Weekly Retail & Leisure News - 12 December, 2016
LFLs were up 0.6% in November according to the BRC, a marginal slowdown on
October’s strong sales. Overall spend increased 1.3% YoY driven by food sales,
which were up 1.5%. Black Friday weekend drove online sales growth of 10.7% on
a three monthly basis, while overall in-store sales declined 0.8%.
As Black Friday shoppers continued to turn online for their bargains this year,
footfall suffered a 1% decline in November, according to the BRC, following a
0.9% drop registered in October. Footfall on high streets dropped 0.7%, while
shopping centre footfall fell 2.3% YoY, down for the 10th
consecutive month. Retail Parks saw a 0.1% drop in their out-of-town locations
across the UK, while a 0.8% drop was seen in Greater London.
Prime locations, however, continue to demonstrate resilience, as the right
physical space combined with the appropriate digital offer is vital for strong
retailer performance. Despite drops in footfall and economic uncertainty, high
street rents across the UK and continental Europe are expected to show strong
growth until 2018 at 4.4% a year. JLL’s most recent European property forecasts
indicate that a number of UK cities are to be among the strongest performers,
including London and Edinburgh. As stores are becoming increasingly important
for brand experience and consumer service, retailer demand remains focused on
top-tier locations that continue to demonstrate resilience. Recent examples
include Mulberry, who will be taking some of the space at the former Austin
Reed store on London’s Regent Street, English Cut, & Other Stories and Dr
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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