Future of Town CentresNick Sewell, Director, NewRiver RetailPaul Wright, Director, NewRiver Retail

Place North West Retail Conference, City Tower, Piccadilly, ManchesterWednesday 27 November

Overview

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• An Introduction to NewRiver Retail• Death of the High Street?• The Counter Narrative

Consumer Discretionary vs. Non-discretionary Spend

• Re-Defining the High Street• Community, Partnership, Innovate, Invest• Case Studies

Leamington Spa Locks Heath Wallsend

• Conclusion

950 occupiers

NewRiver in Numbers

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£450 million assets under management

3.8 million sq. ft.

105+ million shoppers pa

24 UK-wide shopping centres

96% average occupancy

rate

New Look, Primark,

Co-operative, Superdrug

Tesco

Average purchase yield c. 9%

UK’s 4th Largest Shopping Centre Owner/Manager

Death of the High Street?

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Some High Streets are Underperforming

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There are too many shops and obsolete stock

Chronic under-investment

Decentralisation of towns - out-of-town retail and business parks

Competition

Property taxation

Inadequate parking

Some locations will not recover

High Street decline is symptomatic of poor performing Town

Centres

A Thriving town matters hugely; they are our economic and social

hearts

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The Counter Narrative

• Retail spend remained resilient

• Winners & Losers

• Food & grocery expenditure is capturing circa

45% of total sales .

• Retail spend remains resilient

• Positive annual growth between 2007 to 2012

• Recovery mode

• Population growth

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Retail Market

Town Centre

42%

Neighborhood16%

Out of Town Food23%

Out of Town

Non-Food9%

Bricks & Mortar Online

4%Pure play

2%

Catalogue & TV Shopping

4%

Retail Spend by Retailing Destination • Town centres capture 58% spend

• Non-store retail remains a small channel

• The cost of free delivery is unsustainable.

• Primark, Aldi, Poundland – stellar results

• Not bricks vs. clicks – multi-channel

• Out of town food remains a significant threat

Source: Verdict

Retail Market: Offline Spend Growth

2.40.9

-1.50.4 -0.4 -0.4 0.5 1.2 1.7 2.0 2.1

33.5

23.8

16.9 17.315.1 14.9 13.3 11.9

9.37.7 7.5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Retail growth exc online sales Online sales growth

Spending growth online

Spending growth offline

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Change in sector expenditure £m 2007-11

Source: Verdict

The Consumer – Not just king but centre of the Universe

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Defining consumer behaviour: Polarisation of retail

Discretionary vs. non-discretionary

More informed.

More competition

Value, convenience, lifestyle

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Complex Range of Issues

• Convenience

• Clean, attractive, safe

• A broad range of services – community, housing, health

• The growing importance of Localism

• Markets / pop-up shops

• Lifestyle

Re-Defining the High Street – Its not just about retail

Community, Partnership, Innovate, Invest

• Collaboration on town strategy

• Economic partnership

• Investing in your town centre

• Relieve the burden of property taxation

• Embrace technology

• The heart of the community

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Conclusion

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UK Retailing Remains Resilient

• Retail is alive and kicking

• The consumer is more than just King

• Joined up thinking between key stakeholders

• Hands on asset management

• Investment is key

• Strong town centres = strong retail destinations

Discover more about NewRiver & the true value of retail

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Nick SewellExecutive Directornsewell@nrr.co.uk

Paul WrightDirectorpwright@nrr.co.uk

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