RETAIL PROSPECTUS. Image courtesy of Gerardo Jaconelli

RETAIL PROSPECTUS Image courtesy of Gerardo Jaconelli

WELCOME TO GLASGOW Disarmingly blending sophistication and earthiness, Scotland s biggest city has evolved over the last couple of decades to become one of Britain s most intriguing metropolises. (Lonely Planet, 2016) With a population of over 600,000, Glasgow is Scotland s largest city and commercial capital. Glasgow is a shopaholic s paradise according to Lonely Planet and is ranked number one UK retail destination outside of London s West End (CACI). Over half a million square metres of retail space can be found in Glasgow, with prime and super prime shopping to be had within one square mile in the city centre, known as the Style Mile. Buchanan Street, Glasgow s premier shopping street, is the busiest high street in the UK, after London, with 6,600 people passing through every hour. The area surrounding Buchanan Street and Argyle Street in Glasgow has been confirmed as the most desired retail pitch in Scotland. An active investment market offers average yields of 4.5% and prime retail rents of 280 (per sq ft/yr) are commanded (March 2016). Glasgow s prime pitch is growing in demand and the city has recently welcomed global brands Massimo Dutti (their first store outside London), Michael Kors, Kiko, and END. menswear, among others. Glasgow s retail sector generates more than 3.3 billion and supports 17,000 full-time jobs and post Brexit, shows no sign of weakening with H&M and Inditex (Zara) both upscaling in the city centre. Independent retail is also thriving in the city and continues to be nurtured through a variety of initiatives while out-of-town shopping is also booming with Glasgow Fort the UK s leading retail park destination (Javelin Group, Venuescore 2015-16). The number of restaurants and bars is growing rapidly as Glasgow develops a reputation as a foodie destination of choice. Indeed, the city has seen the highest number of new restaurant openings in the UK outside London (Colliers International). A robust economy and busy calendar of events until 2024, will continue to attract leisure and business tourists all year round, thus ensuring the retail sector in the city thrives. 2 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 3

Glasgow has a modern mixed economy with a number of thriving sectors and sub-sectors: WHY GLASGOW Digital Technology Financial & Business Services Creative Industries Low Carbon Health and Life Sciences Engineering, Design and Advanced Manufacturing Tourism and Events Higher & Further Education Glasgow is commanding global recognition as an ambitious, dynamic and vibrant city. Here are some reasons why. 19.6 11 An economic powerhouse, Glasgow generated 19.6 billion gross value added (GVA) for Scotland s economy in 2015. Since 2011, there has been more than 11 billion in capital investment across housing, retail, health, education, hotels, offices and leisure. Having secured Scotland s first City Deal and the second largest in the UK worth 1.3 billion, this programme of work will further transform the city region over the next 20 years. Glasgow has the credibility and capacity to welcome more conference delegates than every other Scottish city combined, making it a world premier business tourism destination. First and only Scottish city to be named in the first round of Rockefeller Foundation s 100 Resilient Cities and only one of two UK cities. UNESCO City of Music since 2008 and one of only nine in the world. Glasgow is one of the world s 75 Best Performing Financial Centres and the third most important financial centre in the UK with its own dedicated International Financial Services District (Global Financial Centres Index, 2015). Glasgow has achieved an impressive set of results in the prestigious fdi Magazine European Cities of the Future Awards 2016/17. In the Large Cities categories, Glasgow was awarded: Top 10 overall Large City; Runner-up for FDI strategy; Runnerup for Business Friendliness and Top 10 for Economic Potential. WORLD-CLASS LOCATION World class location for film and TV production with major international productions such as World War Z, Cloud Atlas, Fast & Furious 6 and Outlander choosing to shoot in Glasgow. friendliest city in the world Glasgow was recently voted friendliest city in the world by Rough Guides and named by National Geographic Traveller as one of its 20 Best of the World destinations for 2016. TOP TEN GLOBAL CITY FOR FDI STRATEGY 2016/17 10 Glasgow has been recognised as a Top Ten Global City for FDI Strategy. Ranked 7th alongside cities such as Edinburgh, Hong Kong, Chicago, Brisbane and Barcelona, this is a true endorsement of the city s appeal as a location for FDI. Glasgow also received bespoke awards for worker training (The Glasgow Guarantee) and a specialism award for life sciences. knowledge bases Glasgow is home to the largest student population in Scotland and proud of its long tradition of education and award winning institutions of higher and further education. 4 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 5

