FSP RETAIL BUSINESS CONSULTANTS

FSP - Services

FSP Job Description

FSP RETAIL BUSINESS CONSULTANTS

TO CREATE AND HELP IMPLEMENT RIGOROUSLY RESEARCHED STRATEGIES THAT WILL INCREASE THE VALUE OF CLIENT RETAIL ASSETS

Client Benefits Optimise sales and rent by:

Identifying and exploiting market opportunities

Growing tenant sales

Analysing retailer sustainability

Strengthening retail/F&B/leisure mix

Retail insight across all project and implementation areas

Standardised approach

Informed by wide range of benchmarked data

Operational across shopping centres, retail parks, outlet and leisure schemes, high street units

Applicable across Europe and UK

FSP RETAIL BUSINESS CONSULTANTS

FSP Clients

FSP RETAIL BUSINESS CONSULTANTS 4

Leading institutions, developers, property companies and retailers including:

FSP Services

FSP RETAIL BUSINESS CONSULTANTS

PRE-ACQUISITION & DUE DILIGENCE

OTHER SERVICES

IMPACT STUDIES

MARKET INTELLIGENCE

LEASING SUPPORT

STRATEGY

Maximising Research

FSP RETAIL BUSINESS CONSULTANTS 6

Source: FSP

Trading Gap Analysis

Marketing

Informs overall strategy

Asset Management

Where to spend money most effectively

Leasing Property Management

Merchandise categories most likely to succeed

Presents size of opportunity to prospective

tenant

Identifies underperforming

retailers

Pre Acquisition

FSP RETAIL BUSINESS CONSULTANTS 7

Report Overview Benefits Price

Town Profile Identifies size and characteristics of catchment. Benchmark against comparable towns

Low cost overview of location

£800

Catchment & Demographic Overview

Catchment map & penetration Resident & Shopper numbers and profile Detailed Resident demographic characteristics including ACORN SWOT Analysis of centre

Base data for asset assessment including consultant visit

£5,950

Detailed opportunity research

As above plus: Trading Gap analysis Retailer Sustainability analysis Overview of current & proposed competition Suggested Tenant Mix strategy

Strong foundation for defining future strategy and leasing. Retailer performance data can inform leasing, potential for rental uplift and rent event strategy

£11,950

Vulnerable Viable Thriving

Cor

pora

te R

isk

Unit Risk

Very Worrying

Head Above Water

Healthy

M&S

21%

15%

3%

19%

17%

6%

8%

6%

5%

Starbucks

PandoraGames Workshop

Monsoon

Office

Boots

Clarks

Ernest Jones

River IslandWaterstones

New Look

Holland & Barrett

Herbert Brown

Nando's

Subway

CineworldApricot

Superdry

Charles FishH. Samuel

Ann Summers

Cargo

The Fragrance Shop Zara

Claire's

House of Fraser

F.HindsJones Bootmaker

Blue Inc.Linens Direct Clintons Beaverbrooks

H&M L'OccitaneYO! Sushi Thorntons

Mothercare

Gap

Lush

BhsHMV

Muse

Build A Bear Workshop

Two SeasonsBijou Brigitte

Next

Zizzi

Retailer Sustainability

FSP RETAIL BUSINESS CONSULTANTS 8

FSP uses a bespoke methodology to determine the sustainability of each retailer within a centre in terms of both corporate and individual unit risk.

Corporate Risk

Refers to the level of risk associated with the business overall

Unit Risk

This refers to the health of a particular retail unit.

Source: FSP

Retailer Sustainability - Centre Plan

FSP RETAIL BUSINESS CONSULTANTS 9

Source: FSP/GOAD

An example of a sustainable rent plan is shown, classified by unit risk – Vulnerable, Viable or Thriving.

FSP’s Leasing Support Service: Provides an independent view of the market opportunity

Provides a more professional approach to the occupier Improves the effectiveness of leasing (saves wasted time and effort and gets results) Recommended by leading retail agents (e.g. JLL, Cushman & Wakefield, DTZ, CBRE)

Identifies and focuses upon key location strengths for the specific occupier Extends the range of relevant information passed to the occupier Communicates the realistic opportunity in a manner the occupier can understand Outputs Include;

Generic Summary Documents & Presentations Occupier Specific (Bespoke) Summary Documents & Presentations Occupier Sales and Rent Estimates Profit & Loss Accounts

FSP RETAIL BUSINESS CONSULTANTS 10

Leasing Support

FSP RETAIL BUSINESS CONSULTANTS

Output Examples

Trading Gap By ACORN Group – Market Share Gap

FSP RETAIL BUSINESS CONSULTANTS 12

-

1

2

3

4

5

6

Mar

ket S

hare

Gap

(£m

)

Primary Secondary Tertiary

Source: FSP/CACI

Under-Performing Zones

FSP RETAIL BUSINESS CONSULTANTS 13

Absent Retailers - General The recruitment of a selection of the below absent retailers would assist in improving Carlisle’s retail mix and achieve a higher market share.

