale 119 Fashion Forward 98 Mid Exeter, Centre Exeter EX 1 1GE Centre Major Regional South West Upper Middle 106Fashion Moderate 100 Old Greenhithe, Bluewater S C Dartford DA 9 9SP Mall Major Regional South East Upper Middle 112 Fashion Forward 98 Mid Cambridge, Centre Cambridge CB 2 3BJ Centre Major Regional East of England Upscale 108Fashion Moderate 102 Old York, Centre York YO 1 9QL Centre Major Regional Yorkshire and The Humber Upper Middle 105Fashion Moderate 102 Old Derby, Centre Derby DE 1 2PQ Centre Major Regional East Midlands Middle 106Fashion Moderate 98 Mid London, West End - Covent Garden Westminster WC2H 9PA Centre Major Regional London Upscale 120 Fashion Forward 100 Mid London, Westfield Stratford City S C Newham E 20 1EL Mall Major Regional London Upper Middle 117 Fashion Forward 95 Mid Cheltenham, Centre Cheltenham GL50 1JZ Centre Major Regional South West Upper Middle 107Fashion Moderate 102 Old Guildford, Centre Guildford GU 1 3DP Centre Major Regional South East Upper Middle 109Fashion Moderate 101 Old Manchester, The Trafford Centre S C Trafford M 17 8DA Mall Major Regional North West Upper Middle 116 Fashion Forward 95 Mid Milton Keynes, Centre Milton Keynes MK 9 3GA Centre Major Regional South East Upper Middle 108Fashion Moderate 98 Mid Chester, Centre Cheshire West and Chester CH 1 1LF Centre Major Regional North West Upper Middle 105Fashion Moderate 104 Old Bromley, Centre Bromley BR 1 1DD Centre Major Regional London Upper Middle 108Fashion Moderate 101 Old Hull, Centre Kingston upon Hull, City of HU 2 8LN Centre Major Regional Yorkshire and The Humber Middle 107Fashion Moderate 97 Mid Livingston, Centre West Lothian EH54 6XA Centre Major Regional Scotland Middle 105Fashion Moderate 99 Mid Sheffield, Meadowhall S C Sheffield S 9 1EN Mall Major Regional Yorkshire and The Humber Upper Middle 110 Fashion Forward 97 Mid Plymouth, Centre Plymouth PL 1 1EA Centre Major Regional South West Middle 105Fashion Moderate 98 Mid London, Knightsbridge Kensington and Chelsea SW1X 7XL Centre Major Regional London Upscale 128 Progressive 101 Old Oxford, Centre Oxford OX 1 3AA Centre Major Regional South East Upper Middle 106Fashion Moderate 101 Old Solihull, Centre Solihull B 91 3GS Centre Major Regional West Midlands Upper Middle 101Fashion Moderate 101 Old Romford, Centre Havering RM 1 3RL Centre Major Regional London Middle 103Fashion Moderate 97 Mid Peterborough, Centre Peterborough PE 1 1NH Centre Major Regional East of England Middle 107Fashion Moderate 97 Mid Watford, Centre Watford WD17 2TW Centre Major Regional East of England Middle 105Fashion Moderate 97 Mid Doncaster, Centre Doncaster DN 1 1LF Centre Major Regional Yorkshire and The Humber Middle 103Fashion Moderate 99 Mid Lincoln, Centre Lincoln LN 2 1AY Centre Major Regional East Midlands Middle 98 Updated Classic 100 Old Maidstone, Centre Maidstone ME14 1QP Centre Major Regional South East Middle 105Fashion Moderate 98 Mid Dundee, Centre Dundee City DD 1 1UF Centre Major Regional Scotland Middle 107Fashion Moderate 97 Mid

32 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE PAGE 32 ABOUT JAVELIN GROUP ABOUT JAVELIN GROUP Javelin Group provides strategy consulting and digital transformation services to the world s leading retailers and consumer brands. A team of 250+ consultants, we are vertical specialists in digital retail, combining skills in strategy, operations, technology, and analytics, across all channels. We have an extensive global client list, which includes the world s leading retailers and brands. We were acquired by Accenture Strategy in June 2015 to spearhead the group s work in digital retail, and we remain a separate business unit within the firm. Our Locations & Analytics team, which has worked with more than 200 retailers and brand clients, 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

33 JAVELIN GROUP EXECUTIVE SUMMARY VENUESCORE Copyright 2015 Accenture. All Rights Reserved. Accenture, its logos, and High Performance Delivered are trademarks of Accenture or Javelin Group. This document may make reference to trademarks that may be owned by others. If so, the use of such trademarks is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. All title, ownership rights and intellectual property rights in and relating to this brochure or any copies thereof including but not limited to copyright, logos, names, trademarks, service marks, design, text, sound recordings, images, links, concepts and themes are owned by Accenture and/or its subsidiaries or used under authorized licence by Accenture and or Javelin. Any reproduction, transmission, publication, performance, broadcast, alteration, license, hyperlink, creation of derivative works or other use in whole or in part in any manner without the prior written consent of the Accenture is strictly prohibited. Save and except with the prior written consent of Accenture, you shall not insert a hyperlink to this brochure or any part thereof on any other brochure or mirror or frame this brochure, any part thereof, or any information or materials contained in this brochure on any other server, website or webpage.