Verdict on the High Street 2005

Table of Contents
KEY FINDINGS ...........................................................................................................................1
MAIN CONCLUSIONS ..............................................................................................................2
MARKET ANALYSIS .................................................................................................................4
MARKET DEFINITIONS....................................................................................................................4
Table 1: Retail location definitions 2005................................................................................4
HIGH STREET SUMMARY................................................................................................................5
Figure 1: Landscape for High Street retailers 2005.............................................................5
Table 2: High Street sales, space and stores 1994, 1999 & 2004.....................................6
MARKET DATA ANALYSIS.....................................................................................................7
RETAIL SPENDING BY LOCATION....................................................................................................7
Table 3: Retail spending by location at current prices 1994-2004.....................................7
Figure 2: Share of total retail sales by physical location 1994-2004 .................................8
Figure 3: Growth of retail sales by location 1994-2004 .......................................................9
HIGH STREET SALES AND SOURCES OF GROWTH .....................................................................10
Table 4: Sales through high street retailers 1994-2004....................................................10
Table 5: Sources of growth for high street retailers 1994-2004 ......................................10
STORE NUMBERS BY LOCATION..................................................................................................11
Table 6: Store numbers by location 1994-2004.................................................................11
FLOORSPACE BY LOCATION ........................................................................................................12
Table 7: High street floorspace vs all stores 1994-2004 ..................................................12
SALES DENSITIES BY LOCATION .................................................................................................13
Table 8: Sales densities by location at current prices 1994-2004..................................13
Figure 4: Sales densities by location 1994-2004...............................................................13
HIGH STREET SPACE..................................................................................................................14
Table 9: High street space by location 1994-2004............................................................14
Figure 5: Space growth by location year-on-year 1994-2004..........................................15
RENTS ........................................................................................................................................16
Figure 6: Growth in high street vs OOT rents1 1994-2004...............................................16
Table 10: Annual high street rental growth at current prices 1 1994-2004.....................17
HIGH STREET SECTORS..............................................................................................................18
Table 11: High Street sales and share of sector 2004......................................................18
BOOKS, NEWS & STATIONERY....................................................................................................19
Table 12: Books, news & stationery specialists on the high street
1994, 1999 & 2004...............................................................................................................19
CLOTHING & FOOTWEAR .............................................................................................................20
Table 13: Clothing & footwear on the high street 1994, 1999 & 2004............................20
DEPARTMENT STORES ................................................................................................................21
Table 14: Department stores on the high street 1994, 1999 & 2004..............................21
ELECTRICALS ..............................................................................................................................22
Table 15: Electricals specialists on the high street 1994, 1999 & 2004.........................22
FOOD & GROCERY......................................................................................................................23
Table 16: Grocers and food specialists on the high street 1994, 1999 & 2004............23
FURNITURE & FLOORCOVERINGS ...............................................................................................24
Table 17: Furniture & floorcoverings specialists on the high street
1994, 1999 & 2004...............................................................................................................24
HEALTH & BEAUTY ......................................................................................................................25
Table 18: Health & beauty specialists on the high street 1994, 1999 & 2004..............25
STRATEGIC ISSUES .............................................................................................................26
Figure 7: Strategic issues influencing the high street 2005.............................................26
SLOWDOWN IN CONSUMER DEMAND..........................................................................................27
Table 19: Demand side factors impacting the high street 2005......................................27
HIGH STREET SHAKEOUT............................................................................................................28
Table 20: High street casualties January-May 2005.........................................................28
RISING OCCUPANCY COSTS .......................................................................................................34
PLANNING AND LEASE REFORM..................................................................................................35
COMPANY DATA ANALYSIS ..............................................................................................38
HIGH STREET SALES...................................................................................................................38
Table 21: Key retailers turnover record (ex-VAT) 1995-2005..........................................41
Figure 8: Key retailers high street stores sales growth 2004 on 1999 ..........................42
Figure 9: Key retailers high street stores sales growth 2004 on 2003...........................43
Figure 10: Key retailers % share of high street sales 1994, 1999 and 2004................44
PROFITS & MARGINS...................................................................................................................45
Table 22: Operating profit 1995-2005..................................................................................45
Figure 11: High street retailers change in operating profit 2004 on 1999......................46
Figure 12: High street retailers change in operating profit 2004 on 2003......................47
Table 23: Operating margins 1995-2005 ............................................................................48
Figure 13: Operating margins of clothing specialists and department stores
1994-2004 ..............................................................................................................................49
Figure 14: Operating margins of household goods and other retailers 1994-2004......50
STORE PORTFOLIO......................................................................................................................51
Table 24: Leading high street retailers selling space (000 sq ft) 1995-2005................52
Figure 15: Space growth of high street retailers 2004 on 1999......................................53
Figure 16: Space growth of high street retailers 2004 on 2003......................................53
Figure 17: Key retailers share of high street space 1994, 1999 and 2004....................54
Table 25: Leading high street retailers store numbers 1995-2005.................................55
Figure 18: Change in store numbers 2004 on 1999..........................................................56
Figure 19: Change in store numbers 2004 on 2003..........................................................56
Figure 20: Average store size 1994, 1999 and 2004........................................................57
SALES DENSITIES.......................................................................................................................58