PEOPLE SKILLS Glasgow has one of the most highly-skilled and flexible workforces in Europe and is ranked one of Europe s top ten cities for business friendliness and human resources in addition to being fdi Magazine s runner-up in the Top Large European City for Business Friendliness. With a median age of 34, Glasgow has a young population. Businesses find it easy to recruit and retain good quality staff while local labour costs compare favourably with the rest of the UK. A large travel to work area (2 million people within one hour) provides the city with a wide and mobile labour pool. Glasgow s multicultural and cosmopolitan lifestyle offers numerous language communities and multilingual capability. Glasgow has one of the UK s largest knowledge bases with the highest graduate retention rate in Scotland and the third highest in the UK (HESA 2014). A trend that is crucial to the future growth and success of the economy. Over 130,000 students from 135 countries call Glasgow home, fuelling a robust talent pool thanks to the city s five institutions of higher education and three super colleges. Glasgow s universities are among the best in the world regularly topping league tables, winning prestigious awards and securing highly-competitive external funding. They produce world-class research and industry application in addition to training Scotland s brightest minds and graduating 20,000 students per annum. Glasgow s colleges are the three largest in Scotland and integral to the city s pipeline of talent. The colleges offer a range of courses in hospitality, leisure and tourism related subjects. Led by the industry, the city is investing in its Glasgow Welcomes service excellence programme. This industry led initiative is aimed at frontline, supervisory and manager level staff to ensure a skilled work force who can deliver a high level of service excellence. With a can-do attitude and a commitment to being the most business-friendly city in the UK, there is no doubt that Glasgow s unique selling point is its people. 6 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 7

CONNECTED CITY AIR Glasgow Airport is confirmed the best European, UK and Scottish Airport of the Year 2016 In 2016 the airport launched 16 new services and invested 25 million in a series of major infrastructure projects Glasgow Airport has approximately 200 flights daily New direct routes for 2016/17 include New York, Montreal, Toronto, Brussels, Marseille, Grenoble, Valencia, Lisbon, Zadar (Croatia), Palanga (Lithuania) and Seoul 438 flights to London per week and over 70 flights per day to and from London One-hour flight time to London Over 9 million passengers pass through Glasgow Airport annually RAIL Glasgow Central Station was European Rail Station of the Year 2014 Glasgow Central has connections to all major English cities London can be reached in four to six hours There are 38 train links a day between Glasgow and London Euston Glasgow Queen Street station connects Glasgow to the East and North of Scotland (Edinburgh, Perth, Dundee, Aberdeen and Inverness) Eight trains go to Edinburgh per hour, which can be reached in 50 minutes The rail network also serves the scenic west coast towns and villages Two rail stations in the heart of the city centre SUBWAY Glasgow s subway system is the third oldest in the world after London and Budapest. It is currently undergoing a 300 million refurbishment and modernisation programme. The subway has 15 stations, all fully Wi-Fi enabled, offering easy access to the city centre and West End with trains running every five minutes at peak times. It only takes 24 minutes to complete the full circuit. E-CONNECTIVITY Glasgow s digital connectivity can meet and exceed the most demanding technology requirements of today s progressive companies. Through the implementation of the Digital Glasgow Project, collaboration across industry and the public sector, the city aspires to reach 90% coverage by 2018, ideally with speeds of 80 100mbps and thus exceeding the Scottish Government target of availability of next generation broadband by 2020. Glasgow is the first Scottish city to award a wireless concession available in the city s streets and public spaces. Glasgow is a compact city and transport options are plentiful. Glasgow is within an hour s drive of three international airports, with Glasgow Airport only 15 minutes from the city centre. Rail and motorway links are also extensive and commuter/passenger services are frequent, reliable and well maintained. An ongoing programme of investment in the transport infrastructure ensures excellent connectivity. Projects such as an extensive development and major expansion at Glasgow Airport and several motorway and rail line improvements are either underway or were recently completed. Glasgow s unique underground system and its network of suburban railway stations are also being fully refurbished. 8 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 9

RETAIL IN GLASGOW Glasgow has many unique independent designer and flagship stores for British and international retailers. The city is home to an abundance of luxury outlets while independent retail is vibrant and continues to grow in variety and scale. Glasgow is a world-class shopping destination and is actively engaged in attracting a number of global brands. AGENT PROVOCATEUR ALL SAINTS APPLE STORE BELSTAFF BOSE CATH KIDSTON COS CRUISE DEBENHAMS DIESEL DUNE EMPORIO ARMANI FAT FACE FOLLI-FOLLIE FRASERS FRENCH CONNECTION GANT GIO-GOI HAMLEYS HAWES AND CURTIS H&M HOBBS HOLLISTER HUGO BOSS JACK WILLS JO MALONE LONDON JIGSAW JOHN LEWIS KAREN MILLEN KIEHL S KIKO KURT GEIGER LINKS OF LONDON LES 100 CIELS LIPSY L.K. BENNETT L OCCITANE MANGO MASSIMO DUTTI MICHAEL KORS MULBERRY NIKE OFFICE PRETTY GREEN RALPH LAUREN REISS REPLAY SPACE NK SWAROVSKI TED BAKER THE WHITE COMPANY THOMAS SABO TIMBERLAND THOMAS PINK T M LEWIN URBAN OUTFITTERS VANS VIVIENNE WESTWOOD WHISTLES ZARA Image courtesy of Gerardo Jaconelli 10 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 11