FSP RETAIL BUSINESS CONSULTANTS 14

Source: FSP

Personal Leisure F&BAmerican Apparel Lipsy Bags ETC. Build-a-Bear Workshop* Ask Italian*

ARK Oasis* Beaverbrooks* Entertainer, The* Bella ItaliaBravissimo Office Crabtree & Evelyn* Evans Cycles Burger King*

Coast* Pavers* L'Occitane Paperchase* Cafe Rouge*Duffer Menswear Phase Eight* Savers* Scribbler Carluccio's*

Dune* Primark* Druckers Vienna Patisserie*East* Schuh Household Food EAT

French Connection* Select Cargo* Booths Supermarkets GiraffeGap Shuropody* Castle Galleries Co-operative Food* Handmade Burger Company

Gerry Weber Superdry* Clas Ohlson Hotel Chocolat* Harry Ramsden's*

JoJoMaman Bebe USC Fired Earth* Mr Simms Olde Sweet Shoppe Jimmy's World Grill & Bar

Jones Bootmaker* Wallis* Laura Ashley* Krispy KremeRobert Dyas* La Tasca

Pret a Manger*West Cornwall Pasty*

Zizzi*

Clothing & Footwear

Sample P&L Summary

FSP RETAIL BUSINESS CONSULTANTS

Table 2: P&L Analysis for Jones, Unit 6, Sample Centre

Year 1 Year 2 Year 3 Commentary

Gross Space ft2 1861 1861 1861 Selling Space ft2 1117 1117 1117 Productivity £ft2 535 567 584 Assumes 6% increase Year2, 3% Year 3

£ % £ % £ %

Gross Sales 597595 633451 652454 Net Sales 497996 100.0 527876 100.0 543712 100.0 Assumes VAT at 20% Gross Profit 258958 52.0 274495 52.0 282730 52.0 Estimated Gross margin

Occupancy

Rent 59760 12.0 63345 12.0 65245 12.0 Actual rent Rates 32292 6.5 32776 6.2 33268 6.1 Estimate Service Charge 7500 1.5 7613 1.4 7727 1.4 Estimate Heating/Lighting 4965 1.0 5041 1.0 5118 0.9 Estimate Insurance and repairs 4063 0.8 4124 0.8 4187 0.8 Estimate

Employment 79128 15.9 80333 15.2 81557 15.0 Employment cost includes NI, pension, benefits, recruitment and training Promotion 3165 0.6 3213 0.6 3262 0.5 Administration 2638 0.5 2678 0.5 2719 0.5 Depreciation 25529 5.1 25529 4.8 25529 4.7 7 year average life of shopfittings

Total Branch Costs 219039 44.0 224652 42.6 228611 41.9

Branch Contribution 39919 8.0 49843 9.4 54119 10.0 Gross Profit less total branch costs HO Cost 26376 5.0 26778 5.0 27186 5.0 Branch contribution to Head Office costs

Profit Contribution 13543 2.7 23065 4.4 26933 5.0 Branch profit contribution after Head Office costs

F&F Cost - 50% 89350 89350 89350 F&F costs @ £140ft2 selling plus £30 ft2 non-selling Average stock 74699 79181 81557 Assumes stock turn is 3.2 times per annum Trading Assets 164049 168531 170907 F&F plus average stock

ROTA 8 14 16 Profit contribution as percentage of Trading Assets - FSP model 25%

FSP Retailer Database

FSP RETAIL BUSINESS CONSULTANTS

Testimonials

FSP RETAIL BUSINESS CONSULTANTS

“Manchester City Council have worked with FSP over the last year to understand the City Centre's shopper audience, who they are where they come from, how the profile evolves throughout the year and how we can attract more shoppers to Manchester. The depth of understanding that FSP have provided in terms of Manchester's catchment has helped inform our marketing, regeneration and growth strategies for the City Centre. Their consultative approach really got to the heart of the issues involved in a complex area and helped to facilitate partnership working across different Council departments and external stakeholders. I look forward to continue our working relationship with them in the future” Peter Richards, Insight & Planning Manager- Manchester City Council “FSP is a long standing consultancy partner to L&G, providing clear, concise, insightful research to our Asset teams. Their work helps us understand the interaction of our shoppers and retailers to ensure the optimum investment performance of our assets” Bill Hughes, Managing Director - Legal & General Property “FSP's clear advice on market strategy has had a direct impact on our approach” Mark Gregory, Managing Director - Clas Ohlson UK “FSP has made an effective and valuable contribution to the development of the business and will continue to help us to deliver the full potential of Princes Mall.” Andrew Glasgow, Director – Premier Property Group “We have worked with FSP over a number of years and naturally get their analysis and opinion before making major retail property investment decisions”

Bill Benjamin, Managing Director - AREA Properties Partners (UK) Ltd “I am very pleased to have given the approval to the research as this really does appear to me to be money well spent” Robert Wood, Fund Manager, Continental European Real Estate

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FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE

T +44(0)1494 474740 F +44(0)1494 474262 fspretail@fspretail.com

www.fspretail.com www.snap-shop.co.uk