Table 26: Sales densities 1995-2005 ..................................................................................58
Figure 21: Sales density growth of high street stores 2004 on 1999.............................59
Figure 22: Sales density growth of high street stores 2004 on 2003.............................59
ADVERTISING MEDIA EXPENDITURE............................................................................................60
Table 27: High street retailers advertising expenditure breakdown 2004......................60
Table 28: High street retailers advertising expenditure 1999-2004................................61
Figure 23: Advertising expenditure as a percentage of sales � household goods and
other retailers 2000-2004....................................................................................................62
Figure 24: Advertising expenditure as a percentage of sales � clothing specialists and
department stores 2000-2004................................................................................................63
Figure 25: High street retailers advertising expenditure breakdown 2004 ....................64
VERDICT�S TOP 100 UK HIGH STREETS AND COVERED MALLS...........................65
INTRODUCTION ............................................................................................................................65
METHODOLOGY ...........................................................................................................................65
Table 29: Weighting of Top 100 factors 2005 ....................................................................65
TOP 10.......................................................................................................................................68
Figure 26: Top 10 high Streets and covered malls 2001-2005.......................................68
Figure 27: Top 10 retail locations in the UK 2005.............................................................69
TOP 10 COVERED MALLS ...........................................................................................................71
Table 30: Top 10 OOT covered malls 2005.......................................................................71
TOP 10 GAINERS........................................................................................................................72
Figure 28: Top 10 Verdict score gainers 2005...................................................................72
TOP 100.....................................................................................................................................74
Table 31: Verdict�s Top 100 UK shopping centres 2005..................................................74
GREATER LONDON ......................................................................................................................76
Table 32: Greater London key statistics 2005....................................................................76
Figure 29: Key retail locations in Greater London (11) 2005...........................................77
SOUTH-EAST..............................................................................................................................78
Table 33: South-East key statistics 2005............................................................................78
Figure 30: Key retail locations in the South-East (24) 2005............................................80
SOUTH-WEST.............................................................................................................................81
Table 34: South-West key statistics 2005...........................................................................81
Figure 31: Key retail locations in the South-West (10) 2005...........................................82
WALES........................................................................................................................................83
Table 35: Wales key statistics 2005....................................................................................83
Figure 32: Key retail locations in Wales (4) 2005..............................................................84
WEST MIDLANDS........................................................................................................................85
Table 36: West Midlands key statistics 2005.....................................................................85
Figure 33: Key retail locations in the West Midlands (10) 2005......................................86
EAST MIDLANDS.........................................................................................................................87
Table 37: East Midlands key statistics 2004......................................................................87
Figure 34: Key retail locations in the East Midlands (6) 2005.........................................88
EAST ANGLIA..............................................................................................................................89
Table 38: East Anglia key statistics 2005...........................................................................89
Figure 35: Key retail locations in East Anglia (4) 2005.....................................................90
YORKSHIRE & HUMBERSIDE........................................................................................................91
Table 39: Yorkshire & Humberside key statistics 2005 ....................................................91
Figure 36: Key retail locations in Yorkshire & Humberside (8) 2005..............................92
NORTH-EAST & NORTH-WEST ...................................................................................................93
Table 40: North-East & North-West key statistics 2005...................................................93
Figure 37: Key retail locations in the North-East (5) 2005...............................................95
Figure 38: Key retail locations in the North-West (9) 2005 ..............................................96
SCOTLAND..................................................................................................................................97
Table 41: Scotland key statistics 2005................................................................................97
Figure 39: Key retail locations in Scotland (8) 2005..........................................................98
NORTHERN IRELAND ...................................................................................................................99
Table 42: Northern Ireland key statistics 2005...................................................................99
OUTLOOK ........................................................................................................................100
HIGH STREET SUMMARY...........................................................................................................100
Table 43: High street summary data 1999, 2004 & 2009...............................................100
Table 44: High Street vs total retail spending 1994-2009 ..............................................101
Figure 40: Retail spending growth vs high street sales 1994-2009..............................101
HIGH STREET SECTORS............................................................................................................102
Table 45: High street sales by sector 1994, 1999, 2004 & 2009 ..................................102
Table 46: High street space by sector 1994, 1999, 2004 & 2009.................................102
Figure 41: Percentage share of high street sectors 2004 ..............................................104
Figure 42: Percentage share of high street sectors 2009 ..............................................104
Figure 43: % change in sector share of high street sales 2004-09..............................105
STRATEGIES FOR SUCCESS......................................................................................................106
Figure 44: Strategies for success � value-led retailers 2005.........................................106
Figure 45: Strategies for success � mass market retailers 2005..................................107
Figure 46: Strategies for success � niche retailers 2005...............................................108
HIGH STREET DEVELOPMENT...................................................................................................109
Figure 47: New scheme openings m sq ft 2005-2010 ....................................................109
Table 47: Shopping centre developments (major schemes only � gross
retail space sq ft) 2005-2008............................................................................................110
Table 48: Shopping centre developments (major schemes only � gross retail
space sq ft) 2009-2010.....................................................................................................111
GLOSSARY ........................................................................................................................112