GLASGOW S VISITORS GLASGOW S TOP 10 INTERNATIONAL VISITOR MARKETS RANKED BY SPEND (2015) Ranking Country Spend (millions) No. 1 USA 37m No. 2 Australia 22m No. 3 France 17m Glasgow was recently voted the friendliest city in the world in a Rough Guides poll and named a must-visit destination by leading publications like the New York Times, the Guardian and Wanderlust. Short stay visitors drive retail. In 2014, Glasgow attracted international and domestic tourists generating for the local economy. Glasgow is one of Europe s most vibrant and cosmopolitan cities, where business, sport and international culture flourish. The city that inspired the art nouveau genius, Charles Rennie Mackintosh, is now a dynamic 21st century metropolis. No. 4 Germany 16m No. 5 Canada 11m No. 5 Netherlands 11m No. 5 Spain 11m No. 6 UAE 9m No. 7 Italy 8m No. 8 Singapore 7m No. 9 Iceland 6m No. 10 Saudi Arabia 5m GLASGOW S TOP 10 INTERNATIONAL VISITOR MARKETS RANKED BY VISIT (2015) Ranking Country No. of visits No. 1 USA 115,000 No. 2 Germany 85,000 No. 3 France 53,000 No. 4 Australia 45,000 No. 5 Netherlands 35,000 No. 6 Italy 32,000 No. 6 Canada 32,000 No. 7 Poland 27,000 No. 8 Spain 21,000 No. 9 Denmark 17,000 No. 10 UAE 11,000 SPORT Glasgow is ranked 5th in the world s top 10 sporting cities according to the internationally recognised SportBusiness Ultimate Sports City 2016 Awards. The city was ranked ahead of Olympic cities such as Los Angeles, Tokyo, Sydney, Amsterdam and Paris. Glasgow was also named the No. 1 city in the world in the Legacy category to recognise its longstanding commitment to increasing participation and creating new sporting opportunities for citizens in the lead up to and beyond the Glasgow Commonwealth Games 2014. A SHOPPING MECCA With more than half a million square metres of retail floor space, Glasgow is the UK s largest and most successful shopping location outside of London and the retail footprint is growing by a further 25%. FOOD & DRINK Glasgow s food and drink scene is vibrant and firmly part of the city s unique culture. Glasgow s culinary offering is imaginative and cosmopolitan and the range of choice for visitors is breathtaking, with new restaurants popping up on a regular basis. This distinctive food and drink experience is guaranteed to enhance the visitor experience in the city. WORLD-CLASS CULTURE Home to the Royal Scottish National Orchestra, National Theatre of Scotland, BBC Scottish Symphony Orchestra, Scottish Opera and Scottish Ballet and an internationally acclaimed reputation in contemporary art, design and music. A CENTRE OF EXCELLENCE FOR VISUAL ARTS Seven Turner Prize winners, including the 2014 winner and 11 nominees have lived, trained or worked in the city in recent years. Due to the city s track record of success at the event, it was chosen to host the Turner Prize Awards in 2015. A UNESCO CITY OF MUSIC A UNESCO City of Music since 2008; the first UK city and one of only nine in the world. Glasgow is a city with second-to-none music credentials, having secured events such as the MTV Europe Music Awards and the MOBOs. There are 130 music events every week in Glasgow; music generates an estimated 75 million for the city s economy each year. EUROPE S FINEST CIVIC ART COLLECTIONS Two of the finest civic art collections can be found in Glasgow, at the Burrell Collection and Kelvingrove Art Gallery and Museum. WORLD-CLASS EDUCATION FACILITIES Home to five higher education institutions and three super colleges which attract over 130,000 students every year, and their families. GREAT NATURAL BEAUTY The archipelago of the Clyde Coast and Islands and the Highlands stunning scenery is on the city s doorstop, just 45 minutes away. 12 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 13

THE STYLE MILE Glasgow is a world-class shopping destination and is actively engaged in attracting a number of global brands. Initiatives such as the Style Mile Shopping Festival promote the city s retail offer and shine a spotlight on Glasgow s style. Anchored by Buchanan Galleries on Sauchiehall Street and the St Enoch Centre on Argyle Street, the Style Mile extends along Buchanan Street and Ingram Street. Princes Square, also on Buchanan Street, is home to an abundance of luxury outlets. The Style Mile has witnessed significant investment in recent years, Buchanan Street in particular has benefited from a 7.5 million investment through the refurbishment of Princes Square shopping mall, which attracts some of the city s high-end retailers. Financed through Tax Increment Financing (TIF), the Buchanan Quarter s arrival on the Style Mile has brought a number of new retailers to Scotland. The nearby Merchant City is a vibrant quarter full of bars, restaurants and independent boutiques. The Italian Centre and Ingram Street are home to a range of designer names including Emporio Armani, Ralph Lauren, Mulberry, Hugo Boss and Replay. 14 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 15

Since late 2013, more than 200 of Glasgow s city centre retailers have extended their opening hours to 7pm on weeknights, bringing the city more in line with continental operating hours. The move comes on the back of strong customer demand and consumer research. Footfall figures over four key areas in the city centre collectively amounted to over 55,000,000 in 2016. Buchanan Street (Galleries) Buchanan Street (Kiehl s) Sauchiehall Street (M & S) Argyle Street (Debenhams) Jul-15 947,709 1,124,612 1,368,007 1,363,463 4,803,791 Aug-15 1,056,726 1,153,350 1,434,327 1,388,715 5,033,118 Sep-15 999,498 1,093,370 1,387,735 1,280,247 4,760,850 Oct-15 973,025 1,162,260 1,439,091 1,421,301 4,995,677 Nov-15 761,087 1,079,730 1,215,788 1,302,795 4,359,400 Dec-15 1,032,585 1,385,137 1,331,980 1,619,383 5,369,085 Jan-16 581,105 876,847 997,664 1,042,352 3,497,968 Feb-16 646,679 890,181 1,009,412 1,051,727 3,597,999 Total Mar-16 807,518 1,048,217 1,245,173 1,231,871 4,332,779 Apr-16 874,482 978,906 1,234,837 1,207,081 4,295,306 May-16 1,110,573 1,040,891 1,413,181 1,308,420 4,873,065 Jun-16 1,309,965 1,238,511 1,558,379 1,484,503 5,591,358 Jul-16 1,027,392 1,037,050 1,251,567 1,243,233 4,559,242 Aug-16 1,099,053 1,050,415 1,288,983 1,288,385 4,726,836 Sep-16 1,397,757 1,278,668 1,568,904 1,492,641 5,737,970 Oct-16 1,089,701 1,026,036 1,297,947 1,222,060 4,635,744 Nov-16 8,806,44 1,078,025 1,233,785 1,279,847 4,472,301 Dec-16 1,082,861 1,544,945 1,667,000 1,804,374 6,099,180 Mall Retail Space Number of Units Key Market Key Retailers Buchanan Galleries* 645,900 sq ft (60,000 sq m) 90+ High street fashion brands, specialist retailers and family retailers John Lewis, H&M, Hollister, Next, Thomas Sabo, Swarovski St Enoch Centre 775,000 sq ft (72,000 sq m) 120+ High street fashion brands and family retailers Debenhams, Hamleys, The Disney Store, H&M, Superdry, Topshop Princes Square 150,000 sq ft (13,936 sq m) 42 High end retailers and luxury brands Vivienne Westwood, Belstaff, Kurt Geiger, Ted Baker, Links of London, Jo Malone London, Space NK, COS, Les 100 Ciels Silverburn* 1 million sq ft (92,903 sq m) 95 High street fashion brands, major stores and family retailers Marks & Spencers, Tesco, Debenhams, Zara, Office, TK Maxx, Monsoon The Fort* 500,200 sq ft (46,470 sq m) 80 High street fashion brands, home and family retailers Next, Oasis, H&M, Boots, Marks & Spencer, Republic, Sports Direct *Expansion planned. 16 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 17

BUCHANAN QUARTER BUCHANAN GALLERIES PRINCES SQ ARGYLL ARCADE ROYAL EXCHANGE SQ INGRAM ST MERCHANT CITY ST ENOCH CENTRE Bus Station Rail Station Subway Station Shopping Destination 18 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 19

INVESTMENT & DEVELOPMENT THE DISTRICTS STRATEGY The City Centre Strategy protects and progresses our retail offer. A crucial element of this, the Districts Strategy, comprises a dual approach to regeneration. Longer term strategic visioning and place-making policies are being developed in parallel with shorter term environmental enhancement initiatives and footfall-generating projects. The Avenues Strategy is also being taken forward as part of the Districts Strategy and will link key gateways, neighbourhoods and focus points. Designed with a people-centred approach, sustainable modes of transport will be promoted drawing people to active and engaging parts of the city and providing opportunities for integrated infrastructure. GLASGOW CITY REGION CITY DEAL Further development is planned around the Glasgow City Region City Deal which will see public realm and place making improvements of 115 million delivered in the city centre. These improvements will ultimately enhance the overall retail and leisure experience of those both residing in and visiting Glasgow. 20 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 21

THE AGENT S VIEW It is always fascinating to gauge first impressions from an occupier visiting the city for the first time, often to consider opening their first store in Scotland. There are two observations made time and time again. Firstly; the genuinely world class retail environment of Buchanan Street and secondly; the architecture which abounds in Glasgow. A glimpse above shop front level regularly reveals some of the finest historic architecture found in any UK city. Glasgow city centre encompasses the three principal retail thoroughfares of Buchanan Street, Argyle Street and Sauchiehall Street. The market on Buchanan Street remains the strongest in the city centre, with buoyant tenant demand from the major UK and international brands. H&M s acquisition of a 65,000 sq ft (6040 sq m) store at 185 Buchanan Street, their biggest in the UK, illustrates the demand for large stores on the thoroughfare, while the opening of smaller outlets from the likes of Swatch, Kiko and Michael Kors expands further the list of global brands. The outlook in terms of retailer demand remains strong, especially for smaller stores of under 1500 sq ft (140 sq m) with competition for the best sites predicted. Argyle Street remains a strong proposition for retailers. Major footfall drivers on Argyle Street include Marks & Spencer, Debenhams, Primark and TK Maxx. Sauchiehall Street has Primark, TK Maxx and Marks & Spencer among the main retail attractors. There have been signs of growing demand from the food and beverage sector, with Bella Italia, Smashburger and Chilango securing prime sites. The market for luxury and boutique retail in Glasgow is focused principally in two areas. Princes Square is accessed directly from Buchanan Street and is a fully enclosed speciality retail centre. To the east of Buchanan Street lies Ingram Street, which has proved popular with the luxury retailers whose brand strength means they can successfully trade in an area where rents are less than half of those associated with Buchanan Street. Ingram Street is home to the Emporio Armani`s striking new flagship store, adjacent to Hugo Boss, Mulberry and Gant. There are two further shopping centres in the city centre. Buchanan Galleries is home to a 300,000 sq ft (27870 sq m) John Lewis department store and rents for a unit of 2000 sq ft (186 sq m) are typically 175,000 per annum. St Enoch is home to a 270,000 sq ft (25,000 sq m) Debenhams anchor store and the typical rent for a 2000 sq ft (186 sq m) store is 80,000 per annum, which has made the mall an attractive proposition for retailers seeking to reduce their property costs in the city centre. The growth of the food and beverage market has been a feature of the market UK wide, and Glasgow is no exception. A range of new restaurants have opened including Miller & Carter, Byron, Cote, CAU, Bill s and Iberica. The most popular restaurant sites are located close to Buchanan Street, allowing operators to drive turnover from breakfast and lunchtime business, where rents for a 3000 sq ft (279 sq m) are now in excess of 150,000 per annum. Competition for these sites has been a feature of the market. The ongoing trend is the increasing interconnection between the retail and restaurant markets and we expect to see new catering concepts appearing in traditional retail areas going forward. John Menzies, MRICS Partner Glasgow Retail Services 22 / RETAIL PROSPECTUS INVESTGLASGOW.COM \ 23

INTERESTED? FIND OUT MORE Top companies choose Glasgow for many reasons; because of the quality and loyalty of the flexible and qualified workforce, the cosmopolitan feel of a large city, great access and one of the most sophisticated and competitive telecommunications environments in Europe. Glasgow offers excellent, competitivelypriced leisure and retail spaces to suit every type and size of business and exciting development opportunities too. Invest Glasgow offers comprehensive business support and guidance, providing one point of contact to all businesses, property investors and developers seeking to invest in the city. All of this contributes to why Glasgow was recently named one of Europe s top ten cities for business friendliness and human resources and fdi Magazine s runner up in the Top Large European City for Business Friendliness come and see for yourself. TO FIND OUT HOW INVEST GLASGOW CAN SUPPORT YOU, CONTACT: invest@glasgow.gov.uk investglasgow.com @invest_glasgow Invest Glasgow +44 (0) 141 287 8616